Tech salaries in London are lagging behind other cities across the globe with the average salary dropping more than 17 per cent since 2015, a new report suggests.
Compiling data from 10 US cities including San Francisco and New York, as well as Toronto, Paris and London, recruitment platform Hired found the global average tech salary is $135,000 (£97,000).
Salaries were highest in the home to Silicon Valley, the San Francisco Bay Area ($142,000), and lowest in Paris ($56,000).
London ranked one spot above Paris with tech workers, which Hired defined as roles in software engineering, design, product management and data analytics, earning an average of $78,000, or £58,000.
UK salaries failed to keep up with the inflation rate of 2.8 per cent, growing just 1.24 per cent over the past year. Meanwhile, in the US, tech salaries in San Francisco and New York rose by five per cent over the last 12 months.
Software engineers in London were found to make 42 per cent less than those in San Francisco, even when factoring in the cost of living.
Mehul Patel, the chief executive of Hired, said lower salaries meant London was at a big disadvantage when trying to recruit top talent for UK roles.
In fact, candidates willing to relocate to London were offered about £12,000 more than local workers.
The drop in wages comes despite higher demand for tech workers. Mehul said this could partly be explained by the fact that software engineer roles are not bigged up as much in the UK compared to the US, where he said everyone wants to be the next Mark Zuckerberg. Competition for tech roles in the US is also much higher, as and wages in general are typically higher than the UK he said.
"There's no doubt it's a critical issue," Mehul said, adding that he hoped the study would move UK companies to break out of a period of stagnant wage growth.
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