City workers are enjoying healthier bank balances as basic salaries continue to rise.

The average salary in the City of London has increased by 3.7% from £43,445 to £45,046 since December 2003, according to the latest figures from Morgan McKinley’s London Employment Monitor.

Support and administrative staff saw the biggest salary increases (13.8%) in 2004, followed by middle market professionals (6.9%). At the senior end of the market, higher bonuses compensated for lower rises in basic salary.

Morgan McKinley chairman Ken Brotherston said that while salary levels would increase again this year, “overall salary pressure is reasonably under control as bonuses continue to hold significant weight in the make up of total compensation packages”.

The company estimates that there are currently 8,883 outstanding job vacancies in the City.