City salaries continue to increase with senior positions recording the largest rises, according to the latest Morgan McKinley London Employment Monitor.

Average salaries in September rose by 5.2% to £50,836 from the August 2005 figure of £48,336.

At the senior end of the market, salaries rose to £76,750, an increase of 8.6% on the previous month.

Robert Thesiger, chief executive of Morgan McKinley, said: “Overall, City basic salaries continue to climb upwards with the highest rises over the month occurring at the senior level.

“Over the next few months, this trend is likely to continue as financial services professionals await bonus payments before considering their move. This will place additional pressure on an already tight candidate market and in turn, may have an incremental effect on salaries.”

The Morgan McKinley salary figures are based on confirmed placements, with monthly new jobs and new candidates based on the firm’s permanent employment registrations.