Contractors can earn more than double the national average salary
With the buzz of last weeks National Freelancers Day still in the air, contractors will be interested to hear that a new report has found that the average self-employed worker can earn more than double the national average salary.
The new research, carried out by Boox, surveyed 1,000 British self-employed workers and found that the average annual contractor take home pay is £50,820, compared to the national average of £26,093.
Commercial Director at Boox, Phillip Venn, said, “This report really lays bare the remarkable changes happening in the self-employed sector. Self-employed workers now account for 14% of the UK workforce, a 20-year high.”
He added, “The economic climate has forced a lot of people out of work and many have used the opportunity to set up business for themselves. Ironically, this employment shift has become one of the positive drivers in the stuttering economy.”
One of the main reasons behind contractors earning double the national average salary may be down to the fact that they are such hard workers, as the report also found that 59% of freelancers frequently work at the weekends and 15% work at least 35 weekends a year.
They also work longer hours, with 40% saying they work longer than the average 41 hours per week and 15% admitting to investing more than 51 hours into their work.
According to the study, many contractors have also been found to not give themselves a proper holiday, with 24% not taking any annual holiday at all, and 45% working whilst away.
Dr. John Glen, senior lecturer in Economics at Cranfield School of Management, said of the Boox report, “Becoming self-employed can enable workers to earn more money than they might in permanent employment.
Employers value the skills and expertise this diverse group of workers bring to an organisation. The rise in the number of self-employed workers is also beneficial for government because it is a key driver of wealth creation, employment and diversity.”