Wednesday, October 26, 2016

ONS says that earnings are rising fastest for the low-paid

The Office for National Statistics (ONS) says that over year to April 2016 earnings have risen fastest among the lowest paid, apparently due to the introduction of higher minimum wage levels.

Wages rose by 6.2% for the lowest paid UK workers, above the national average, thereby reducing wage inequality between April 2015 and early April 2016, the figures from the Office for National Statistics (ONS) indicate.

The pay gap between men and women has also shrunk slightly, it said.

Pay overall rose at its joint highest rate since the financial crisis, driven by wage rises in the private sector. Weekly earnings for full-time workers were 2.2% higher in April from a year earlier, or by 1.9% after inflation.
Despite the increases, the Resolution Foundation think tank points out that typical earnings still remain 6.8% below pre-financial crisis levels. The median average full-time worker was paid £539 a week - or £28,028 a year - before tax in April 2016.

In a sign of the growing "gig" economy - in which workers have a more flexible, short-term, sporadic work pattern - part-time earnings were up by 6.6%.

Generally, a worker in the highest paid 5% of employees saw a 2.5% rise in earnings in the year to April, but it was the lowest paid who have seen the fastest increase.

The National Living Wage (NLW) came into force on 1 April, requiring employers to pay workers aged 25 and over at least £7.20 an hour. This led to an immediate pay rise for 1.8 million workers.

Workers aged 21 to 24 have been paid the National Minimum Wage of £6.95 an hour since 1 October. Previously it was £6.70 an hour.

Hourly earnings, excluding overtime, for full-time jobs among the lowest-paid increased by 5.9% from £6.86 to £7.26 between 2015 and 2016.

1 comment:

Jim said...

Esso kept fuel prices "usually" "amongst" the "lowest" "in your area"

for years.