The state of self-employed incomes doesn’t seem to be getting any better. Research published by the Social Market Foundation yesterday found that the proportion of low paid self-employed, based on both hourly and monthly earnings, has increased significantly since the recession.
Around 55 percent of the self-employed have monthly incomes that are less than two-thirds of median employee earnings.
This, says the SMF, is only going to get worse once the National Living Wage comes in. The self-employed are not covered by the NLW so, as the NLW rate rises, the gap between the self-employed and employees will increase. By the end of the decade, the SMF calculates that over half the self-employed will be on hourly rates below the minimum wage.
The research also found that a majority of the low paid self-employed don’t have any income from other sources and even where they do, most don’t have very much. Some of the self-employed might…
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