New Study Shows Minimum Wage Has Boosted Pay For Self-Employed A new study by The Resolution Foundation & The Independent has discovered that the minimum wage has not had a negative impact on employment. It has instead, helped push up the wages of self-employed workers, according to their research.
Some economists have warned that raising the minimum wage would push more workers into self-employment because employers would seek to avoid paying it. The Resolution Foundation found that while there did appear to be a correlation between increases in the minimum wage and rising self-employment, wages also increased for self-employed people even though they are not entitled to be paid the legal minimum.
Minimum wage is the amount workers are entitled to in the UK, although how much you get depends on your age. But while the national limits are legally binding, they can be hard to enforce. Anyone who thinks they are not getting the minimum wage should complain to their employer in the first instance.
The think tank’s report says that instead, self-employment has grown fastest in some higher-paying sectors like finance and publishing, while it has fallen in some low-paying sectors like food and drinks services, as well as agriculture, caring and sales occupations.
Much like employee pay, self-employed earnings have grown fastest at the bottom since the introduction of the minimum wage 20 years ago. Today, the most common hourly pay rate for self-employed workers is the same level as the national living wage.
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