Following a recent report, a UK-wide analysis revealed that despite the different regional variations in pay, it is still financially better to work as a contractor, rather than a full-time and permanent employee.
The report carried out by the Parasol Group found that, unsurprisingly, Greater London was the best area for freelancers and umbrella contractors to earn the most money, with an average annual contractor salary standing at almost £66,000.
Northern Ireland was found to be the worse area with £13.53 being the average hourly rate, which equates to an annual gross salary of £23,847. However, this is still a better rate than what the full-time permanent staff receives in the same area, which equates to around £21,949.
Despite a year on year fall in rates for both freelancers and umbrella company contractors (£32.39 in 2012 compared to £33.12 in 2011), the UK’s flexible workforce continues to earn more than the regional average.
Derek Kelly, Managing Director of the Parasol Group, said, “I think the regional variations in the average annual salary of umbrella company freelancers and contractors gives us a really interesting snapshot of the UK economy as a whole.
“It comes as no surprise that London and the South East lead the way when it comes to gross salaries however Welsh contractors and freelancers do seem to have more earning power than the regional average for permanent workers suggests.
“What this report does show is the continued valuable contribution the UK’s flexible workforce is making both in terms of the skills and the experience they offer UK PLC, as well as the tax revenue generated by their earning power.”