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Highest contractor pay rates in 7 years

Paystream News

Michelle Derungs

Wednesday 22nd Oct, 2014

Pay rates for contractors have a reached a 7 year high according to new research.

A recent study by the Recruitment and Employment Confederation (REC), found that pay rates for umbrella and limited company contractors increased dramatically over the previous month. The research further indicated that rates such as these had not been seen as high since 2007, well before the recession took a hold on the British economy. These figures support a more optimistic future for contractors, highlighting how the UK economy is on its continued path to steady recovery.

The REC also found a significant increase in permanent employees pay rates emphasising that they too have improved on the whole in the previous month. This is a positive improvement from previous months, for which permanent employee pay was lagging in contrast to that of contractors.

Irrespective of permanent employee pay rates, the future for limited and umbrella company contractors continues to look bright. Chief executive of the REC Kevin Green recently stated that "hourly pay for people on temporary contracts has risen at the fastest pace for nearly seven years, which shows that employers are bringing in temps and contractors with the skills they need quickly and are willing to pay to do so."

2014 looks set to finish on a high note for contractors. The lures of flexible working and higher pay rates paired with the increasing demand for skilled workers are likely to see a growth in the number of UK based contractors.

Whether you are new to contracting or not, it is both time and cost effective to ensure you are using a credible and complaint payroll and accountancy service provider such as PayStream. More information regarding our services can be found here.

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