24th November 2011

Private sector could offer contractor pay boost

In light of recent research, workers could find that contractor pay is higher in the private sector than the public sector.

Conducted by the TUC, the study found that skilled positions that required the employee to have a degree are better paid in the private sector. Indeed, individuals earned around 4.7 per cent more here than their counterparts in the public sector.

However, the same was not true for low-skilled positions, which were better paid in the public sector by about 3.2 per cent.

According to Brendan Barber, general secretary of the TUC, it is difficult to make a direct comparison, but the study used annual pay statistics to determine the results as accurately as possible.

He added that it is still true that there are fairer pay and benefits systems in place in the public sector, with a better chance of receiving a decent pension, for example.

However, “high-flyers with degrees can expect to earn less in the public sector, lower- skilled and lower-paid staff can expect a better deal in the public sector," said Barber, so contractors might want to look closely at their skills and consider if they could be getting a better deal in a different sector.