A minimum wage worker would need to work 380 hours a week to match top earner

A minimum wage worker would need to work for 380 hours a week to match the annual salary of someone at the 99th percentile, according to research by the Resolution Foundation.

A minimum wage worker would need to work for 380 hours a week to match the annual salary of someone at the 99th percentile, according to research by the Resolution Foundation.

An analysis of how the minimum wage compares to the hourly wages received by those higher up the earnings distribution found that

 

Figure 1 above shows the gross hourly wage at different points in the hourly earnings distribution: the National Minimum Wage from October 2012 and the new rate from October 2013, and at the 50th (the median), 70th, 90th and 99th percentiles. The earnings distribution considered here relates to the gross hourly wage received by full-time employees as recorded in the Annual Survey of Hours and Earnings (ASHE). This measure excludes overtime but includes any bonus payments or incentive pay received in the reference pay period. (Resolution Foundation).

A full-time worker halfway up the earnings scale will receive about twice the wage of a minimum wage worker – just under £13. The employee who is situated 70 per cent up the hourly wage distribution would receive an hourly wage around three times greater than the minimum wage – just over £17.

For a worker at the 99th percentile, the disparities are even considerably larger. In 2012 the p99 gross hourly wage was £59.31. According to the Resolution Foundation, someone on this wage working 40 hours a week for 52 weeks per year would take home around £123,365 per year. After October 2012 the minimum wage rose to £6.19 per hour, equivalent to an annual full-time salary of £12,875. Therefore the p99 worker earns almost 10 times as much per hour as a minimum wage worker.

Earlier this week the government announced that the minimum wage would rise to £6.31 from October 2013. This was the fourth straight annual fall in the real value of the minimum wage once inflation is taken into account.

54 Responses to “A minimum wage worker would need to work 380 hours a week to match top earner”

  1. Rayne

    Loving the tax argument in the comment below.
    Because the average person on minimum wage can afford to pay £2000 in tax!! £2000 that could ultimately be used to better effect the economy of the country…

    The 99% worker rarely pays the tax they should, shall we get into the tax dodging scandal or leave it at the fact that poor people are always going to be poor and rich people are always going to sit and piss about poor people being poor.

  2. Rayne

    Loving the tax argument in the comment below.
    Because the average person on minimum wage can afford to pay £2000 in tax!! £2000 that could ultimately be used to better effect the economy of the country…

    The 99% worker rarely pays the tax they should, shall we get into the tax dodging scandal or leave it at the fact that poor people are always going to be poor and rich people are always going to sit and piss about poor people being poor.

  3. disqus_38IDJJKZnf

    Rayne, I have been a payroll manager, and I can assure you that the 99th percentile earner on £123k per annum is NOT earning enough to take advantage of the tax loopholes if they are paid within the PAYE system. Self-employed people have more opportunity to shield earnings from tax by legitimate means, but the big tax avoidance is done by the REALLY high income brackets, those who own their wealth in companies, trusts and funds.

  4. bennylee 123

    You sound like a right tWat if the poor people didn’t pay there taxes this country would go under who does all the chappy jobs certainly not you by sounds of it there more poor than rich people in every country so just remember that if you get robbed or in am accident who do you call the poor earners ie police nurses ect are all under paid so yeah you should pay more tax and stop avoiding it as you pay financial adviser to hide your money we can’t even afford to pay one the rich or the ones who bankrupted this country trying to make bigger bank bonuses at what cost every one else’s we all suffers and took all our taxes to bail you out when you go bankrupt you keep the yaught the Bentley s and big houses we go bankrupt we are on the streets big difference eh

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