Freelancers and contractors are being warned they could see a two-year freeze on pay rates.
According to a report from Association of Independent Professionals and the Self-Employed (IPSE), many independent workers feel there may not be a significant rise in their income over the coming year.
Three occupational groups of freelancers are predicting a 3.5 per cent rise by the end of 2018 and this follows a three per cent decrease in rates last year.
This is the view of three freelance groups – professionals, managers and associate professionals.
“Freelancers’ income has also fallen by three per cent since the same quarter last year, and they expect it will grow by just 3.5 per cent in 2018,” said IPSE’s confidence report.
“This may suggest that freelancer nominal income growth will have been close to zero for the two-year period 2017 and 2018 (and real income will have in fact declined).
“Input prices (the cost of doing freelance business) are expected to rise by around ten per cent over the next year, which, taken with almost flat earnings, will mean a squeeze on freelancers’ profit margins.”