Freelance earnings outstrip employee salaries

Freelancers' average earnings have outperformed the average employee salary so far this year, according to the Association of Independent Professionals and the Self Employed (IPSE).

The Freelancer Confidence Index shows that freelancers earned an average £30,000 during Q1 2015. This is around 20% more than the average employee earns in a year.

Day rates have risen 1% over the first quarter of 2015, increasing from £525 in Q4 2014 TO £531. Most freelancers (56%) expect their day rates to remain at their current levels, while 27% think they will increase and 17% expect them to drop.

The index also revealed:

  • 17% reported increased revenue while 20% said their revenue has dropped.
  • 87% of freelancers had a contract at the time of the survey
  • 38% have seen an increase in their workload while 20% say their workload has fallen.

The report concludes:

"This performance stands in stark contrast to a common misconception that freelancing is a lower paid form of work. Looking ahead, freelancers have ended the first quarter of 2015 with far more optimism about the prospects for their businesses and the economy than they did at the end of 2014."

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