Wages decline at small firms amid national insurance hike

RECENT analysis indicates that wages for staff at SMEs (small and medium-sized enterprises) diminished towards the end of March, as these businesses struggled with the ramifications of Chancellor Rachel Reeves’ national insurance tax increases.

- MAURICIO ALENCAR

The Office for National Statistics recently released data showing wage growth across the UK economy has been over 5% every month since September of the previous year.

However, specifically, workers at smaller companies are feeling the effects of the government's £25 billion taxation measures.

This is highlighted by figures from the HR platform Employment Hero, which were provided exclusively to City AM, revealing a decline in median full-time pay across 105,000 SMEs.