Description

This indicator measures the proportion of employees earning less than the living wage in Scotland.

Source

The data for this indicator is gathered through the Annual Survey of Hours and Earnings (ASHE). The survey, carried out by the Office for National Statistics (ONS) annually, is based on a 1 per cent sample of employee jobs taken from HM Revenue and Customs PAYE records. Data on hours and earnings is gathered from employers and is treated confidentially. ASHE does not cover those who are self-employed or employees who were not paid during the survey reference period.

ASHE is the most detailed and comprehensive source of earnings data across the UK produced by ONS. The latest ASHE publication can be found at this link.

The Scottish Government also publishes more detailed analysis of Living wage information for Scotland, which can be found at this link.

Definitions

The Living Wage is an independently set hourly rate which is calculated according to the basic cost of living in the UK. The rate is normally set in the first week of November each year by the Living Wage Foundation. It is calculated by the Centre for Research in Social Policy at Loughborough University.

To calculate the percentage of employees earning less than the Living Wage, the number of employees earning less than the Living Wage is divided by the total number of employees. The figure for 2020 uses the Living Wage rate set in November 2019 of £9.30.

More on the Living Wage can be found at this link.

Criteria for Recent Change Arrow

• This evaluation is based on: any difference within +/- 1.5 percentage points of last year's figure suggests that the position is more likely to be maintaining than showing any change.
• A decrease of 1.5 percentage points or more suggests the position is improving;
• An increase of 1.5 percentage points or more suggests the position is worsening.