One of the more common labour market myths is that older workers invariably cost more to employ than younger workers. While this may be the case where an individual has been with an employer for a long time and seniority elements are included in their remuneration package, it is unlikely to be true where someone has been recruited once they are in their late 40s or 50s.

Figures from the ONS Annual Survey of Hours and Earnings (ASHE) for the 2nd Quarter 2008 show that the average gross hourly wage of both men and women aged 50+ was below that of their colleagues aged 25-49. The average gross hourly wage for men aged 50-64 was 4% lower and for women it was 1.5% lower.

Research by Paymaster.com, the payroll specialists, in 2004 found that within the ‘professions’ there was a substantial difference between the salaries of those in their 40s and those over 50. In accountancy, the salaries of those aged 50+ were on average 19% lower, in banking 25% lower and in ICT 30% lower.

(September 2009)