Description
This research paper examines the most effective ways to increase worker take-home pay while supporting business productivity and providing greater certainty for employers. It challenges the assumption that removing overtime penalty rates is the best solution, presenting evidence that replacing overtime premiums with a tax credit is significantly more costly to government than directly reducing tax on overtime earnings.
Building on this finding, the paper explores ten evidence-based alternatives that can improve employee income, strengthen workforce participation, and enhance output per hour without shifting costs onto employers or taxpayers unnecessarily. Ranked by the strength of supporting evidence, the recommendations offer practical insights for policymakers, business leaders, and industry stakeholders seeking more efficient approaches to wage growth, productivity, and economic performance.
Ideal for employers, economists, policymakers, and anyone interested in labour market reform, this paper provides a clear, research-driven analysis of options that can deliver better outcomes for workers, businesses, and the broader economy.
