Most workers on zero-hours contracts are paid less than the national average wage

76 per cent of workers on zero-hours contracts in London, and more than a half outside the capital, earn less than the living wage (Getty Images)

The vast majority of workers on zero-hours contracts receive less than the average national rate of pay, according to a new analysis of wage levels.

The finding came a day after The Independent disclosed that the Royal Bank of Scotland is advising businesses across Britain to put employees on the controversial contracts.

Average hourly pay for employees on zero-hours contracts is £8.83, the research for the TUC discovered. That compares with £13.39 for permanent workers and £10.93 for agency staff.

It found that almost four in five (79 per cent) of employees on zero-hours contracts earn below the average for workers across Britain.

More than three-quarters (76 per cent) of workers on zero-hours contracts in London and more than a half outside the capital earn less than the living wage, which is currently fixed at £8.80 an hour in the capital and £7.65 elsewhere in the UK.

Frances O’Grady, the TUC general secretary, said: “For those at the bottom end of the labour market on zero-hours contracts the struggle for a fair day’s work for a fair day’s pay has intensified. We need decent jobs and fair pay for a sustainable recovery.

“The UK has a low pay problem and we are in danger of creating a recovery based on low-paid and insecure employment.”