Considering going permanent - how to go about salary negotiation

[Murder1]

I would suggest hourly rate X 1200 is a more reflective equivalent.

Even that sounds low, taking the following as an example £300pd contract working a 7 hour day

- (300/7) x 1200 = £51,428
- 300 x 240 = £72,000

I suggest the OP uses the following calculator to work it out
Contracting To Permanent Calculator - what salary do you need to earn the same as permanent?

[d000hg]

Given that my permie jobs paid in the high twenties when I started contracting in the £250-300/day range, equating £300pd with a salary of £50-70k sounds pretty crazy to me. It probably depends where you are, up here I don't think there are any developer roles paying that much! I reckon I'd be lucky to find a job paying £40k

[I just need to test it]

It's easily done but I'm confused.

Broadly speaking I see three strains of work here but is anyone drawing a distinction between 2 and 3?

1. Contractor
2. Perm at consultancy (requiring travel)
3. Perm at end-user (or consultancy requiring no travel).

If you're happy to live it up in hotels/airports/car journeys and so forth then choosing between 1 and 2 seems largely about money / rejuvenating your CV.

If you want a life and contracting doesn't allow you enough of one then it's between 1 and 3. And that seems far less about the money and far more about lifestyle changes.

Anyway. As you were.

[MattZani]

Given that my permie jobs paid in the high twenties when I started contracting in the £250-300/day range, equating £300pd with a salary of £50-70k sounds pretty crazy to me. It probably depends where you are, up here I don't think there are any developer roles paying that much! I reckon I'd be lucky to find a job paying £40k

Friend of mine, permie, Developer with more than 10 years of experience, takes around £40k

[TheFaQQer]

Given that my permie jobs paid in the high twenties when I started contracting in the £250-300/day range, equating £300pd with a salary of £50-70k sounds pretty crazy to me. It probably depends where you are, up here I don't think there are any developer roles paying that much! I reckon I'd be lucky to find a job paying £40k

I concur.

My last permie job paid mid-30k; my manager was probably on mid-50k. Contract rates for the same kind of thing are significantly higher than any of the "calculators" mentioned in this thread.

Ultimately, you find out what similar roles in similar locations are paying and go from there.

[malvolio]

Even that sounds low, taking the following as an example £300pd contract working a 7 hour day

- (300/7) x 1200 = £51,428
- 300 x 240 = £72,000

I suggest the OP uses the following calculator to work it out
Contracting To Permanent Calculator - what salary do you need to earn the same as permanent?

Sorry but that calculation takes no account of operating overheads: you are comparing a gross income to a net one. Someone on £40k a year actually costs around £80k to employ.

[I just need to test it]

How does the administrative cost of employing someone vary by their salary? NI contributions, perks (by grade presumably rather than salary)? Anything else?

[d000hg]

How does the administrative cost of employing someone vary by their salary? NI contributions, perks? Anything else?

Surely you can work out how much perks cost. And as for NI, have you heard of the internet? https://www.gov.uk/national-insuranc...ribution-rates

[Murder1]

Sorry but that calculation takes no account of operating overheads: you are comparing a gross income to a net one. Someone on £40k a year actually costs around £80k to employ.

I agree, the calculator is simply trying to provide a guide as to what you'd need to earn on a permanent salary to take home the same net amount. Just applying the multipliers to development roles then I think the 1000 multiplier is closest in terms of contractor rates to permanent salaries but even that produces slightly high numbers, certainly for development roles in the north. The daily rate x 240 is not applicable here.

[I just need to test it]

Surely you can work out how much perks cost. And as for NI, have you heard of the internet? https://www.gov.uk/national-insuranc...ribution-rates

The internet? It rings a bell. Is that where I will find pricks who should know better than to offer sarcasm to a genuine question that they lamentably failed to understand.

I was interested in how malvolio same up with the 40K. And whether it is a straight rule of thumb doubling of anyone's salary.