Crossroads

[nomadd]

All the benefits the permie get's is worth a hell of a lot so very difficult to find a true comparison unfortunately.

The only benefits I've seen most permies get is the opportunity to work an extra 20-30 hours a week for sweet FA.

[northernladuk]

The only benefits I've seen most permies get is the opportunity to work an extra 20-30 hours a week for sweet FA.

Sounds great! Where do I sign up?

[squarepeg]

The only benefits I've seen most permies get is the opportunity to work an extra 20-30 hours a week for sweet FA.

Want to have fun? Ask for the cash equivalent of the benefits offered... and watch the expression on the HR robot's face.

[wantacontract]

OK, £400 day rate, but spend £50 on travel, accommodation and eating away. So for me that equates to £350.

Contractorcalc states if caught by IR35, monthly pay would equate to £3442.

Assuming I work 10 months a year, that would come to around £34k.

A permie wage of £45k would net me £33.4k.

[gables]

OK, £400 day rate, but spend £50 on travel, accommodation and eating away. So for me that equates to £350.

Contractorcalc states if caught by IR35, monthly pay would equate to £3442.

Assuming I work 10 months a year, that would come to around £34k.

A permie wage of £45k would net me £33.4k.

yup 45k permie = £2785/month = £33.4k/year

but £350/day for 44 weeks = £3637/month = £43.6k/year

So 10k more net

[gables]

A lot of problems with this as a comparison though... Permie beast is so different you can't just base it on gross figures... All the benefits the permie get's is worth a hell of a lot so very difficult to find a true comparison unfortunately.

I agree to a point, but the OP was\is looking at net take home figure. Also I've accounted for holiday, sick pay is difficult as it's very company specific, a lot I see is one month full pay then SSP, anyway don't get sick. Company pension contribution might be the benefit I'd look to for a differentiator, but then again very specific so difficult to compare in general terms.

[northernladuk]

I agree to a point, but the OP was\is looking at net take home figure. Also I've accounted for holiday, sick pay is difficult as it's very company specific, a lot I see is one month full pay then SSP, anyway don't get sick. Company pension contribution might be the benefit I'd look to for a differentiator, but then again very specific so difficult to compare in general terms.

Good stuff.

[MyUserName]

A lot of problems with this as a comparison though... Permie beast is so different you can't just base it on gross figures... All the benefits the permie get's is worth a hell of a lot so very difficult to find a true comparison unfortunately.

As a permie I am on an ok salary, nothing like when I was contracting but I earn more than I spend each month. For benefits I get some child care vouchers, a contributory pension and holiday. There is no training as such as I have the skills I need to do the job. My colleagues are all a clever bunch of nice guys with no politics or BS and I get to train every lunchtime in the car park.

However, the true benefit which is hard to mathematically calculate is that I know I will get paid every month throughout the year. I do not need to keep things ticking over as I could be out of a contract tomorrow. In reality I could be made redundent at any time, of course, but it is not likely, far less so than the definite knowledge that a contract is coming to an end. I do not need keep up with latest legislation about IR35 etc. I don't care about it.

My commute is 45 minutes each way and will be the forseeable future so I can plan picking up and dropping off my children around it. Otherwise I would have to redo everything everytime my contract finishes and I might find 6 months after putting my daughter into her school I was no longer able to pick her up or drop her off (causing massive issues as Mrs MUN cannot drive) because the only contract that came up was an hour and a half away in London. Hence my family life can relax into a routine without stress and worry.

These are the real differences between perm and contract imho, not the money.

[northernladuk]

As a permie I am on an ok salary, nothing like when I was contracting but I earn more than I spend each month. For benefits I get some child care vouchers, a contributory pension and holiday. There is no training as such as I have the skills I need to do the job. My colleagues are all a clever bunch of nice guys with no politics or BS and I get to train every lunchtime in the car park.

However, the true benefit which is hard to mathematically calculate is that I know I will get paid every month throughout the year. I do not need to keep things ticking over as I could be out of a contract tomorrow. In reality I could be made redundent at any time, of course, but it is not likely, far less so than the definite knowledge that a contract is coming to an end. I do not need keep up with latest legislation about IR35 etc. I don't care about it.

My commute is 45 minutes each way and will be the forseeable future so I can plan picking up and dropping off my children around it. Otherwise I would have to redo everything everytime my contract finishes and I might find 6 months after putting my daughter into her school I was no longer able to pick her up or drop her off (causing massive issues as Mrs MUN cannot drive) because the only contract that came up was an hour and a half away in London. Hence my family life can relax into a routine without stress and worry.

These are the real differences between perm and contract imho, not the money.

Absolutely this!! Conversely I pick contracting because I don't have to get to embroiled in politics. I can get up, deliver and go home and when that phase ends I can start another new interesting gig and start again before I plateau. Keeps me energised. So yes, well put.

[unixman]

yup 45k permie = £2785/month = £33.4k/year

but £350/day for 44 weeks = £3637/month = £43.6k/year

So 10k more net

I only looked for a minute, but isn't contractorcalculator already adding in expenses? I entered 350 p/d and it seemed to assume expenses of 11k per year. Are you therefore deducting expenses twice ?