From Perm annual compensation to Daily Contract rate

[SueEllen]

On my first contract ever they asked me to go perm however the 35k offer was laughed at and dismissed. They then offered an extension which was different to what was discussed so i buggered of elsewhere for more money and less comedy

Mine have never been on contracts.

I make it very clear I'm only there to work.

[MyUserName]

Hi,

Im a Permenant employee planning to move into contracting. I also have an offer.

However, I would like to know if there is any formula to find the contract rate equivalent of my Perm Annual compensation.

For e.g.

Perm Total Compensation --> Contract Rate
£80,000 = ??
£90,000 = ??
£100,000 = ??
£120,000 = ??

Thanks

You are not comparing the correct criteria.

You only get the contract rate when you are in a contract. You can only assume you get this rate for this contract (possibly not even that long). Your next contract might be further away, on a lower rate, or not come along for months.

Whereas, generally, you get paid your perm salary every month.

If you are contracting you, personally, will need to make sure that your skills stay relevant for the future and that you continually fight for your share of the pie in an increasingly flooded market.

What happens if you have a car crash and broke your arm? Most contract positions will terminate your contract and get someone else. Can you afford that?
Can you afford (in terms of money and stress) to be out of work for several months?
How much of your life is built around your routine? Do you need to leave for work after a certain time, arrive back by a certain time etc.? Even if this contract allows for it future ones might not.

Why should someone hire you for your second contract if there are dozens of experienced contractors out there competing with you?

Do not just compare day rate to salary - it is not that simple.

[TheFaQQer]

Would you leave a £750 day contract for a perm job as a VP paying 100k basic plus bonus / benefits?

Yes. Where do I sign?