State of the Market

[jayn200]

Noticed an Inside IR35 role that at first made me laugh, due to the rate, but it stated inside the advert "Rate stated is what you will receive after deductions".

Firstly, I appreciated the honesty, but something to watch before discounting "low paying" roles. Was actually quite decent, on the basis advertised.

What deductions though? They might just mean agency margin + employer NI. You may still be paying tax + employee ni. They are required by law to advertise this rate but some have been illegally advertising the rate inclusive of employer NI which is probably what that statement is about.

There is no way they will know your tax code there is a reason why jobs aren't posted with take home pay. The take home pay is out of control of the employer so they can't calculate it.

[ChimpMaster]

There’s a bad cold going around at the moment. I think you’ll find contracts let you work from home too. But whatever floats your boat...

Well well punybrain, quite the observation there.

I meant long term, post Covid. It's something I openly discuss with recruiters rather than beating around the bush. I'd go as far as having it written into my contract, as I currently have done - which proved very useful when I had a 'discussion' with current client director last year about my WFH. I wouldn't just take anyone's word for it, especially in a permie job.

[vwdan]

What deductions though? They might just mean agency margin + employer NI. You may still be paying tax + employee ni. They are required by law to advertise this rate but some have been illegally advertising the rate inclusive of employer NI which is probably what that statement is about.

There is no way they will know your tax code there is a reason why jobs aren't posted with take home pay. The take home pay is out of control of the employer so they can't calculate it.

No idea, you'd have to ask them. I'm assuming they're working on the basis of a standard tax code (I.e. 1250L). It specifically says "take home pay after all deductions"

[_V_]

Well well punybrain, quite the observation there.

I meant long term, post Covid. It's something I openly discuss with recruiters rather than beating around the bush. I'd go as far as having it written into my contract, as I currently have done - which proved very useful when I had a 'discussion' with current client director last year about my WFH. I wouldn't just take anyone's word for it, especially in a permie job.

I started on a contract where contractors could WFH two days a week to help with reducing travel (so WFH Monday and Friday usually).

However, new permie senior manager decided that contractors were paid to be bums on seats and cancelled the arrangement. Unfortunately this "perk" was not written into the contracts, so everyone had to suck it up.

Moral of the story, if WFH is not written into your contract, it ain't worth tulip.

[jayn200]

I started on a contract where contractors could WFH two days a week to help with reducing travel (so WFH Monday and Friday usually).

However, new permie senior manager decided that contractors were paid to be bums on seats and cancelled the arrangement. Unfortunately this "perk" was not written into the contracts, so everyone had to suck it up.

Moral of the story, if WFH is not written into your contract, it ain't worth tulip.

Yeah I've had that happen to me years ago when I was working a perm job. Any perks that aren't written into the contract can't be counted on. My employment contract said 8.5 hour days but line manager told me 7.5 hour days is normal plus leave early fridays. I worked 7.5 hour days and left friday around 2-3 for 6 months then someone complained from another team and all of a sudden 8.5 hour days everyday from then on.

[mattster]

IT salaries have barely moved in 20 years. If you don't have large outgoings (like you've paid your mortgage off) then it's not too bad. But if you are looking to buy a large family home, then it is a big problem.

I suspect IT salaries will probably fall with growing number of work permits being issued from next year to "fill the skills gap".

Unfortunately there's very little you and I can do about it.

Yep. For all the worries about Covid and Brexit, the new immigration rules are likely to be the real kicker next year IMO. With - as far as I can tell - anything even remotely IT related being on the "in demand" list, that means anyone with rudimentary English and a job offer of £25k can come in. Potentially devastating, particularly for low/mid level roles, and my guess is it would make the UK just about the easiest Western country to get a work visa for if you work in IT.

[NowPermOutsideUK]

Had a flurry of calls for permie jobs at the end of this week. Bearing in mind that I'm only really looking for perm jobs now (and that half-heartedly).

Not sure why the sudden pick up in calls, but it is reassuring.

Salaries aren't great around the £70k mark on average. I used to earn that much 15 years ago in my last perm job!

But there seems to be a lot more flexibility built into the roles now, like WFH / remote etc, and honestly that's more important to me than another £10k or £20k on top of the salary.

Thanks for sharing numbers chimpmaster - Very useful

Am I allowed to ask what sort of contract rate you used to get and what area of UK you are in to get a better understanding of your anecdotal exanple

[ChimpMaster]

Thanks for sharing numbers chimpmaster - Very useful

Am I allowed to ask what sort of contract rate you used to get and what area of UK you are in to get a better understanding of your anecdotal exanple

S.E.

I'm in an unusual situation wrt rates so they are upper end for me, but not in demand any more.

Interesting thing is 2 jobs I'm looking at, which pay £67k and £80k. And of course the £80k sounds like a lot more, but after all taxes it is just £600/month more... less than a contractor day rate!

Some years ago I would have busted my nut to earn more salary, with every extra few £k being an achievement, a career leap, or a badge of honour etc. But really, and especially now, it's not worth busting my nut over £600/month more. I'm much rather have a decent team, flexibility, WFH, fun etc than earn £600/month more and have to travel for work, do something I don't like, work with horrid people etc. I don't envy people who feel the constant need to scale the career ladder; quite often they end up sacrificing more in their lives than they will gain.

[PCTNN]

IT salaries have barely moved in 20 years. If you don't have large outgoings (like you've paid your mortgage off) then it's not too bad.

This.

If money is not a problem for you and you can afford it, then taking a lower paying permie job or contract paying lower rate is a viable options and very well worth considering. Can also be a good opportunity to widen your skills and take roles that pay less but allow you to work in other industries and/or other technologies.

If instead you have a spoiled partner and kids used to a certain standard of life, you're screwed big time.

[nomadd]

If instead you have a spoiled partner and kids used to a certain standard of life, you're screwed big time.

The good news is - so are they.