Weighing up permie v contract

**Bluebird** · 8 June 2007, 14:47

Originally posted by DieScum

So I've been browsing through jobs again and yet again I'm thinking about contracting.

My permie company was taken over. I earn 56k basic plus up to 12% bonus (which I always get). The new company has added a car allowance of 6.5k, upped holidays to 25 days a year and they slap 9% in to my pension (if I put in 6). They also gave me a one off bonus of 6.5k just for staying.

... but the stress of work is kinda getting pretty high. Ayear ago it was easy but now I'm working evenings and weekends just to do stuff properly. I'm 28 with no wife or kids so I have loads of spare cash. Not very materialistic so tend to save it.

Half thinking of taking my savings and taking some time off, bit of travel, do a Masters in something interesting... but worried about my career prospects when I come back...

Been looking at contracts and the best is 400 a day in London. I don't live in London and know that the cost of living there is higher there.

How do you think my permie salary (all in 75k) compares to potential contract rewards/lifestyle?

£400 a day probably wouldn't net you £75k take home, although it would be pretty close, of course it would depend on how many weekends you worked for and get paid for.

I went into contracting for the experience, not the money - however the rewards now are greater than if I'd stayed in my Permie job.

The best part id the flexibility, I like to work 9-10 months, then take a big 2 month break - nice - never get that in a permie job...

**malvolio** · 8 June 2007, 14:48

Rough rule of thumb, divide annual salary by 1000 to get the equivalent hourly rate, then by 7.5 to get a day rate. You're looking at around £550 a day to stand still.

You don't go contract for the money any more, it's far more about lifestyle.

**Cooperinliverp00l** · 8 June 2007, 14:49

75k is not bad perm salary, don't quite now what you do but it must be something extremly technical or high management which then means you should be getting more than £400 a day in london. I have just finished 2 year contract in london and was on £450 day and wouldn't class myself as extremly technical or senior management.

Just remember contracting can make you loads and loose you loads if you don't play the game right and every day you don't work you don't earn. When i first started i was scared to take holidays in case i lost contracts or couldn't find new ones but now i try to take as many as i can.

HTH

**Orangutan** · 8 June 2007, 14:50

Try one of the on-line rate calculators (like one on http://calculator.contractoruk.com/

Then consider how willing you are to travel around, depending on your chosen field there are normally roles available around the Uk, Europe and further.
If you have no dependants you might want to make the most of your flexibility and get around a bit. (I would certainly consider it, if I were in your situation)

going contracting after years of being a permi was the best thing I ever did, but its not for everyone.

**Bluebird** · 8 June 2007, 14:55

Originally posted by malvolio

Rough rule of thumb, divide annual salary by 1000 to get the equivalent hourly rate, then by 7.5 to get a day rate. You're looking at around £550 a day to stand still.

You don't go contract for the money any more, it's far more about lifestyle.

I guess on £75k he takes home about £55k ?

If you work on the basis of a 70% net then over 200 days he's looking to get a day rate of 370-400 ?

**DieScum** · 8 June 2007, 15:10

75k is including bonus, pension and car allowance. There is a chance I wouldn't get the bonus but always have so far.

I don't want to reveal exact skillset as it is kinda niche but it certainly isn't senior management.

I think I kinda got lucky with pay. Four years ago I was an overqualified support monkey earning 19k. Then I got picked up by a consultancy who paid me 19k, moving swiftly up to about 30k. They trained me for three months then pimped me out to clients at anything between 70 and 240 an hour.

Then I was head hunted and they offered 45k. I negotiated and got 53k. Then a couple of inflation rises. Then the takeover and the benefits improved a lot. So suddenly I get 6.5k car allowance and 9% pension and 5 weeks off. All in with bonus about 75k. This year will be 80k because of one off bonus.

It is almost like golden handcuffs. I'm strating to think about moving elsewhere but is gonna be hard to get the same money.

**oraclesmith** · 8 June 2007, 15:17

Just work on using some of your influence to make it easier for yourself within the firm. ie. get an assistant or offload some admin or responsibilities to others.

Remember with contracting that all you need is a month or two on the bench and you're starting to take a substantial 'pay cut'.

**DieScum** · 8 June 2007, 15:21

Oraclesmith - yeah, that is a great idea. I think I should go more towards that.

I kinda feel bad saying 'No' and 'I've too much on'. I like to do things properly and I like to be good at my job. Just got so much thrown my way at the moment I either have to put in 7 day weeks or just do it badly. Which makes me look bad in front of customers and isn't exactly satifying.

**TheFaQQer** · 8 June 2007, 15:29

Originally posted by malvolio

Rough rule of thumb, divide annual salary by 1000 to get the equivalent hourly rate, then by 7.5 to get a day rate. You're looking at around £550 a day to stand still.

Even better rule of thumb is to divide annual salary by 1000 to get the equivalent hourly rate, then multiply by 7.5 to get a day rate.

Weighing up permie v contract