How much does a 40K p/a employee cost?

[Olly]

And just to prove my double it rule of thumb for no reason than I chuffed its not far off...

40 *2 = 80 / 12(month) = 6.7 / 21(day) = 319 per day. Bingo!!!

Errrrrr.......that's massively off. I just worked it out as £220.33

[northernladuk]

Errrrrr.......that's massively off. I just worked it out as £220.33

But you missed of 15 odd other elements as mentioned by Mal, things like the actual cost to the company for HR etc etc. Your sums were nothing like total cost of ownership for a guy

And besides I am billing you for this info so I have to be right. Invoice 3 in the post.

[Olly]

Yes but EXACTLY which of those can they cross off by having one less head count for a year (it's maternity cover)?
Please list them with approx costs. I can't really think of anything much.

[lukemg]

Don't forget the cost of having to get shot of people you don't need/want -VR/CR. Sick rates are often calculated at 10 days avg I think (that might be just public sector !)
Salary/1000 is a reasonable approximation for any contractor (I have been out of contract for a total of 1 year out of last 3.8....)

[Olly]

Don't forget the cost of having to get shot of people you don't need/want -VR/CR. Sick rates are often calculated at 10 days avg I think (that might be just public sector !)
Salary/1000 is a reasonable approximation for any contractor (I have been out of contract for a total of 1 year out of last 3.8....)

Arghhhhhhhhh..........I give in.....are you in IT? Can you read a specification?


10 days...crikey...I wasn't even going to mention them but if that's close to average then perhaps I ought to.

P.S. Thanks for reply

[Bright Spark]

A few other things is the employer has to pay Employers NI for permanent
employees, other benefits like BUPA, subsidised meals, season ticket,then
he's got extra admin costs like paying HR and running the payroll department.

To be honest you need to see what the market is paying for a contractor
with your skills set and experience check this on jobserve etc as rates do
vary based on location, demand / supply factors.

[Olly]

A few other things is the employer has to pay Employers NI for permanent
employees, other benefits like BUPA, subsidised meals, season ticket,then
he's got extra admin costs like paying HR and running the payroll department.

To be honest you need to see what the market is paying for a contractor
with your skills set and experience check this on jobserve etc as rates do
vary based on location, demand / supply factors.

Nope!

The employer has 40K to spend! Except I need to explain to them that it's not really 40K they have, it's more because of the NI and stuff.

I already know the going rate is low £300s as I posted earlier.

I'll check if they provide health care, though from what I understand wouldn't cost them a fortune.

Yet AGAAAAIIIIIN HR costs / payroll are not a factor, they'd have to pay all that whether I was there or not, one bod on 12 mnth maternity cover will make NO DIFFERENCE!

[Fat Dave]

If the client has £40k allocated for a contractor, then it's £40k and no more. This will have been allocated from his budget for the project. No use talking about costs for a permie, FTE costs will be in a different cost centre. Blame the bean counters.

[Olly]

If the client has £40k allocated for a contractor, then it's £40k and no more. This will have been allocated from his budget for the project. No use talking about costs for a permie, FTE costs will be in a different cost centre. Blame the bean counters.

That would mean billing £174 a day and taking 23 days hols + 8 public.

I'd rather stick needles in my eyes than bill that for a £325 a day role for a year

[Bright Spark]

look they are always going to pay what market rates are because
as a contractor it's quite easy to leave as soon as better paying
contracting job comes up, not so easy with permie roles.

So they need to have a budget that will pay the market rate for a
contractor in case you do decide to leave next week because you get a
better rate.