What day-rate should you be on if the agreement is £34K pro rata?

[Hackneyed]

Have been put on £130 by the agency ((34,000/52)/5) but according to the calculator on this site that rate corresponds to a salary of £28,000. Using the same calculator, the rate i should be on is £155.

Anyone with a bit of experience who could guide?

Thanks!

[SimonMac]

Have been put on £130 by the agency ((34,000/52)/5) but according to the calculator on this site that rate corresponds to a salary of £28,000. Using the same calculator, the rate i should be on is £155.

Anyone with a bit of experience who could guide?

Thanks!

Are you talking gross or net?

[stek]

Isn't the usual thing divide yearly by 1000 for hourly, times 8 for daily? So for you it's £34/hr, assume 8hr day, 272 for daily rate.

IMHO at 130 a day you're better off in permieland...

[cojak]

Isn't the usual thing divide yearly by 1000 for hourly, times 8 for daily? So for you it's £34/hr, assume 8hr day, 272 for daily rate.

IMHO at 130 a day you're better off in permieland...

Unless it's a 5 minute walk into work.

But for many people something is better than nothing.

(For a back of a fag packet calc Stek is right btw - the OP's calcs are wildly out).

[Hackneyed]

Thanks all.

The agreement was £34,000 gross pro rata, the day rate was calculated by the agency and I took it as accurate in good faith.

Looking at what I'm clearing, and some other bits (see threads in the Umbrella forum) the conclusion is that I'm hit on several fronts and am earning the equivalent of about £22,000 per year.

Hence checking the day rate.

Cheers!

[cojak]

SimonMac hinted as to why your calcs are out.

£34,000 is NET, after tax, NI etc.

The agent has shown you GROSS, before these things are taken out. Your Umbrella took those things from the £34K.

Basically the agent knew that you were a newbie and has stuffed you.


Edit: or maybe the agent hasn't, since you knew it was gross.

Well if nothing else it's been a learning experience for you.

[Torran]

Thanks all.

The agreement was £34,000 gross pro rata, the day rate was calculated by the agency and I took it as accurate in good faith.

Looking at what I'm clearing, and some other bits (see threads in the Umbrella forum) the conclusion is that I'm hit on several fronts and am earning the equivalent of about £22,000 per year.

Hence checking the day rate.

Cheers!

We've all been stung at some point to varying degrees.

[Gentile]

Isn't the usual thing divide yearly by 1000 for hourly, times 8 for daily? So for you it's £34/hr, assume 8hr day, 272 for daily rate.

IMHO at 130 a day you're better off in permieland...

Not sure where you get those figures from, Stek. Pro rata means in proportion to the amount you would get if you were a full time employee. I generally consider the period that full time employees work to be 48 (weeks) x 37.5 (hours per week), = 1800 hours per year. Number of days permies work per year = 48 * 5 = approx 240. Nobody works 52 weeks a year, even Santa and Mrs Claus.

Hourly rate for £34k 'pro rata' is therefore 34k/1800 = £18.89, and day rate for that amount pro rata is £142, give or take. Generally speaking, contractors bill themselves at a minimum of double the amount that the same experience of permanent employee would cost, to account for the fact that we have to find our own work, do our own accounts, pay our own taxes, etc. etc. Most of us wouldn't touch a role with the words "pro rata" in the Job Description with a barge pole, because the concept of pro rata only applies to temps, for whom the employer should be paying PAYE, etc, for their limited period of engagement with the company.

[Bunk]

I could be wrong but it sounds like a fixed term contract. Are you getting paid through your own company or an Umbrella company, or are you on the client or agency payroll? Contract rates aren't usually described in terms of pro-rata annual salary unless it's a fixed term contract.

[jmo21]

Not sure where you get those figures from, Stek. Pro rata means in proportion to the amount you would get if you were a full time employee. I generally consider the period that full time employees work to be 48 (weeks) x 37.5 (hours per week), = 1800 hours per year. Number of days permies work per year = 48 * 5 = approx 240. Nobody works 52 weeks a year, even Santa and Mrs Claus.

Hourly rate for £34k 'pro rata' is therefore 34k/1800 = £18.89, and day rate for that amount pro rata is £142, give or take. Generally speaking, contractors bill themselves at a minimum of double the amount that the same experience of permanent employee would cost, to account for the fact that we have to find our own work, do our own accounts, pay our own taxes, etc. etc. Most of us wouldn't touch a role with the words "pro rata" in the Job Description with a barge pole, because the concept of pro rata only applies to temps, for whom the employer should be paying PAYE, etc, for their limited period of engagement with the company.

Stek misread the question and gave the "what is a permie wage roughly equivalent to when comparing to a contracting day rate" rough calculation that many use.