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Contract or permie?

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    #31
    If you are
    a) a senior manager in a big company employing lots of people, then you will find (in an accountancy sort of way...), that 40k salary for a full time employee is roughly the same as 40/hour as a contractor because if you employ lots of people then:
    - some of them get sick, on average 10 days a year. The softies
    - some of them need training, on average a couple of grand a year. The ignorant incompetent monkeys.
    - they want pensions. The grasping gets
    - they have unrealistic expectations of getting paid every month, even if the company isn't doing so well. Which is just selfish.
    - they take holiday. Holiday ? I ask you
    - it costs an arse and an elbow to recruit them. For once, this isn't the employee's fault. But you can blame them anyway, they probably deserve it.
    ....etc etc (I won't repeat the rest of the previous lists)

    but if you are
    b) a contractor working for his loansome. Then for some strange reason you find that 40/hour feels like a heck of a lot more than 40k salary because
    - you don't seem to get sick as often as the others, perhaps because you don't get paid when you're sick
    - you find ways of training yourself that don't involve a semi-paid pissup in the hotel of of your choice whilst desperately trying to get off with the only woman on the course (and yes, she is smarter than you, and no, she isn't interested...)
    - you are obsessive (oh yes, obsessive) about watching where all that pre-tax income goes
    - you store up savings like squirrels store up nuts for the winter, and only pay yourself what you need, as opposed to what you earn
    - you take time off when there's no work, as opposed to when it suits you
    - you don't cost an arm and an elbow to recruit.

    ...which is how, an accountants 40k becomes a contractors 40/hour.

    The moral of this story is.
    - if you think that you are healthier, smarter and better at managing things than the average permanent member of staff, then go contracting.
    - never take an hourly rate less than you think the equivalent annual salary would be divided by 1000 ('cos who wants to make accountants happy?)

    and, best of luck ourrob, it's a jungle out there (i.e. full of monkeys)
    Plan A is located just about here.
    If that doesn't work, then there's always plan B

    Comment


      #32
      The comparison between permie and contractor is basically as follows:

      Permie Earnings = Salary + 10% (Employer contribution) + Benefits

      Contractor earnings = Daily Rate * Average work days - Travelling expenses.

      Now the average works days varies tremendously between contractors, so it becomes a risk take. If you're hradly on the bench you'll earn a lot more than
      a permie, if you're on the the bench a lot you lose out, also if you can reduce your travelling expenses, you win.

      Basically being a contractor is a risk take, but have the possibility to more or less double your earnings if you're not travelling (common in London) with the risk of being on the bench for months.
      Last edited by BlasterBates; 23 January 2006, 08:39.
      I'm alright Jack

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        #33
        Well the deal is done,

        Just called the agency and declined the permie job, not happy bunnies, but life is full of dissapointment so I guess they'll get over it.

        Current contract is up at the end of the month, and although I had
        a couple of last minute jitters about not having something definite lined up, I thought screw it, I can't take a permie job I'm not all that interested in, just because I haven't got a contract lined up yet.

        Comment


          #34
          Originally posted by XLMonkey
          If you are
          a) a senior manager in a big company employing lots of people, then you will find (in an accountancy sort of way...), that 40k salary for a full time employee is roughly the same as 40/hour as a contractor because
          ... repectful snip
          Quite right IMHO. If you want to compare contract and permie on a basis of like for like, then "accounting tricks" are exactly what you need.

          OTOH you go contract precisely because you are not like a permie.

          Comment


            #35
            Originally posted by BlasterBates
            The comparison between permie and contractor is basically as follows:

            Permie Earnings = Salary + 10% (Employer contribution) + Benefits

            Contractor earnings = Daily Rate * Average work days - Travelling expenses.

            Now the average works days varies tremendously between contractors, so it becomes a risk take. If you're hradly on the bench you'll earn a lot more than
            a permie, if you're on the the bench a lot you lose out, also if you can reduce your travelling expenses, you win.

            Basically being a contractor is a risk take, but have the possibility to more or less double your earnings if you're not travelling (common in London) with the risk of being on the bench for months.

            I'll buy that. In the last 7 years I've saved a fortune, working the same sort of hours as when I was permie, and spending no more. But I've had almost no enforced rest periods.

            I can't believe those lazy gets who take 10 days a year off sick. In the last 12 years I've taken at most 2 days off sick. No wonder UK productivity is tulipe. FFS.

            Fungus

            Comment


              #36
              I can't believe those lazy gets who take 10 days a year off sick. In the last 12 years I've taken at most 2 days off sick. No wonder UK productivity is tulipe. FFS.
              So it's all your fault then. [and to be fair mine]. You are the guy who keeps coming in when he should be off sick, thus ensuring the entire building gets it....

              Comment


                #37
                Originally posted by ASB
                So it's all your fault then. [and to be fair mine]. You are the guy who keeps coming in when he should be off sick, thus ensuring the entire building gets it....
                A good does of Ebola never did anyone any harm. It's lack of exposure to germs that leads to asthma and allergies. Or so they say.

                Comment


                  #38
                  Originally posted by Fungus
                  A good does of Ebola never did anyone any harm. It's lack of exposure to germs that leads to asthma and allergies. Or so they say.

                  last word
                  Let us not forget EU open doors immigration benefits IT contractors more than anyone

                  Comment


                    #39
                    Dont believe a word of it. You make out your on £450per day and have to ask the question, should I go perm for 42k.

                    Out Troll Out!
                    What happens in General, stays in General.
                    You know what they say about assumptions!

                    Comment


                      #40
                      Contract or Permie

                      This might be the longest time for a thread to ever be brought back from the death, but you guys gave me a few pointers last time, so I thought I'd update you with my ever going dilema.

                      After my contract ended I took a very long holiday as you do about 6 weeks around Oz, and NZ, got back obviously to no contract and several messages from perm company I had turned down, asking me if I was still interested....

                      Nothing materialized on the contract front and as I had a little one on the way, I did the sensilble thing and took the nice and local permie job.

                      Things are panning out "ok" but my senior management drive me nuts and I myself have became a team leader which means responsibility and far too many meeetings, which is driving me away from the technical role I used to really enjoy.

                      So I'm now in a permie job for a really good company but in a role I am slowly starting to loathe....

                      So I'm again in a bit of a bind, do I rejoin the good ship contract, or just hunt for a more challanging technical role...

                      Comment

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