Reply to: £340 per day contract Vs £60,000 PA permanent offer

[oversteer]

Not an issue IMO if you understand the accruals concept of accounting.

You should be more concerned about not working at all.

I understand the cashflow concept even better

If you don't have a warchest built up, not getting paid for a few months could screw you.

At least with a perm role you'll generally get paid at the end of the month you start.

[moorfield]

Also, when contracting, consider the delay between doing work, invoicing, and actually getting paid - you won't be getting paid in full on the last day of the month (unless you are lucky)

Not an issue IMO if you understand the accruals concept of accounting.

You should be more concerned about not working at all.

[SueEllen]

Aren't most permie jobs paid one month in arrears, and only on the next payday? So could be almost as bad.

Not necessarily.

Lots of permie jobs have their pay day on something like 21st of the month. As long as you start before that you will get your pay on that date otherwise you have to wait until next month.

[CheeseSlice]

Also, when contracting, consider the delay between doing work, invoicing, and actually getting paid - you won't be getting paid in full on the last day of the month (unless you are lucky)

Aren't most permie jobs paid one month in arrears, and only on the next payday? So could be almost as bad.

[oversteer]

The only reason one may consider a permie is for a stable income regardless of the market. But given that many permanent roles have 4 weeks notice for termination, how different is this from a contract role with similar notice period?

4 weeks notice on a contract role is pretty good, isn't it?

That said, your first three months (ish) in a perm role will probably be on a weeks notice, and they can get rid of you in the first year without any sort of procedure, and forget redundancy payments until you are there two years.

Also, when contracting, consider the delay between doing work, invoicing, and actually getting paid - you won't be getting paid in full on the last day of the month (unless you are lucky)

[Scrag Meister]

46 week year at £340pd is £78200 gross. Only 5 months!

60k perm + pension + holiday + other benefits

Sounds pretty borderline to me, go perm.

[MrHelpful]

Take the permie and look at the other perks if the jobs does open doors.... paid holiday, paid sickness, pension contributions.... the contracting market is fragile and its living life on a melting iceberg at the moment.

[DieScum]

Tough choice but at least you have high quality problems.

Money wise how likely is the contract to be extended or are you to find another one?

The difference in net income between the contract and perm job won't leave much room for extended spells on the bench.

[d000hg]

You are right. In life, nearly everything is black and white.

[swamp]

There are two sorts of contractors out there: ones who love money, and ones who love money but almost equally detest corporate bulltulipe.

If you are even considering permanent employment, then you are in the former category.

HTH

[d000hg]

But given that many permanent roles have 4 weeks notice for termination, how different is this from a contract role with similar notice period?

Well, they can give you notice just as easily as a contractor or a permie unless you've been there a while (a year or 2?) But that doesn't mean it's the same thing. A contractor is taken on with the plan that they are only there as long as they are needed, a permie is hired on the expectation they are there much longer. Of course these are only generalities but generally you don't expect to get canned from a permie role whereas you do a contract role.

If you don't have idealogical problems with being a permie and not getting to boast about being your own boss, your permie offer looks good to me.

[Green Mango]

Yes - all included.

£340/7.5 = £45 an hour.

They say an hour rate tends to indicate your salary in k ie 45k,
I can believe this as the hourly rate grossed up doesn't allow
for all the benefits of full time employment.

I'd say that 45k probably equates more closely to you contractor rate.

I admit if a contractor works all the hours god sends then he can reap in the rewards,
but then you are spending all your life working ...

[kaiser78]

Are you taking sick, holiday, pension, travel and accomodation, share option and bonuses into consideration in your comparison.

I don't think so....

Not to mention some allowance for bench time ....

Yes - all included.

[Green Mango]

£340 / day is not far short of £60k perm salary equivalent.

You also need to weigh up lifestyle considerations. For me the biggest attraction of contracting is being able to have chunks of time off in between contracts that I would not be able to have if I was permie.

Are you taking sick, holiday, pension, travel and accomodation, share option and bonuses into consideration in your comparison.

I don't think so....

Not to mention some allowance for bench time ....

[kaiser78]

Its £55k, not £60k unless its written down in the contract, don't kid yourself.

Permiedom will always find an excuse not to give you the "bonus".

Yes, don't fall that one !