Reply to: If the permie salary is 55K To 60K

[xchaotic]

Might be worthwhile to knock a 3 version calculator with options for those that want to convince themselves of:
a) freelancers with no choice (no one will hire them perm) that want to know their £250pd in London is really better than 50k perm in the countryside
b) permies in a retail bank, who spent 20 years there that their £55k + bus allowance really is better off than 20 years of contracting at >£500pd in the city
c) newbies that should generally be protected from taking the leap, as they have no idea that this means you can lose a contract and still have to pay off the VAT AND the car you bought for the gross amount you got in the first 3 months, while on the dole...

Anyone more experienced that than, knows better that to decide about your future is more complicated than a 1 variable numerical formula.
Did you account for location, work atmosphere, sense of accomplishment, work/life balance, future career prospects etc?
So why do you expect a sensible answer for a nonsensical question?

[PropertyCrashUK]

Thanks everybody for the help. Much appreciated.

[kaiser78]

I have worked out in my situation hourly rate * 1200 is a more accurate equivalent if this helps.

So hourly rate of £60ph on contract = £72k permie.

[fragglerock]

The calculator
<snip>
suggests 35000 is approx to £158 a day (if caught in IR35 £200 if not)
£300 a day is closer to £50,000 (if IR35) (£70,000 if not)

It of course makes various assumptions that may or may not hold true.

[NorthWestPerm2Contr]

I can only vouch for myself and I'm a 350/day guy. I haven't been perm for a long, long time...13 years or more, but would guess £35K to £40K would be my perm equivalent.

I can see how 350/day can be equivalent to say 45k but that's only if you factor in bonus, holidays, sick pay, training, pension, company car, fuel card, stability and a nice big office with coffee maker and a PA.

[ChrisPackit]

I can only vouch for myself and I'm a 350/day guy. I haven't been perm for a long, long time...13 years or more, but would guess £35K to £40K would be my perm equivalent.

[Assassin]

As far as I have notice the formula is:

salary / 1000 = price per hour

so for 55k there will be 55ph so it will be 440per day( for 8 hours day). Which makes sense to create roughly comparsion between permi and contract.

Regards

[ChimpMaster]

[QUOTE=NorthWestPerm2Contr;1326900]I am not sure I buy into that stupid formula.

There is no way on earth that a 35k salary equates to a 350/day rate or a 25k salary equates to 250/day. The higher your salary the more you pay in tax and ni as a portion of what you earn while this does not really change if you are a contractor. Is there anybody here that can tell me they would take 100k over 1000/day or even 50k over 500/day?[/QUOTE]

I wouldn't, but there are people that will, and they're called permies.

[NorthWestPerm2Contr]

I am not sure I buy into that stupid formula.

There is no way on earth that a 35k salary equates to a 350/day rate or a 25k salary equates to 250/day. The higher your salary the more you pay in tax and ni as a portion of what you earn while this does not really change if you are a contractor. Is there anybody here that can tell me they would take 100k over 1000/day or even 50k over 500/day?

[jmo21]

Myself I think salary divided by 1000 is closer to the mark, but there are a lot of variables to consider. It is only a rough guide at best.

I see what you did there....

[d000hg]

Which is no help whatsoever.

How about you get off your high-horse and listen?

Why are all those other threads no help - what's special about your case? Or are you unable to use search on the internet?

[Fred Bloggs]

I guess the rate is governed by what you are happy to take, but I heard banded about that you should take the 000's you earn as a perm times by ten as a daily rate i.e. 55K would be £550 / day.

I don't know if; a) this is true; and b) is any use to you

Myself I think salary divided by 1000 is closer to the mark, but there are a lot of variables to consider. It is only a rough guide at best.

[ChrisPackit]

I guess the rate is governed by what you are happy to take, but I heard banded about that you should take the 000's you earn as a perm times by ten as a daily rate i.e. 55K would be £550 / day.

I don't know if; a) this is true; and b) is any use to you

[Pondlife]

If a permie role is paying 55K to 60K how much should the contractor rate be?

The permie salary to the client is a lot more than 60K by the time they add in NI and other costs so what would be a good quote to give a client to take on such a role as a contractor?

The contractor will not be paid for holidays so how do you work out a day rate?

Very basic guide would be;

60K Salary equates to a £60 per hour contract (£480 a day)

Obviously if you take no hols, are never ill and the contract goes on for years, you will be substantially better off on a £480/day dream contract than as a 60K permie.

As the above never (really) happens the guide gives you a rough figure.



Edit: This assumes you have some sort of pension/perks on top of the £60K salary.

[PropertyCrashUK]

Endless number of threads on this question.............

Which is no help whatsoever. No wonder this forum has so many people who visit a few times and then leave... hard-core of 4 or 5 people who stop people visiting.

You could try being more helpful you know, especially when people have been helpful to you regarding trying to get a contract in the NW.

It wouldn't hurt you or is it just beyond your comprehension to help others?

I think I have asked you this before - is this the way you wish to live your life?