How much more for job w/o benefits?

[chiph]

I'm looking at taking a contracting job, but they don't pay benefits.

Anyone have any idea of how much more I should ask for? I'm thinking 20%.

Chip H.


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[fredericofonseca]

In my area you work it out like this.

Get the permie yearly contract for the same position e.g. 40K per year.
Convert this to 40 per hour.

Add 10% and you have your quoted hourly rate.


Regards

Frederico Fonseca
SysSoft Integrated Ltd

http://www.syssoft-int.com

 

[chiph]

fredericofonseca -

Ah, but you're in the UK, where the healthcare costs are mostly covered by the goverment. I've done some looking, and health insurance for me (single male) is around $400 per month, or around 16% of monthly take-home for your $40k salary example.

This doesn't include vision or dental coverage. For some reason, it also doesn't include telemedicine, but at least they'll let me ride my mountain bike (some short-term policies won't let you engage in high-risk activities).

Chip H.


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[willir]

Chip

I was offered a few jobs in the US -- bascially, the better pay was offset by the cost of purchasing a health service contract.

From another angle, a company I worked for cut their benefits by half (with the promise to increase wages -- perhaps a US type of approach).

Either way, the numbers came up the same, about 10 or 12% up to perhaps $10k.

A word of advice. I have seen an alarming trend these days where the contract pays a flat rate. You work 40 hrs, get 40*YourRate, work 80 hrs, get 80*YourRate. Guess who "they" will give the over-time to? Although YourRate will be higher than an employee, I doubt it will be 1.5x or 2x. Also, don't forget vacation. This same trend -- the contract is crafted so as not to include vacation. How do they do this? They have you enorporate yourself, and then hire "your company" to provide the service. Thus, they avoid many of the legislation dealing with work.

Having said that, I know some who love contract work.

Good luck -- you have an awesome skill set and I am sure you will do well regardless of your decision.

 

[chiph]

Thanks for the reminder to discuss overtime policies with them, willir!

Chip H.


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[fredericofonseca]

It's Ireland now, but the UK is the same.

Regarding overtime ALL my contracts state the following.

Standard hours 35 per week, up to 45 can be done without asking for authorisation from customer. (VERY IMPORTANT THIS)

Rate
Standard rate up to 45 hours a week Monday to Friday.
1.5 times exceeding 45.

1.5 times Saturdays

2 times Sundays and Public Holidays.

Don't forget to specify values for On-call should you need it. Values both just for the on-call bit, and a minimum of hours to charge should you be called.



Regards

Frederico Fonseca
SysSoft Integrated Ltd

http://www.syssoft-int.com

 

[jsteph]

chiph,
The simplest math has always been very close to the 'going' rate, at least in the midwest US. Double the 'salaried' extrapolated per-hour rate, ie if the salary is 80K per year, then at 2000 hrs per year, that's $40 per hour. So the contracting position should pay $80 per hour--this is basically what fredricofonseca said.

Because it's not just health-care--it's scads of other things--paid vacation--there's typically 80 hrs that the contracting position won't pay you. Social secrurity tax and other self-employed taxes are a nasty surprise. Intnagibles like job security, a stable-looking resume (ie, not seeming like you're job-hoppping--even though it's valid contracting gigs), etc., and numerous other things.

If you ask for 20% more, then you are really short-changing yourself and will likely regret it.
--J

 

[chiph]

Oh, sorry -- forgot to mention I would be working as a W-2 employee for a contracting firm, not running as my own business. They take out taxes (of course), but the thing is they don't pay benefits (no 401k, no health/dental, etc).

Chip H.


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[Stella740pl]

chiph,

Over 4 years ago, after finishing a consulting contract (also W-2) through a consulting company, I took a job with good benefits (including medical, dental, vision, 4 weeks vacation, 9 holidays, 2 personal days, 12 sick days, 401K and some more, all of which are very important to me, as I have a family).

With this, I also took over 30% pay cut rate wise.

 

[chiph]

Stella740pl - thanks for the info. You definitely need some padding to tide you over when you're not on a contract.

Chip H.


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