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You can't just compare permanent salaries to hourly rate contract roles directly (you need to take into account downtime, risk, vacation, overheads, etc. in ord
by ig1 16y ago
You can't just compare permanent salaries to hourly rate contract roles directly (you need to take into account downtime, risk, vacation, overheads, etc. in order to make a fair comparison).
I don't know what the standard is in the US but in the UK you can generally earn 1.5-2x as much contracting on a day rate as you can in a permanent job.
- Silhouette 16y agoThat's all true, and even then, basically no-one in the UK pays £90/hour contracting rates for routine software development without specialised skills, not even London banks.
- parasubvert 16y agoThe rule of thumb with contracting is to take your base salary, divide by 1000, which becomes your hourly rate. This roughly coincides with paying your own benefits and 1/3 of annual downtime. Not that you're planning for 1/3 -- it's risk adjustment.
- Silhouette 16y agoThat's a very rough rule of thumb, because it depends a great deal on the tax regime you're operating under.
- parasubvert 16y agoOf course. And I was referring to practice in US and Canada. YMMV of course.