You're actually paid more cash during the contract period because you have additional expenses. You wouldn't be working for less. However, it is likely you'll

You're actually paid more cash during the contract period because you have additional expenses. You wouldn't be working for less. However, it is likely you'll be able to negotiate a higher base salary when you convert than you would have been able to negotiate if you had hired on directly as a salaried employee, because it would cause them extreme pain to try and replace you.