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To give you an idea, a company I work for pays contractor companies around 40-50€/h so about 75k€/year, and out of that the contributor gets about 30k€ before t

To give you an idea, a company I work for pays contractor companies around 40-50€/h so about 75k€/year, and out of that the contributor gets about 30k€ before taxes. Also, your 75€/h gives about 125-130k€/year, not 156k. So those guys would probably get paid 50-60k€ before taxes.

tharkun__ 6y ago
Not sure where you are. The example I gave was in Germany as mentioned. Where's yours? I guess it depends on how you calculate as well: My calculation was a simple 75EUR per hour * 40 hours per week * 52 weeks a year to arrive at 156k. We could also go with 75EUR per hour * 8 hours a day * 255 business days in 2021 (I chose Hesse as the state as that's where Frankfurt is located, home to lots of banks and such, i.e. lots of contracting). That's 153k. Since you're a contractor, choose how many weeks of vacation you wanna give yourself and subtract. If you as a contractor get only 30k before taxes, then something is seriously wrong. I worked for a contracting company back when and that's what the rates are based on. I was an internal employee for them and I got paid more than the 30k you quote. I doubt an actual external contractor that we just placed would get less or just on par of what us employees got. That would not make any financial sense, as they would have to pay their own taxes, insurance etc. from it, while we don't.
- benhurmarcel 6y ago
  Sorry, I was talking about contracting companies that provide work hours with their own employees, who are on contract. Companies like Altran for example. I counted around 215-220 days of work per year for an employee. When counting holidays and so on that's about what you get in my experience in several European countries (mainly France and Spain, but also Germany where rates are higher it's true). And yes, those employees get paid less than the internal employees of their customer. That's why they're often young. Concerning freelance contractors, they get the full 100k€+ a year, but they then about half is going away in taxes. Still it's significantly more than employees, which compensates for the instability.
  - tharkun__ 6y ago
    That makes much more sense now. So just a little difference in understanding/definition of "contractor" :) And I can definitely corroborate the "young" part as well. We had some external contractors that we placed with our clients that made less than the 75EUR (IIRC maybe 60EUR or something) but they were young and/or from Eastern Europe.

tharkun__ 6y ago

Not sure where you are. The example I gave was in Germany as mentioned. Where's yours? I guess it depends on how you calculate as well: My calculation was a simple 75EUR per hour * 40 hours per week * 52 weeks a year to arrive at 156k. We could also go with 75EUR per hour * 8 hours a day * 255 business days in 2021 (I chose Hesse as the state as that's where Frankfurt is located, home to lots of banks and such, i.e. lots of contracting). That's 153k. Since you're a contractor, choose how many weeks of vacation you wanna give yourself and subtract. If you as a contractor get only 30k before taxes, then something is seriously wrong. I worked for a contracting company back when and that's what the rates are based on. I was an internal employee for them and I got paid more than the 30k you quote. I doubt an actual external contractor that we just placed would get less or just on par of what us employees got. That would not make any financial sense, as they would have to pay their own taxes, insurance etc. from it, while we don't.

benhurmarcel 6y ago
Sorry, I was talking about contracting companies that provide work hours with their own employees, who are on contract. Companies like Altran for example. I counted around 215-220 days of work per year for an employee. When counting holidays and so on that's about what you get in my experience in several European countries (mainly France and Spain, but also Germany where rates are higher it's true). And yes, those employees get paid less than the internal employees of their customer. That's why they're often young. Concerning freelance contractors, they get the full 100k€+ a year, but they then about half is going away in taxes. Still it's significantly more than employees, which compensates for the instability.
- tharkun__ 6y ago
  That makes much more sense now. So just a little difference in understanding/definition of "contractor" :) And I can definitely corroborate the "young" part as well. We had some external contractors that we placed with our clients that made less than the 75EUR (IIRC maybe 60EUR or something) but they were young and/or from Eastern Europe.