remember a number of things (in UK at least): Employee hidden costs: Employers NI, PAYE, car allowance, holiday pay, sick pay, maternity pay, paternity pay, tr

remember a number of things (in UK at least): Employee hidden costs: Employers NI, PAYE, car allowance, holiday pay, sick pay, maternity pay, paternity pay, training, pension, healthcare Contractors have to pay all of that from their turnover - along with professional indemnity insurance, public liability insurance, accountancy fees etc. And note I said turnover. There seems to be this misconception that all contractor payments go straight into the contractor's pockets. They don't, they are business receipts that go into a company. That company then pays the contractor. What contractors do get is the ability to shift things around as they see fit. Employees are stuck with whatever structure of payments to make up "the package" is decided by the higher ups.