Cost to employer

[utrinqueparatus]

Are there any calculators available to work out cost to employer for a specific salary.

i.e for a 30000k p/a salary how much would that leave the company paying on a daily rate including employers tax/ni.

I know daily rate my direction would be £115.38.

[malvolio]

Rather depends on the employer's overheads, doesn't it? For one thing office space in the City tends to be a touch bit more expensive than something in Lerwick. Or if you're asking what I think you're asking, employer's NIC rates are on the HMRC website - shouldn't be too hard to work it out for yourself. Hint - it's around 12%

So how about framing an intelligent question with enough detail to render a half-sensible answer. Or does that require too much thought?

[utrinqueparatus]

I'm sorry if I offended by throwing that question out there quickly. I had 10 minutes to think up a daily rate to counteract a 30k p/a perm offer. Had to wing it and offered £155 and they accepted

[malvolio]

I'm sorry if I offended by throwing that question out there quickly. I had 10 minutes to think up a daily rate to counteract a 30k p/a perm offer. Had to wing it and offered £155 and they accepted

Lucky. Should have looked at the rest of the board first and you might have seen an active thread from earlier. You would have found a more realistic answer of £141 a day, so you're ahead of the game.

No offence taken, I'm rude to everyone. Next time, engage brain.

[ChimpMaster]

I'm sorry if I offended by throwing that question out there quickly. I had 10 minutes to think up a daily rate to counteract a 30k p/a perm offer. Had to wing it and offered £155 and they accepted

You didn't account for sick time, holidays, pension, healthcare etc etc. £155 is not a lot of money these days.

[krytonsheep]

WHS, for £155 a day, you're probably still saving them money, depending on how much pension/health insurance/holiday etc is included in the permie role. Personally I would have pushed for around £350 considering you have got no job security at all.

[tim123]

Are there any calculators available to work out cost to employer for a specific salary.

i.e for a 30000k p/a salary how much would that leave the company paying on a daily rate including employers tax/ni.

I know daily rate my direction would be £115.38.

The normal rule of thumb is that it costs twice as much to cover the extra non capital costs like NI, Pension, holiday, sickness etc and three times as much when included the capital costs of office space, furniture, IT support etc.

When employing a contractor, you are saved from the first but still have to pay the latter.

tim

[centurian]

You didn't account for sick time, holidays, pension, healthcare etc etc. £155 is not a lot of money these days.

Quite. A person's hourly rate is generally considered "annual salary / 52.143 / 5 / 7.5" - assuming 7.5 hours per day.

This becomes their headline hourly rate and permie's therefore think that that is how much they earn for each hour that they work.

But they tend to work at least 250 hours less per year in terms of holiday time alone, but still get paid for it.

Factor this into the time they actually work and this is about 15% more on the hourly rate.

And that doesn't even count sickness, pension costs etc.

Contranst this to a contractor, who only gets paid for the actual hours worked.

[RichardCranium]

Factor this into the time they actually work and this is about 15% more on the hourly rate.

Contrast this to a contractor, who only gets paid for the actual hours worked.

It's worse than that. The standard project management rule of thumb says you can expect 200 productive days from a permie. There are 260 days in the year, so you are paying 30% more because when they are in work they are in review meetings, progress meetings, one-to-ones, talking to HR, filling in review forms and all that other crap contractors don't do.

[MrMark]

It's worse than that. The standard project management rule of thumb says you can expect 200 productive days from a permie. There are 260 days in the year, so you are paying 30% more because when they are in work they are in review meetings, progress meetings, one-to-ones, talking to HR, filling in review forms and all that other crap contractors don't do.

Maybe, but then you have to take into account the time contractors may spend on forums.contractoruk.com Oh...