Hourly to Day Rate

**northernladuk** · 21 October 2009, 14:42

My initial reaction was why on earth is this guy asking a bunch of strangers how much he should be paid.

My second reaction is why is he even bothering working out the numbers, just tell the customer what he WANT'S then see what the customer offers. He runs a business ffs.

But... I have had a good day so will just suck it in and make some points.

Why have you worked out an equivalent yearly rate? If this is documented anywhere won't you be well and truely shafted for IR35? You just worked out a yearly wage.. your a contractor.... why are you working on yearly wages?

232 is an unreasonable amount unless you are really gonna bust your balls. There are 253 working days in 2009 NOT including back hols. Your only gonna have 10 - 12 days off all year?? really??

Forget what your 'employer' agrees, go look at the market. Find out what the other guys are earning and go in armed with that. If they are on £1500 a week you tell tell him you want a £600 hike. If you don't get it you leave.

Did I mention the yearly wage thing... wtf.. I still can't work that one out.

Maybe I have this all wrong and your not an LTD or your happy to be within IR35 or you think your a permie and happy with it. If so fair play, if not something is very wrong and you need to re-think your situation..

Does this help?

Did I really try and actually answer a question from 1st poster in nice way? I must be having a really good day!

**d000hg** · 21 October 2009, 14:49

I read it that he's an employee and they want to move him to a daily rate, based on salary/number_of_days. In which case he's being screwed, no?

**VectraMan** · 21 October 2009, 14:52

Lots of arguments here about what an equivalent to salary really is, but many would say /1000 to get an equivalent hourly rate. So £34K pa = £34 / hr = £255 per day.

At the very least, equivalent of £34K salary should add on the employer's NI they'd have to pay if you were a permie and that you are responsible for as a contractor. So that makes the cost to them £39K, which gets you a bit closer. Also remind them that as a contractor they don't pay you for holidays, don't pay you to be sick, and can let you go at short notice and without worrying about redundancy, which is a significant benefit to them and a signifcant risk to you.

**northernladuk** · 21 October 2009, 15:04

I read it that he's an employee and they want to move him to a daily rate, based on salary/number_of_days. In which case he's being screwed, no?

It would also mean he is on the wrong forum comparing apples with pears imo

**Jeebo72** · 21 October 2009, 15:10

If the permie salary is 34K then double it. That's your starting point... do contractors actually work for less than 300 a day anyway? Don't get me wrong, I'd never go that low, but still I've heard there's a crunch on so maybe it's a starting point ...

**Sally BFCA** · 22 October 2009, 13:59

"Company I've been working for are trying to get me to go onto a day rate"

This sounds like your contracting, the "salary" bit sound like you're a permie?

If you are contracting then the wording "salary" is not the best wording re IR35

**tommyo** · 22 October 2009, 14:35

Hi all,

Thanks for your responses. To clarify, I work as a temp through a limited company... Unfortunately when I got the job, the agency agreed a 40% fee on my earnings to be passed onto the client.

The client now wants me to pay me directly through my limited company (avoid agency) but looking at paying me on a daily rate.... Hence the question.... just don't know what the £18ph (Ltd Co) equates to as a Daily Rate.

Thanks again!

Tom

**mudskipper** · 25 October 2009, 15:15

Isn't it just £18 * 7.5 - so £135.

I'm new to this game, but surely this seems very low for any IT contract, even in the current climate - maybe you need to check you're not underselling yourself.

I can't imagine the agency are going to be too chuffed about losing their cut either - you probably need to check your contract with them very carefully - they normally cover themselves to prevent you working directly for the client.

**worzelGummidge** · 25 October 2009, 15:48

If you are earning £147 per day on a contractor basis through a limited company then you would be much better financially and have better job security being a permy. When possible look at either doubling your daily rate or look for a permy role. It is in your own best interests.

Hourly to Day Rate