If you're not interested in going permie I don't see the point of doing anything, just turn down the offer. At some point you will probably be let go maybe now or maybe next year and then find something new.
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ClientCo offers 90k to go permie. What is the equivalent day rate?
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I’ve not read all the replies. But to me it’s simple....
If you think you’ll be there more than 2 years in total then take the £90k as that’s a bloody good salary. You’ll take home less by most calculations, but sickness and the 24 month rule will erode that difference.See You Next TuesdayComment
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Originally posted by SillyPerson View PostHi all,
I’m very happy indeed with my current employer of the last 6 months. They are also happy with me and want me to go permie in September when my contract is up. (I’ve been a contracting globally since 1997)
My day rate is 550 and I could get more in London (and I found out after starting here in the west country that they were expecting to pay £650) but I like where I am and stay away from home 3 nights a week which works well.
They’ve offered me 90k to go permie – this is based solely in cost saving for them. The finance director is ‘all about the money’ to the n’th degree.
They’ve agreed to look at the ‘TCO’ of me as a permie and divide it by 48 weeks at 5 days a week.
I’ve said I’m flexible on rate.
So…I’d like to ask the forum what I can do to minimise the loss (if any) on my day rate.
For permie, I calculate the Employer NI, pension, medical and bonus less corp tax deduction for staffing costs to be 84000..
For contractor I believe it’s just 550 less 20% corp tax so 105000.
The difference in cost is therefore large – 21000. And if I go down to 475 it’ll still cost them 7000 a year more than hiring a permie at 90k.
So…I’d really appreciate any advice on how to make it better / cheaper for them to keep me on. Also my calculations may be wrong!
Thank you folks
(I’m aware of IR35 and don’t need guidance on that thank you).Comment
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Originally posted by boredfromsurrey View PostI did a calculation from last year and I made it £720 a day equates to a package of 90k. I assumed 5% allowance and used the deemed employee calculator on the gov website. Maybe you should negotiate a fixed term contract direct with this company, that is if you are happy to be an employee. That way you can ask for the equivalent of a perm. salary plus benefits suitable for the work you are doing. I have found that salary package can differ quite significantly due to location, Industry and other factors.
Thank again
SPComment
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Originally posted by SillyPerson View PostHi and thank you for your response. This is sorted now - I just needed to persuade the FD to keep me on as a contractor when my current one runs out in September. There was talk of replacing me with a permie if I chose not to take the job (I'll never go permie) and I want to stay here. Happy with current rate so no dramas. (The calculations on the responses above gave me exactly what was needed to present a decent case)
Thank again
SP
Good, will you now go f*** off and get your shoeshine box?Comment
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Originally posted by boredfromsurrey View PostI did a calculation from last year and I made it £720 a day equates to a package of 90k. I assumed 5% allowance and used the deemed employee calculator on the gov website. Maybe you should negotiate a fixed term contract direct with this company, that is if you are happy to be an employee. That way you can ask for the equivalent of a perm. salary plus benefits suitable for the work you are doing. I have found that salary package can differ quite significantly due to location, Industry and other factors.See You Next TuesdayComment
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Originally posted by boredfromsurrey View PostI have found that salary package can differ quite significantly due to location, Industry and other factors.Comment
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Originally posted by WordIsBond View PostWell, that was professional....Comment
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