Contractor to perm - how much money to expect (part timer) Contractor to perm - how much money to expect (part timer)
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  1. #1

    Nervous Newbie


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    Default Contractor to perm - how much money to expect (part timer)

    I'm currently working for a large company in London. Signed up for 6 months and kept being extended, now been here for 2.5 years. Company wants to make all their contractors permanent.

    I'm currently on £500 a day which 500 x 5 x 42 weeks = 105,000/year. The company recruiter offered "at a stretch" 65k in a permanent. Of course there is employer's pension contributions, training (money is my priority though) etc but it's still a huge drop.

    This calculator suggests that an equivalent rate is 90k - 120k based on inside/outside IR35.

    Understand there is a difference between contracting/permanent but seems like 80k might be more reasonable? The company will be paying my agency a fee, so they will be saving money there too, 15% on top of my 500?

    However key thing is that I'm part time. I do 3 days a week which I really like as it gives me time for other interests which make a lot less money. The offer they've made would be pro rata, so £39k and 15 days holiday.

    Part time web development jobs are very rare, so I doubt I'd find something similar. I would however be willing to walk away and consider something else - a sabbatical or returning to full time work, so I'm prepared to be tough and walk away if necessary.

    So what would be a sensible amount to ask for? Anyone else had a similar offer? I feel like they are lowballing me because they think they've got me over a barrel.

  2. #2

    Fingers like lightning


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    I remember responding to a similar question before, but now cannot find it to copy and paste.

    Essentially, I (think I) said that there is a market for contractors and there is a market for permies. And never the twain shall meet, even if they could be (unfavourably) compared.

    While you can intellectualise what you feel you should be offered permanently, I believe you actually need to walk away from such ideology and start again.

    What do you want to do? What are you prepared to live on/off?

  3. #3

    My post count is Majestic

    northernladuk's Avatar
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    You'd probably be better just waiting until everyone leaves their gigs that have been deemed inside and go brolly at contractor rates.
    'CUK forum personality of 2011 - Winner - Yes really!!!!

  4. #4

    Should post faster


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    Quote Originally Posted by northernladuk View Post
    You'd probably be better just waiting until everyone leaves their gigs that have been deemed inside and go brolly at contractor rates.
    NLUK - I think you are bang on here. I reckon the next stage of contracting is going to be mostly Brolly. I do think there will still be a small percentage of Contractors out there running through Ltds however I fear they will be heavily targeted by HMRC.

    Back to the post, I did have a chance to go Perm in the summer. I had 4 offers from the same company. After reviewing the package closely, I just couldn't sign up because they didn't break the magic six figure mark. The were extremely close and reminded me that my yearly bonus would take me past it however the bonus wasn't guaranteed.

    At the end of the day, you are only worth what someone is willing to pay for you. It depends on the market and your skill set. The more rare you are along with how in demand you are depends on how much you are worth.
    Last edited by ContractorHardman; 19th November 2019 at 13:55.

  5. #5

    Fingers like lightning

    GhostofTarbera's Avatar
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    Default Contractor to perm - how much money to expect (part timer)

    Your rate is what you are offered and accept nothing more nothing less £100k+ is dreaming


    Sent from my iPhone using Contractor UK Forum

  6. #6

    More time posting than coding


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    If you've got a part time role you like and more importantly, fits in with your life, think carefully about leaving.

    An old friend of mine had contracted from the mid 90s for about 15 years in investment banking. Made a ton of money and after having a couple of periods off having kids went perm for a while back in banking. Decided that wasn't for her any more and took some more time off for caring responsibilities for an elderly parent. She eventually decided to go back to contracting but found it impossible to get a part time contract. You might be lucky and get one as a job share but they are few and far between.

    As for salary, for a £500 day rate, I would anticipate a basic salary equivalent between high 60s to low 70s. 80k would be really pushing it and 100k is improbable.

  7. #7

    Should post faster


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    Quote Originally Posted by jumbotron View Post
    I'm currently working for a large company in London. Signed up for 6 months and kept being extended, now been here for 2.5 years. Company wants to make all their contractors permanent.

    I'm currently on £500 a day which 500 x 5 x 42 weeks = 105,000/year. The company recruiter offered "at a stretch" 65k in a permanent. Of course there is employer's pension contributions, training (money is my priority though)
    I stopped reading at this point.

    If money is your priority, you better stay a contractor, even via umbrella.

  8. #8

    Default push hard to stay a contractor

    You value the flexibility of contracting, therefore I would push your agency to get your contract extended by whatever means, which probably means adding an umbrella company to your payment chain, at least for the time being. The need for contractors is not going to go away. Hopefully when the current mess has settled down contracting will return to how it flourished unnoticed in the seventies and eighties when we all paid our fair share of NICs and still came out better rewarded than the permies.
    Try not to interface directly to your employer's HR, route your replies to any approach from your employer via your agency - it's their job and they are likely to achieve more for you. Remember your contract probably has a clause saying you can not take a permie post without the agency involved.

  9. #9

    Nervous Newbie


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    Quote Originally Posted by PCTNN View Post
    I stopped reading at this point.

    If money is your priority, you better stay a contractor, even via umbrella.
    Do you think there's a chance of being able to stay working for this client by starting to work via umbrella? i.e. keeping 3 days a week and avoiding being squeezed into permanent.

  10. #10

    Nervous Newbie


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    Assuming I decide that a lifestyle change isn't what I want right now - is the 65k reasonable (in relation to my current day rate, understand it depends on market conditions) for the contractor to permie conversion?

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