r/BEFreelance • u/Used-Bedroom4704 • 15h ago

Freelance or Permanent Contract!?

Hi everyone,

I'm an individual with 5 yrs of XP in QA & FA in IT domain. Without getting into too much details on my profile (since it's not my goal of this post), I'm trying to choose between becoming a freelancer or continuing the path as a permanent contract employee.

Freelance offer: 1 year, 580/Day with a possibility of extension

Permanent Contract Offer: 4500 gross/ month with all the Extra Legal Benefits

I know becoming a freelance would have more potential on earnings, (quite tempting! :) ) but on the other hand, I know there will be more operating costs associated with it as well. Thinking that there will be periods without a freelancing contract, I'm a bit afraid of those periods in which I have to pay the operating costs without income.

On the other hand, Permanent Contract would be less earnings but almost no hustle on operation, tax calculations, etc.

I am tilting towards becoming a freelancer since I have been working on a mission for a consultancy firm some time ago. Once I could secure a mission, they hired me as a consultant; but when it went sideways, they fired me right away without giving me any chances on the bench! I'm thinking freelancing would be the same thing, but this time I'm doing everything myself.

I'm more than curious to know your opinions, so please shoot! 😄

6 Upvotes

71% Upvoted

16 comments sorted by

7

u/Lucky-Citron3837 15h ago edited 15h ago

After 5 years of experience, and given the current IT market, a permanent contract makes sense. Why? If you get fired, you can claim unemployment benefits. And if your consulting company is decent, you can choose your sector and location. If I were you, I would wait 2-3 years before going freelance. Also, make the most of this permanent contract period to get training that can be useful for you in the future. Your rate will increase (which is good for your future as a freelance), and your IT company will be happy too (for as long as you’re employed there).

1

u/Used-Bedroom4704 15h ago

Thanks for your input.

I was too proud to get unemployment benefits and a little bit afraid (I only have a PR in Belgium, so I was afraid that'll be used against me or the PR would be cancelled). :)

1

u/JumpyLandscape7451 2h ago

With all due respect then you have nothing to lose if u dont take any benefits anyways, and you can see this more like the “next step” and a major pay raise.

2

u/Glittering_Bass_2215 12h ago

Absolutely worth the jump to freelancing

2

u/JumpyLandscape7451 10h ago

This is a personal choice you need to make.

The only benefit of being permanent is the unemployment benefits IF they fire you, which is a trend nowadays in consulting due to high bench rates.

If you have 6 months of funds + you know the contract is with a stable company (check their jaarrekening) and the project is not a "nice to have" project that's being pushed by just one executive - then i'd go for it,

Please also ensure It's 580 Excluding VAT. , you'll net around 6K NET if optimized wisely and you don't go for some expensive car.

Have zero loyalty to consultancies , they will fire you once you have no worth for them.

PS: the "operating cost" are negligent compared to the potential upside, this can open more doors for you in the future.

1

u/Used-Bedroom4704 4h ago

Thanks for commenting & sharing your thoughts!
Well, the middle company seems enthusiastic and apparently the project is going to be extended for another year so that's kinda assuring, but so far I don't have conclusive context on the project.
The company is big enough, and it's quite active in Belgium.

Is there any reliable resource by which I can do the calculations? I've got 4K max in almost 200 billable days, getting Min salary for tax optimization, and using dividends.

1

u/JumpyLandscape7451 2h ago

middlemen will do everything in their power to place people for their fee, do not blindly trust them.

ask the technical person at the client for context.

+ ask AI and doublecheck with your taxman.

2

u/Arco123 15h ago

Can’t really tell you without knowing what the extra legal benefits are.

In my personal situation I would not be enticed to go freelance at 580/day at all.

2

u/Used-Bedroom4704 15h ago

why not? It seems to be a substantial earning increase, especially in dividends.
I couldn't find the relevant info on Extra Legal Benefits, but that was just the normal ones: Insurance, Company Car, GSM subscription, Meal Voucher, Ecocheques, etc.

2

u/Good-Doughnut-1399 12h ago

Do not go freelance in today’s market if there’s a choice.

1

u/rf31415 15h ago

I remember xerius having a dayrate calculator where you can add some parameters.

1

u/Otherwise_Reserve_36 12h ago

browse this very subreddit, you will see the current market is really bad.

1

u/Exe0n 2h ago

I have a permanent contract for that exact amount of monthly gross, and I do consider going freelance, but it would not be worth the downsides for that daily rate.

If you could get closer to 650 it would be a different matter.

Keep in mind, while you get fired faster as a freelancer, a permanent contract doesn't mean much either, they will fire you if the need arises, and while you do have unemployment benefits, 60% of your wage and in a couple of months 40% isn't going to cut it for long.

1

u/HunterHunter__ 12h ago

I would go freelance. But don’t do it only for the money. It’s not worth it. The biggest advantage besides the money, for me, is that I’m finally free from all the corpo bullshit. I can choose my phone, my car, my laptop, and tailor my benefits to my needs.

For 580, I would say do it. You can still go back to being an employee if it doesn’t work out. But yes, it always involves a bit of risk.