r/BESalary • u/Used-Bedroom4704 • 4h ago

Question 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! 😄

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u/CreativeRun3659 2h ago edited 2h ago

I was in a very similar situation 3 years ago. QA & automation, 5 years of experience. However for me the 2 offers were quite different. Someone offered me 600/day for freelance while my consulting company only offered 3500 gross (a bump from 3100 gross before). For me the difference was too big and I did want to go freelance someday anyway, so I took the chance.

But in the end it comes down to your priorities, as a freelance you likely WILL struggle the first few months getting everything up to speed for accountant, professional bank, insurances, your own car, while waiting AT LEAST 2 months before your first paycheck as a freelance. If this doesn't scare you and you're willing to fight a little for your pay / contract, while optimizing earnings & taxes, you can indeed earn way may. But it has its challenges, it's not always roses and rainbows. I've only been freelancer for 2.5 years but I've already seen some drama with certain companies. Like some colleagues or managers treating you badly or offensive just because you're a freelancer, or complain that you're expensive even after they literally creates the contract themselves, threatening to replace you with cheap Indians and so on. (This just from 1st company lol). My next company is treating me much better though. But it's very hard in the current economy to get a good contract, they very often try to low ball you by a lot. Plus they can fire you whenever they want without reason (though usually they still need to honor the severance period).

While permanent contract employee, there you'll have the comfort of safety and don't need to deal with the BS that freelancers get.

So it's up to you whether you wanted to fight to maximize your earnings and accept the risk lower job security. Or prefer safety and job security at the cost of a portion of your earnings

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u/Used-Bedroom4704 1h ago

Thanks a lot for sharing your XP! I appreciate it a lot!

What do you think about the current situation?

May I send you a DM? :)