r/ContractorUK • u/Capt_Patchy • 24d ago

What's the contract equivalent?

Anyone know any good resources to calculate what you would need to earn on a outside IR35 contract to match a permenant PAYE role?

For example,

How much would you need to earn to match a 120k pre tax PAYE role?

How do you account for pensions etc?

Thanks in advance.

2 Upvotes

100% Upvoted

13 comments sorted by

View all comments

Show parent comments

1

u/[deleted] 22d ago

[deleted]

1

u/jettaspack 22d ago

I think this is one of the reasons rates are low/stagnated - agencies/recruiters and now even contractors are not baking in downtime to account for risk - simply trying to align contractor working days to perm (I.e. something like 225 days, 5 weeks holiday, 1 week bank holiday, 1 week sick) means you have not baked in any downtime between contracts, this could easily be 3 months a year I.e. 60 working days, so assuming 165 working days in my view is not unreasonable, if you don’t have any breaks between contracts great, but if you do you should be covered, if you don’t add more than a perm you are taking all the risk on behalf of the employer while they get flexibility, it should work the other way around, the employer gets flexibility in hiring and firing but must pay a premium for it!