Contract or Permanent? Benefits

andresmalo

Hi Folks,

I want to ask you what's the difference being a contract employee or a permanent employee. I am not asking information about rights, just the benefits of taxes, reliefs, etc, and if its better to be contract in terms of get more money at the end of the month, or is the same, or what.

Cheers and thanks!.

AARRRGH

Contractors get paid a higher wage. You will earn (in my experience anyway) about 33% more after tax if you are a contractor.

At this moment in time, I would recommend you go for a permanent position, as a recession might be on the way.

helimachoptor

I would agree with the above poster OP, I've been offered a few contract positions lately but at the moment i'm happy to be permanent.

contracting is a good in a boom but when the recession bites contractorsare the first ones out the door

SheroN

helimachoptor wrote: »

I would agree with the above poster OP, I've been offered a few contract positions lately but at the moment i'm happy to be permanent.

contracting is a good in a boom but when the recession bites contractorsare the first ones out the door

But how safe is a permanent job these days? Realistically all you'll get at most is a couple of months worth of salary.

AARRRGH

SheroN wrote: »

But how safe is a permanent job these days? Realistically all you'll get at most is a couple of months worth of salary.

Well they'll definitely get rid of the contractors before the permanent staff...

TirEoghain

The contract market seems to be getting a bit thin on the ground at the moment. I'm glad to have secured a 6 month contract starting at the end of next month with a seamless transition from this one into the new one.

I'm hoping that the market will be better in the new year, or I'll have to look for a permanent job. When going for permanent, do employers have any preference as to whether your recent experience is from contracting or permanent work?

helimachoptor

SheroN wrote: »

But how safe is a permanent job these days? Realistically all you'll get at most is a couple of months worth of salary.

True, but contractors are pretty much always first out as they are a massive financial drain on companies.

TirEoghain wrote: »

I'm hoping that the market will be better in the new year, or I'll have to look for a permanent job. When going for permanent, do employers have any preference as to whether your recent experience is from contracting or permanent work?

TirEoghain I'm currently permanent but spend most of my time on site with customers so I'm semi contracting as the amount of time spent in my own companis office is pretty small. I don't think employers care too much just as long as you have the experience.

kmick

Maybe so but the contractors go first in a downturn. If you are going the contract route make sure its a 6 month or 12 month contract. Charge more for short term contrcats and base your year on 200 days - not 220 like the agencies claim
365 days in year
Minus 104 weekends
Minus 20 holidays
Minus 9 Bank Holidays
Minus 4 sick days
= 137
+ I take off the the other 28 days for changing contracts - you will never be employed for 12 months of the year in my experience.
Therefore if you curently make 80k a year you now have to make that in 200 days = 400 euro/day. Make sure to add in Pension, Health Insurance etc to calcs.

andresmalo

I guess this is a controversial question, first of all if the employee is looking for a contract employee, is looking for a "service" so they wouldn't care about if you are coming from a permanent position, or whateva, in the other hand, the employer which is hiring a new contract employee for the first time, may be its possible looking for a "quiet" guy instead of a contract guy that was hunting for jobs on the past years.

It's that just my point of view, you tell me.

bosscat

also remember how you set up as a contractor ; sole trader / private limited company / umbrella company.
each have benefits like tax writeoffs and problems like paper work and needing an accountant perhaps .