Issue with transferring from a rolling contract to a permanent position.

cheerspal

Hi, I need some advice.

I have been working on a daily rate IT contract for the past 2.5 years. I have been offered a permanent position in this company. I will be doing the same job and the same hours, but the salary being offered is €10,000 less than I am currently on. I am not on a huge salary as it is, less than 40K.

I was wondering has anyone had any experience with a situation like this???

I keep hearing that after 2 contracts a company has to offer you a permanent role. I am on at least 15 rolling contracts at this stage. If they do have to offer you a permanent role than surely the salary should be in or around the same as you have been contracted in for and not €10K less?

Any advice greatly appreciated.

thanks,

"Dave"

missmatty

I'm in a similar situation, will be interviewing for a permanent position soon after being 'rolling' for the last 6 years. As far as I know, if I get it I will go in on a lower salary than I'm currently on, but I'm not sure how much of a drop I'll take. They do allow a bit of an increase on the basic salary for people who have been in-situ as such for years though.

I think the salary is lower when permanent, because with contracts, the higher salary scale is supposed to compensate you for the insecurity of your position. That's the way it works here anyway. I'm on a yearly rolling contract and technically should have been made permanent ages ago, but I couoldn't be bothered taking them to court over it, cos that's what it would have taken.

RentDayBlues

If you were on a daily rate contract and you try to equate this to an annual salary the numbers will not match up. For example:

Daily rate contractor €150 per day, an annual salary for this would be between €25-28K.

Eoin

Why would people contract if it didn't pay more than a permanent position?

mrpink6789

10 grand less isn't that bad, generally permanent salaries are 25-33% less then contract "salaries". You have to take in to account PRSI, Pension, VHI benefits as well as the security(although not sure about that in this market) at having a permanent job rather then a contract one.

Contractors generally multiply their daily rate by 210(working days in the year) and take away between 25-33% off that figure. This salary equals what you should be getting for a permie role. I say 210 because you have the standard 21 days holidays then included in this figure.

dazberry

cheerspal wrote: »

I keep hearing that after 2 contracts a company has to offer you a permanent role. I am on at least 15 rolling contracts at this stage. If they do have to offer you a permanent role than surely the salary should be in or around the same as you have been contracted in for and not €10K less?

If you're on a fixed term salaried contract (i.e. paid a salary but your contract is to a fixed date) you can be offered any number of contracts during the first 3 years, and then only one more after that for no longer than one 1 year.

If you are on a salary (and not a contractor as others have stated) then its pretty cheeky looking for that sort of paycut. Really its up to yourself, do you have any options to negociate?

D.

/Edit: Sorry - missed the daily rate bit...

CorkFenian

cheerspal wrote: »

Hi, I need some advice.

I have been working on a daily rate IT contract for the past 2.5 years. I have been offered a permanent position in this company. I will be doing the same job and the same hours, but the salary being offered is €10,000 less than I am currently on. I am not on a huge salary as it is, less than 40K.

I was wondering has anyone had any experience with a situation like this???

I keep hearing that after 2 contracts a company has to offer you a permanent role. I am on at least 15 rolling contracts at this stage. If they do have to offer you a permanent role than surely the salary should be in or around the same as you have been contracted in for and not €10K less?

Any advice greatly appreciated.

thanks,

"Dave"

Are u sure ure not on fixed term, i mean if ure on a daily rate, u dont need to be offered anything, u work for ure own ltd company\umbrella company with no ties to company or the client ure working for...Apologies in advance if I have got wrong end of the stick from your description..

Barry CPL

This is a salary to daily rate reckoner (in terms of cost to the employer)
(note - dont take as definitive - I'm not an accountant - I introduce people to each other, also its based off last years tax figures etc.)

If an employer has the equivelant of €481/day to spend, it would cost them approx the same to pay a salary of €65K.


To get accurate figure, recommend you go to an accountant, but this will hopefully serve as a guide.

N.B - this doesnt mean you get the same take-home pay if you take the salary, in fact you will definitly have less, however you will have PRSI, paid holidays etc.
To calculate it the other way around, use this: How to calculate daily rate and salary take home pay

PM me if you'd like more detail...

The_Conductor

It all boils down to what your current daily rate is.......
Assuming for arguments sake its in the region of €200 a day- this would normally translate into a permanent post with a starting salary of about 30-32k, or a daily rate of €150 would only translate into a permanent post with a starting salary of circa €22-24k- this reflects the permanent nature of the post, pension/prsi etc contributions made by the employer and the additional rights you accrue as a permanent employee.

It is far more lucrative to be employed as a contractor- but you do not have the security associated with a permanent post, and depending on the state of the economy can be weeks or even months between contracts, depending on your particular skill set.

If you discuss this with some of the recruitment companies they will probably inflate what you can expect to get in a permanent post by a significant factor- which is really unfair as it gives clients unrealistic expectations of what to expect. :mad: Some recruitment agencies are worse for this than others, and they have a long and bewildering list of other issues too- (there is a name and shame thread here

Keep in mind lots of companies are now arbitrarily cutting contractor rates (and letting full time staff go ).......

bosscat

Hi ,
Barry, you seem to be basing your daily rate to salary on working for about 49 weeks a year.
I would go for more like 45 weeks a year :
Perm job would give as paid - 20 days leave , approx 10 days public holls , add in 5 for training or sick days ; thats 7 weeks paid you wont get as a contractor.
So 400 a day is 2 grand a week for 45 weeks i.e. 90k a year if it was a perm salary.
though fair enough for 49 weeks i suppose as many contractors dont get sick or take much holidays!

Barry CPL

Hi bosscat,

Actually, I go by 230 days per year (46 weeks), but you have a point on the public hols - I diddnt allow for them which would make roughly a 4% difference - thanks for pointing that out. If I ever revisit that spreadsheet I'll pop it in (I did say approximate though!).

Barry