Contracting through Agency..

CyCaboose

Hi all,

I am a contractor going through a recruitment agency as a temp agency employee - however the job I am doing is going on a rolling contract and I have been doing it for over a year now on this contract (and prior to that I worked here too on contract).

At the time I was hired I was a graduate, so although I was contracting I was (and still am) getting fairly low pay - I'm just happy to be in a job really as I was unemployed a year ago and jumped right into the work without questioning the pay, but I'm getting tired of the low pay now, especially with my experience and the work I am doing.

I am working directly through the agency and not through a limited company etc.. to cut a long story short, I found out how much the client company I work for are paying my Agency for my work.... it is a great deal more than what the Agency pay me - the Agency takes 22% by the looks of it.

Thats a bit of a pain since I am the one doing all the work, so my question is - is there any way I can see more of that money?

People have mentioned to me in the past that there was benefit in going through the recruitment agency with a Limited company - and this would somehow give me more money (how? ok they don't have to pay PRSI or handle taxes but I'm sure they still keep a fair chunk of % for the sake of it?)

I was told in the past that some company called CXC can do this for me, and they will help with tax - and they charge 5% to do this. But if I went through them is that 5% on top of the 22% that the agency is taking? or just 5% (I don't see how that could be), or something in between?

Any help on this matter appreciated - it would be great if I could try and get more money without changing jobs or asking for a raise (which is difficult enough)

Delancey

CXC do a lot of the ' back office ' stuff for contractors , before you can go to them however you would need to terminate the current arrangement with your present agency - this may prove difficult , were you to go ' independent ' but work for the same employer your current agency may well be entitled to a ' finders fee ' which your employer may not wish to pay.

samhail

Have you contacted your contract company and ask them to move you off the contract to a higher paying job ?

Mrs OBumble

CyCaboose wrote: »

Hi all,

I am a contractor going through a recruitment agency as a temp agency employee - ...

.. to cut a long story short, I found out how much the client company I work for are paying my Agency for my work.... it is a great deal more than what the Agency pay me - the Agency takes 22% by the looks of it.

22% is lower than some circumstances.

Remember, out of that 22% they need to pay your holiday pay (8%) and public holidays (3-5% I think), and they need to pay the employer PRSI contributions (I think this is about 6%, could be wrong though). They also need to pay the costs of doing your payroll etc.

Put that way, it doesn't feel like such a big cut.

Oh, and you may like to check whether the 22% includes VAT (which the client company has to pay) or not - though I'd guess it doesn't.

TBH, you'd find it difficult to convince them to change you from temp-employee to independent contractor. Most likely to succeed in asking the agency to get you more money - I got a 10% increase this way earlier in the year (and suspect I could have got more if I'd pushed it).