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Equal pay with contractors?

  • 15-09-2006 01:43PM
    #1
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭


    I'm in a IT permo job and work with a number of contractors who are paid alot more for the same work than myself and a few others in permament jobs.

    Our pay includes benefits like bupa, pension etc but when these are added in, its still way less than what a contractor is getting for the same job.

    Some contractors with zero experience are paid more than permo people who could have upto 4 years exp in same role.

    The HR dept keep saying there is no money available for permo employees despite money available to pay top market rates for I.T. contractors

    I've searched the entemp gov website for answers on equal pay but no joy, only incentive is to leave job as a last resort.

    Is there a law out there about equal pay for the same amount of work done?
    (I've heard about the one from the equality authority on discrimination on the 9 grounds but it doesnt apply in our jobs.)


Comments

  • #2
    The Hill Billy
    Registered Users, Registered Users 2 Posts: 22,855 ✭✭✭✭The Hill Billy


    Why should there be a law for "equal pay for the same amount of work done"? They tried that in the former Soviet Union & look where that got them.

    If you are envious of contractor rates - why not become one yourself? Will you be able to cut the mustard dealing with different clients/work practices/conditions/personalities/pay scales/roles every few months? Or are you not prepared to take the risk in giving up your permy job, paid health care, bonus, pension, etc, etc.


  • #3
    dublin12
    Banned (with Prison Access) Posts: 22 ✭dublin12


    hey

    exactly..if you want that level of pay, become a contractor. As a contractor, you are essentially self employed, dont get paid for holidays, sick days, dont get any of the benefits of permanent work (stability,VHI, pension), you have to organise an accountant to pay your own tax etc. Also, you dont have stability in the sense you are working in many different companies for a few months and have to get to know new systems, work practices, people, and have different commute times! Most people dont want the stress and hassle of all this and go for a permanent job.

    As far as company finances go, theres a very good reason they can afford to take on new expensive contractors but cant hire more perm staff or give existing perm staff better pay...accounts, permanent staff come under 'projected costs' and are offset against profits into the future, contractors arent, they just come under expenses and dont affect profit and loss margins as much.


  • #4
    comer_97
    Closed Accounts Posts: 522 ✭✭✭comer_97


    like dublin12 said a contractor most likely has an accountant. which costs. they will have to pay there own prsi, health care. corporation tax. they get no redundancy. And don't forget the inherent risk of not getting work.

    You want the money, take the risks. The money is not as easy as you think!


  • #5
    monkey tennis
    Closed Accounts Posts: 583 ✭✭✭monkey tennis


    As mentioned above, this is the way it all works - you can either moan about it, or do something about it (go out on a limb yourself). Are you factoring in the relative security your job provides in comparison to a contractor's? IT contract work can be a goldmine if you know how to deal with it and don't mind living bit more by the seat of your pants, but I'd imagine it would be very stressful if you weren't good at it or if there was a dry spell. Plus there's more work involved in the background - you get your paycheck at the end of the month, a contractor has to go through the rigmarole of balancing the books (or the expense of getting an accountant to do it).


  • #6
    jimmycrackcorm
    Registered Users, Registered Users 2 Posts: 14,366 ✭✭✭✭jimmycrackcorm


    Yeah it is simple economics. Look at it from the companys point of view instead of your own. The company needs extra resources for a short period and has to pay extra to get that flexibilty. If they paid the same as your salary then they wouldn't get any contractors.

    It is not a case that you are worth that much more than you earn, you aren't, otherwise you could threaten to leave and get a big pay increase. But you know that won't happen.

    A contractor is acutally quite cheap in the sense that you can deliver a project and make your profit quicker whereas a permanent employee is a permanent cost.


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  • #7
    The Hill Billy
    Registered Users, Registered Users 2 Posts: 22,855 ✭✭✭✭The Hill Billy


    Either there are no permies willing to stick up for the OP or (and this is more likely to be the case) all us contractors are quite happy to get paid wads of cash for using Boards.ie. ;)


  • #8
    MrPudding
    Registered Users, Registered Users 2 Posts: 9,779 ✭✭✭MrPudding


    I think the general rule of thumb is that the actualy cost to a company of a permie is twice their salary.

    As other have said, contractor pay come out of a different pot. It might be something like salary ceomes out of OPEX and contractors come out of CAPEX. Either way, paying contractor is much more attractive with regards to a companies bottom line.

    MrP


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