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Moving from Contract to Permanent with the same company

  • 08-01-2021 12:32pm
    #1
    BrokenArrows
    Registered Users Posts: 7,500 ✭✭✭


    Ive been contracting for a company for a few months and they have briefly mentioned the desire for me to become permanent.

    There is generally a market salary for permanent roles, but is it normal to request a premium salary when being asked to move to permanent from a contracting position?

    I do actually want to move to a permanent role, but dont want to take too much of a salary cut.


Comments

  • #2
    28064212
    Registered Users Posts: 10,454 ✭✭✭✭28064212


    Unlikely to be successful, I would have thought, for two reasons:
    • Contractors usually have to charge a premium because they have substantially higher overheads. If you're going permanent, you don't have those overheads, and more importantly, you're competing in a market against others who also don't have those overheads
    • Regular employees cost more than their salary. At an absolute minimum, the employer is going to have to start paying employer PRSI contributions
    Those are general reasons why contractors get paid more than regular employees, and ultimately your specific situation may have other considerations

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  • #3
    awec
    Administrators Posts: 53,280 Admin ✭✭✭✭✭awec


    28064212 wrote: »
    Unlikely to be successful, I would have thought, for two reasons:
    • Contractors usually have to charge a premium because they have substantially higher overheads. If you're going permanent, you don't have those overheads, and more importantly, you're competing in a market against others who also don't have those overheads
    • Regular employees cost more than their salary. At an absolute minimum, the employer is going to have to start paying employer PRSI contributions
    Those are general reasons why contractors get paid more than regular employees, and ultimately your specific situation may have other considerations

    Plus the other benefits that employees may get, such as healthcare, stocks, bonuses, paid holidays etc.


  • #4
    John_Mc
    Registered Users Posts: 2,790 ✭✭✭John_Mc


    Don't forget that your employer would also be paying employers PRSI which is 8.8% on the first €398 a week and then 11.05 on everything above that. It should be taken into account when trying to negotiate your salary


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