neburr Posted July 23, 2015 Report Share Posted July 23, 2015 Hi EveryoneI know that several of you on this forum have been in this position, so I am hoping that you can share some advice with me.I am of the view, that generally, if you are accepting a limited duration contract, as opposed to permanent employment, the remuneration rate is slightly higher. This is usually because of the limited duration as well as the case where several contracts do not provide the contractor with employee benefits like super...Is this the case in Melbourne, or is it a case of you need to simply accept what they are offering or hit the road?I will look out for your advice, feedback and thoughts.Thank you. Quote Link to comment Share on other sites More sharing options...
HansaPlease Posted July 23, 2015 Report Share Posted July 23, 2015 Totally depends on the circumstances, I guess, but generally, yes, contractors are paid a higher hourly rate than those on permanent. When I resigned from my permanent role and stayed on as a contractor for a while, my pay was increased by 20% to take into account the loss of benefits. I did not have to ask for this. How much bargaining power do you have? I tend to always bargain if the first offer is not great and find there is usually room to move. It's tough though - you want the job and you don't want to annoy them, but at the same time - you don't want them to take advantage of the fact that you want/need the job. Quote Link to comment Share on other sites More sharing options...
RichardH Posted July 24, 2015 Report Share Posted July 24, 2015 You will still have to get super even on contract, it's law.In my industry 20% is the broadly accepted figure for contracts remuneration being higher to compensate for no annual leave and other benefits which permanent employees enjoy. The figure can vary wildly though. Quote Link to comment Share on other sites More sharing options...
Nev Posted July 24, 2015 Report Share Posted July 24, 2015 (edited) Yep, I will be looking at creating a PTY for myself to do contracting so that i can just charge the client directly without them having to do payroll & super.The companies i have dealt with consider the payroll overheads to be 20-25% so if you have a PTY you should expect at least this with some extra because it is contract not permanent.In software development it looks like i will be able to get up to double my permanent salary rate, with contracts from 2 weeks to 6 months.With that said it is supply and demand, if they can easily get someone on contract they will pay the lowest amount that they can get away with, and if you are not happy with that then the next person will be, if you have a sought after skill-set you will earn more. Edited July 24, 2015 by Nev Quote Link to comment Share on other sites More sharing options...
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