[clug] [OT] Contracting hourly rate calculation

Alex Satrapa grail at goldweb.com.au
Wed Aug 22 23:48:59 GMT 2007

On 23/08/2007, at 08:29 , Dale Shaw wrote:

> 213 work days per year
> $30/hr
> $240 daily rate
> $240 * 213 = $51,120.00
> $51,120.00 * 9% super = $4,600.80
> $51,120.00 * 3% mgmt = $1,533.60
> training = $3,500
> expenses = $4,600.80 + $1,533.60 + $3,500 = $9,634.40

Then add on the load of the ATO paperwork, GST, and either being your  
own contract manager or hiring someone to manage you, and you'll find  
that it's not worth contracting at an hourly rate unless you are (a)  
working for a contracting firm, or (b) earning around $90k pa or (c)  
really, really love the work you're doing that much that you'd be  
willing to walk barefoot on broken glass to get to work each day. In  
the case of (a) you really need to ask yourself if you'd be better  
off a  permanent full time position.

If you are in a permanent position doing work for a client of your  
company, and are contemplating contracting out to do similar work on  
your own, take your current salary and multiply by three to get a  
rough idea of how much the client is paying for your services.


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