# [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

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