Why the Permanent Equivalent Is Lower
A contractor on £900/day earns £198,000/year gross. But a permanent employee on that salary also gets employer pension (3-10%), 25-28 days holiday (paid), sick pay, employer NI contributions (15%), and training, equipment, and other benefits. These benefits are worth roughly 25-35% of salary, so the equivalent permanent salary is £148,500.
All Day Rates
| Day Rate | Annual (220 days) | Perm Equivalent | Take Home/Mo (contract) |
|---|---|---|---|
| £200/day | £44,000 | £33,000 | £2,933 |
| £250/day | £55,000 | £41,250 | £3,538 |
| £300/day | £66,000 | £49,500 | £4,070 |
| £350/day | £77,000 | £57,750 | £4,601 |
| £400/day | £88,000 | £66,000 | £5,133 |
| £450/day | £99,000 | £74,250 | £5,665 |
| £500/day | £110,000 | £82,500 | £6,030 |
| £550/day | £121,000 | £90,750 | £6,350 |
| £600/day | £132,000 | £99,000 | £6,759 |
| £650/day | £143,000 | £107,250 | £7,244 |
| £700/day | £154,000 | £115,500 | £7,730 |
| £750/day | £165,000 | £123,750 | £8,216 |
| £800/day | £176,000 | £132,000 | £8,702 |
| £900/day | £198,000 | £148,500 | £9,674 |
| £1000/day | £220,000 | £165,000 | £10,645 |