I'm currently earning around £40k as a mid-level developer in a salaried role outside London. Lately, I've received several offers from recruiters on LinkedIn for contracts boasting rates of over £400 a day for 6+ month projects. It seems too good to be true! Besides the fact that these jobs aren't permanent, is there something I'm missing? What's the catch?
3 Answers
The main catch is that as a contractor, you're effectively self-employed, which means that day rate has to cover a lot of expenses typically included in a salary. You're responsible for things like vacation pay, sick pay, taxes, travel costs, equipment, and even the time spent finding new contracts. So if you end up keeping about 60% of your day rate after expenses, you've done well!
Right! I spoke to a friend who just switched from a contracting role to a permanent one. He’s now making less money, but his quality of life has improved significantly due to guaranteed holidays and work-life balance.
I did contract work for a while and found it to be great at times! The money can be excellent, especially if you land an easy position. However, when you average everything out, including downtime and extra costs, a stable job with benefits often looks better in the long run. If you’re at £40k now, going contracting could be a gamble worth taking, but be prepared for the uncertainties that come with it!
Definitely! It can be a good option if you're young and don't have too many financial responsibilities. Just remember, the industry can be tough, and if you're looking for stability, a full-time role may suit you better.
From my experience, contractors generally earn more than salaried employees, mostly because the market demands specific skills. However, it's essential to remember there are no benefits like paid sick leave or pensions. You might earn good money in the short term, but the gaps between contracts can be stressful, and you’re only as good as your last job. If you think you can handle the instability, go for it!
Yeah, there’s a lot of volatility. I’ve been contracting for a few years now, and sometimes I make great money but also worry about finding the next gig. Having financial stability is key, especially if you’re considering things like a mortgage.
It's true, even with all that taken into account, you can still earn more than a regular salaried position. But remember, you’re also your own boss which adds stress since you have to handle the admin and networking. Some thrive in that environment, while others may find it overwhelming.