Maternity leave and high salary paid to contractor

[R4PID]

My missus is about to go on maternity leave in a months time. Her role is being advertised on a contract basis at the moment. We've seen the role on the agents website and were more than a little perturbed to read that the salary offered is over a third more than she is on now in a permanent role.

She's given everything to this company in the last 4 years, has a wealth of experience in her field, is the absolute rock in the company and executes her job superbly with dedication and fabulous professionalism.

To see the role she's worked so hard for being advertised for a third more is an absolute kick in the teeth.

We're reading lot's into this, probably too much at the moment as we're in shock. Any advice we can offer her would be gratefully received. I've suggested she talk to her manager about it immediately. I guess no employment laws have been broken here but it is bloody annoying all the same!

[Justayellowbadge]

Are you serious?

[Neil_H]

Newsflash: contract staff almost always earn more than an equivalent permanent role. Main reason being they have no healthcare, pension, sick pay or other benefits that permanent staff have, and can be out of a job in days should the business require it.

[clonmult]

Wow. Contractor gets more pay than permie shocker. Hold the front page.

[Fittster]

Contractors don't have the long term security or perks your wifes enjoys (e.g. maternity leave) so get more cash.

[FourWheelDrift]

Is it a temporary fill in only though as your wife will return to the job herself? If it is I suppose it will need to be higher to make it worthwhile to anyone taking it for a few months.

[Jinx]

Contract work is pretty much always higher paid (as contractors don't get the benefits of the permies) . Why the upset?

[m4tthew]

Its perfectly normal for a Contractor to be paid more than a Permie isnt it?

[R4PID]

I expect a contractor to get more. It's the amount more that has me surprised. 33% to 50% more?! Seems extreme.

[Toni896]

I've always been under the impression contractors/self employed are paid more than permies.

They are in it anyway, I know the guy I replaced(who was a contractor) was on 3 times my salary.

[Timmy35]

Fittster said:

Contractors don't have the long term security or perks your wifes enjoys (e.g. maternity leave) so get more cash.

..... the pension.

Or any paid leave.

Or any fringe benefits healthcare etc.

and have inevitable gaps with no wages between contracts.

Employers aren't stupid and they certainly aren't strangely generous towards contractors. It just different ways of receiving the same overall benefit, with fairly small risk premium.

Edited by Timmy35 on Wednesday 3rd September 10:22

[RedLeicester]

m4tthew said:

Its perfectly normal for a Contractor to be paid more than a Permie isnt it?

Yes and yes, twas ever thus.

[Howitzer]

No holiday, no sick, far less security, 33% more due to losing those very worthwhile benefits is very fair imo.

Dave!

[Justayellowbadge]

Toni896 said:

I've always been under the impression contractors/self employed are paid more than permies.

They are in it anyway, I know the guy I replaced(who was a contractor) was on 3 times my salary.

That's more like it.

+33% isn't a contractor. It's a temp.

[Timmy35]

R4PID said:

I expect a contractor to get more. It's the amount more that has me surprised. 33% to 50% more?! Seems extreme.

Not at all. A good rule of thumb is that the overall cost of employing a perm worker is approx 1.5 times there basic salary.

[Mag1calTrev0r]

Sorry mate but I'm actually surprised it's not more! For my job I would expect the equivalent contractor 'salary' to be 50% more.

The contractor has to deal with their position ending without much notice, paying their own taxes, pension, sickness, etc.

[Mr E]

If it's only a 3rd more, the contractor is getting stiffed.

[ali_kat]

Justayellowbadge said:

Toni896 said:

I've always been under the impression contractors/self employed are paid more than permies.

They are in it anyway, I know the guy I replaced(who was a contractor) was on 3 times my salary.

That's more like it.

+33% isn't a contractor. It's a temp.

What he said!

[Don]

Are you really as naive as you post makes out?

Contract pay is ALWAYS higher than permanent pay. And it's usually paid gross, the contractor needing to pay taxes themselves, hire an accountant, pay the overheads of running a little Ltd Company. Contractors don't get holiday pay, pension benefits or anything similar. In fact a Contractor probably needs half again or even three quarters again the money for it to be equivalent. Even if the contractor is on the payroll of an agency and doesn't have overheads - they STILL need to be paid more as they may be in work less than half the time.

As a permanent employee you get regular pay you can plan on, holiday pay, redundancy pay. Christ on a bike - you even get maternity pay so you don't even have to fking go to work to get paid!

Kick in the teeth? More like a cushy number...

[hornetrider]

Justayellowbadge said:

Toni896 said:

I've always been under the impression contractors/self employed are paid more than permies.

They are in it anyway, I know the guy I replaced(who was a contractor) was on 3 times my salary.

That's more like it.

+33% isn't a contractor. It's a temp.

Absolutely. A third more is fk all, frankly. Double to triple is more the norm around here.