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Old 27.08.2012, 21:15
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Contract Rate to Salary Conversion

Dear EF Experts,

Any idea what a reasonable ratio is used in CH to translate a daily rate to a permie salary, and more importantly the justification behind that calculation ?

Have usually taken 70% of daily rate * 240 workdays (e.g. 1000/day = 168k CHF salary) on the low end, and 80% on the high end. Wherein the percentage accounts for the bonus + benefits provided.

Have used the below, but it seems to calculate figures at the lower end of the spectrum:

http://www.lohnrechner.bfs.admin.ch/...iumWizard.aspx

Thanks for any advice.
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Old 28.08.2012, 10:18
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Re: Contract Rate to Salary Conversion

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Dear EF Experts,

Any idea what a reasonable ratio is used in CH to translate a daily rate to a permie salary, and more importantly the justification behind that calculation ?

Have usually taken 70% of daily rate * 240 workdays (e.g. 1000/day = 168k CHF salary) on the low end, and 80% on the high end. Wherein the percentage accounts for the bonus + benefits provided.

Have used the below, but it seems to calculate figures at the lower end of the spectrum:

http://www.lohnrechner.bfs.admin.ch/...iumWizard.aspx

Thanks for any advice.
I generally work on an average of 180 workdays per year = 9 months or so. Intangible benefits run to about 10% if there is no bonus. i.e a contract rate earning you pro rata 200k per year would be similar to a salary of 150k, or 135k if there was a 10% bonus.
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Old 28.08.2012, 10:40
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Re: Contract Rate to Salary Conversion

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Any idea what a reasonable ratio is used in CH to translate a daily rate to a permie salary, and more importantly the justification behind that calculation ?
I'm pretty sure there is no calculation/correlation.
The salary will be based on the market rate and the functional level bandings in the company, not what the current contractor is billing.

If the current contractor got lucky and had a high rate, say billed at @1800, and billed 240 days, due to a massive project or whatever, that billed rate (430k) has no bearing whatsoever on what the company will pay as a permie.

You can try to negotiate upwards, but from what I see, you'll have a very difficult task even negotiating 5k.
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Old 28.08.2012, 10:48
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Re: Contract Rate to Salary Conversion

All this talk of 6 figure salaries...I'm jealous...
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Old 28.08.2012, 11:00
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Re: Contract Rate to Salary Conversion

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All this talk of 6 figure salaries...I'm jealous...
Yes, i wonder with being so low if it is tax free ?
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Old 28.08.2012, 19:23
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Re: Contract Rate to Salary Conversion

Don't forget that you'll be paying Employers Contributions so you can automatically knock 5% off any daily rate on offer

Also the number of days public holiday can vary drastically from canton to canton and from year to year (no 'observed' holidays are taken)
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Old 28.08.2012, 21:30
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Re: Contract Rate to Salary Conversion

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Don't forget that you'll be paying Employers Contributions so you can automatically knock 5% off any daily rate on offer

Also the number of days public holiday can vary drastically from canton to canton and from year to year (no 'observed' holidays are taken)
Social costs will be nearer 12% but that varies with age or canton, its never 5%
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