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Old 13.10.2021, 16:51
euler euler is offline
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Re: Quick question salary wise contractor/permanent

The rule of thumb is: take the desired salary per year, multiply it by 1.5 (can be a bit lower if you are young, in good health), and that is the invoiced sum you should go for.

It really depends on the amount of days you work. In some banks and some departments, it is not uncommon, that they run out of the budget before the end of the year, and the contractors have to stay home. The days you have to stay home sick do not count either. Visiting doctor for a check? No pay. Sick child? Guess what.

Then, think about your working status (self-employed, employed through own ltd., employed through payroll agency, ...), your age, etc.

So let's assume 200 billable days, that makes 180k invoiced per year.

As self-employed, you pay around 10% social security (AHV/IV), you don't have unemployment insurance, and you don't have to pay yourself second pillar (but you can), you shall pay Unfallversicherung for both occupational and non-occupational risks (SUVA), probably some liability insurance, KVG... This can take quite some portion of the invoiced salary. Plus administrative costs.
As payrolled employee the invoiced sum has to cover "employer's" part of the insurances and administration (the payroll companies charge something around 5% of the invoice). Probably the biggest effect is your age, as BVG payments differ quite significantly based on the age.

Also, as a contractor, you have tons of hidden costs that the core employees do have, like paying full price for meals in the canteen, paying full price for the parking, etc. Moreover, banks tend to pay A LOT into BVG to their employees (I've heard even about additional 20% of the salary, but I can't confirm that). Not the contractors, of course.

So the equivalent would be really like 120-130k employee on the same position.
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