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Old 23.01.2015, 17:46
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Salary advice permanent or contract

I have two offers. One offer is for the permanent position with 115K CHF per year.
Second offer is for the contractor with the daily rate 550 CHF(plus employer contribution). I can find Swiss tax calculator for the permanent job so I have the rough idea about the net salary for the permanent job. But I can not find any good tax calculator for the contractor jobs. So what do you think which one of these offer is better. The both positions are in Zurich.
Thank you for your help.
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Old 23.01.2015, 17:55
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Re: Salary advice permanent or contract

550CHF seems low, given the risks and overheads of contracting compared to permie.
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Old 23.01.2015, 18:01
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Re: Salary advice permanent or contract

I'd choose permanent too, when difference is that low it always pays off to have a steady job. If there's no gain why take the pain?
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Old 23.01.2015, 18:23
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Re: Salary advice permanent or contract

Permanent all the way
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Old 23.01.2015, 20:39
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Re: Salary advice permanent or contract

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I have two offers. One offer is for the permanent position with 115K CHF per year.
Second offer is for the contractor with the daily rate 550 CHF(plus employer contribution). I can find Swiss tax calculator for the permanent job so I have the rough idea about the net salary for the permanent job. But I can not find any good tax calculator for the contractor jobs. So what do you think which one of these offer is better. The both positions are in Zurich.
Thank you for your help.
It is years ago since I did the calculation, but to equal a salary of 105K, you'd have to be on 95 CHF an hour (net) and be fully signed up all year.
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Old 23.01.2015, 21:20
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Re: Salary advice permanent or contract

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I can not find any good tax calculator for the contractor jobs.
...
both positions are in Zurich.
Enter your details into the "Private Tax" software of Kanton Zurich

http://www.steueramt.zh.ch/internet/.../software.html

and get the expected results for 2014. 2015 would be no different.
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Old 23.01.2015, 21:40
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Re: Salary advice permanent or contract

Go permie.
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Old 24.01.2015, 12:26
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Re: Salary advice permanent or contract

Thanks. I appreciate your help.
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Old 24.01.2015, 12:31
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Re: Salary advice permanent or contract

550 chf is a bad rate my friend. take the permanent job
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Old 20.10.2017, 12:10
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Re: Salary advice permanent or contract

I am electrical engineer with about 2 years of experience and I have two job offers. One is perma I'm offered 80k gross for junior electrical engineer position. Other is a contract work under umbrella with not guaranteed turning in permanent position, where I'd get about 400CHF per day, again for a junior electrical engineer position.

1. Should I go with perma or contract?
2. Is daily rate for perma acceptable for my professional experience, and if not, what a fair daily rate should be?
3. Similarly, what the daily rate should be to justify contract over perma?

I've never did contracting before, but after some googling there may be many cons. While contracting salaries seem to be high, this may not be the case as one apparently has to pay holidays and sickness out of his pocket, which can easily chop away 10% of yearly salary. Then there is uncertainty of not getting a permanent position afterwards, in fact jumping from project to project is pretty common, with multiple months being unemployed. Let's say if you aren't employed for 3 months while seeking for another project, that's a 25% of reduction of yearly salary. Also in project work over hours seem to be very common and more is expected from employee. Dunno, but when I account these risks, those CHF400/day don't seem to be that cool.
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Old 20.10.2017, 12:41
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Re: Salary advice permanent or contract

With the same numbers of days off from work the 400/day is less than 87k per year.
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Old 20.10.2017, 13:36
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Re: Salary advice permanent or contract

Take the 80K, contracting is nice when it pays more to cover for the risk and other expenses/hassle that contracting brings along, with 400,- this is not the case.
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Old 20.10.2017, 13:41
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Re: Salary advice permanent or contract

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Take the 80K, contracting is nice when it pays more to cover for the risk and other expenses/hassle that contracting brings along, with 400,- this is not the case.
and how much should I earn as a contractor to justify risk, other expenses and hassle?
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Old 20.10.2017, 14:07
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Re: Salary advice permanent or contract

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and how much should I earn as a contractor to justify risk, other expenses and hassle?
That's a personal choice, but hardly any gain should have nobody choosing for contracting.
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Old 20.10.2017, 14:28
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Re: Salary advice permanent or contract

Rough Numbers:
If you deduct weekends, holidays, vacation, etc. you actually only work around 210 days a year for the CHF 80k permanent position, with minimal risk.
If you work the 210 days at the CHF 400 day rate, and assuming you take holidays and vacation, it works out to around CHF 84k. So you only get +5% premium for being contract rate - I'd go with the permanent assuming both jobs equally satisfying.
Reality is that you might go a month or so between contracts (maybe more.) Say you lose a month between stints (22 work days) - then you need CHF80k / 188 days or CHF 425 day rate to be roughly equal.
Assuming risk premium for contract vs permanent is around 20% , you probably need day rate of CHF 500 to compensate for uncertainty, risk of non-renewal, added transport, gaps between jobs, etc.
The CHF 80k with Swiss tax level is still respectable and how many of your UK mates are starting out, with similar education and experience, with £62k right now?
Hope this helps, good luck either way!
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Old 20.10.2017, 19:16
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Re: Salary advice permanent or contract

^ thanks for a detailed response. You have only confirmed my intuition, that being going with perma position.
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