Go Back   English Forum Switzerland > Help & tips > Employment  
Reply
 
Thread Tools Display Modes
  #21  
Old 31.01.2020, 18:05
Senior Member
 
Join Date: Feb 2016
Location: Zurich
Posts: 355
Groaned at 58 Times in 27 Posts
Thanked 230 Times in 129 Posts
Dandy is considered unworthyDandy is considered unworthyDandy is considered unworthy
Re: Advice Cont vs Perm

Usually contractors get more interesting jobs, more project oriented whereas perms get the daily operations job handling tickets, problems, change requests and the like.
Reply With Quote
  #22  
Old 02.02.2020, 20:49
Newbie
 
Join Date: Apr 2016
Location: Zurich, Adliswil
Posts: 9
Groaned at 1 Time in 1 Post
Thanked 0 Times in 0 Posts
adamliesko has no particular reputation at present
Re: Advice Cont vs Perm

Quote:
View Post
Usually contractors get more interesting jobs, more project oriented whereas perms get the daily operations job handling tickets, problems, change requests and the like.
I see the "usually", but not sure if you can really generalize it like this. In the IT company where I am working, we do the exact opposite - use contractors for the burger-flipping, repetitive kind of tasks, which for various reasons can't or yet haven't been automated away.
Reply With Quote
  #23  
Old 04.02.2020, 19:53
Newbie 1st class
 
Join Date: Feb 2017
Location: Winti
Posts: 11
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 2 Posts
Levithani has no particular reputation at present
Re: Advice Cont vs Perm

1200 is an amazing rate for a contractor these days, take the money and dont look back!

My last role was a contract role for 1.5 years. Since then Ive moved to a permanent role and really miss the pay and the contracting lifestyle. Now I take 2.5k less home a month, have to deal with alot of office politics and everything that comes with that.

Keep in mind that most companies these days only have a 1 month notice period for the first year, which basically puts you in a similar position to what a contractor would have in the same period. If The 1200 rate is all in, according to my calculations regarding my pervious taxed rare, you would be receiving almost 850chf NETTO for your daily rate. With a perm rate of 165k a year / 12, divided by 20 working days average for the month, you'd be getting 532chf a day. This is a difference of more than 6k a month, of which no reasonable pension package in this day and age would cover.

Bottom line: Take the contract and dont look back!
Reply With Quote
The following 2 users would like to thank Levithani for this useful post:
  #24  
Old 05.02.2020, 18:40
Member
 
Join Date: May 2009
Location: Switzerland
Posts: 227
Groaned at 14 Times in 12 Posts
Thanked 478 Times in 273 Posts
leonie has a reputation beyond reputeleonie has a reputation beyond reputeleonie has a reputation beyond reputeleonie has a reputation beyond repute
Re: Advice Cont vs Perm

As a contractor you would have to keep an eye on the other openings in your field and maintain a good network. Contracts end — either the project can come to an end, or the employer might request that you switch to permanent after a couple of years on the contract. So being on the contract means that you always need to look around a bit to be ready to move to a different project. This takes some effort and time, but you might like it.
Reply With Quote
This user would like to thank leonie for this useful post:
  #25  
Old 08.02.2020, 20:21
Member
 
Join Date: Nov 2007
Location: Zug
Posts: 208
Groaned at 20 Times in 8 Posts
Thanked 51 Times in 31 Posts
NikItaly has made some interesting contributions
Re: Advice Cont vs Perm

It depends if you're willing to go through the frustration and politics of the various performance management non-sense that happen being a permie both as LM or individual contributor. If you've never been there, think twice before accepting the permie offer, go for the contract option.

It's a more than decent rate which you don't easily get these days.
Reply With Quote
  #26  
Old 12.02.2020, 12:33
Newbie 1st class
 
Join Date: Nov 2019
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 3 Posts
flavios has no particular reputation at present
Re: Advice Cont vs Perm

Thanks, everyone for the feedback. well actually what restraint me on accepting that contract is the level of taxation I would face (something close to 23% I guess).

Not that 165k would have way less, but for sure not as much as having a contract with such daily rate
Reply With Quote
  #27  
Old 12.02.2020, 12:40
Banned
 
Join Date: Dec 2019
Location: BaselStadt
Posts: 494
Groaned at 91 Times in 42 Posts
Thanked 974 Times in 393 Posts
CodPeace has a reputation beyond reputeCodPeace has a reputation beyond reputeCodPeace has a reputation beyond reputeCodPeace has a reputation beyond reputeCodPeace has a reputation beyond repute
Re: Advice Cont vs Perm

Quote:
View Post
Thanks, everyone for the feedback. well actually what restraint me on accepting that contract is the level of taxation I would face (something close to 23% I guess).

Not that 165k would have way less, but for sure not as much as having a contract with such daily rate

I'm afraid you'll have to explain that logic to me.


Paying tax of 23% on 250k still nets you more than paying tax of 20% on 165k, or am I missing something?
Reply With Quote
  #28  
Old 12.02.2020, 12:48
Newbie 1st class
 
Join Date: Nov 2019
Location: Zurich
Posts: 15
Groaned at 0 Times in 0 Posts
Thanked 3 Times in 3 Posts
flavios has no particular reputation at present
Re: Advice Cont vs Perm

Quote:
View Post
I'm afraid you'll have to explain that logic to me.


Paying tax of 23% on 250k still nets you more than paying tax of 20% on 165k, or am I missing something?
I guess have to make a correction, probably is something around 33% or more of withholding tax (at least in Zurich).

Yes, I would net more anyway, but come on, a third of salary only in tax?

Source used, ETH Salary Calculator: https://ethz.ch/en/the-eth-zurich/wo...alculator.html
Reply With Quote
  #29  
Old 12.02.2020, 13:30
Banned
 
Join Date: Dec 2019
Location: BaselStadt
Posts: 494
Groaned at 91 Times in 42 Posts
Thanked 974 Times in 393 Posts
CodPeace has a reputation beyond reputeCodPeace has a reputation beyond reputeCodPeace has a reputation beyond reputeCodPeace has a reputation beyond reputeCodPeace has a reputation beyond repute
Re: Advice Cont vs Perm

Quote:
View Post
I guess have to make a correction, probably is something around 33% or more of withholding tax (at least in Zurich).

Yes, I would net more anyway, but come on, a third of salary only in tax?

Source used, ETH Salary Calculator: https://ethz.ch/en/the-eth-zurich/wo...alculator.html

But still you are likely to get @3k more net a month. That's a lot of money to give up just because you don't want to pay the tax on the gross.
But anyway, good luck whatever you choose.
Reply With Quote
This user would like to thank CodPeace for this useful post:
  #30  
Old 12.02.2020, 14:17
Member
 
Join Date: Jul 2007
Location: Kindhausen
Posts: 128
Groaned at 6 Times in 5 Posts
Thanked 69 Times in 37 Posts
PitBull has earned some respectPitBull has earned some respect
Re: Advice Cont vs Perm

When calculating annual income from daily contract, it is normal to use 220 as the number of working days/year (taking into account 25 days holiday, public holidays etc).

So in this case: 220 * 1,200 = 264,000.
Reply With Quote
This user would like to thank PitBull for this useful post:
  #31  
Old 14.02.2020, 18:36
Newbie 1st class
 
Join Date: Jun 2016
Location: Zürich
Posts: 20
Groaned at 2 Times in 2 Posts
Thanked 31 Times in 11 Posts
Utvandraren is considered knowledgeableUtvandraren is considered knowledgeableUtvandraren is considered knowledgeable
Re: Advice Cont vs Perm

Quote:
View Post
thanks for all your feedback! well, giving the same kind of benefits for a perm contract, what would be your opinion regarding an average relation between an annuity as perm in comparison with a daily rate?

Something like that might make sense? :

106.67K 800
120.00K 900
133.33K 1000
146.67K 1100
160.00K 1200
173.33K 1300
186.67K 1400
How did you end up with this table?

800 * 220 = 176K / year gross or roughly 155K net assuming you are taxed as an employee (which I guess you would be if employed by an agency) or 115.9K (here I'm just doubling social contributions in lieu of whatever the corporate tax is)

I must be missing something, how can ~155/116 net as a contractor be comparable to 106K gross as a perm?
Reply With Quote
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
hair perm in Zurich? standardgirl Daily life 1 13.02.2019 17:52
Contract to Perm Negotiation Dromore Employment 6 25.08.2018 18:35
If can not get a B permıt Sena Permits/visas/government 17 21.04.2016 19:23
Cont. Art Gallery / Asia, Emirates / Photography, Glass Guest Business & entrepreneur 0 11.08.2008 10:20
NON EU - Going from PERM to Contract - Different Canton vishi Permits/visas/government 1 08.10.2007 06:41


All times are GMT +2. The time now is 22:28.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0