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Old 28.09.2021, 20:11
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Quick question salary wise contractor/permanent

What would be the equivalent of a 900CHF daily contract against a perm one?
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  #2  
Old 28.09.2021, 20:20
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Re: Quick question salary wise contractor/permanent

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What would be the equivalent of a 900CHF daily contract against a perm one?
Not enough information. Is this McDonalds? Or Louis Vuitton?
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Old 28.09.2021, 21:50
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Re: Quick question salary wise contractor/permanent

does it make difference in term of taxation between mcdonalds or private bank?
besides, it is in finance for private banks.
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Old 09.10.2021, 20:36
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Re: Quick question salary wise contractor/permanent

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does it make difference in term of taxation between mcdonalds or private bank?
besides, it is in finance for private banks.
no, it doesn't. The conversion you are asking for can be easily calculated( with some degree of flexibility) by an accountant or somebody who deal with this stuff on daily basis.

EDIT: the conversion I am was referring to in my statement above is the brutto cost to the company for a specific employee including all the benefits. That should be the starting point to determine the equivalent rate for a contractor with skills similar to the employees (excluding the risk of a short term contract). The risk factor and contract lenght should push the value higher and if you bring more skills that are not easily available in the market, then you can even push the rate to a higher value......and it also becomes a matter of negotiating your skills with the customer.

I received offers of around 800Fr per day when I had a permanent contract with a slary of 125K per year..just to give you a reference. But I believe the rate should be 900+ like somebody else mentioned here.

Last edited by marcofbbr; 09.10.2021 at 20:53.
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Old 28.09.2021, 22:12
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Re: Quick question salary wise contractor/permanent

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What would be the equivalent of a 900CHF daily contract against a perm one?
If you get a CHF 900.- daily fee in Switzerland as an external (nowadays), then you must be very qualified. Let us know what profession you are in!
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Old 28.09.2021, 22:19
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Re: Quick question salary wise contractor/permanent

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If you get a CHF 900.- daily fee in Switzerland as an external (nowadays), then you must be very qualified. Let us know what profession you are in!
Just software engineering in the finance industry
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Old 28.09.2021, 22:25
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Re: Quick question salary wise contractor/permanent

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Just software engineering in the finance industry
Well, that puts you into a pot with many, many others. You‘ll need to be more specific if you want more info.
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Old 10.10.2021, 11:34
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Re: Quick question salary wise contractor/permanent

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If you get a CHF 900.- daily fee in Switzerland as an external (nowadays), then you must be very qualified. Let us know what profession you are in!
Average rate for an IT contractor in the city.
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Old 28.09.2021, 22:15
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Re: Quick question salary wise contractor/permanent

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What would be the equivalent of a 900CHF daily contract against a perm one?
For a standard IT contact it's slightly higher than the usual rate. Equivalent to a permanent job of maybe 130k?
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Old 28.09.2021, 22:18
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Re: Quick question salary wise contractor/permanent

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For a standard IT contact it's slightly higher than the usual rate. Equivalent to a permanent job of maybe 130k?
uhm, honestly I thought it would have been a bit higher.

so for 150K perm total compensation, how much should the daily rate be for a contractor?
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Old 28.09.2021, 22:40
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Re: Quick question salary wise contractor/permanent

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uhm, honestly I thought it would have been a bit higher.

so for 150K perm total compensation, how much should the daily rate be for a contractor?
That was my rate at UBS until late 2019, so 15-16k take home per month. Then after some years they wanted to onboard me at 120k 'plus bonus', *think 6k*. I left for a perm job elsewhere paying much more.
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Old 28.09.2021, 23:12
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Re: Quick question salary wise contractor/permanent

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That was my rate at UBS until late 2019, so 15-16k take home per month. Then after some years they wanted to onboard me at 120k 'plus bonus', *think 6k*. I left for a perm job elsewhere paying much more.
Yes, that was also my going rate as a contractor (or more). But you need to calculate in all your additional costs / losses due to all the costs you need to carry yourself.
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Old 29.09.2021, 15:51
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Re: Quick question salary wise contractor/permanent

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Yes, that was also my going rate as a contractor (or more). But you need to calculate in all your additional costs / losses due to all the costs you need to carry yourself.
Those numbers were net, just letting the OP know that any perm offer is likely to be substantially lower.
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Old 28.09.2021, 22:21
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Re: Quick question salary wise contractor/permanent

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For a standard IT contact it's slightly higher than the usual rate. Equivalent to a permanent job of maybe 130k?
That really depends on the skill set and experience. You need to be very skilled and have good experience to hit 130‘000 p.a nowadays (bonus excluded)
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Old 10.10.2021, 11:59
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Re: Quick question salary wise contractor/permanent

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What would be the equivalent of a 900CHF daily contract against a perm one?
900 CHF rate is approx. 730 CHF net per day. This gives a 150k-160k annual salary.
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Old 10.10.2021, 15:43
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Re: Quick question salary wise contractor/permanent

do your calc:
900 x working days
- 900x days off (vacation)
- 900x sick days
- 900x days your client doesn't need you (e.g. Xmas office shutdown, project stalling, etc.)
- your taxes/deductions
= your take home


I've seen contractor doing on average between 180 and 210 billable days per year
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Old 13.10.2021, 16:51
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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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Old 13.10.2021, 18:29
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Re: Quick question salary wise contractor/permanent

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As self-employed, you pay around 10% social security (AHV/IV), you don't have unemployment insurance,
Many contractors are not self-employed. They either work through a payroll company or their own gmbh.
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