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26.05.2015, 14:13
| Newbie | | Join Date: May 2015 Location: Athens
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| | tax question - is it worth it??
Hello,
I am considering a contract job in Zurich for a rate of 370 CHF /day gross. I think it is not a lot of money for the cost of living. Can somebody help me whether it is worth it?
I work on the Telecommunications sector and I like the new role , better than what I do currently in Athens.
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26.05.2015, 14:37
|  | RIP | | Join Date: Oct 2011 Location: Murten - Morat
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| | Re: tax question - is it worth it??
It is reasonable pay. The national average pay here in Switzerland is around Fr 240 per day gross.
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26.05.2015, 14:40
| Newbie | | Join Date: May 2015 Location: Athens
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| | Re: tax question - is it worth it??
Thank you
Is there a tool for calculating the net salary for such a contract role? I am told it is a 3 months rolling contract, which I presume will have lesser taxes?
I am grateful !
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26.05.2015, 14:40
| Banned | | Join Date: Apr 2015 Location: Rapperswil
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| | Re: tax question - is it worth it??
CHF370 x 20 days = CHF 7400 in a month. That's pretty decent I think. But then again, it depends on your lifestyle, whether you are used to go out to eat / drink alot. Certainly, you need to adjust a bit as everything is more expensive here.
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26.05.2015, 14:53
| Newbie | | Join Date: May 2015 Location: Athens
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| | Re: tax question - is it worth it??
Thank you ,
Any estimate of how much that would be in net?
Regards
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26.05.2015, 14:55
|  | Forum Legend | | Join Date: Dec 2007 Location: Work in ZH, live in SZ
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| | Re: tax question - is it worth it?? | Quote: | |  | | | Thank you ,
Any estimate of how much that would be in net?
Regards | | | | | www.comparis.ch will help you. It depends on a couple of factors and the website calculates it for you.
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26.05.2015, 19:19
|  | Forum Veteran | | Join Date: Sep 2007 Location: zurich
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| | Re: tax question - is it worth it??
Make sure you understand exactly what the contract is and what will be deducted e.g. agency fees, employER contributions (as well as employEE contributions), insurances etc.
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26.05.2015, 19:49
|  | Forum Legend | | Join Date: Apr 2010 Location: Verbier
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| | Re: tax question - is it worth it?? | Quote: | |  | | | Make sure you understand exactly what the contract is and what will be deducted e.g. agency fees, employER contributions (as well as employEE contributions), insurances etc. | | | | | Probably no holiday pay, sickness pay or Statuary holidays, so you can deduct 15-20%. Assuming employer deductions are taken thats about another 15%
Normally short term contract are at a far higher day rate so I think this is the same as a 4k a month job so roughly a supermarket check out person.
Salary is too low unless it's for 6 months plus.
Edit
If you rent an apartment you can't just leave, possibly only 2 leaving days a year which require 3 months notice , so if rent is 1500 a month your maximium at risk is 9 months so 13,500 CHF. If you can find someone to take over then you are off the hook, however thats a huge potential liability for 370 a day.
Last edited by fatmanfilms; 26.05.2015 at 20:03.
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26.05.2015, 21:00
|  | Forum Legend | | Join Date: Jun 2006 Location: Kt. Bern
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| | Re: tax question - is it worth it?? | Quote: | |  | | | I work on the Telecommunications sector and I like the new role , better than what I do currently in Athens. | | | | | What exactly do you do in the telecoms sector?
Assuming the rate is gross, then it is way too low for a contractor, realistically you'd want to be on about 500 plus per day! From you rate, the agent will deduct double social security payments, double pension payments, income tax and their fee.
Ask the agent to provide you with a worked example of your take home pay, not the daily fee and see what they come up with.
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26.05.2015, 21:44
| Member | | Join Date: Feb 2015 Location: Berner Oberland
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| | Re: tax question - is it worth it??
Hello Michalis,
Try to clarify the net payment you are going to receive. There are some threads in here that might help. Whatever figure the agent gives you, double-check and then triple-check.
I don't have personal experience with contracting, the rate seems too low for me. You should only accept if you are up for an adventure, want to network and move to another employer or want to "upgrade" your CV.
You might also want to consider subletting or sharing a place to live while you are here, so that you are not committed to a long-term rental contract. Have a look at wg-zimmer.ch to get an idea.
Best of luck.
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26.05.2015, 21:59
|  | Forum Veteran | | Join Date: Mar 2006 Location: Zurich
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| | Re: tax question - is it worth it??
Some more thoughts: You say that it is a three month contract on a rolling basis. So, assuming it is legitimate, my understanding is that all you can really count on is the income for three months and the hope for more.
Have you considered the cost for coming over, temporary accommodation, etc.? Will they be getting your work permit and paying for it, or will they expect you to get that?
Do any of the contractors here have experience with these questions? I may be too negative, here...
Good luck, Michalis!
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26.05.2015, 22:19
| Member | | Join Date: Feb 2015 Location: Berner Oberland
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| | Re: tax question - is it worth it?? | Quote: | |  | | | Will they be getting your work permit and paying for it, or will they expect you to get that? | | | | | He is Greek, so no work permit is required for him. He just needs to register at the Gemeinde and give them a copy of his contract.
However, given how expensive life in Switzerland is, it is best to consider all the worst-case possibilities now, because surprises cost a lot!
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30.05.2015, 10:19
| Newbie 1st class | | Join Date: May 2012 Location: ZUG, Switzerland
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| | Re: tax question - is it worth it??
It all depends on what you actually do, how senior you are, etc. It's hard to say if this is a good salary without any kind of benchmark. Swiss salaries are calculated based on a "compa ratio" that sums up the job type, skill and seniority, industry (and the variations are huge between industries for the same job), etc.
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30.05.2015, 10:25
|  | Forum Veteran | | Join Date: Dec 2008 Location: Aeugst Am Albis
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| | Re: tax question - is it worth it??
for a contract, that to me is low. my guys are on 890 a day and we struggle to get good people on that rate.
remember contracting comes with considerable risks so the rates should be higher.
- no sick pay
- no holiday pay
- no pension
- no employee contributions to health or pension
- risk of being told the budget has dried up and next week is your last week.
unless its a low skilled job, i would not accept it.
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30.05.2015, 10:31
| Newbie | | Join Date: May 2015 Location: Athens
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| | | Quote: | |  | | | for a contract, that to me is low. my guys are on 890 a day and we struggle to get good people on that rate.
remember contracting comes with considerable risks so the rates should be higher.
- no sick pay
- no holiday pay
- no pension
- no employee contributions to health or pension
- risk of being told the budget has dried up and next week is your last week.
unless its a low skilled job, i would not accept it. | | | | | thank you , no it is not a low skilled job at all. It is on the telecoms business | Quote: | |  | | | He is Greek, so no work permit is required for him. He just needs to register at the Gemeinde and give them a copy of his contract.
However, given how expensive life in Switzerland is, it is best to consider all the worst-case possibilities now, because surprises cost a lot! | | | | | Thank you all, you are so kind to reply. Yes I am greek | Quote: | |  | | | Thank you all, you are so kind to reply. Yes I am greek | | | | | i.e I would need an L permit or a Short Permit. | Quote: | |  | | | Some more thoughts: You say that it is a three month contract on a rolling basis. So, assuming it is legitimate, my understanding is that all you can really count on is the income for three months and the hope for more.
Have you considered the cost for coming over, temporary accommodation, etc.? Will they be getting your work permit and paying for it, or will they expect you to get that?
Do any of the contractors here have experience with these questions? I may be too negative, here...
Good luck, Michalis! | | | | | Thank you so much for your time ! Yes I have talked to contractors who have been through this role previously and they say although the rate is low , it is enough to spare some money as well on the side, if you spend per month around 3000 CHF.
Last edited by 3Wishes; 30.05.2015 at 18:02.
Reason: merging successive posts
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30.05.2015, 16:55
| Member | | Join Date: Feb 2015 Location: Berner Oberland
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| | Re: tax question - is it worth it??
Michalis, the way I see it, it is worth the risk if your plan is the following: Come for three months, work hard and prove your value, try to network-network-network (cannot emphasize this enough) and get the next contract at a better rate. Underselling yourself for three months (think of it as a test period) is ok. Also, there is point in trying to save money for three months. Just invest your money on networking (drinking beer with colleagues in order to exchange information on your line of business is a very good way of networking)!
And an advice of global value, do not burn any bridges. Try to leave your current employer on good terms (just in case you need to return there)!
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