Permanent or contract?

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reactor_sa

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Hi guys, I need to decide if I want to stay permanent payroll or go contract.
The contract would be 1 year renewable yearly but no guaranteed renewal.

I would lose:
Performance bonus
25 days leave
Medical
Pension
Life cover
Prime -2.5% on assets
Possibly won't get training budget anymore (not sure)
Don't think I've missed anything

I would gain
Higher hourly rate (which I have to workout)
Ability to charge overtime
Not sure what else

Thoughts?
 
Oh ya, I'm hoping to emigrate in 2017 round about this time (2 years more or less)
 
Depends on how in demand your skills are but being permanent is not as permanent as it used to be with all the retrenchments that happen in large organisations. You do have the benefit of a retrenchment package though if that happens.
 
reactor_sa said:
Hi guys, I need to decide if I want to stay permanent payroll or go contract.
The contract would be 1 year renewable yearly but no guaranteed renewal.

I would lose:
Performance bonus
25 days leave
Medical
Pension
Life cover
Prime -2.5% on assets
Possibly won't get training budget anymore (not sure)
Don't think I've missed anything

I would gain
Higher hourly rate (which I have to workout)
Ability to charge overtime
Not sure what else

Thoughts?
Click to expand...

The big question here, is that if it is 80% of your income and you not part of company (3 or more employees) they need to deduct tax and contractor rate. If they do deduct tax you are entitled to 1 hour leave for every 17 hours billed.
You need to work out the cost of the benefit and the rate if worth it.
 
It may have complications to visa application so I think best to stay permanent. No one really can mention pros for contracting.
 
Pho3nix said:
Unless it's 80% more as a contractor. Don't do it.
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Exactly....without you giving us how much more your pay would be as a contractor it's very hard for anybody to recommend you give up being permanent.It would have to cover all the perks and benefits you loose plus more before it becomes feasible to go contract.
 
falcon786 said:
Exactly....without you giving us how much more your pay would be as a contractor it's very hard for anybody to recommend you give up being permanent.It would have to cover all the perks and benefits you loose plus more before it becomes feasible to go contract.
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About 60 to 65% more per year.
 
Break even point is just under 25% more if you work on total cost to company. This will compensate you for leave days for which you now won't get paid and an assumed 13th cheque as performance bonus.

You will then just have to organise the pension, life and disability yourself. You will also lose the opportunity to get a retrenchment package should you get retrenched, which may be quite a lot if you've worked there for a long time.

At 65% more than TCC, I would go the contractor route. If you work a lot of overtime it would be no-brainer.

What kind of job do you do, and how much experience do you have?
 
Kerrits said:
At 65% more than TCC, I would go the contractor route. If you work a lot of overtime it would be no-brainer.
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This is the part a lot of people forget. If you are a contractor, screw them with over-time.
Perm staff usually won't get approval but if you get the job done at an extra 20 hours a week, 2 months early. Everyone is left smiling.
 
reactor_sa said:
About 60 to 65% more per year.
Click to expand...

Thats a lot extra for contractor.
If you are not the sickly type, or dont need too much holidays, and can manage your own pension, then go contractor route
 
reactor_sa said:
It may have complications to visa application so I think best to stay permanent. No one really can mention pros for contracting.
Click to expand...

I can't really articulate the pros for contracting either, except to say that I had four contracts with my employer, and everytime it came up for renewal I had huge negotiating power.

However eventually they refused to continue offering me contracts, insisting that I become permanent, so I left.

Thats another "plus" if you can call it that, a contract expiring is a better reason for leaving a job than resigning.
 
saturnz said:
I can't really articulate the pros for contracting either, except to say that I had four contracts with my employer, and everytime it came up for renewal I had huge negotiating power.

However eventually they refused to continue offering me contracts, insisting that I become permanent, so I left.

Thats another "plus" if you can call it that, a contract expiring is a better reason for leaving a job than resigning.
Click to expand...

Labour law. You should have joined and resigned after 3 months. Contract out again.
 
Pho3nix said:
This is the part a lot of people forget. If you are a contractor, screw them with over-time.
Click to expand...
Well I wouldn't advise "screw them with over-time"...but its an aspect people often overlook.

On the face of it my package doesn't compare all that well with my peers in neighbouring countries (probably 15% weaker)...but I can clock overtime and they can't. Thats a big fk'in deal when you're frequently working 12hr+ days. I've crunched the numbers...I actually come out ahead with my 15% weaker package & end up with a higher hourly rate. :P
 
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