Switching from contract to salary, what is the best way to calculate rate?
By Daniel Lublin | September 4, 2010
I'm an IT consultant (Incorporated), my rate is $75 an hour with a 35 hour week. I've been thinking of asking my client if I can switch to full-time. Is there an easy way to calculate what I should ask in term of salary to be close to what I get in contract rate. The company offers the regular benefits, stock option, medical, one course a year, bonus every year (around eight per cent), two personal days, etc.
Daniel Lublin answered:
You should convert your hourly rate to a salary by using a 37.5 hour work week and then considering that the cost of company paid benefits is about 12.5 per cent of your salary. You can then come up with a figure to suggest to the company.