As a recruiter, I work with both short-term temporary and contract positions and I can certainly verify the demand for contractors. I speak with established contractors on a daily basis but recently there has been an upsurge in the number of job seekers considering contracting for the first time.
The number one question that I get asked on a consistent basis is, "How do I convert my salary as a permanent employee to what I should earn as a daily rate contractor?"
Don’t be flustered when asked about your daily rate. The following formula will ensure that you understand how to devise your daily contract rate:
Contractors work on average 230 days per year. This takes into account weekends, holiday days and bank holidays. So divide your permanent salary by 230.
E.g. €50,000 ÷ 230 = €217.39 per day
Contractors can demand a higher salary due to the short-term nature of their work. Add 15% to your baseline daily rate to account for this:
€217.39 x 115% = €250.00 (daily contractor rate)
∴ €250.00 per day is the equivalent of €57,500 on an annual basis.