Need advice contractor v PAYE

[1corithians13]

Hey all,

Looking for advice here and understanding. Sorry if the message comes across as anything other than genuine.

So, say all in with PAYE and locked in bonus, pension contributions and EPSS have a salary of €120,000 ish. Weekly work hours of 37 honestly more like 34 with breaks factored in and 220 working days per year

Vs

Contractor rate of €650 day and hope for 230 days a year (20 AL days/sickdays) brings you to €150,000ish.

After tax, that’s really a difference of €15,000 and lose benefits of PAYE.

It’s madness to contemplate right?

Only thing I can think that should sway the change is the pension contribution potential? Can anyone explain to me how the pension works as a contractor or are the rules the same as for paye I.e maximum per age limit.

Genuinely appreciate any help on this

 

[zach17]

@1corithians13 20 annual leave / sick days sounds small, also not a like for like comparison, as you are working more for that extra money. Also other benefits employer may provide are gone such as training, any top ups on sick leave parents leave etc. how are you calculating cost / risk having a period out of contact. Seems low day rate to me in comparison to 120k salary. Does the employer do pension match. Many variables. My experience though is FTEs at a level they are on c $120k salary would be more comparable to day rate contractors on around €1k day rate. (My industry my experience etc. won’t be the same in all areas)

 

[zach17]

I am an FTE.

 

[zach17]

I am an FTE.

 

[1corithians13]

@zach17 Really appreciate the comments, just lost. Best bet at current paye is to grow here and realise how good it is. Just have some friend contracting that comment from time to time how could it is and tax/pension benefits etc.

Thanks again for feedback

 

[zach17]

@1corithians13 All that glitters…

There are defo big benefits, but don’t undersell yourself with a low day rate.