Rate Calculation
Discussion
Could someone help me calculate an hourly rate please?
Long story short; I was due to be employed on a fixed term contract at £X salary, plus X% pension contribution etc. etc.
After negotiating my salary, HR threw a spanner in the works and said that it wasn't possible to start on the agreed salary despite the fact that it fell within their range (apparently you have to start at the bottom and work up, I had negotiated starting too high).
The solution is for me to be employed on a temporary basis, which is essentially a workaound so that I can be paid the agreed figure on a pro-rata hourly rate.
It's obviously not ideal for various reasons but it's the best I / we / they could do.
I have established that I will accrue paid holiday through hours worked, so I think the calculation should be agreed salary + pension contribution / working hours = rate?
But before I name my price (my rate really doesn't warant that phrase
), I just wanted to check that I hadn't missed anything and whether there was a standard calculation for this sort of thing, that I can just punch my numbers into, to find the answer.
Cheers
Rob
Long story short; I was due to be employed on a fixed term contract at £X salary, plus X% pension contribution etc. etc.
After negotiating my salary, HR threw a spanner in the works and said that it wasn't possible to start on the agreed salary despite the fact that it fell within their range (apparently you have to start at the bottom and work up, I had negotiated starting too high).
The solution is for me to be employed on a temporary basis, which is essentially a workaound so that I can be paid the agreed figure on a pro-rata hourly rate.
It's obviously not ideal for various reasons but it's the best I / we / they could do.
I have established that I will accrue paid holiday through hours worked, so I think the calculation should be agreed salary + pension contribution / working hours = rate?
But before I name my price (my rate really doesn't warant that phrase
), I just wanted to check that I hadn't missed anything and whether there was a standard calculation for this sort of thing, that I can just punch my numbers into, to find the answer.Cheers
Rob
roboxm3 said:
Could someone help me calculate an hourly rate please?
Long story short; I was due to be employed on a fixed term contract at £X salary, plus X% pension contribution etc. etc.
After negotiating my salary, HR threw a spanner in the works and said that it wasn't possible to start on the agreed salary despite the fact that it fell within their range (apparently you have to start at the bottom and work up, I had negotiated starting too high).
The solution is for me to be employed on a temporary basis, which is essentially a workaound so that I can be paid the agreed figure on a pro-rata hourly rate.
It's obviously not ideal for various reasons but it's the best I / we / they could do.
I have established that I will accrue paid holiday through hours worked, so I think the calculation should be agreed salary + pension contribution / working hours = rate?
But before I name my price (my rate really doesn't warant that phrase), I just wanted to check that I hadn't missed anything and whether there was a standard calculation for this sort of thing, that I can just punch my numbers into, to find the answer.
Cheers
Rob
I'm sensing that they are having second thoughts about you, but are willing to give you a chance to prove yourself (via a temp offer) before they commit to giving you the job IMHO.Long story short; I was due to be employed on a fixed term contract at £X salary, plus X% pension contribution etc. etc.
After negotiating my salary, HR threw a spanner in the works and said that it wasn't possible to start on the agreed salary despite the fact that it fell within their range (apparently you have to start at the bottom and work up, I had negotiated starting too high).
The solution is for me to be employed on a temporary basis, which is essentially a workaound so that I can be paid the agreed figure on a pro-rata hourly rate.
It's obviously not ideal for various reasons but it's the best I / we / they could do.
I have established that I will accrue paid holiday through hours worked, so I think the calculation should be agreed salary + pension contribution / working hours = rate?
But before I name my price (my rate really doesn't warant that phrase
), I just wanted to check that I hadn't missed anything and whether there was a standard calculation for this sort of thing, that I can just punch my numbers into, to find the answer.Cheers
Rob
Working out your hourly rate is very basic, calculate your daily hours, times by 52 and divide by your overall remuneration giving you an hourly rate, simples.........
More importantly get something in writing about your continued employment, I often employ people as temps to see if they can cut the mustard before employing them on a contract, saves me a world of pain.
Genks said:
I'm sensing that they are having second thoughts about you, but are willing to give you a chance to prove yourself (via a temp offer) before they commit to giving you the job IMHO.
Working out your hourly rate is very basic, calculate your daily hours, times by 52 and divide by your overall remuneration giving you an hourly rate, simples.........
More importantly get something in writing about your continued employment, I often employ people as temps to see if they can cut the mustard before employing them on a contract, saves me a world of pain.
That may be the case but I'm there on a temp basis through an agency already and have been since Feb. Working out your hourly rate is very basic, calculate your daily hours, times by 52 and divide by your overall remuneration giving you an hourly rate, simples.........
More importantly get something in writing about your continued employment, I often employ people as temps to see if they can cut the mustard before employing them on a contract, saves me a world of pain.
I applied, interviewed for and was offered 'my job' but it's a no go at the level we agreed and never will be, the temp solution is the only option really.
Either way I'm happy to continue on a temp basis, albeit on the better rate and take it as it comes really. The fixed term contract would have only been until the end of next year anyway, so if something interesting and perm came up elsewhere, I'd always be tempted.
Are you actually employed by them or will it be a supplier-type arrangement?
Look at what rights you are giving up and the differences between the two scenarios. Does the pension include a contribution on their part? Any other benefits like sick pay? Paid public holidays? Overtime?
What do the two contracts say? Start with annual salary for perm job * 1.5 and then divide by 250 for ballpark daily rate. If overtime would be paid, push for hourly rate rather than daily rate.
Hint. Who is making your employer NI payments?
Look at what rights you are giving up and the differences between the two scenarios. Does the pension include a contribution on their part? Any other benefits like sick pay? Paid public holidays? Overtime?
What do the two contracts say? Start with annual salary for perm job * 1.5 and then divide by 250 for ballpark daily rate. If overtime would be paid, push for hourly rate rather than daily rate.
Hint. Who is making your employer NI payments?
contractor said:
Are you actually employed by them or will it be a supplier-type arrangement?
Look at what rights you are giving up and the differences between the two scenarios. Does the pension include a contribution on their part? Any other benefits like sick pay? Paid public holidays? Overtime?
What do the two contracts say? Start with annual salary for perm job * 1.5 and then divide by 250 for ballpark daily rate. If overtime would be paid, push for hourly rate rather than daily rate.
Hint. Who is making your employer NI payments?
I will be employed by them, through their own temporary employment function, so tax and NI will be at source.Look at what rights you are giving up and the differences between the two scenarios. Does the pension include a contribution on their part? Any other benefits like sick pay? Paid public holidays? Overtime?
What do the two contracts say? Start with annual salary for perm job * 1.5 and then divide by 250 for ballpark daily rate. If overtime would be paid, push for hourly rate rather than daily rate.
Hint. Who is making your employer NI payments?
Their pension contribution would have been 8%, so my calculation was going to be based on basic salary + pension contribution / hours = rate.
As per my OP, I will accrue paid holiday through time worked and will be paid 'overtime' at the standard hourly rate.
I don't think I'll be entitled to sick pay but I'm really only viewing this as a means to carry on with what I'm doing in the meantime and not as me working for them as a contractor / consultant.
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