Contracting Wage?

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Well its that time again where I've found out that I'm soon to be made redundant. I work for a major multinational in the financial market, and with the economic downturn they are closing the office where I work. I've been in the position for 4 years as a permament employee.
Before I do anyting rash and pick the first job I see I'm going to consider all options. My basic salary at the moment is just over £26k. If I decide to contract what sort of hourly rate should I be looking at?

 

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I suppose it depends on a number of things: what your experience is, what sort of work you're looking for, and what you're prepared to get paid. Bear in mind that, as a contractor, you'll be responsible for your own tax and NIC and you most probably won't get paid for holidays.

 

You should know the market rate for the position and pitch yourself accordingly.

If there is a real downturn then you probably don't want to be entering the contract market.

Contract rates can be anything from £20-£150 p/h depending on the position, location, industry and the market.

 

GiddyG is right there are lots of considerations before you you decide to start contracting Tax and NI is only two of them.

I was a SAP Contractor for a few years and don't get me wrong the money was very good (£500+ per day) but it was project related so you don't end up with a regular income. I am not sure what your experience is in Windows, Networking, SAP or Linux but is really depends on what experience you have and what you know. e.g. with Microsoft technologies the market is saturated so it will depend on experience you have to help you get the edge over other contractors. SAP, on the other hand is more specific so the daily rate is more and if you have some experience is easier to get work.

There are other considerations, one is travel, as a contractor you will have to cover these costs and will depend on your personal circumstances, for example I have two young children and traveling away is not something I would want to do now.

Personally contracting is good as a short term solution while you find a new job, as in this current market I don't think it is a long term career. Recently I have had to get rid of 5 contractors due to financial constraints put on my team due to the change in the market.

I hope this help or gives you something to think about and if you want any further information I would be happy to help.

Gopher