Getting into the routine of checking your payslips as an umbrella contractor is vital to…
Taking a leap of faith and moving from full-time to contracting? Experienced contractor who wants to re-evaluate rates? Regardless of where you are in your contracting journey, deciding between day rate and hourly pay can be a tough call. Carry on reading to discover more about the pros and cons of each option, rooted in advice from our dedicated team at Mint.
Daily rate pros
- More flexibility regarding hours.
- Sometimes it works out that you’re making more money.
Daily rate cons
- You may be required to work additional hours which will obviously not be accounted for in your pay.
- Easier for clients/agencies to take advantage.
Hourly rate pros
- Guaranteed that you’ll get paid for overtime.
- Clear what you’re being paid for, no blurred lines.
- Often the preferred choice by contractors.
Hourly rate cons
- Fluctuating salary.
- Pay depends on hours offered by the agency.
- Employee perks are not always guaranteed.
How to decide?
Ultimately, choosing your rate is a personal decision and there is no wrong or right way about it. However, before finalising with your agency make sure you do the following.
Market research
Get a better overview of the current market by doing research into your field and see how much other contractors/freelancers are being offered for similar roles. This might entail some networking so don’t be afraid to reach out to people on Linkedin or get chatting to your competitors next time you’re at an event.
Compare to full-timers
It is important to remember that contractors often earn more than what they would in a permanent role doing the same job. At the very least, you should be making the same amount per hour as you would in a full-time role. This might be a good benchmark from which to decide if your agency is paying enough for your services.
Whichever avenue you decide to go down, Mint Umbrella is here to help you every step of the way. Not only do we guarantee to pay you on time, but we also offer a dedicated account manager who will help support you every step of the way. From free workshops, to professional advice and pension options – we’re here for you.
If you have any queries, please do not hesitate to get in contact with one of our helpful team members via email at [email protected]. Alternatively, you can get started today!