Just discovered a colleague is earning 40% more than me.

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  • Just discovered a colleague is earning 40% more than me.
  • Premier Icon wwaswas
    Subscriber

    Granted the colleague is a contractor

    they’re underpaid.

    trail_rat
    Member

    Must be great knowing you have a job to go to next week….they may not.

    Premier Icon thepurist
    Subscriber

    Contractor? That means he’s…

    [video]https://www.youtube.com/watch?v=U8Kum8OUTuk[/video]

    fasthaggis
    Member

    Is she better looking than you ?

    warton
    Member

    our one technical contractor is on approx. 300 to 400% more than the normal members of his team, doing the same job.

    iolo
    Member

    If you”re unhappy with your job security, holiday pay, health pay, pension and whatever other perks you get please feel free to resign in protest.
    The job market it so strong at present you’ll be fine.

    scruff9252
    Member

    Job security doesn’t come into the equation in this instance. My colleague has been employed for the last 2 years with the knowledge his role is secure for a minimum of 24 months further.

    Premier Icon nemesis
    Subscriber

    Sounds like you’re the lucky one. I’d expect a contractor to be on at least double if they’re any good and have negotiated a sensible rate.

    Premier Icon woody2000
    Subscriber

    contracted rate != take home pay

    hels
    Member

    That is just the cost to your organisation. Their contracting company will be taking a slice of that too.

    (and somebody left a document accessible that has everyone’s salary showing ?? Sackable offence – or at least a written warning for them – and you didn’t have to look at it when you realised what it was)

    iolo
    Member

    (and somebody left a document accessible that has everyone’s salary showing ?? Sackable offence – or at least a written warning for them – and you didn’t have to look at it when you realised what it was)

    this

    rene59
    Member

    Contractors will nearly always be paid a higher rate than an ordinary employee. As for other colleagues you will often find that staying long term with a company your salary will not reflect the current going rate. Newer recruits will often be paid a higher rate than long term staff. Just depends on job market at the time of joining. Signs just now are that it is becoming a candidates market so if you are not happy look for a move or try to renegotiate (good luck with that – rarely successful).

    Premier Icon _daveR
    Subscriber

    This is why the best people contract.

    robinlaidlaw
    Member

    contracted rate != take home pay

    This, if he has his own limited company the rate you are seeing is what his company charges. Assuming it’s exclusive of VAT, he still has to pay 20% corporation tax off that before he gets to money that he can potentially pay himself. Then he has to pay his own pension and benefits that are built in for you. As a contractor you’d expect him to be making more than you are, and it doesn’t sound like he’s getting as much more as I’d have expected.

    Premier Icon Frodo
    Subscriber

    Equivilent contractors take home pay for my role circa £400/day.

    I don’t get anywhere near this but I do get, holidays paid, a company car, sick pay, bonus, healthcare, pension and better career advancement opportunities.

    Mercenaries don’t get this!

    packer
    Member

    His agent probably takes 10-15% of what your company pays remember.

    Premier Icon footflaps
    Subscriber

    Granted the colleague is a contractor

    You’re overpaid.

    Premier Icon franksinatra
    Subscriber

    Perhaps he is 40% better than you.

    bikebouy
    Member

    wwaswas – Member
    Granted the colleague is a contractor

    they’re underpaid.

    Massively underpaid if it’s only 40%, you need at least 60% more than an employee even to get out of bed these days for a contract.

    HTH

    Feel free to join in the Contractor set, it’s a growing market for short term contingent workers who get booted out with max 2yrs sucessive employment by one firm.

    HTH too.

    david47
    Member

    taking home 40% more

    If he really is ‘taking home’ about 40% more that you he’s doing well…
    But for a contractor, not massively….
    I looked at the figures once, and I reckon I needed the gross figure to be almost double to get the same take home pay after all the ‘hidden’ bits are taken into account i.e.

    holidays paid, a company car, sick pay, bonus, healthcare, pension

    as well as NI, paying for my own training, paying for an accountant etc etc

    scruff9252
    Member

    Today I stumbled upon my teams budget for this year. contained within was a breakdown off all staff and their relative pay. Not only was I the lowest paid, but I have also found out that a colleague (with less experience) is taking home 40% more than me.

    Granted the colleague is a contractor, but does this seem a fair amount? I enjoy the work I do, but can’t help but feel that I am being taken advantage of just now.

    Premier Icon mrblobby
    Subscriber

    Yes it seems fair. If you think the grass is greener then quit and go contracting.

    Massively underpaid if it’s only 40%, you need at least 60% more than an employee even to get out of bed these days for a contract.

    This is about right IME.

    scruff9252
    Member

    Ok so I’m not getting that bad deal ,that’s good to know. It just feels a big difference when you see the gross figure in a spreadsheet.

    *Stomps out burning torch, put’s the safety corks back on the points of my pitchfork and returns back to my spreadsheet*

    Premier Icon nemesis
    Subscriber

    Oh, don’t feel that you can’t still form a posse and lynch him, since when did that have to be reasonable or logical?

    I reckon that once the government have finished stigmatising those on benefits, they’ll be after contractors next – easy target isn’t it – +40% and the rest pay for doing the same job and getting tax breaks, etc.

    Premier Icon MoreCashThanDash
    Subscriber

    Stomps out burning torch, put’s the safety corks back on the points of my pitchfork and returns back to my spreadsheet*

    When accountants go bad……!

    allthepies
    Member

    Isotonic cake wrote:

    Job security doesn’t come into the equation in this instance. My colleague has been employed for the last 2 years with the knowledge his role is secure for a minimum of 24 months further.

    IR35 alert.

    robinlaidlaw
    Member

    IR35 alert

    Indeed.

    bikebouy
    Member

    As the employment rules relax you find more and more companies rely on Contingent (Contractors) more and more, to the point that companies are liking the idea of leeping core regulatory staff onboard and making contingent all others.

    It’s a growing market.

    It’s been around for many years and expect it to be around form many many more years to come.

    Don’t put your pitchforks away just yet, plenty to have a go at yet!

    richc
    Member

    As others have said 40% more doesn’t seem much; when I contracted I was on ~ 150% more than I was as a permanent employee.

    Downside was no pension, no paid time off and not a lot of job security and I was de-skilling as I wasn’t doing work I was interested in as it was mostly firefighting and troubleshooting rather than development work.

    ebygomm
    Member

    I’m contracting at the moment and my take home is nearly double what the permanent staff get paid. The recruitment company charge another 40% more again over what I ever see!

    mudshark
    Member

    Yeah it’s not enough – 5 weeks holiday + bank holidays + sick pay + pension + whatever other benefits there are. Back in 2000 my contract daily rate was 3x my then salary/52/5. Now I’m more experienced and contract rates aren’t so good I’m on a tad under 2x.

    b r
    Member

    IR35 alert.

    Not if he either invoices other companies for work and/or has more than one income-earning in their company.

    allthepies
    Member

    I bet they don’t though 🙂

    Junkyard
    Member

    and you didn’t have to look at it when you realised what it was

    Almost everyone would

    Only on STW can you say something like the OP and then get flamed for reading and also called names for being overpaid.

    ski
    Member

    So they get paid more than you?

    Did your mummy tell you everything in life is fair?

    Premier Icon totalshell
    Subscriber

    myself and two colleagues were once disciplined for discussing our salaries, after a heads up from a friend in HR that i was been short changed i raised the give me more money argument for three years with my local director and was told i was in the top eighth of my pay scale.. then one christmas someone in HR.. wrote to all the staff that were been short changed and a month later i got a nice fat pay cheque and left the following week..

    iolo
    Member

    It’s written into some employment contracts that salary discussions can lead to disciplinary procedures and possible dismissal.

    dannyh
    Member

    The whole ‘look / don’t look’ thing is interesting isn’t it.

    I have been in a position for the last six years to ‘look’ if I wanted to. I haven’t, purely because I know that what I would discover would most probably wind me up.

    This is the way of things. Sometimes it is better not to know and just be happy with what you have.

    + a million for all the people who are saying that a contractor ‘only’ on 40% more than the lowest paid team member really hasn’t done their negotiating very well.

    In contractor (but more especially consultant) situations, the more money the company pays, the better the work they think they are getting. Plus the flexibility to get rid at a moments notice!

    Premier Icon curiousyellow
    Subscriber

    Only thing someone’s salary tells you is how good they are at negotiating remuneration for their services.

    Don’t buy the “only the best contract” line. I’ve seen some pretty shocking ones. They get moved on quickly.

    Premier Icon footflaps
    Subscriber

    There are a lot of half wits contracting – a few people we’ve laid off (for being useless) now contact…..

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