Hi guys Thought I'd ask a question thats been bugging me for a while. Why such a sizable difference in the wages of permanent and contract workers. I mean a good salary for a IT professional is probably about 30K a year, whilst on a short term contract ( 3/6 months ) you can make 300 a day. Nice money if you can get it!!! Of course you have to be willing to move a lot and always be looking for another job but a 3 month contract at 300quid a day is 18K. Yummy
Contract work may not be as steady, and in order to provide for times when you don't have a contract, the cost may go up. Also, the contractors responsibility can play a role in the pay. As a contractor, you may be considered self-employed, which means you have to pay both sides of the taxes for your business and yourself. This is taken care of---well, usually---by the employer. It's arguably more risky to do contract work, which filters into the contractors responsibility, so insurance and such would be a good investment, where as you're shielded as an employee.
