Salary vs Contract Rates
| 19-Jan-2010 | Posted by Sonia Hamilton under employment |
I’ve always wondered what recruitment agents use as their formula to convert between salaries and contract rates. Here’s a formula (for giving ballpark figures) – thanks CK:
Salary divided by 48 weeks, divided by 40 hours, plus 20% (super, training, sick leave, etc) =~ Hourly rate
For example, $100K =~ $62.50/hour, $150K =~ $93.75/hour.
Here’s a quick ready reckoner – handy to print out when you’re doing the “job mambo”:
| Salary | Hourly | Daily |
| $80,000 | $50.00 | $333.28 |
| $85,000 | $53.13 | $354.11 |
| $90,000 | $56.25 | $374.94 |
| $95,000 | $59.38 | $395.77 |
| $100,000 | $62.50 | $416.60 |
| $105,000 | $65.63 | $437.43 |
| $110,000 | $68.75 | $458.26 |
| $115,000 | $71.88 | $479.09 |
| $120,000 | $75.00 | $499.92 |
| $125,000 | $78.13 | $520.75 |
| $130,000 | $81.25 | $541.58 |
| $135,000 | $84.38 | $562.41 |
| $140,000 | $87.50 | $583.24 |
| $145,000 | $90.63 | $604.07 |
| $150,000 | $93.75 | $624.90 |
| $155,000 | $96.88 | $645.73 |
| $160,000 | $100.00 | $666.56 |
| $165,000 | $103.13 | $687.39 |
| $170,000 | $106.25 | $708.22 |
| $175,000 | $109.38 | $729.05 |
| $180,000 | $112.50 | $749.88 |
| $185,000 | $115.63 | $770.71 |
| $190,000 | $118.75 | $791.54 |
| $195,000 | $121.88 | $812.37 |
| $200,000 | $125.00 | $833.20 |
And here’s the numbers for doing quick calculations:
| Salary Ks to | Hourly | * 0.625 |
| Hourly to | Salary Ks | * 1.6 |
| Salary Ks to | Daily | * 4.166 |
| Daily to | Salary | * 0.24 |
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When you say “times 20%”, I assume you mean “times 120%” or “plus 20%” – literally “times 20%” would mean “divide by 5″
:-p