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Have you ever thought about becoming an IT contractor in Ireland?
With a recent spike in daily rate and a rising demand for skilled contractors, becoming an independent contractor is a potentially lucrative career option. Particularly if you are a skilled Software Developer, DevOps Engineer, Project Manager or Technical Support Rep.
The following article is a quick how-to guide on what you need to get set up, how much money you can expect to make and the benefits or working for yourself. If you’re still unsure get in touch and we’d be happy to advise.
What you will need?
A Public Limited Company (PLC) or a PAYE Umbrella Service. This is required for payment. Beware that managing your own taxes can be tricky so it’s a good idea to partner with an umbrella service or at the least, speak to a good accountant.
A signed contract from an employer – check out our job listings to get a feel for what’s out there or get in touch.
How does the pay work?
When you factor in weekends, bank holidays and personal holidays on average, contractors in Ireland generally work 230 days a year.
To calculate your rate of pay, you need to divide your salary by 230. However, contractors also come at a premium and the average contractor tends to earn roughly €10,000 more than a permanent employee in the same position or around 10-15% more. In many cases, this can be much higher.
At the end of each month, you will need to calculate the hours you have worked onto a timesheet and get an approver (in most cases your direct manager) to confirm the hours you have worked.
If you are working as a contractor through Cpl this timesheet is uploaded on an internal system and Cpl is then invoiced for your working month.
Like any other job, daily rates are generally paid monthly and sometimes weekly. Following the formula below should give you a daily rate of pay:
€50,000 salary in a permanent position + €10,000 for contract premium = €60,000 ÷ 230 = €260.86 Per Day
Why do contractors get paid more?
Contractors aren’t entitled to the same benefits as permanent employees such as holiday pay. You are also less secure, all of which means you can ask for a higher wage.
What are the benefits of working as a contractor?
Even though you won’t get holiday pay, a pension or health benefits being a contractor has its high points. These are just some of the multiple other benefits that make contracting a very attractive career option:
Salary – contracting pays a higher salary than the equivalent permanent position
Work like balance – Regular contracting allows for time off between contracts
Experience – Moving between contracts offers exposure to different environments allowing you to upskill and gain broader experience
Opportunities – Starting a contract gives you a chance to get into a desirable company without putting pressure on the company’s headcount. Contractors are very attractive long-term employees.
Need a hand finding the right contracting job for you?
We currently have several contracting opportunities for Software Developers, DevOps Engineers, Project Managers and Technical Support Reps in Cork and nationwide.
If you or someone you know are interested in becoming a contractor please get in touch [email protected]