Contractor vs Permanent — Which Pays More?

The Real Comparison

Contractors earn more gross but have no holiday pay, sick pay, pension contributions, or job security. The breakeven point is typically around £450-500/day for a contractor to match a £60-70K permanent salary when benefits are included.

What Contractors Lose

• 28 days paid holiday (worth ~£7K on £60K salary)
• Employer pension contributions (3-10% = £1,800-6,000)
• Sick pay, maternity/paternity pay
• Training and development budget
• Company laptop, phone, software licences

Use our Contractor Calculator for an exact comparison.