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Negotiating a rate for contract work? (programming.dev)

submitted 1 year ago* (last edited 1 year ago) by sunshine12873@programming.dev to c/experienced_devs@programming.dev

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I am considering taking a contract software engineering role with a company I am excited about. We are in the final stages of the interview process, and they are pressuring me for a rate. When they first asked me for a rate, I asked whether they have a typical rate that they pay contractors and they said yes, "based on experience", but did not disclose the rate. I have no idea how they are intending to level me and am confused as to why they are asking me for my rate if they have a standard contractor rate. Would welcome any advice about how to proceed.

Edit: to clarify, I'd like help with how to ask them to tell me their usual contractor rate

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[–] clyne@discuss.tchncs.de 2 points 1 year ago

I would figure out the range of salary the type of position usually goes for, then start with an estimate slightly higher than that. Assuming this a full-time role, you'll need to account for things like "office" expenses, healthcare, utilities (internet?), and what you will eventually owe in taxes. Contractors' rates will often be "higher" than salaries for the same position because of this, but in the end the amount you actually take home will balance out.

I've done contract work since finishing university, and managing taxes and expenses has been a constant challenge. Make sure you're comfortable with the deal you make.