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Comparing Salaries Fairly

The True Hourly Rate

A £60,000 salary sounds very different to a £30/hour contractor rate — but at 40 hours/week, 48 weeks/year, that salary is £31.25/hour before tax. Always convert to the same period before comparing.

Benefits in the Comparison

A salary package includes pension contributions, holiday allowance, sick pay, health benefits, and job security. A comparable contractor rate needs to cover all of these plus gaps between contracts — typically 25–40% higher gross to be equivalent.

Working Hours That Count

Many salaried roles have significant unpaid overtime. If a £50K job actually requires 50 hours/week, the real hourly rate drops by 20% versus a strict 40-hour role.