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Guru Kamath wrote:
> BTW, according to me, freelance rates and average salary rates should be the
> same. Meaning, if you earn $4000 per month in a job -- you should earn at
> least $4000 as a freelancer too. Similarly, if you are willing to pay
> someone $4000 as a salary -- if you hire a freelancer you can pay the same
> amount of $4000 (i.e. 25 dollars an hour for 160 hours of work). This is my
> take on freelance rates.
I respectfully disagree. If I earn $4000 per month as a wage slave, I have to
earn more than that as a freelancer, to cover costs such as insurance,
equipment, software, etc. not to mention benefits, vacation, sick time, etc.
If a company were to take the average salary and simply divide it by the number
of hours worked, the freelancer is being cheated for all the above reasons.
Perhaps this situation is different for freelancers in countries where the
working conditions are that things such as benefits, vacations, etc. are not
expected by wage slaves. In most circumstances though, it would not make any
sense for ANYBODY to freelance. You trade security, benefits and money (the
cost of maintaining your own hardware/software, paying hydro, phone, etc.) for
the benefit of not having to drive to work. Doesn't make sense.
The guide I use tells me that for someone making $4000 per month (roughly $50
000 per annum), the hourly rate as a freelancer/ contractor should be $34.00
per hour ($5440 per month for 160 hours of work), assuming benefits are equal
to 40% of total salary.
That makes sense.
Even in my own personal situation, if I compare the hourly rate I used to
charge as a contractor against my current salary as a wage slave - the
difference works out to 40% (before I take into consideration cost of living
increases along with merit pay increases).
Suzette Seveny
Markham, Ontario, Canada
sseveny -at- petvalu -dot- com or suzette -at- yesic -dot- com
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Any opinions expressed are MY opinions.
Feel free to have your own.
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