[jcwilde]

I don't think you can compare full-time employment with an hourly contract directly.

The rule of thumb I've heard a few people use to convert from employment to contract is to multiply your hourly employment earnings by 2.5 to arrive at your contract rate. By that math, you're still under-earning outside of the downtown core.

Mind you, I'm not sure that conversion has ever fully rung true to me, but the general point of not being able to directly compare still stands.

[adossi]

2.5 seems a little excessive. By that math someone making $100,000 a year salary should be earning $150.00 per hour contract. $150.00 per hour contract at 40 hours a week is about $312,000 a year.

You're right about not being able to make a direct comparison. My understanding, and the reason I choose to work contract, is because we have OHIP, so health benefits aren't too important. I think a company pays something like ~$5,000 a year per employee to insure them. Then when you factor in bonuses (if any) the salary rate is still abysmally small compared to if I were to work contract.

I went from making $70,000 a year in Toronto, to $70 per hour. That jump for me was absolutely massive, and I essentially started making double (after taxes $70K per year became $140K per year).

Perhaps the problem is not the pay in Toronto. Perhaps the problem is with salary developer jobs in general.