| 2088 potential work hours in a year
Less 88 hours holiday
Less 80 hours vacation
Less 56 hours sick
=1864 hours (these are federal guidelines under the Service Contract Act regs) 232/1864 is a base increase of 12.5% for PTO Payroll taxes, Medical, workers comp, etc add about 30% - though medical is flat so at higher wages like discussed here the % increase it represents goes down further I did not have to factor in increasing skill on the job or time between jobs - but I did have to account for overhead and g&a which would be similar to time between jobs since those would be for bills Big companies would have a lot of markup on OH/g&a/fee, but a software dev working remote for themselves on contract could competitively go down to 5-10% or less here to simply cover the minor added burden to bills. That totals up to about a 50% increase on the salary rate. You can't outright bill someone for time you spend looking for a new job or improving your skills. You may charge a premium that you use to do such things but that would have to go under fee which tends to top out at 15% with the government, not something that can be expected to be accounted for. In my experience at least. Again though, this was for service contracts - particularly with the US government, subject to certified cost and pricing data disclosures. I was genuinely curious about the 2.5 number though, as i have spent a lot of time dealing with market rates in various conditions I was interested to know the context. I could see a few ways that could happen, but I wouldn't want to speculate too much |