Employment against contracting: what the company has to invoice to match
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The deduction is a field rather than a tax table because your own payslip is the more faithful number: it already carries your dependants, your health plan and anything else that is taken off before the money reaches you.
The same goes for the tax on the invoice. Which bracket a company falls into depends on its activity and its turnover, and a figure fixed here would be this page guessing at your situation.
Results
What the company has to invoice every month to match the job
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| Salary after the payslip deductions | — |
| Thirteenth salary, spread over the month | — |
| Holiday bonus, spread over the month | — |
| Severance fund deposited by the employer, per month | — |
| Everything the job is worth per month, counting the fund | — |
| The same, if you do not count the fund as yours yet | — |
| Invoice needed on that stricter reading | — |
| What the contract adds on top of the bare salary, in percent | — |
The salary is worth almost a fifth more than the figure on the contract, before any argument starts. The thirteenth salary adds eight and a third in a hundred, the holiday bonus adds two and seven tenths, and the severance fund adds eight and two thirds because it is paid on thirteen salaries rather than twelve. Comparing a bare salary against an invoice, which is the comparison people usually make, is wrong by that whole amount and always in the same direction.
The month of holiday is deliberately not counted. You are paid that month anyway, so the only extra is the constitutional bonus of one third. Adding a whole extra salary for it, which is a common shortcut, would count the same money twice and overstate the employment side by another eight in a hundred.
The severance fund is money with a lock on it. It is deposited in your name, but it only turns into money in your hand in specific situations, and the extra penalty exists only when the employer ends the contract without cause. That is why it sits on its own line and why the invoice you would need is shown both with it and without it.
What this page does not do is compare risk. Notice periods, unemployment insurance, paid sick leave and the plain possibility of ending a month with no contract at all are worth something, and none of them appear in any line above. The number here settles the money question and leaves the harder one to you.
How much is a salaried job worth beyond the salary itself?
About a fifth more, before any argument starts. The thirteenth salary adds 8.33% spread over the year, the constitutional holiday bonus adds 2.78%, and the severance fund adds 8.67% because it is paid on thirteen salaries rather than twelve. Together that is 19.78% on top of the bare figure.
So a salary of 10,000 is worth about 11,978 a month before benefits are even mentioned. Comparing the bare salary against an invoice, which is the comparison people usually make, is wrong by that whole amount and always in the same direction.
| What it is | Added on top of the salary |
|---|---|
| Thirteenth salary | 8.33% |
| Holiday bonus of one third | 2.78% |
| Severance fund | 8.67% |
| Total | 19.78% |
Why is the month of holiday not counted?
Because you are paid that month anyway. Time off is paid time, so the only thing that is extra is the constitutional bonus of one third of a salary.
Adding a whole extra salary for the holiday, which is a common shortcut, counts the same money twice and overstates the employment side by another 8.33%. That single mistake is bigger than most of the differences people are trying to measure.
Should the severance fund count as my money?
It is deposited in your name, but it has a lock on it: it only becomes money in your hand in specific situations, and the extra penalty on top exists only when the employer ends the contract without cause.
That is why the page shows the invoice you would need on both readings, with the fund counted and without it. If you expect to resign rather than be dismissed, the stricter reading is the honest one for you.
Does a higher invoice mean contracting is better?
It means the money matches. Everything else is missing from the calculation on purpose: notice periods, unemployment insurance, paid sick leave and the plain possibility of finishing a month with no contract at all.
Those are worth something, and how much depends on your field and on how easily you would find the next contract. The number here settles the money question so that you can spend your attention on the harder one.
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