[UPHPU] Going Rate for PHP/MySQL Development
bdavis at cove-mtn.com
Thu Oct 28 09:37:05 MDT 2004
>>I'd expect a contract position to get $20-$25 per hour, for an
>>experienced developer. A lot of local employers want to pay less than
>>that (unfortunately) -- but contract work usually means "sans benefits,"
>>so the pay is usually a bit higher.
People, be very careful at how you bid contracts. Depending on what you provide
to yourself (taxes, benefits, equipment, office space, etc.) true pay rates are
much lower. The Feds expect that taxes and benefits can add 25%-30%. Overhead
(equipment, office, support staff, ...) can add 50% to that figure. At 3Com in
the mid-1990's engineers were calculated to cost $150k per year, fully burdened
(or about $75 per hour) even though the engineer may only be paid $75k per year.
(This didn't include specialized equipment which came from different budgets.)
If you provide everything needed for a contract (including equipment and office
space) then the above would give a salary of only be about $20k to $26k per year.
If just pay your own employment taxes, health insurance, vacation, and retirement,
the above rates would give a salary of $30k to $38k per year.
You should start with what you would get fulltime, divide by the number of fulltime
hours per year, multiply that by the direct cost overhead (1.2 to 1.3) and then
possibly multiply that by the infrastructure overhead (can be 1.5).
(I used 2000 work hours per year, the real number is closer to 1900. You can
contract yourself into the poor house.)
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