1. What is the Salary to Contract Calculator?

This calculator helps compare permanent salary positions to contract rates in Australia. It estimates the equivalent contract rate you would need to earn to match a given salary, accounting for benefits and entitlements.

2. How Does the Calculator Work?

The calculator uses the standard industry formula:

Where:

• \( Salary \) — Annual salary amount in AUD
• \( 1.2 \) — Multiplier accounting for benefits, leave, and other entitlements

Explanation: The 20% uplift accounts for typical benefits included in salary positions but not in contract roles.

3. Importance of Contract Rate Calculation

Details: Understanding the equivalent contract rate helps professionals compare job offers and make informed decisions between permanent and contract employment.

4. Using the Calculator

Tips: Enter your annual salary in AUD. The calculator will show the equivalent contract rate you would need to earn to maintain similar financial benefits.

5. Frequently Asked Questions (FAQ)

Q1: Why multiply by 1.2?
A: The 20% uplift accounts for benefits like paid leave, superannuation, and other entitlements typically included in salary packages.

Q2: Is this accurate for all industries?
A: While 20% is a general rule, some industries may require higher or lower adjustments based on specific benefits.

Q3: Should I consider other factors?
A: Yes, also consider job security, career progression opportunities, and personal preferences when choosing between contract and permanent roles.

Q4: How does this compare to hourly rates?
A: For hourly contracts, divide the annual contract equivalent by your expected working hours per year.

Q5: Does this include superannuation?
A: The calculation assumes the salary figure includes super. If it doesn't, you may need to add an additional 10.5%.