How to choose payroll / umbrella company?

21

Thank you all for responses.

Here is some update from their side:

  • They’ll send it to Hays & Kelly (the vendors they normally use).
  • My wife needs to talk to the contacts (from Hays and Kelly) provided by the manager, and discuss hourly rate she expects.

Since we are inexperienced in contracting, let me know if the following number are correct.

What my wife expected from ‘permanent internal’ job (for 100% workload):
base salary: 110K CHF
bonus: 10 K CHF (based on numbers from last years
extra pillar 2 contributions by employer: 10K CHF

so 130K CHF per annum, lets compute hourly numbers:

Work days = 52 (weeks) x 5 (days) - 15 (bank holidays) - 20 (vacation) = 225 days

She would expect hourly rate of 130000/ (225 * 8) = 72 CHF * AFTER * deductions (10+% for AHV, 10% for BVG/LLP, and another 13% in ALV, accident insurance, vacation cut, and vendor commission)

72 = (1-.33) x Y, where Y is GROSS hourly rate

so Y ~ 107 CHF per hour.

is the above calculation correct?

22

Calc might be correct, but contracting is not equal to being permanently employed (other perks and benefits, perceived stability, etc.), so IMO the hourly rate could be (quite) higher.

Although the above hourly rate translates into ~200k / year - counting with 100% employment and 20 days of vacation - which seems alright to me (depending on role and seniority).

23

For an engineering job you should be able to ask more than for 20d holiday ?

I always got at aleast 25 d as an engineer.

24

I only included direct financial perks, to do a conservative calculation.
it is not a ‘senior’ level role (no people management), more as a team of scientists, but the skill and experience is high (PhD + 4 years).

1 Like
25

i added 15 days bank-holidays (they are less i think) which probably balances the ~ 20 day vacation estimate.

26

What are the 2nd pillar conditions? She will be insured at whatever pension fund the umbrella company has,

27

i didn’t get your question.
Hays/Kelly will likely put 10% (5 + 5) in pillar 2 of whatever pension fund they have (which I don’t know about yet). 10% is the minimum for my wife’s age. my assumption is that Hays/Kelly will have that as default specified in contract.

28

That is not an unimportant question. :wink:

Some companies pay more than 50% of the contributions. Then the question is what interest rate they pay for the non-mandatory part (überobligatorisch) and what their technical interest rate is (government says 1% is the minimum, some funds have 1.5-2%).

29

I agree, and will see what is the coverage ratio and performances of pension funds from different vendors. I doubt there will be anything exciting. Just a choice between 2 bad options.