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List: drupal-consulting
Subject: Re: [consulting] Figuring out what to pay an employee
From: FGM <fgm () osinet ! fr>
Date: 2010-12-07 16:18:12
Message-ID: 35DA0FA69AD348FD98B81F42D4F0E6AE () pcosi
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Depends on the country. In France, for example, typical figures:
net salary: 100
salary + social security + taxes etc: 200
billable time over total paid time: 80%: 200/0.8 = 250.
operating margin 20%: 250/0.8 = 312,50
----- Original Message -----
From: "nan wich" <nan_wich@bellsouth.net>
To: "A list for Drupal consultants and Drupal service/hosting providers"
<consulting@drupal.org>
Sent: Tuesday, December 07, 2010 4:55 PM
Subject: Re: [consulting] Figuring out what to pay an employee
When I was with IBM, the ratio was much higher. I got about $40/hr, while
they billed me at $300. Of course, IBM has a lot more overhead on billable
people.
The typical "burden" for taxes, benefits, etc is about 40%, so billing
anything less than 1.5:1 is a loss.
Nancy
Injustice anywhere is a threat to justice everywhere. -- Dr. Martin L. King,
Jr.
________________________________
From: Tom Geller
If you'll be billing out this person's hours, one way to approach it is as a
fraction of the employee's billable rate.
When I worked in public relations it hovered around 2-1/2. So if the
billable rate was $50/hour, the employee got $20/hour, as $50 is ($20 *
2.5). Multiplied by 2,000 hours/year (50 weeks, 40 hours/week) =
$40,000/year.
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