750pd umbrella or 95k pa perm?

Milky_Mocha

Asking for a friend, although the reasoning could help in my next job move as well.

If unemployed and faced with two job offers at organisations you like equally, which of these two would make more sense financially?

The one offering £750 per day rate with an umbrella company or the permanent role offering £95k per year?

Grumpy_chap

You would need to assess total value of the PAYE role, not just headline salary.  At that kind of level, pension and / or car allowance or other perks could be substantial.

Then compare that with the UC role.

Grumpy_chap

On the UC approach, you will take home £2k to £2.1k per week.  Will be less if you make pension contributions.

45 working weeks per year.  
Take home £90k to £95k per year.

Milky_Mocha

Grumpy_chap said:

On the UC approach, you will take home £2k to £2.1k per week.  Will be less if you make pension contributions.

45 working weeks per year.  
Take home £90k to £95k per year.

Thanks.
Feels like the perm role on the face of it, makes more sense. Thanks.

Milky_Mocha

Grumpy_chap said:

You would need to assess total value of the PAYE role, not just headline salary.  At that kind of level, pension and / or car allowance or other perks could be substantial.

Then compare that with the UC role.

Yes there is life insurance and pension with that salary. Thanks.

Grumpy_chap

What percentage employer pension contributions?

Milky_Mocha

Grumpy_chap said:

What percentage employer pension contributions?

Employer matches the employee's contributions up to 9% I believe. So if employee chooses 9% then employer will give the same, making 18%

Grumpy_chap

So, the £95k staff role allowing for the pension contributions equates to around £86.5k resulting in around £58k take home plus £17k in your pension fund.  Total value to you of £75k or thereabouts.
The actual amount will vary depending on how the pension is processed as there are different mechanisms, but the indication is probably accurate enough

Plus the extra perks and benefits of being directly employed rather than contract worker.  You need to asses the value of this for yourself as the value of security, regularity varies greatly between individuals.

For both the UC and employed "take home" / "value" estimates, I assumed simple situation, no consideration of student loans, English tax payer, ignored factors such as HICBIC.

Milky_Mocha

Thank you, grumpy chap.