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Independent- Salary level

Question

Hi,

I have been offered from my current employer a higher salary and requested to shift from an "employee"to an "independent" status. I am single, no kids, but I wonder from what salary level it makes sense to become an 'independent", considering taxes?  

 

TIA.

J

What they have suggested is quite illegal. Don't do it.

 

Oh - and €1000/month is equal to €100/day freelance. Remember, you get no extras, no holiday pay, no sick pay. And you have to pay your pension, hospitalisation insurance, acountant, social security bill, etc.

 

After about €400/day, you start getting scope for some reasonable ways of reducing your tax bill. So if you're on €4000/month and they are offering €400/day, then it could be worth it financially. IF YOU ARE SURE OF A LONG CONTRACT, or if you do a job where using freelancers is common place and you are sure you could fine something else within 2-6 weeks.

 

But don't be fooled. The cost to an employer is the same for freelancer as it is for an employee. The advantage comes in that you can ge rid of a freelancer easily, or you can bypass complex recruitment restrictions.

Nov 4, 2011 21:55