Hi,

I recently retired but got approached to work as an independent contractor. I am considering it.

It's a 1 year contract (renewable year to year) - obviously won't have benefits (ie no EPF, socso etc) like a permanent role would have.

Assuming when I was a permanent staff I was paid 10k, how much more should I ask for since the role is not permanent?

Thanks.

10k, if not more, since co save on epf, sosco, medical, etc?

Possible Try asking for 13 to 15k
U can contribute back 5k to epf monthly

Ask for salary on per day basis. Depending on industry. Different rate

As a contractor, you can charge based on job basis.

If the company pay based on previously salary or higher, better to retain the staff.

This post has been edited by mini orchard: Nov 18 2022, 12:42 PM

Its actually a normal role, but a regional one and working remotely

Reason it being an IC is because the company does not have a local entity here

When a co outsource work, they expect to lower their cost.

In your case, paying your more and have no full 'control' doesnt look right unless I miss something.

Its because its not outsource

Then is up to your nego skill and terms of contract.

Is considered outsource when work is not done by employees. You are soley responsible for performance and any liabilities is on your account.

Research more on agency contract

Thanks, I dont think you know the meaning of outsource and independent contractor

Then what is your meaning for both ?

Should bill by manhour, maybe in blocks of 4 or 8 hours, plus reimbursement of traveling and accommodation if required.

As mentioned earlier, the reason of being offered an IC role is because the company does not have a local entity. The role requires a local, regional presence. I'm an employee, but I cannot be under the main company because local employment laws do not allow it.

Outsourcing is when a similar role can be outsourced to a cheaper location, which is not the case here.

I dont understand the need to breakdown all this

All i want to know is how much should I ask for in monthly terms

Assuming last time i earned 10k/month, should I ask for 10k+EPF+(additional % cause not perm role?) ???

Sounds like you are looking for a day job rather than a fly in fly out kind of arrangement. Thought you wanted something you can do at your leisure. With that in mind, you should ask for 10K+Employer EPF. Spend some money to contribute SOCSO if still eligible by age and you work in the fields and/or travel frequently. Dunno how the client would warm up to it, unless you are specialist with a reputation in the industry.

just 10k+epf? aiyah ok lah

its not im looking for job, was approached

At least 30% extra

Company already save the employer epf portion + sosco + other statutory payment

Anything less than 20% then you bodoh kena short change

What is the duration of the job?

As per first post yearly contract

Ayam act as trustee ( board member) to a non profit govt agency and get Rmxk per day honorarium.

Do ts input should be similar like this?

Ask them how much they want to give😗😗😗😗. They headhunt you, then they should give quotation about your payment.

This post has been edited by Epci: Nov 18 2022, 08:13 PM

I did, they said make a proposal

So what do I propose?

20k. Let them nego

Double? Wah haha

Unfortunately you have to see who the poster is before you spend time replying, because some no knowledge will post like they do.

Good luck with your offer!

I agree with him/her

if one already reach retirement ages, he/ she should be quite hard to find good jobs elsewhere as employer prefer young and energetic with lower paid….limited bargaining power I guess. Unless with specialise skills that hard to find in manpower market.

This post has been edited by bcombat: Nov 19 2022, 01:39 AM

You should never ask for equivalent or lesser than a permanent staff (including of statutory deductions) because of the risk that comes along with it for a contract staff. The recommendation earlier asking you to ask for double seems like a right choice.

Ask for double doesn’t necessarily means you will get it but negotiation should always start high for a candidate because employer will only pull it down in the negotiation phase.

You need to prepare more bullet point to justify yourself on the ask:
ie:
- lack of long term stability
- establish yourself as valuable skill set that they can’t find elsewhere (in this case being a local and have the skill set they are looking for)
- helping the company to save cost by not having to establish a local company

Another way is to agree for a contractual project basis, as in invoice them on per project basis (renewable 1 year project in your case) rather than as a contract staff. This way you can even open your own company and invoice them and incur more tax savings. An enterprise entity can claim cost of business, you can charge your cost of equipment, transportation etc to lower taxes.

You should treat independent contractor as an entity of its own instead of as an employee of the said company. The negotiation is a company to company process, not as an employee to employer.

This post has been edited by LovelyPotato: Nov 19 2022, 12:24 PM

Thanks, but I think asking double a bit too much for my case

i'm 43, so a little old for the tech industry but I was approached due to my unique experience.

I wont be asking double (too much) or the same as my last drawn salary (too little for contract).

Honestly wondering if anyone here has transitioned from permanent role to contract role, and what is the difference/addition that I need to take into account.

If 10k and contractor ask for 13k

That 3k is your epf then u self contribute

Why not. Demand and supply

my last salary was 29k...cannot la double

this thread should move to kopitiam

match the same. if reduce pay
then reduce job scope.

be fair enough

Then commensurate with your expertise skill & exp

sorry this is not about what salary should i get, but what salary should i ask for since the role is contract and not permanent. I already know what I should if the role is permanent based on skill & exp.