Contractor rates - how to find the best rate for your role?

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sud0

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#268224 6-Mar-2020 11:10

Hi guys,

I have been invited to work as a contractor recently - I am a Senior Cloud Engineer - and was wondering how can I find what's the contractor rate people are charging around New Zealand? Should I ask for $60 p/h? $70 p/h? $100 p/h?

I have AWS certifications, +12 years of experience and have done some big migration projects already.

Cheers!

Lucas

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timmmay

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#2433606 6-Mar-2020 12:45

Cloud architect contract rates in Wellington are $130 - $150 / hr for an experience architect with AWS architect pro, good AWS and general architecture experience, according to recruiters I've talked to. Senior engineer rates will be a bit lower, but I'd say $100 - $120 / hr. Qual can make a difference to, associate vs pro.

sud0

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#2433609 6-Mar-2020 12:50

timmmay:

Cloud architect contract rates in Wellington are $130 - $150 / hr for an experience architect with AWS architect pro, good AWS and general architecture experience, according to recruiters I've talked to. Senior engineer rates will be a bit lower, but I'd say $100 - $120 / hr. Qual can make a difference to, associate vs pro.

Thanks! That helps a lot!

Lucas

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antoniosk

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#2433666 6-Mar-2020 14:22

The agencies all have benchmark rates and will happily share with you. Younity, AbsoluteIT, 920, beyond, Robert Walters

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Antoniosk

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#2433927 6-Mar-2020 17:42

As starting point divide the annual salary for an emplyoyee by 2000 to get a rough base hourly rate. Then add in percentages for holiday pay, sick leave, ACC levies etc, etc, to get a rough gross rate. MBIE has info on the percentages for contractors on its website.

This will give you a ballpark figure. Then if you are GST registered add GST.

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sqishy

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#2433944 6-Mar-2020 18:34

$125/hour is the norm, also may depend on how much work you get or fixed term work may be less.

marpada

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#2433948 6-Mar-2020 19:12

antoniosk:

The agencies all have benchmark rates and will happily share with you. Younity, AbsoluteIT, 920, beyond, Robert Walters

Don't trust the agencies rates, they will try to lowball you and pocket the difference. timmmay figures sound right.

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#2434593 8-Mar-2020 16:26

marpada:

antoniosk:

The agencies all have benchmark rates and will happily share with you. Younity, AbsoluteIT, 920, beyond, Robert Walters

Don't trust the agencies rates, they will try to lowball you and pocket the difference. timmmay figures sound right.

I think you're being a bit unfair. An agency makes it's money on having a margin on the the rates. If they're too hungry they won't survive as word will soon get around especially when various contractors start talking.

Not everyone needs an agency to help source work but they do provide a useful service both to contractors and businesses.

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antoniosk

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#2434595 8-Mar-2020 16:35

marpada:

antoniosk:

The agencies all have benchmark rates and will happily share with you. Younity, AbsoluteIT, 920, beyond, Robert Walters

Don't trust the agencies rates, they will try to lowball you and pocket the difference. timmmay figures sound right.

For government work, the fees have been set by the all-of-government agreement and is a flat transparent charge. In IT 11% on top of the rate is common - 1% goes to MBIE, the balance to the agency.

For private companies, sure - that's down to knowing your worth and what a reasonable rate for you is. Plus you also have to get a contract, in a busy market. Skills may be transferable but attitude work ethic performance history are not - and until you have it, you're just another face in the crowd.

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gehenna

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#2434676 8-Mar-2020 20:49

Absolute IT's annual salary survey is useful.

https://znze11wt5g3330m4e3it6h2a73-wpengine.netdna-ssl.com/wp-content/uploads/2020/02/Tech-Digital-Report-2020.pdf