The message arrives on a Tuesday afternoon. A six month contract with a bank, fully remote, at a day rate that works out at nearly double your salary. The recruiter wants to know by Friday whether you are interested. You do the multiplication twice, and both times it looks very good.
It might be. Plenty of people have built happy careers on contract work. But the number in the message is not the number you would actually live on, and the decision deserves a slower look than a Friday deadline allows.
Start with the days you would not be paid for. A salary quietly covers holidays, bank holidays, sick days and training. A day rate covers only the days you work. Then add the gaps between contracts. Many contractors plan for a month or two a year without work, and the first gap is often the longest. Take out the cost of your own pension, insurance and an accountant. Tax rules for contractors differ a great deal between countries, so speak to someone who knows yours before you compare figures.
Then look at what you would stop receiving that is not money. Contractors are usually hired to do what they already know. Nobody plans their growth, writes their review or sends them on a course. If you are early in your career and still learning fast, that can cost you more than the extra money gives you.
Ask why the role is a contract. A short, specific project with a clear end is a healthy reason. A permanent team that only hires contractors because it cannot get approval for staff may mean unclear goals and a quiet exit for everyone in six months.
Check your own cushion. Contracting is far less stressful with several months of expenses saved before you start.
If, after all that, the numbers still work and the work interests you, it can be a good move. Many people try it for a year and learn a lot about how different companies run.
Just make sure you are choosing the life, not the headline number. Write both versions of your year down, month by month, and compare those.
– Asael Shinder
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