Hourly rate indicator

A principal does not pay social premiums, holiday pay, pension premiums and suchlike. An independent professional pays taxes and premiums his/herself at the end of the year and will have to make reserves for this him/herself using a suitable rate. As a result of changes in the economy and market, because assignments last for a longer or shorter period of time or because competition in the professional area increases or decreases, no one suitable rate exists. The ultimate rate will always be as a result of negotiations between the assignee and the principal.

In addition to benchmarking, whereby your level of education, work experience and performances are compared to others in the same professional area, below you will find two methods which could serve as a basis for negotiations about an hourly rate and determining this rate.

1. The first method uses the gross income from a comparable position in permanent employment as the basis. The advantage of this method is that aspects such as scarcity have already also been processed in a fixed gross salary. Independent professionals can benefit from tax advantages such as a self-employed deduction or a starter's deduction (not with a private limited company). On the other hand, they must also take care of more own insurances and payments. It is therefore not 100% comparable, but this method is very useful as an indication. Click on the green button to calculate this hourly rate.
2. The second method helps to calculate a minimum net hourly rate (exclusive of Dutch VAT), the minimum in fact. This depends on the number of possible hours to be worked and the amount of operational costs, living expenses and personal wishes, for example, in the area of saving and investing. This rate guarantees a certain standard of living and shows in concrete terms how far a rate can go down. Click on the red button to calculate this personal rate.