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
- 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.
- 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.