No holiday pay or sick pay or pension or job security etc for Contractors

No Holiday Pay
No Holiday Pay

No Holiday Pay, Sick Pay, Pension

Contractors get no holiday pay, sick pay or pension.

‘Jon the jumper‘ posted this as Comments in response to a response to our article ‘Young Man – Become an IT Contractor’.

But is it all true as regards contractors?

NO holiday pay

True, you get no holiday pay but you can be very flexible and not have the restriction of 4 weeks /year.

Also you can “carry over” by working a full year then take a couple of months off without having to go cap in hand to some corporate robot.

NO sick pay

You just get Very good at holding off being sick until the weekend. I find that I generally manage the flu etc far more effectively than permies.

Motivation plays a big part.

NO pension

Ha HA HA Ha , look at all those poor trusting sods who have been putting money into pension schemes for the last 40 years and who still don‘t have a bean.

As soon as I saw all those glowing stories about how good the UK’s pension provision was compared with, well, just about anybody else on Earth, just before Robber Brown & co got in I stopped putting money into my pension.

Was I wrong?

NO job security

Speaking as someone made redundant a number of times (I really have lost count) before I was 21 from “permanent” jobs I really do see any job as a “contract” job.

The permie con is that the appearance of security is provided at the cost of a much reduced income and control over working life and conditions.

“Contacting” is what it says on the tin – redundancy in 3 months for this much money.


Also I have been kept on when redundancies where being made. I had the skills they needed their (ex) employees didn‘t.

NO employee rights

See above & you have very limited rights for the first 12 months anyway.

NO notice entitlement

Depends on the contract . Some of mine have been a month , others a week. Who cares I’m out in 3 months anyway!

Paying extra NIC

No, you get 2 or 3 times the permie rate and pay a small percentage out of what you pay yourself in wages.

Permies just don‘t see that part of their income…but it does come out of the amount the company allocates as your wages, so permies pay it anyway. They just don‘t see it.

NO steady income thus NO credit worthiness. Unable to get a mortgage

Untrue, have a mortgage , changed mortgages recently…paid off the original mortgage and renovated the house and have now bought some land to build another.

Try doing all that in the same timescale on a permie salary.

NO job continuity

Not specifically a contractor complaint. Many permies get sick of being used as dogsbodies, as the have to do what ever they are told to do as they are beholden to their employers.

Often the contractor gets the project as they have been brought in because none of the permies have the skill set.

Contractor skill sets are often more up to date *because* they are on many different jobs…that’s often the point!

NO benefit entitlement if you do come unstuck

Partially true but that‘s part of the calculation. Being safe costs money i.e. lower salary as a permie. Your take home pay is much higher as a contractor.

Your choice!

For further advice on contracting as a career click on Contracting Career.

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