For the first time in many years, I am considering a longer term contract. I was on a contract to hire, but there is now a hiring freeze and they have asked me to extend the contract until the freeze is lifted. Prior to this I have only been on FTE salary for the past 10 years at previous two jobs.
So what rate per hour is appropriate? I think I took too low of a contract rate per hour the past few months, but I just didn't rock the boat because the plan was to go FTE.
If the FTE salary for my area is $130,000 to $140,000 for a senior level DBA, that would be about $65 (W2) per hour based on 2,000 hours per year. But there is no bonus or paid vacation or other benefits with that $65 per hour.
So what sort of additional markup is typical when I request a specific rate per hour for being on a contract instead of on a salary with benefits? I realize this is different for everyone based on location, experience, etc. I am seeking advice on what is the typical percentage above equivalent salary?
If $130,000 salary = $65 per hour, should I be asking for $75 per hour ($150,000 based on 2,000 hours per year) to make up for the lack of bonus or health care or other benefits? Should I be asking for $85? What number would be reasonable and not out of question?
I have already impressed them by solving several severe issues they had in a critical database. The group manager doesn't want to lose me. They had problems for two years before I arrived and I solved it in two weeks. They want to keep me long term, but the company is in a hiring freeze. So a contract is available until their hiring freeze is lifted. I have the ability to renegotiate this now. I was originally brought in on a contract to hire, but then the hiring freeze happened due to the company missing it's earnings number.
Any advice would be appreciated. Thanks