NetPayHub
Contract vs permanent calculator
Compare a permanent PAYE salary against a contractor day rate on a like-for-like take-home basis — taxed as employee vs self-employed, using Budget 2026 bands.
| Permanent take-home PAYE | €44,947 |
| Contractor gross rate × days × weeks | €80,500 |
| Contractor take-home self-employed | €55,248 |
| Difference | +€10,301 |
A €60,000 permanent salary nets about €44,947, while a €350/day contract (5 days, 46 weeks = €80,500) nets about €55,248 as self-employed — but the contractor pays for their own holidays, pension and downtime.
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How the contract vs permanent comparison works
The two sides are taxed differently, so a fair comparison has to model both:
- Permanent (PAYE employee): income tax with the Employee Tax Credit, USC and Class A PRSI at 4.2%. See the net salary calculator.
- Contractor (self-employed): gross = day rate × days/week × working weeks. Tax uses the same 20%/40% bands but with the Earned Income Credit instead of the PAYE credit, Class S PRSI (4.2%, min €650), and a 3% USC surcharge on income over €100,000.
Crucially, contractors are usually not paid for time off, so use 44–48 working weeks (we default to 46), not 52. Even when the contractor nets more, remember a permanent role also includes paid annual leave, bank holidays, employer pension contributions, sick pay and job security — value those before deciding.
People also ask
Is contracting better paid than permanent in Ireland?
Usually higher headline income, but no paid leave, pension, sick pay or security. Example: €60,000 permanent nets ~€44,947; a €350/day contract (5×46) nets ~€55,248 self-employed — before those benefits.
How do I compare a day rate to a salary?
Day rate × days/week × working weeks (use 44–48), then compare net take-home. This tool taxes permanent as PAYE and contract as self-employed.
What does a contractor give up?
Paid holidays and bank holidays, employer pension, sick pay, redundancy rights, and income between contracts. Price the rate to cover them.
Related Ireland calculators
Sources: revenue.ie, Budget 2026 (gov.ie). Estimates for planning only — not tax or financial advice. Verify with Revenue or a qualified adviser.