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Salary to day rate calculator for contractors in Ireland

Is €550 a day better than a €90,000 salary? Enter a salary or a day rate to see its equivalent, with employer costs, unpaid days off and VAT taken into account.

Salary to day rate calculator

€0equivalent day rate, excluding VAT
€0same day rate with 23% VAT added
€0hourly rate (8 hour day)
€0yearly billings, excluding VAT
0billable days a year (260 working days minus days off)

How the calculator works

  • Employer costs: an employer pays employer PRSI on top of your salary, and often a pension contribution and benefits such as health insurance. As a contractor you cover these yourself, so the calculator adds them to the salary. Change the percentage to match the package you are comparing.
  • Unpaid days off: as a contractor you are not paid for annual leave, public holidays, sick days or gaps between contracts. Change the number to match your plans.
  • Costs: accountant, professional indemnity and public liability insurance and other costs an employee would not pay. Through an umbrella company, use its fee instead.
  • VAT: the day rate excludes VAT; the second figure shows the same rate with 23% VAT added, as it would appear on an invoice.

The result is an estimate for comparing offers, not tax or financial advice. Your real numbers depend on your structure (limited company, umbrella or sole trader), your expenses and your tax position.

Find contract roles with a stated day rate

Frequently asked questions

How do I convert a salary into a contract day rate?

Add what an employer would pay on top of the salary (employer PRSI, pension and benefits, about 15% by default), add what you will spend on an accountant and insurance, then divide by the days you will actually bill. With 35 unpaid days a year that is 225 billable days. The calculator above does exactly that.

How many days a year does a contractor bill in Ireland?

There are about 260 working days in a year. Take out at least 20 days of annual leave, the 10 public holidays and some sick days or gaps between contracts, and most contractors plan on 200 to 225 billable days.

What is a €500 day rate as a salary?

At 225 billable days, €500 a day is €112,500 a year in billings, excluding VAT. Take out €2,500 of costs and the 15% an employer would pay on top of a salary, and it compares with a gross salary of about €95,650.

Does the day rate include VAT?

No. Day rates quoted in contract roles exclude VAT. If you are registered for VAT you add it to your invoices, usually at 23%, and pay it over to Revenue. Through an umbrella company, VAT is handled for you.

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