Wage Portage: Simulation
Free simulation of you salary in wage portage in Switzerland
You are interested in MITC’s wage portage solution and you would like more information regarding the costs of this solution?
Want to get a better idea of your take-home salary as one of our consultants?
Some key information to give us:
- What is your Canton of work?
- What is your activity rate?
- What is your birthday?
- Do you charge by the hour for your assignments? At a monthly rate?
- What is your daily rate, or the gross annual income you’re after?
- Are any costs charged back to the customer?
Fill in the form and we’ll be in touch shortly for a free wage portage simulation as well as a personalized advice
Salary calculation in wage portage
You are considering wage portage and you are thinking about the impact of this decision on your rates?
Or you are already using wage portage but are hesitating about the right rates to adopt?
Calculating the salary in wage portage is not an easy task because many elements must be taken into account when establishing your rates.
Elements to take into account:
As a self-employed person, you have different charges than employees. In addition to your social social contributions, you have to take into account the administrative costs (bank, accounting…) and the operating costs related to your activity (software subscriptions, training, information monitoring…). These elements must also be included in your rates!
A junior profile can’t claim the same remuneration as a senior profile for the same mission
A writer will not be able to ask for the same compensation as a back-end developer or a consultant. Each activity has its reference remunerations
While some missions will require you to speak in daily rates, others will be flat rates. It is often the latter whose remuneration is the most difficult to estimate
A freelancer is only remunerated on the missions he/she actually delivers for his/her client. The actions of prospecting, invoicing, follow-up of the mission or administrative follow-up are not remunerated as such. That’s why freelance rates should be able to include them – without advertising them.
Establish your rates in wage portage
As a contractor, you will receive a monthly payslip from the wage portage company (your employer).
The amount on this payslip will obviously not correspond to the amount invoiced to your customers.
Indeed, as we have just seen, social charges, management fees and professional fees are to be included in the amount invoiced to your customers.
Here is the logic to follow (simplified) to go from the amount billed to your net salary:
The amount invoiced (excl. VAT)
It corresponds to your average daily rate (ADR) multiplied by the number of days invoiced during the month and includes social charges, management and mission fees
Gross monthly salary (excl. VAT)
It corresponds to the amount invoiced minus the management fees of the wage portage company and the reimbursable operating costs
Net monthly salary (excl. VAT)
It corresponds to the gross salary (excl. VAT) minus the social charges (employer and employee). The reimbursed operating costs are then added
- As an MITC employee, the final income calculation will also depend on the options chosen at the LOB (LPP) level. For example, MITC's loss of earnings and accident insurance coverage is among the most comprehensive on the market.
Contact us for a free simulation of your salary in wage portage
The costs in wage portage
Taking the decision to join a wage portage structure means reducing administrative management time but also choosing a specific status and different charges.
Management fees
Although MITC does not act in the place of an accountant or a fiduciary, the wage portage company takes care of your payslips, accompanies you in the writing of your contracts, smoothes your wages over several months and so on. These services, which save you time and money, logically have a cost. Whereas certain wage portage companies propose various options of tariffs, which can quickly be vague, MITC opts for transparency: the fees of MITC are 6% of the amount of the invoice (payment on reception of invoice), with a minimum and a maximum, in order to avoid over-invoicing.
Social security contributions
Choosing wage portage means being an employee and being your own boss at the same time. Unlike the self-employed, you will obtain the status of an employee, which is more protective, but this will have an impact on the charges paid. In addition to the salary charges, you will pay the employer's charges. These will strongly depend on your choice in terms of occupational pension (LPP), the second pillar of the Swiss retirement for which MITC proposes 3 options of contribution (the consultant can change option during the contract). Note that MITC's loss of earnings and accident insurance coverage is among the most comprehensive on the market.
Business expenses
Business expenses include operating expenses (supplies, internet,...) and mission expenses (meals, travel...). The mission costs are negotiated directly with the client and are therefore included in the invoice (rebillable). As for the operating costs, they are taken care of by the wage portage company and are reimbursed in addition to your net salary (they are therefore not included in the client's invoice). The operating costs are neither taxable nor subject to social security contributions - a great advantage of wage portage to save money.
Questions about the salary in wage portage?
We've got the answers...
MITC’s management fees for wage portage are not only transparent and flexible but also very competitive. They represent a percentage of the invoiced amount with a maximum limit to avoid over-invoicing. The services included in the management costs are as follows:
- Permenant contract between the contractor and MITC, or fixed-term contract for a particular project (we will provide the most suitable contract for you)
- Support in the set up and drafting of the contract with your client
- Invoicing and payment collection from your clients (focus on your assignments, we’ll take care of the rest)
- No management fees on travel expenses
- Production of monthly pay slips accessible on our online platform
- Salary paid upon receipt of a time sheet validated by the client (this saves you from having to wait up to 90 days for your client’s payment)
- Working capital provided by MITC (plan your income to avoid large differences between months)
- Application of the Swissstaffing collective bargaining agreement (CCT)
- Coverage of all administrative tasks
- For the final calculation of profitability, the insurance provided by MITC must be included:
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- Income protection insurance: Don’t be left without income if you fall ill. Receive 90% of your salary for 730 days!
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- Basic accident insurance (obligatory in Switzerland) & supplementary accident insurance (private room, 10% of salary in addition)
- Pension fund (several choices available)
Salary is based on billable hours. It is therefore not “guaranteed” if nothing is charged. On the other hand, when there are significant differences in earnings from one month to the next, it is possible to “smooth out the salary”, so that the consultant receives a constant salary. For example, if you charge CHF12000 the first month, CHF6000 the next month and CHF10000 the third month, you can “smooth out” the salary to CHF9000 per month.
This does not affect the payment of wages. The consultant will be paid by the wage carrier from the moment they have communicated their billable hours. Added protection for the consultant!
The employment contract which will bind you to MITC will be an employment contract under Swiss law, either permanent or fixed-term. The type of contract will depend, among other things, on the nature of the assignment with your client.
Yes. Wage portage income is considered as temporary income if it does not reach the total amount of unemployment benefit. On the other hand, the unemployment benefit is reduced by the amount earned from wage portage. This means that the total income at the end of the month equals what would be received on unemployment benefits, however, the duration of time one can receive unemployment benefits is longer.
Holidays are paid by wage portage services. They are based on the salary earned during the months worked.
Unlike France, here is no minimum wage to be able to access a wage portage service in Switzerland.
