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Do not leave your perm job for a contract position, it will not likely extend and you will loose stable job.
Here is the breakdown after taxes
Income : 200000 for 1 year
After tax : 124,515
Income : 100000 + PEP + benefits
After taxes : 70,000
I do not see much difference, work on side gig, most contract temp jobs in govt remains temp.
That doesn't sound right at all. Why would you pay 38% taxes on a 200k income as a contractor. As a contractor, there's literally dozens of ways to reduce tax by deducting expenses from your income.
I’d say take that 200k role(if it is ~1 yr) worst case scenario you’ll land another contract or full time role in that range later
Ok, what did OP end up doing & why ?
Do you think they will extend you? Also wondering what field is this
Digital Health.
Try to crunch the numbers with an accountant (if need) if you have to pay taxes on that 200k
Good point. Will definitely have to pay taxes.
Take the 200k role
I see it as there always opportunity to go to a pension’d job. But unlikely that you’ll get a job that will pay you what you get in 2 years in 1 with your current role
Take the $100k with benefits and it's not contract
What are the details of your defined benefit plan? The details make a big decision on going to which option… if you provide the details it would be easier to provide a recommendation