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I don’t think there’s a hard & fast rule that makes either contracting or being a direct hire the “better” or “right” choice.
It really depends on *how* wide that gap is, one’s personal “acceptable” risk level & lifestyle, and whether you’re a 1099 independent contractor or a W2 contractor working via an agency (wherein benefits would come into play, if any offered).
For me, I have a ton of debt I’ve been grinding to pay off ever since my divorce. Due to that, I couldn’t turn down the W2 contract job offer that was ~65% more take-home pay than the job I was in at the time (Sep 2022). If it had been a hard stop contract end date though, that would’ve given me pause. As it is, my contract is up for review every 6 months and if they still have need of my skill set, they extend me another 6 months (been here 2.5 years now).
My insurance and other benefits I get through my agency are higher deductions than before (although better coverage), and I get no vacation leave, so on holidays when the org is closed and on days I want to take vacation, it’s unpaid.
My agency got acquired in late 2023 though, so last year we started getting sick leave at least - only a max of 40 hours/year but it’s something!
Before accepting this job offer, I adjusted for an assumption of 20 days unpaid per year, the more expensive benefits, etc. and it came out to still 225% of the take home pay I was making as a direct employee in the DoD up till 2021! So I just can’t complain 😅
The BIG downside is that I want to have a kiddo soonish, and although I’m eligible for FMLA through my agency, I don’t know how that could possibly work.
So, looks like when the time comes… I’ll be back at work within a week.
Sounds like you made a smart, well calculated choice given your priorities! The flexibility and pay bump are huge, but the lack of paid leave is definitely a tough trade-off especially with future plans in mind.