Negotiating Salary When You're a Contractor, Not an Employee

Contractors and freelancers negotiate rates, not salaries, and the math behind a fair number is different.

Account for what you're not getting

No paid vacation, no employer benefits contribution, no employment insurance coverage, and you're responsible for your own taxes. A contract rate should be noticeably higher than an equivalent salaried role's hourly rate to offset this.

Price by project or by hour

Hourly billing protects you from underestimating scope; project-based pricing rewards efficiency but requires a very clear scope of work up front to avoid scope creep.

Put payment terms in writing

Agree on invoicing schedule, payment terms (net 15, net 30), and what happens if the project timeline changes, before work begins.