FAQ how do I determine my (hourly) rate?
What is a reasonable rate for the work that you do or have done? This is one of the most frequently asked questions. Look carefully at the guidelines and costs, and properly assess how much time is needed to do the requested work. Observe rules of fair practice and lay down agreements in an employment contract or offer/commission contract.
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Salary or fee
If it concerns work in gainful employment, then you are talking about a salary. Negotiations are often about a gross salary: the pay from which taxes and national insurance contributions have not yet been deducted. In addition, you may discuss benefits like a pension, reimbursement of expenses and training. The employee receives a net salary, the employer still pays a percentage of employer’s contributions in addition to the gross salary.
In the case of commissioned work, we are talking about a fee. The party accepting the assignment has to arrange and pay all kinds of insurances himself/herself. With regard to equal pay, the hourly rate for a self-employed person must therefore be considerably higher than the gross pay of an employee.
What does the collective labour agreement (cao) say?
Collective labour agreements include, among other things, agreements about pay, working hours and pension. They also include something about trainee allowances and minimum rates for self-employed persons sometimes. Even if no collective labour agreement is applicable to the work or the assignment by law, you can find information therein about standard fees.
Collective labour agreements are concluded between employers’ organisations and trade unions. Sectoral collective labour agreements apply to affiliated employers in a particular sector. If this collective labour agreement is declared universally applicable, the collective labour agreement, or parts thereof, will apply to everyone who works in the sector. This applies, for example, to the Collective Labour Agreement for Theatre and Dance (Cao Toneel) and the Collective Labour Agreement for Architectural Firms (Cao Architectenbureaus). A company collective labour agreement applies to the organisation in question.
Guidelines and recommended rates
Trade unions and professional associations sometimes publish recommended rates and guidelines. These are not laid down by law, but following the guidelines is sometimes stipulated as a grant requirement.
It’s not always easy to find clear guidelines for each sector or for each assignment. You should therefore regularly investigate yourself what is reasonable and customary for the work, the sector and the country in which you are working. Ask colleagues or peers, for example, what they ask for similar work. You can also take experience or familiarity into account.
In the Netherlands, there are, among other things, guidelines for exhibiting visual artists, conductors, composers and for appearing in radio and TV programs of the NPO. The Kunstenbond designed a rate checker for the self-employed. You should also look for other sources: there is also, for example, a film crew fees calculator app. In the US, WAGE publishes fair fees for various disciplines.
Time and expenses
Whether it concerns a monthly salary, hourly rate or fee: always think about the factors time and costs. If costs have to be incurred, agree who will pay which costs.
How much time is the work expected to take? If it concerns employment: can the work be done in the number of days per week/ the period for which a contract is drawn up? In the case of an assignment for which a fixed amount is agreed: how many hours is the assignment expected to take and how much consultation is also involved? Is the fee divided by the total number of hours reasonable?
Fee for self-employed people according to Cao Ensembles
Many musicians in ensembles are self-employed, which is why the collective labor agreement also includes a remuneration provision for this group of musicians. This means that the (hourly) rate of a self-employed person must correspond to the salary level of an employed musician, increased by a percentage of at least 50%. This increase is intended to compensate for the risks of self-employment.