How do I determine my hourly rate? Zzp rates 2019

As an Independent Professional, you can work for a fixed fee for a particular product or service. Or you are paid by clients for the time you spend on an assignment, based on an hourly rate. But what can you charge, how do you determine your hourly rate? What are the zzp rates 2019?

What are realistic zzp rates 2019?

Ask yourself the following questions:

• How much money do I need to meet my monthly obligations?
• What was my hourly wage employed by an employer?
• What does someone with the same job in salaried employment earn as an hourly wage?
• What is the average hourly rate in my industry (what do others charge)?
• What are your expenses and costs?
• How big is the job and what are the risks?
  

According to the banks, as a starter you should earn €40,000 gross per year, and after about five years your income should be at least as high as that of a peer with the same education and work experience. To find out what rates are current within your field, you can inquire with colleagues, clients and industry associations.

Hourly rate calculator

Step 1: Average wage = (gross wage + 8% vacation allowance) x 1.25% / 173.36 (= 8 hours x 21.67 day) = hourly rate employee
Step 2: Outcome step 1 x 2 = your freelance hourly rate (round up).

The hourly rate times two may seem like a lot, but a client hires you only for the productive hours and doesn't have to deal with additional costs of permanent staff. And you yourself incur extra costs, run entrepreneurial risk and have to arrange your own pension and disability insurance. In your calculation, also look carefully at your costs for living expenses, income taxes, transportation, telephone, administration and the like.

Recalculate your rate every year. You have more and more experience and therefore your knowledge is worth more. Furthermore, your costs may increase due to inflation, rising tax rates or your own investments.