Example

Comparing a day rate with a salaried role

A simple example of how to compare a contractor-style day rate with a standard salary offer.

Worked example2 min readRuleset 2025-26Reviewed by PayPath UK editorial reviewMethodology

Scenario

A contractor-style option pays GBP 400 per day with 46 working weeks. A salaried role pays GBP 72,000 with a pension contribution. The question is not which gross figure looks bigger. It is which option delivers the stronger overall trade-off once cash flow and certainty are considered.

What to notice

The day-rate option may produce a higher annualised gross number, but it carries working-time assumptions. The salary may look lower while offering more certainty and different pension value.

Practical use

Use the day-rate to salary calculator for the annualised estimate, then compare that result with the salaried option in the job offer comparison calculator or your workspace.

How to use PayPath here

Run the relevant calculator for your live numbers, review the methodology if the assumptions matter to your decision, and save the strongest scenarios in the workspace if you are comparing more than one option.