What are the costs of a programmer?
| Cost price calculation programmer | ||
| What | Monthly | Yearly |
|---|---|---|
| Gross income | 2.295,00 | 27.540,00 |
| Reservation for free days / holiday | 2.203,20 | |
| Additional costs for employer related to income | 4.461,48 | |
| Pension plan | 140,00 | 1.680,00 |
| Company car, lease | 500,00 | 6.000,00 |
| Company car, additional costs | 140,00 | 1.680,00 |
| Work space, furniture | 340,00 | |
| Work space, office rent | 275,00 | 3.300,00 |
| Equipment, hardware | 680,00 | |
| Equipment, software | 910,00 | |
| Training | 2.270,00 | |
| Other indirecte costs | 4.500,00 | |
| Total costs for employee | 63.004,68 | |
| Overview spending hours | ||
| Number of days a year | 260,00 | |
| Free days or holiday | -25,00 | |
| Study | -30,00 | |
| Misc. internal | -10,00 | |
| Project meetings etc. | -50,00 | |
| Working days available for customers | 145,00 | |
| Working hours available for customers * | 1.160,00 | |
| Costs for employer per billable hour | 53,94 | |
| Profit margin 10% for employer | 5,39 | |
| Minimal hourly fee for customer | 59,34 | |
| 'Market price' for external programmers | 70 tot 125 | |
* Recruitment agencies often calculate 135 uur / month = 1620 hours / year.
Activities like preparing work and project meetings are then billable hours, which gives about the same end result of this calculation.
All mentioned amounts are:
- in Euro, unless mentioned otherwise
- excl. 19% VAT
- based on optimal utilization of available production capacity
This overview is written in 2002 by Nico den Boer.
Would you like to calculate yourself? Then download the spreadsheet: .ods or .xls format.
At the end of february 2001 the Dutch research bureau Interview executed a research among ICT folks, 'Survey Dutch Ict market' (DIM), which was published by VNU business publications. In this report they mention the following numbers:
- The avarage IT professional in Holland earns yearly € 40.205,--
- IT professionals spend an avarage of 6,1 percent of their time to study
- 46,6% of the IT professionals works for a ICT company, the other part works for 'end users'
- 15,4% of the IT professionals works for a company with less than 20 employees