What is the daily rate (TJM) in wage portage?

What is a Daily Rate in Wage Portage?

Determining your Daily Rate (TJM) is a crucial step for any independent professional. The TJM represents the basis for pricing services, ensuring the profitability of your activity while remaining competitive in the market. Whether you are a consultant, trainer, or expert, setting an adequate TJM is essential to ensure the viability of your business and optimize your income. In this article, we will look at the various aspects to consider when calculating the TJM in wage portage. We will discuss the factors that influence its determination, calculation methods, and strategies for adjusting and negotiating your TJM with clients. By better understanding these elements, you will be able to set a TJM that reflects both the value of your skills and market realities, allowing you to develop your activity in a sustainable and balanced way.

Wage Portage: The Essentials

Wage portage is a form of employment that combines the independence of entrepreneurship with the security of salaried employment. It is based on a tripartite relationship between the consultant, the wage portage company, and the client.

Halfway between the status of a traditional employee and that of an independent worker, wage portage allows a professional to carry out assignments for clients while being an employee of a portage company. The latter manages the administrative, accounting, and legal aspects of the consultant's activity in exchange for management fees deducted from the generated revenue.

This relationship involves three parties: the consultant, the portage company, and the client company. On one hand, an employment contract is established between the consultant and the portage company. This contract defines the employment conditions, salary, and rights of the ported employee. On the other hand, a commercial contract governs the relationship between the portage company and the client company, specifying the terms of the assignment to be carried out by the consultant, the fees, and the conditions of execution.

It should also be noted that the umbrella portage manages the administrative formalities, invoicing, social and fiscal declarations, and the payment of the salary on behalf of its ported employees. It also provides social protection for the consultant, including health insurance, unemployment insurance, and retirement. This social protection brings security to independent workers who remain free to choose their assignments, negotiate their rates, and organize their time as they wish.

Understanding the Daily Rate in Wage Portage

The Daily Rate (TJM) is the rate that a consultant in wage portage charges clients for a day's work. This rate is calculated based on various parameters, including the consultant's skills, the complexity of the assignment, the duration of the project, and the job market in their sector of activity. The TJM is expressed in euros per day and serves as a basis for negotiation with clients. This pricing method helps consultants present clear and transparent rates.

The TJM is crucial for professionals in wage portage as it determines their potential income and profitability. It allows an analysis of whether each assignment is financially viable.

Moreover, a well-calculated TJM allows for covering the management fees of the portage company, social and fiscal charges, as well as professional expenses (such as travel, insurance, etc.).

Additionally, it must enable the consultant to generate sufficient profit to ensure the development of their activity, continuity during periods without assignments, and the funding of training.

By establishing a TJM, the consultant can better manage their schedule and workload. They can decide the number of days to work per month to reach their financial goals while finding a balance between their professional and personal life.

As you can see, the TJM must be well-defined and regularly reevaluated to adapt to market changes and career developments of the consultant.

Factors Influencing the TJM

Various factors can influence the TJM. First, experience and specialized skills increase the TJM. Experienced consultants or those with rare skills can demand higher rates.

Furthermore, the sector in which the consultant works can also impact the independent worker's rates. For example, finance, IT, or management consulting often offer higher TJMs due to the complexity of the assignments and high demand. Discover the TJMs according to different professions.

Lastly, the cost of living can influence the rates. In large cities like Paris, consultants can justify higher rates. In less expensive regions, these rates may be lower.

Calculating Your TJM in Wage Portage

It is essential to start by identifying the fixed and variable costs associated with your activity. This includes social charges, taxes, professional insurance, travel expenses, and other necessary expenses to practice your profession. These costs must be added together to get an overview of your monthly expenses.

Additionally, it is important to consider the days when you will not be able to bill clients, such as holidays, training days, prospecting periods, and sick days. Generally, it is estimated that a consultant can bill between 200 and 220 days per year.

Next, it is important to define the net income you wish to obtain after covering all your expenses. This income must be realistic and aligned with market standards and your level of experience. Take into account your desired quality of life and long-term financial goals.

Once these elements are defined, you can use the following formula to calculate your TJM: TJM = (Gross monthly income + Charges/contributions + expenses) / number of working days per month.

Strategies for Adjusting and Negotiating Your TJM

Here are some strategies for adjusting and negotiating your TJM:

• Regularly adjust your TJM based on client feedback and your professional progress.
• Use solid arguments based on your expertise and past successes to justify your TJM to clients.
• Adjust your TJM based on the complexity of the assignments. For complex projects, request a higher rate.

For professionals looking for a transparent and efficient solution to manage their activity in wage portage, Weepo's simulation tool offers a simple and personalized approach. By guaranteeing Zero Hidden Fees and prioritizing total transparency, Weepo is committed to supporting ethical portage while simplifying administrative procedures for consultants.