Why is it worth working as an extern?

You may have noticed that terms such as self-employed persons, freelancers or interim employees have become more and more frequent in the labour market. They all have one thing in common – they are not internal employees of the company where they work, although they provide their “employer” with a service in the work they do. They may be described by a common name, extern. Currently, there are increasing numbers of job offers, as well as ever more candidates looking exactly for this type of work.

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You may have noticed that terms such as self-employed persons, freelancers or interim employees have become more and more frequent in the labour market. They all have one thing in common – they are not internal employees of the company where they work, although they provide their “employer” with a service in the work they do. They may be described by a common name, extern. Currently, there are increasing numbers of job offers, as well as ever more candidates looking exactly for this type of work.

Why have more and more professionals voluntarily given up the benefits being of an employee in permanent employment? As a matter of fact, stable involvement in the company is guaranteed, unlike project-based or external collaborations, which are often limited in time. They are also entitled to paid holidays, medical leave, and so on. However, since the number of freelancers and “people working for themselves” has been steadily rising, and this type of contract is becoming more sought after among employees, let’s try to look at it from their perspective and discover the benefits this sort of partnership.

Externs earn more and know what they are worth

External employees have an advantage that may be envied by internal employees. They can manage their earnings in terms of taxes and contributions at their discretion, but pursuant to applicable legislation in the Slovak Republic. If you are the sort of person for whom financial remuneration is a priority, and you manage your finances according to the “I know what I am worth” principle, maybe you should start considering this type of work in the future. In the first year, you even receive an exemption from the state, because as a self-employed person, you don’t have to pay contributions.

Stability is detrimental to work experience

It is true that an extern’s work is time-limited. This, of course, is also one of the elements demonstrating that external partnerships are not for everyone. External employment is for the best in their field. There are many such job opportunities, but this also depends on the abilities of the respective employees to deal with the competition. Flexibility within the locality, knowledge of foreign languages and the skills of the given expert provide the externs with a feeling of stability that does not depend on a single employer. You are in full control of your life. A world full of diverse experiences with different companies, backgrounds, industries and corporate cultures that are essential for the further career development is open to externs.

9 advantages of external employment:

  • Various work experience 
  • Higher remuneration
  • The opportunity to work for the best companies in the field throughout the year
  • Independence and flexibility
  • More opportunities for personal and career development
  • More flexible notice periods
  • Being able to manage your income
  • Freedom of movement
  • In the first year, they are not required to pay social insurance contributions

 

And in connection with this, there is one more important thing. You just do not become lazy. Within each project, an extern solves different problems, with different people with different mentalities. An extern is often required to perform at 120%. An extern is like a cat among the pigeons. When pursuing the profession in this form, there is a much lower risk of burnout or falling into a boring routine. In addition, each newly completed project deepens their expertise and as a result, the externs have a better chance of future success in the labour market.

Other advantages include the fact that it is easier for the externs to pursue their career in the future. Companies and agencies mediate job opportunities in the supply chains of large companies that individual self-employed persons, as business entities, would otherwise be unable to access. These companies support the externs they work with and, if necessary, provide them with advice and support when establishing themselves in a new environment. Working with them is usually easy. When searching for another project, all you have to do is register with their internal systems, with mobile apps in some cases, and then choose from the offers and requests currently on the labour market.

Income comparison: employee/self-employed person (for 2020)

Employee 2020

Super gross salary (labour costs):

Employer contributions:

Gross salary:

Employee contributions:

Income tax:

Net salary:

Net salary per year:

€2,000.00

 €520.68

€1,479.32

 €198.21

 €173.52

 €1,107.59

 €13,291.08

Self-employed person 2020

Invoice:

Health insurance:

Social insurance contributions for the 1st year:

Flat-rate expenditure (60% of income up to €20,000):

Tax /year:

Health contribution surcharge /year:

Net salary per year:

€2,000.00

€70.91

 €0.00 *

 €14,400.00

 €823.63 **

€53.52

 €22,271.93

Self-employed person in the 2nd year (contributions from 1 July 2021 or 1 October 2021 in case of a deferred tax return) ***

Invoice:

Health insurance:

Social insurance contributions:

Flat-rate expenditure (60% of income up to €20,000):

Tax /year:

Health contribution surcharge /year:

Net salary per year:

€2,000.00

€70.91

€178.46

 €14,400.00

 €654.09 **

€53.52

€ 21,549.17

Self-employed person in the 3rd year ***

Invoice:

Health insurance:

Social insurance contributions:

Flat-rate expenditure (60% of income up to €20,000):

Tax /year:

Health contribution surcharge /year:

Net salary per year:

€2,000.00

€75.37

€178.46

 €14,400.00

 €406.57

 €0.00

€20,547.47

* Self-employed persons not paying contributions are not entitled to sickness benefits. Furthermore, they don’t have paid holidays or other benefits.
** Following changes in the law, the income tax paid by self-employed persons with a turnover of up to €100,000 will decrease from 19% to 15%.
*** Any changes to the contributions and laws in the following years are not taken into account.

 

Where are the job offers?

If you are considering external employment, the first thing to do is to look for offers. The Slovak company GQ SYSTEMS has launched a new app, called ENGINE, in which you just register and upload your CV, then you can view the current job opportunities. If any of the opportunities catches your attention, just indicate your interest and you will get all necessary details.

It is important that you update the offer regularly during the job search phase. A new job that is tailor-made just for you could be added every day.

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