Fair W-2 Contract Rates for Engineer II employees

See my previous post about the importance of offering a fair rate.

Engineers II’s are individuals with a Bachelor’s degree from an ABET accredited university with two (2) to five (5) years of experience.

The numbers provided here are for the national average of the major engineering disciplines (Civil, Electrical, and Mechanical); specialized disciplines, e.g., Nuclear, Aeronautical, Biomedical, etc., will demand a premium above these rates.

Engineer II (degree bearing with 2-5 yrs experience)

Glassdoor average rate: $85,298.33/yr = $41.01/hr
Salary.com average rate: $82,783.67/yr = $39.80/hr
PayScale.com average rate: $72,654.33/yr = $34.93/hr
Net average rate: $80,245.44/yr = $38.58/hr (average of above)
Average Health Insurance Cost: $19,616 - 29% (employee portion) = $13,927.36/yr = $6.70/hr
Average 401(k) contribution: 3% of net rate = $1.16/hr
PTO: 29.2 days/yr = 11.23% of net rate = $4.33/hr
Short-term disability: typ. 3% of net = $1.16/hr
Long-term subsidy: typ. 3% of net: $1.16/hr
Per-diem: 260 days @ $149/day = $18.63/hr
EFFECTIVE CONTRACT RATE: $71.71/hr
FULLY BURDENED LABOR RATE: $104/hr

Recruiters should plan on offering Engineering Professionals with 2-5 years of experience an average rate in the neighborhood of: $87.86/hr.

If the position to be filled requires a licensed professional engineer (closer to the 5 year mark) expect about a 15% premium or $101.03/hr.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.