Fair W-2 Contract Rates for Engineer III Employees

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

Engineers III’s are individuals with a Bachelor’s degree from an ABET accredited university with five (5) to 10 (10) 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 III (degree bearing with 5-10 yrs experience)

Glassdoor average rate: $92,136.00/yr = $44.30/hr
Salary.com average rate: $100,348.67/yr = $48.24/hr
PayScale.com average rate: $81,120/yr = $39.00/hr
Net average rate: $91,201.56/yr = $43.85/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 = $1.32/hr
PTO: 31.9 days/yr = 12.27% of net rate = $5.38/hr
Short-term disability: typ. 3% of net = $1.32/hr
Long-term subsidy: typ. 3% of net: $1.32/hr
Per-diem: 260 days @ $149/day = $18.63/hr
EFFECTIVE CONTRACT RATE: $78.49hr
FULLY BURDENED LABOR RATE: $119.00/hr

Recruiters should plan on offering Engineering Professionals with 5-10 years of experience an average rate in the neighborhood of: $98.75/hr.

If the position to be filled requires a licensed professional engineer expect about a 15% premium or $113.56/hr.

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