Everyone's fair share
Another fundamental principle we have is that we want to pay well and above all fairly. We do this based on the Koodin salary model. In this chapter, we explain how this works for consultants.
The 70 / 30 split
All consultants are entitled to 70% of the total annual revenue they have generated. From this 70%, all costs specifically related to you as a consultant are paid. For example, a laptop, certification, or training. The remaining 30% goes to Koodin. This covers all the costs needed for us to work well and comfortably. Think of sales, hiring new colleagues, the office, administration, and company outings.
The fixed salary
Since Koodin focuses solely on senior consultants, every consultant receives the same base salary. This is set for a full-time position of 40 hours at €4,800,- excluding holiday pay and pension contributions from Koodin. This salary is therefore the basis and is paid out, whether you are billable or not.
How is that construction put together?
The monthly bonus vs the annual bonus
Then the second salary component, the bonus. We understand that it is nice to receive more money on a monthly basis, so we have divided the bonus structure into 2 categories: the monthly bonus and the annual bonus.
Monthly bonus
To simplify the somewhat complex model, we have a fixed model for how much bonus is paid out on a monthly basis. Much easier this way. This model has 3 variables:
How many hours are in the contract. Which means how many hours can be expected.
What hourly rate is applied.
How many weeks have actually been worked. The principle here is that a full month is worked. For convenience, we assume 4 weeks per month. If you take a week off, 75% of the monthly bonus will be paid out.
Year bonus
In addition to the monthly payments you receive, you are also (hopefully) saving a nice annual bonus. This will be paid out once the accounting for the year has been finalized. Only then will we really know what the income and expenses have been.
The remaining amount is paid out up to the limit of 70% of the personal annual revenue. We use the following formula:
70% personal annual revenue - personal costs = annual bonus
Personal costs include, among others:
Salary
Holiday pay
Paid employer premiums
Paid bonus
Variable costs (e.g.: laptop and travel expenses)
Negative annual bonus
It is conceivable that the personal costs are higher than 70% of the annual revenue, because you may not have been billable for a long time due to, for example, illness. In this case, we find it important that no stress arises and the remaining amount falls under Koodin's risk. For clarity, no debt is incurred when the financial year is closed.
Calculation example
Suppose you work 21 days of 8 hours each in a specific month. This means you work 168 hours in that month. If your hourly rate is €100, your monthly revenue will add up to €16,800.
According to the Koodin salary model, 30% of this amount goes to Koodin. This equals to €5,040. The remaining €11,760 is for you.
From this €11,760, all personal costs are deducted first. This includes, for example, your gross salary of €4,800, employer contributions (approximately 18%) of €864, and your personal pension contribution of €273.60. After these deductions, €5,822.40 remains. This amount will be reduced if you have incurred personal expenses that Koodin has paid on your behalf.
This remaining amount is split into two parts, resulting in a gross bonus of €2,911.20 for that month and €2,911.20 reserved for your annual bonus.
Please note that the monthly bonus is only paid after the client has made their payment. Your salary, however, will always be paid as usual.
** The above-mentioned numbers are for calculation purposes only **
