Contractor rates…

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0.9%

In 2023 STEM contractor rates increased across the Defence & Security sector by 11.9%

0.4%

In 2024 STEM contractor rates increased across the Defence & Security sector by 5.4%

Current Mean Rate per skillset

Skillset
IR35 Status
IR35 %
Current Mean Rate
Sep 2023 Mean Rate
% change v's Sep 2023
Systems Full Lifecycle
Outside
31.5%
£76.96
£73.19
5.2%
Systems Full Lifecycle
Inside
68.5%
£75.69
£73.01
3.7%
Systems I&V
Outside
10.0%
£60.00
£55.27
8.6%
Systems I&V
Inside
90.0%
£66.34
£62.62
5.9%
Electronics
Outside
28.0%
£63.68
£59.55
6.9%
Electronics
Inside
72.0%
£63.40
£60.78
4.3%
FPGA
Outside
50.0%
£72.68
£70.97
2.4%
FPGA
Inside
50.0%
£78.45
£70.27
11.6%
Software Developer
Outside
45.0%
£69.97
£67.98
2.9%
Software Developer
Inside
55.0%
£70.25
£65.79
6.8%
Mechanical
Outside
12.0%
£45.51
£49.11
-7.3%
Mechanical
Inside
88.0%
£49.21
£47.03
4.6%
Safety
Inside
100.0%
£87.65
£78.88
11.1%
Supportability
Inside
82.0.%
£71.12
£57.72
23.2%
Project Manager
Inside
95.0%
£83.25
£82.87
0.5%
Project Planner
Inside
100.0%
£63.27
£61.74
2.5%
Cyber Security
Inside
100.0%
£100.60
£101.18
-0.6%
Business Analyst
Inside
100.0%
£79.93
Software Test
Inside
80.0%
£62.98
Software Test
Outside
20.0%
£25.92
Production
Inside
100.0%
£31.32
Technology Architect
Inside
100.0%
£105.36

Current Pay Rates for Contractors in the Defence & Security STEM Sector

Based on the pay rates of our live contractor base, which consists of over 1,000 professionals, the Defence & Security STEM market remains highly competitive. As a result, businesses looking to attract top talent should be prepared to offer above-average pay rates. Given the specialised skill sets and high demand for qualified contractors, competitive compensation packages are essential to securing the best candidates in this field.

What is the story underneath the data?

With inflation levels reducing at pace, it was inevitable that contractor rates could not sustain double-digit growth through 2024. Now just 3 of the 7 categories we collate data on saw more than 10% increases; FPGA Design, Safety and Supportability Engineering, all Inside IR35.

As contractors continue to request increased rates at renewal on long term programmes, understanding their market-place is critical to help manage the balance between retention and value.

0%

21% of the sample contractors continue to operate outside IR35

21% of the sample contractors continue to operate outside IR35, driven largely by the tier 1 defence companies predominantly having an Inside IR35 approach with their contingent labour.

Salaries
ED&I