Do you think US contractors make a lot of money overseas?

2015-04-10T14:20:03-04:00

I am currently considering a position in Kuwait and I have done some research on the salary being offered. What I found was as a US Government Worker (GS) you receive per diem which is $130,000 per year, plus salary, plus bonus, plus overseas/separation pay. The salary I was offered was $109,000 minus about $4,000 for benefits you MUST take. Also found out the average GS gets over $250,000 in total pay. I always hear from government workers how little they make and how contractors get paid so well.

SSG Private RallyPoint Member SFC Mark Merino @Cpl Anthony Pearson
@MSG Brad Sand @MAJ Carl Ballinger
@SPC Christopher Smith
@MSgt Curtis Borders
@LtCol David Durcsak
@LTC Stephen Curlee
@MAJ Robert (Bob) Petrarca
@SgtMaj James Kuiken
@MCPO Gene Treants
@SMSgt Minister Gerald A. Thomas

Response by SFC William Swartz Jr made Apr 10 at 2015 3:13 PM

2015-04-10T15:13:05-04:00

Compared to the servicemembers that are serving overseas yes contractors make good money, however not as much as they would like "us" to think, I had several working in the EOC/S-3 shop in Kuwait and they got paid better than us by farm, but were far from rich! But, if I could I would take the position in a heartbeat.

Response by Cpl Private RallyPoint Member made Apr 10 at 2015 5:30 PM

2015-04-10T17:30:16-04:00

I thought about it and tried for several positions, several years ago, but was turned down for everything since my clearance had expired. There were too many recently released SMs who still had active clearances.

Response by SPC Angel Guma made Apr 10 at 2015 5:42 PM

2015-04-10T17:42:39-04:00

Compared to most Americans and their salaries, yes. You are making bank. Compared to salaried professionals such as CPAs, established doctors and full partners at Big 5 law firms? No. But this is an excellent salary despite it all, nothing to sneeze at.

Response by Lt Col Jim Coe made Apr 10 at 2015 7:36 PM

2015-04-10T19:36:27-04:00

Voted yes, but be careful. I was a govt contractor before I was DAC. In the corporate world, everything is negotiable. If you make it through the application and interview phases you may get an offer. Read the offer closely and ask questions. Little things can be a big deal based on location. An extra allowance for housing might be okay in Bonn, but a company paid apartment in a guarded compound in Kuwait City might be a better deal.

DACs do get extra pay for hazardous duty and a % increase based on location. Bonus IS NOT automatic. GS grade and step at which you're hired makes a big difference, because most extras are a % of base pay. Again, read and understand the offer. Not sure you would get per diem if you are stationed overseas vs being TDY.

Response by PO1 Glenn Boucher made Apr 10 at 2015 8:10 PM

2015-04-10T20:10:51-04:00

Its just how the system works. I guess the CEO's and such in charge of the companies that get the government contracts make sure that they are paid well enough to pay their people.

Response by SPC Patrick Gearardo made Apr 10 at 2015 8:40 PM

2015-04-10T20:40:32-04:00

Three things that make the difference on how you get paid.

1. The company you work for and the contract you're under.
2. The location overseas.
3. Your position.

You also have to consider the foreign earned income. If you make under a certain amount, then that money is non-taxable (with some restrictions, of course). You still have to pay FICA and whatever health benefits depending on your company. The FICA-OASDI, does have a cap. Once you reach that cap, then they stop taking money out for that.

2014 - Foreign Earned Income is at $99,200
2015 - It will be at $100,800. This goes up every year to account for inflation.

Whatever you make OVER these amounts, you'll be taxed on. The restrictions are, you can't be in the U.S for over 35 days in a year, unless you just plan on paying ALL the taxes, then it doesn't matter.

Response by PO1 John Miller made Apr 11 at 2015 10:48 PM

2015-04-11T22:48:25-04:00

I also voted yes, but I agree with some of the other posters here, particularly SPC Patrick Gearardo and Lt Col Jim Coe . They raise some very valid points. Another point I would like to add to that is it also depends on if you're a contractor or sub-contractor. Basically a sub-contractor is an employee of a secondary company that the primary company, or contract holder, has employed to help fill positions. Sub-contractors often make less than contractors, or even other sub-contractors from different companies.

Case in point: I was a sub-contractor at my last job. A co-worker who was with a different company than me made $4.50 an hour more than I did, despite the fact that we were in the same position, I had more experience, and she did not hold the required certifications (in this case Comptia Security+) and was technically a "probationary" employee. Granted this was not overseas but still...

Response by SGT John Wesley made Apr 11 at 2015 11:13 PM

2015-04-11T23:13:00-04:00

When I discharged back in the early 90's, Raytheon offered me a job in Saudi to work on the Vulcans we sold to the Saudis. The pay was decent, for most guys it would be significant. But, as I'd just gotten back from my 2nd deployment there, I opted out, was ready to get out of the BDU's and 11 months back at Khobar? Ah.... No.

Response by SPC Todd Hanson made Apr 12 at 2015 10:46 PM

2015-04-12T22:46:34-04:00

My sister got RIFed from the navy and went to Afgansitan for a year as a contractor and made three times as what she was making in the navy

Response by SPC David S. made Apr 12 at 2015 11:02 PM

2015-04-12T23:02:12-04:00

Give these guys a look before you commit to anything.

https://www.facebook.com/YourPOC?fref=ts

http://www.your-poc.com/

Professional Overseas Contractors

Response by Sgt Private RallyPoint Member made Apr 13 at 2015 9:31 PM

2015-04-13T21:31:46-04:00

300 a day during the IRAQ War.

Response by PO3 Mack McLendon made May 27 at 2016 11:56 PM

2016-05-27T23:56:26-04:00

The money sounds good -- but there is always the danger of what the locals are going to do ...

Response by SFC Stephen Carden made Oct 24 at 2016 8:54 AM

2016-10-24T08:54:10-04:00

I used to, until I became one. Example: I was just offered a job teaching intelligence techniques in French, based out of Stuttgart. Sounds fun right? Well, I would have had to move to Stuttgart, find a place to live on my own dime, and I would have spent 2-3 weeks per month travelling in and out of Africa. Salary? 100K a year. Sounds fine right? Well, that means I would have to support three households (my apt in Stuttgart, my house in Florida, and my house in Fayetteville, NC that I have not been able to sell yet since I retired). I also have a daughter in college, and three car payments. On 100K a year. Nope. I worked for a year in AFG after I retired. I started at 96,600 + 12k every 6 months for a bonus. No vacation pay, no plane tickets. I was promoted and my salary went up to 105k with 12k every 6 months. That was OK when I was only paying for one house, but now? Not worth it.

Response by Sgt Sal Hirto made Oct 26 at 2016 2:32 PM

2016-10-26T14:32:43-04:00

the contractors will lie to you, you have no employee protections as you do in the states, depends who you work for, so buyer beware

Response by SGM Private RallyPoint Member made Dec 3 at 2016 10:59 AM

2016-12-03T10:59:37-05:00

Cpl Brett Wagner I was activated from the National Guard in 2002 for OIF. I was working for the Texas National Guard's Counterdrug Task Force at the time. When released from active duty, I tried to go back to Counterdrug, but I had been promoted to SGM, and Counterdrug wouldn't let me keep it. (The Soldiers and Sailors Civil Relief Act, which protects reemployment for activated members says that you are entitled to promotions you otherwise would have earned. The National Guard obviously thinks the Act doesn't apply to them.)

Anyway, I kept the promotion and started looking for other work. That's when I tried contracting.

The money always looks good, but as SFC Stephen Carden noted below, you often have to find food and housing out of it. The exception of course, is combat zones, where you get housing and food as well as hazard pay and the exemption for employment in a combat zone.

Soldiers (as well as politicians) can exclude all pay received for any month they set foot in a combat zone. This is why politicians always tend to show up on the 29th, and leave on the 2nd of the following month. But contractors have to be out of the country for 330 out of a 365 day consecutive period. And even then, the amount you can exclude is pro-rated based on what the SMA would get if he spent all 365 days in a combat zone.

Of course, there are always ways to make the most of this. My married friends often met their spouses in Dubai for holidays. And since he didn't set foot in the US, but was deployed to a combat zone, he maintained the exclusion. But it is expensive to fly to and spend a holiday in Dubai.

I have another friend who lives in Jordan with his wife and teaches ESL. They love it, but they've pulled up stakes and moved to Jordan, rather than just finding a job for a few years. I don't think they make out significantly better than they would in the US.

Positions are also very competitive, both at the individual and at the corporate level. Any time there is a drawdown in the military, there's a similar drawdown in contracting. It's very much like playing musical chairs, and if the music stops and you don't have a seat, you have nothing, not even severance pay.

At the corporate level companies try to underbid eachother, and the most likely thing to happen when they win, is to cut the salaries of contractors. This happened to me once, the winning company calling me up and saying they wanted me to join them doing the job I was doing, but with a 10% pay cut. I told them I would sign on, but that at that cut, I would immediately start sending resume's out. They called me back a few days later and said they would keep my pay where it was. (Anyone who has been to a combat zone has seen the same thing. 20% of the people, whether active, reserve, CIA, government civilian, or contractor, are doing 80% of the work, and 80% of them are doing 20%. It helps to have a reputation in the 20% group.)

There's something for everyone in contracting. When I was in Kosovo, the gate guards were all contractors. 3 hots, a cot, and $70k a year. But for the most part, you need a 4-year degree to get in to contracting. My friend above who vacations with his wife in Dubai runs a medium-sized mess hall in the 'Stan. it's 12 hours a day, 7 days a week, but he gets a low 6-figure salary, a pod to live in, and meals.

Response by SP5 Ron Rosario made Mar 28 at 2018 4:23 AM

2018-03-28T04:23:06-04:00

Yes, I see this is 3 years old.....
Firstly, Ive been contracting for almost 15 yrs as a Hvy Equipmnt Mechanic and QC Inspector (Maintenance).
Most of the replies have no idea what they are saying. Gearardo is correct. All depends on what the position is, the company etc
As a floor level mechanic / Lead Ive made between 5K and 11K a month (12 hour day 6 day week is norm). So as a Blue Collar worker I would say that's damn good.
Ive worked for many companies on many contracts Iraq, Afghan, Qatar, Kuwait, Ecuador. But mainly Kuwait (10years) and all provide housing. Last 3 places you are living off base and housed in company apartment / villa.
These days are the lowest Ive made due to draw down (6K month)

Response by SGT Aric Lier made Mar 28 at 2018 7:30 AM

2018-03-28T07:30:10-04:00

triple Canopy, who is a Constellis company. There is also SOC here, but they are hard to get on with. Pay for "shooters" here is around $370, I think. 105/35 day rotation. Must have military combat arms time, down range time and PSD time. You can find info all over the web. Check their website, shooter jobs.com, grunt force, etc.

~this is from my friend who got out around the same time I did, he went to Med school and went back to Iraq as a contractor.

Response by SGM Bill Frazer made Mar 28 at 2018 9:23 AM

2018-03-28T09:23:58-04:00

THey make great money- unfortunately the ones I knew had to pay their own benefits- medical, etc- and that was steep. Civilian insurance doesn't like possible combat missions.