Same skills, better pay

A friend of mine works for a US tech company that hires a decent number of Canadian software engineers.

They make about 60% of what the US based software engineers make.

For that reason, it's not uncommon for the Canadian engineers to move to the US to make more money at the same company for doing the exact same job.

Similarly, as a 1099, you can switch contracts, maybe even at the same government agency, do essentially the same job, and get a dramatic rate increase.

This is possible because government contracting is not an efficient marketplace. There is lots of variation in pay for different skill sets.

Some times it's a time thing. Contracts that last for five or more years are baselined on lower bill rates. A 2015 contract may pay a data analyst $100/hour. A 2020 contract may pay $120/hour. A 2024 contract may pay $150/hour. If you join the newer contract, you can get a pay bump.

Some times it's a contract structure that allows you to increase your rate. I once had a firm fixed price contract that was priced out at $130/hour for a full time person. However, I did the job in a third of the time, making my effective rate something closer to $400/hour.

I also jumped to a contract that was a cost + fee structure for the prime. This means they didn't have set bill rates for different positions, they just had to manage to the overall budget. They were desperate for someone with my skill set so I could set a higher price.

So you don't always need to up skill to get paid more. Some times the same skills in a different environment can get you a dramatic pay bump.

Want the full playbook? Check out Going 1099.