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When you take overheads into account the $20 you are actually getting as a contractor is the equivalent of $10 for a permanent. So if they offer you $11 as a permanent you will have got a raise.
Since they are actually paying $35 for a contractor and the permanent equivalent after all the overheads is $17 they should be able to easily afford to give you a rise and will possibly offer $15 so that you will be getting 50% more than before and they will still be saving.
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