I'm transitioning from contract to perm. Should I expect a raise?

[Keysle]

I got a job a month and a half ago through a recruiting company.
I work as a junior front & back end logic developer. Occasionally I work on design. PHP & Javascript.

On accident, the company that I'm actually doing work for showed me how much they are paying the recruiting company. That amount is $35 dollars an hour. The amount they are paying me is $20 an hour of that $35.

The company I'm actually doing work for wants to bring me on full time. Should I expect a pay raise, drop or nothing?
Reasons for a raise: They were paying 35, so they could easily pay 25 right?
Reasons for a drop: Now I receive benefits.
Reasons for same pay: a balance of the first 2.

I talked to the guys from the recruiting agency for no more than 30 minutes… no more.
I feel slightly robbed that they've made a couple grand off of my handwork.

[aliqui]

I'd put my bet on the balance of the first 2. The company probably considers the insurance as your raise. It's been my experience that those in charge of wages assume we're pretty naive. They might toss you a buck or two, max $3.50.
Note: I have no experience in the IT field with regards to contract hirings. I'm just guessing.

Also, don't feel too shafted by your recruiting office. They have overhead too, and without them would you be where you are now?

Congratulations on your new permanent position!

[felgall]

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.