It depends on some factors like if the king of that faction is rich so he can afford to pay you a lot, or if that faction is at war with strong enemies. Today's patch, which is the beta version, makes it so that the merc payment is updated every 30 days. Before the amount you are assigned at the start was permanent unless you leave the kingdom.
If you keep your holdings they will declare war and all members will receive a massive relation debuff towards you. If you form a kingdom after leaving (through the quest), you will no longer be at war with them. The latter might be a bug. #4.

At first, there was a penalty. A few patches in, they removed it. People wanted to be able to hop around merc'ing for different factions. I don't think it's a bad moveinitially being a merc was about as restrictive as being a vassal (as far as relations penalty for leaving faction), without the benefits.

First, you will need to travel into the town where the tournament is taking place. As aforementioned, look for the Yellow helmet symbol. Now that you’re in a town where a tournament is currently taking place, follow these steps: Select the option: Go to the Arena. Select the option Join the Tournament.
The most fun part of Bannerlord to me is being a mercenary and it's a very viable way to make a bunch of money. Vlandia gets the faction bonus for making even more money with mercenary contracts so most of the time I choose Vlandia because it lets you have such a good mid game before you start your own faction.

Is it possible to leave a faction without the penalty of -20 relation from all clans? Question Ive been both a merc and a vassal, but if i try to leave the kingdom by speaking to the king, i get -20 relation with every clan in the faction.

Perfectonio Jun 25, 2015 @ 4:26am. normally, i would end it by asking a king to be my liege and then end it, but the king disappeared #1. Perfectonio Jun 25, 2015 @ 6:51am. I already tried asking nobles, but they say "he is at I dont know where he is at the moment" And he was held captive, but i besieged the castle where he was and freed him DKo9aM.
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  • mount and blade bannerlord how to leave mercenary contract