Increase Day Rate

[PerfectStorm]

The process is much the same as it is in the permanent world

• You get better increases by switching out to a new gig and agency
• Your existing agency may only take you seriously if you threaten to leave and are serious about it
• Know your leverage - do they need you or do you need them?
• Money isn't everything - are you onto a cushy deal now that you might miss if you left? Are they letting you work from home as much as you want, no one giving you a hard time, light on hours? It all counts.
• If you happen to spend 2 weeks or more on break between gigs then you may have to work longer than you thought to make back the money you lost versus if you'd just stayed where you were, invoicing continually

[bbp]

You increase your rate by asking but in all likelihood you aren't going to get anything by staying.

So start hunting for a new contract so you are in a position to ask for more money (matching the rate of your newly found better paying contract) or don't expect an increase.

I like the current project. Somehow I find it difficult to secure a role and then not take it. I have very niche skillset that is very important to the current project. Assuming that they'll most likely agree to a reasonable increase, is 10% too high or acceptable? (I'm on £500/day). I believe the agency charges a fixed rate so that wont change.

[TheDude]

Expect inertia from your agency as well.

[eek]

Hi,

I'm fairly new to contracting. Have switched couple of times and didn't really have to renegotiate my day rate for a contract. Been in the current contract for an year now & the extension date is approaching.

As you already know, cost of living has drastically increased and the NI increases (Inside IR35, paying both Employers/Employee NI from day rate) aren't helping. I'm planning to discuss an increase to my day rate. As I have no experience in this, can you share your thoughts on:

1. How often do you renegotiate your day rate.
2. After an year, how much % do you usually increase?
3. If you're in the same boat as me (with current cost increases) how much % are you planning to increase for 2022? (From my calculations, its around 10%. Covers, additional NI costs & +3% take home)

Thanks

You increase your rate by asking but in all likelihood you aren't going to get anything by staying.

So start hunting for a new contract so you are in a position to ask for more money (matching the rate of your newly found better paying contract) or don't expect an increase.

[bbp]

Hi,

I'm fairly new to contracting. Have switched couple of times and didn't really have to renegotiate my day rate for a contract. Been in the current contract for an year now & the extension date is approaching.

As you already know, cost of living has drastically increased and the NI increases (Inside IR35, paying both Employers/Employee NI from day rate) aren't helping. I'm planning to discuss an increase to my day rate. As I have no experience in this, can you share your thoughts on:

1. How often do you renegotiate your day rate.
2. After an year, how much % do you usually increase?
3. If you're in the same boat as me (with current cost increases) how much % are you planning to increase for 2022? (From my calculations, its around 10%. Covers, additional NI costs & +3% take home)

Thanks