Contract renewal - should I ask for a rate increase or just be grateful?

[PharmaContractor]

Contract is up for renewal but I have already been told that they are keen for me to sign an extension at the end of this current contract. The question I have is, should I ask for a raise or not?

I have the advantage that I am dealing direct with the client so no agency shenanigans to deal with. I know that all employees within the organization have been informed that there will be a pay-freeze for next year. Should I therefore be grateful that they are going to extend my contract or should I also ask for a rate increase?

I feel guilty for asking for a rate increase when the employees I am working with aren’t getting jack. On the other hand, I have to look after numero uno, and shouldn’t consider what’s happening internally. But then I am dealing with the hiring manager direct and don't want to come across as unreasonable. Don't want to shoot myself in the foot!

In terms of the increase, I was thinking of 5-10% sounded reasonable.

Any opinions?

[SueEllen]

Ask for 10% and expect to get less than that or zero as remember if you don't ask you don't get.

[MrRobin]

Don't "ask" for a rate increase, it will almost always be declined.

"Tell" your client that you will be increasing your rate by a small amount for the next contract. Start with 10% but be prepared to go to 5% when they say "we have no additional budget" or some bull like that.

[northernladuk]

How long have you been with the client and how long will the extension be? If you are going to fall foul of the 24 month rule you could always claim the increase is due to your increased costs. This may help with your guilt.

[Spacecadet]

Don't "ask" for a rate increase, it will almost always be declined.

"Tell" your client that you will be increasing your rate by a small amount for the next contract. Start with 10% but be prepared to go to 5% when they say "we have no additional budget" or some bull like that.

What Mr Robin said.

Generally helps if you can back the increase up with reasons.
If you're staying away from home then make sure that the expenses incurred in staying away are included as part of that reason - that way you might be able to negotiate some working from home in lieu of all the rate increase.

[BlasterBates]

There is no point asking or demanding a rate increase in the current climate unless you're inundated with offers, which I suspect you're not. If you want bulldoze a rate rîse through it will be at best cost of living probably 1 or 2 %. Don't see much hope of a decent rate rise getting past purchasing approval.

[PharmaContractor]

Ask for 10% and expect to get less than that or zero as remember if you don't ask you don't get.

Yes, that's more of what I was thinking too

How long have you been with the client and how long will the extension be? If you are going to fall foul of the 24 month rule you could always claim the increase is due to your increased costs. This may help with your guilt.

yes...demand an extra 10% due to rising inflation, cost of travel, accommodation etc. Completing a 12 month contract, so this would be a another 12monther.

Am a continental tax payer, so no need to worry about 24month rule. 36 months will cause me a headache though.

What Mr Robin said.

Generally helps if you can back the increase up with reasons.
If you're staying away from home then make sure that the expenses incurred in staying away are included as part of that reason - that way you might be able to negotiate some working from home in lieu of all the rate increase.

Flying Ryanair, so could justify the increase by saying I can't stand them any longer and am upgrading to BA...

[BlasterBates]

Am a continental tax payer, so no need to worry about 24month rule. 36 months will cause me a headache though.

Are you based in the UK but working on the continent?

[kaiser78]

Don't "ask" for a rate increase, it will almost always be declined.

"Tell" your client that you will be increasing your rate by a small amount for the next contract. Start with 10% but be prepared to go to 5% when they say "we have no additional budget" or some bull like that.

Doesn't really work like that in reality.

You can ask for a rise, but as other poster says try to provide reasons to justify this and also but prepared to walk if the client co says no and you are not happy with this outcome.

[NotAllThere]

I don't feel left out because my permie colleagues get pay rises and other benefits, so I certainly wouldn't feel guilty about rate increase. What permies get and what I get are totally unrelated.