Hi Lifehacker, I've recently had my hourly charge-out rate hiked up to $300 per hour - an increase of around 7 per cent compared to my previous charge out rate. Unfortunately, my salary hasn't been increased at all.
Can you provide some advice on what sort of rise might be reasonable to ask for? It seems a little unfair that my boss will get more money from my day-to-day toil but I'll not even see an increase in line with CPI! Thanks, Salary Serf
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Your employer has hiked up your charge-out rates for two reasons: because overall business costs have gone up, and because it can get away with charging that much for services that are in demand. You need to adopt the same attitude in thinking about this issue. If you're being charged out at $300 an hour, you have a valuable skill, and you should be rewarded appropriately. At the same time, asking for a 7 per cent raise could make you look greedy.
The most recent CPI figures show a year-on-year increase of 2.7 per cent — so a rise at that level would seem fair even if your charge-out rate hadn't increased. Under the circumstances, I'd suggest that asking for a 5 per cent raise would be reasonable. Even if your boss then tries to negotiate it back to 4 per cent, you're still a little ahead.
We'd love to hear from readers who have been in similar positions in the comments. Good luck!
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