asking for salary increases?

Question

been a contractor for a year now and wondered is it common to get an increase - or on the flip side ASK for an increase if it isn't specifically indicated on my contract? If I do ask should it be a percentage or something along the lines of one or two dollars an hour type of thing (I am now in the high 30's BTW)

Answer 1

Generally if you are on a contract then you get paid in accordance with the terms of that contract. On the expiry date of the current contract it is up to you to negotiate a new deal. First of all you need to make sure that you negotiate from a position of strength. This means that:-

1 Your standard of work must be good and preferably better than competitors.
2 You do not price yourself out of the market.
3 You charge a reasonable rate for the job.
4 You put a clause in the contract that allows for increases in pay if external forces outside your control intervene, for example if the rate of inflation exceeds a certain percentage.

If you are contracted for labour only, in other words for work that you do for an employer using his resources, then you can charge more than the normal labour rate since you will need to cover your own overheads, transport, insurance, pension provision etc. The employer will save employer contributions to welfare or national insurance and not be responsible for your tax affairs. Also he will not have problems of redundancy so in exchange for this will expect to pay a little more. If you are now charging, say, $38 an hour then why not ask for $42 or, alternatively and increase on a sliding scale over the year. For example $38 and hour for three months, $40 for three months then $42 for the next six months.