How to review your day rate, and when

Most contractors do not set their own rate. The agency advert does, often months before the contract starts. Then the market keeps moving while you are on contract, and at extension time the going rate for your role may sit somewhere different from the figure you agreed.

That is not about charging too little. It is about timing. A rate that matched the market on day one can drift, and nobody will tell you.

When to look

• Before every renewal or extension. This is the moment you have the most leverage.
• When a contract passes the six-month mark. Enough time has passed for the market to have moved.
• When your scope grows. More responsibility is a reason to ask.
• At least once a quarter, even if nothing is due. A short check takes minutes.

How to check

1. Collect comparable adverts. Look for roles with the same skills, level, sector and location, and note the rate ranges.
2. Look at the whole package. A slightly lower rate with a longer contract, faster payment or better IR35 status can be worth more.
3. Check your own position. How long since your rate last changed? What has been added to your role since?
4. Write it down. A short note with dates and examples is far more persuasive than a general feeling.

Raising it

• Go in with evidence, not a demand. Share what you have seen in the market and what has changed in your role.
• Make it easy to say yes. Offer a specific figure and a start date.
• Be ready to talk about scope, length and terms as well as the rate.
• If the answer is no, ask what would change it, and when you can review it again.

Why a regular habit beats a one-off

Contractors who review on a rhythm tend to catch drift early and negotiate from facts. The Paylift app compares your rate with market data for your role, sector and region, tracks how long it is since you last reviewed, and includes a negotiation tool for the conversation.

General information, not financial advice. Market rates vary by role, sector, region and time.