Inflationary Increase: When and How to Do It in the South African Market

Inflation is a reality that affects everyone in South Africa, and it's particularly important for consultants and freelancers to be aware of its impact on their rates. With the inflation rate averaging 4% over the past decade, it's vital to apply an inflationary rate increase to keep up with the rising cost of living.

To gain insight from someone who is directly affected by the inflation rate, we asked one of our own freelancers for a testimonial on this subject, Josh Bryne.

“In South Africa, we are blessed with many things, unfortunately, inflation is not one of them.

You must do annual inflationary linked increases if you're a consultant or freelancer. The companies hiring you are increasing their rates annually, and there is no reason why you should not do the same, but the way you do this is essential.

1. Come armed with data, know the annual inflation rate and base your increase on this. 
2. Timing is everything. You don't want your client finding out the month of; I suggest giving at least two months' notice as this allows for the back-and-forth process to run its course before the new rate kicks in.
3. Lastly, it's crucial to know your value. As South Africans, we're incredibly cheap globally, and our low rates can be very profitable for the companies who hire us. But on the flip side, you need to be able to walk away if they're unwilling to budge. 

Remember, just because someone else can't see your worth doesn't mean you are worth any less. “

And in all honesty, we couldn’t agree with Josh any more. It's crucial to know your value and be confident about it. As South Africans, we often undervalue our skills and services, which can make it challenging to apply an inflationary increase confidently. However, by doing your research and knowing your worth, you can negotiate fair rates confidently and without fear. Remember, your clients are hiring you because they recognise your expertise and value, so don't be afraid to advocate for yourself and your skills.