Your costs rise, your experience grows, but your hourly rate has stood still for three years: many freelancers know the feeling. Announcing an increase to clients you value and need feels awkward, so it slides to next year. Needlessly, because a well-founded, timely increase rarely costs a client in practice. This article covers the when, the how much and above all the how. For setting your starting rate as a beginner there is a separate article on calculating your hourly rate.

Why standing still is falling behind

Every year your groceries, software, premiums and materials get a few percent dearer. Keep your rate flat and your real income falls by itself. Someone who waits five years and then needs 20% at once faces a much harder conversation than someone taking a small, predictable step each year. Indexing annually by a few percent is entirely normal in nearly every industry; large suppliers and landlords do exactly the same to you.

The right moment and the right percentage

Three natural moments work best. The turn of the year: everyone expects price adjustments, so an increase per 1 January feels logical. The start of a new project or contract: new agreements, new price, without reopening running arrangements. And clear growth in what you deliver: a completed specialisation or broader scope justifies a bigger step. As for size: annual indexation roughly follows inflation, while a catch-up or repositioning is more like 10 to 15%. If you raise substantially, start with new clients; that tests whether the market carries your new rate before you present it to existing ones.

How to announce it

The form decides how it lands. A few rules of thumb:

  • Announce at least a month ahead, preferably two for major clients. Nobody likes a retroactive increase.
  • Keep it businesslike and short: the new rate, the start date and one line of context. Extensive apologies make it bigger than it is.
  • Point to what you deliver, not only your costs: faster turnaround, broader deployability, last year's results.
  • Respect running agreements: a fixed price for a current project stands; the new rate applies to new work.

What it delivers

A modest step counts harder than it feels:

Worked example: from € 70 to € 75 an hour

Increase
around 7%
Billable hours per year
1,100
Extra revenue per year
€ 5,500
Extra costs or hours it takes you
none

Result: € 5,500 extra revenue without working a single extra hour; even if one small client walked, you would typically still come out ahead

Frequently asked questions

May I simply raise my rate with an existing client?

For new work, yes: every new assignment is a new price proposal. In a running contract with a fixed rate it only works at agreed moments, through an indexation clause or by consent. Hence the advice to include that clause as standard.

What if a client says no?

Ask what is possible: a smaller step, a later start date or a different scope. If it stays a firm no while your rate is market-level, you have learned this client buys mainly on price; valuable information for how much of your calendar they deserve.

Must the increase also apply to outstanding quotations?

No, an issued quotation is an offer you honour within its validity period. So always put a validity of, say, 30 days on quotations; old prices then never linger.

Do I raise fixed monthly fees the same way?

Yes, same principle: announce in time, start on the first of a month and preferably anchor it in an indexation clause. For subscription-like services the small annual step matters even more, or the price rusts solid for years.

This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.

Ilias Aarrass

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