I work for a big IT Multinational company, which has branches in many countries. My company, let's call it Cat "sold" me to another big company which we shall call Dog as a network consultant.

When Cat hired me, they did so for a 1 year period. They then "sold" me to Dog as a consultant in chunks of 3 months (at first), to see how I would work out on that customer.

After 1 year, the client company saw my value and "bought" me for a full year, effectively paying Cat 60% more than when we were doing it on a 3-month-chunks.

Of course, Cat had to extend my contract for this to happen, as my contract with them was expiring.

Since my value increased very much over one year, I was expecting at least a 1% of increase in my paycheck. Instead, the company just changed the contract form from "determined" (which lasts a determined amount of time, like 1 year, 2 years, etc) to "indeterminate" which basically means that I could stay with the company forever as there is no time limit in the contract, and firing you with this type of contract is very difficult in my country.

When I approached my manager about the paycheck he said that "I should be glad they changed my contract so soon." that "It's very uncommon for someone so new as you to have such type of contract" and that "We don't give raises based on how much money you bring in. If we did, how could we guarantee you a standard influx each month? Not every client will pay us as much as the current one. So we would have to reduce your paycheck based on the client we sell you too. So with the current arrangement no matter what the customer pays us, we pay you the same."

At my question on "so how does one get a raise?" he answered that "at the end of the year we managers give names of whom we think are worthy of a raise, and upper management then gives the raise. You are young though, you should be happy that you get your contract changed. Now you can relax and put on some roots without being afraid of not getting renewed."

When I told him "so I can't get even a 1% increase on my overall income? I think I kinda deserve it..." he answered "A 1% increase would actually require more than 1% of money, as there are taxes and stuff. Plus, as I said, raises are given at the end of the year so in any case I can't give you one now even if I wanted. The only way that could happen is if you give your dimissions and we, for not losing you, accept to give you a raise..."

I am 21, and I make around 16K € without taxes per year as a network engineer. When I was bought by our client, the client paid 80k € for one year to my company.

Am I being irrational in wanting to be paid more when they get paid 3x + times more? I know this number from the client itself, with whom I am on good terms, since my company would never share this information...

Is there a way to get this raise? This is my first job, and I have to say the pay is really miserable, as in my country you couldn't live on your own with 16K a year... How should I behave?

  • 1
    Yeah, I am not that confident there will be, as he didn't commit on anything. What he is currently saying basically is "you are not worth the extra money", which to me seems a joke. I will wait and see if something changes... but meanwhile I started looking around for other companies. – Con7e Jul 2 '15 at 15:27
  • 1
    Voting to close as opinion based. How do you get a raise? - by showing you are important to the continued (or increased) prosperity of the employer. The "Dog" being happy enough isn't a sign you particularly are doing well (just they are satisfied with the service "Cat" provides for what they pay), you need to show that you being there will bring them in more, either by what you do (the work for the client), or how you do it (improving processes, methods etc), there is no other way. – The Wandering Dev Manager Jul 2 '15 at 15:40
  • 1
    You also need to remember the Peter Principle. I remember guys at IBM, if you were a great coder, dependable, few bugs etc, that is where you would stay until they eventually offshored your job. The ones who got on were usually less able (but a fit to the company) so would get promoted to see if they were a better fit up the ladder. – The Wandering Dev Manager Jul 2 '15 at 15:46

Yes you are being irrational. That 3 times more is pretty standard, it goes to pay for things like office space, employees like HR that are not directly billable, electricity, insurance, employer contributions to benefits and profit.

The company you work for gives annual raises like most companies. What you need to do now is to work to make sure you get one.

| improve this answer | |

Not the answer you're looking for? Browse other questions tagged .