Agency placement fee
- Fee basis: first-year basic (basic × 12)
- AED 180,000
- Agreed fee
- 15%
- Placement fee
- AED 27,000
- Fee in months of basic salary
- 1.8
from your agreement
Total invoiceAED27,000
Fee (no VAT entered)
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Recruitment Agency Fee Calculator
What will the agency invoice be for this hire, on your agreed % and salary basis?
See what a recruitment agency will invoice for a hire: your agreed fee % on annual basic or gross pay (or a flat fee), any minimum fee, and VAT. For GCC employers comparing agencies and agencies quoting clients.
How the fee is worked out
Choose the basis in your terms of business. Annual basic = monthly basic × 12; annual gross = (basic + fixed allowances) × 12. The fee is your agreed % of that basis — or a flat fee — raised to the minimum fee if one applies. VAT, if you enter a rate, is added on top for the total invoice. We also show the fee as months of basic salary, an easy way to compare quotes. Every rate is yours: the calculator doesn't assume market percentages.
- Contingency fee
- Paid only when you hire a candidate the agency introduced.
- Fee basis
- The salary the % is applied to: annual basic or annual gross.
- Minimum fee
- A floor so low-salary hires still cover the agency's work.
- Guarantee
- Free replacement or partial refund if the hire leaves early.
Same hire, same %, different basis
A hire on AED 15,000 basic + AED 6,000 allowances a month, at 15% (example rate).
| Fee basis | Fee % | Fee |
|---|---|---|
| Annual basic (15,000 × 12) | 15% | AED 27,000 |
| Annual gross (21,000 × 12) | 15% | AED 37,800 |
Charging on gross adds the allowances to the base — the fee rises by 40% here without the % changing.
Before you sign the terms
- Get the basis in writing: which allowances count, and whether a guaranteed bonus is included.
- Check when the invoice is due (on acceptance or on the start date) and the payment days.
- Compare guarantee periods and whether early leavers mean a replacement or a refund.
Related agency tools
Weighing a search firm? Use the retainer vs contingency calculator. Agencies can set their terms with the terms of business template.
Frequently asked questions
How are recruitment agency fees calculated?
Most permanent placement fees are a percentage of the hire's first-year pay, set in the agency's terms of business. The key detail is the basis: some agencies charge on annual basic salary, others on annual gross (basic plus fixed allowances, sometimes guaranteed bonus). In the Gulf, where allowances can be a large share of pay, the basis can change the fee as much as the percentage does.
What is a normal recruitment fee percentage in the GCC?
It varies with the role, seniority, exclusivity and the agency, so we don't print a 'typical' figure. Compare written quotes from two or three agencies on the same basis — the % from one and the salary basis from another can't be compared directly.
Do I pay VAT on agency fees?
If the agency is VAT-registered, VAT is added to its invoice at the rate that applies to it. Enter that rate to see the total invoice; leave it at 0 to see the fee alone.
What is a guarantee or rebate period?
If the hire leaves or is let go within an agreed period after starting, the agency either finds a replacement for free or refunds part of the fee. Check the length, whether it's a replacement or a refund, and the conditions (usually that you paid the invoice on time).
Can candidates be charged agency fees?
Reputable agencies charge the employer, not the candidate. Our terms of business template states that the agency charges candidates nothing.
Hiring for several roles or clients? Lock in the volume price now.
Job bundles are prepaid job posts at a volume discount. Pay once, then redeem a credit the moment a role opens, anywhere in the GCC.
See job bundlesMore free HR tools
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