1. What is Temp Agency Markup?

Temp agency markup in India represents the percentage difference between what a client pays (bill rate) and what the temporary employee receives (pay rate). It covers agency overhead, profits, and administrative costs.

2. How Does the Calculator Work?

The calculator uses the markup formula:

Where:

• \( Bill\ Rate \) — Amount client pays per hour ($/h)
• \( Pay\ Rate \) — Amount employee receives per hour ($/h)

Explanation: The formula calculates the percentage markup that the temp agency charges above the employee's pay rate.

3. Importance of Markup Calculation

Details: Understanding markup helps businesses budget for temp staffing costs and ensures fair compensation practices. It's essential for cost control and financial planning when using temporary staffing services.

4. Using the Calculator

Tips: Enter both bill rate and pay rate in US dollars per hour. Both values must be positive numbers. The calculator will compute the markup percentage.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical markup percentage for temp agencies in India?
A: Markup percentages typically range from 15% to 40%, depending on the industry, skill level, and agency policies.

Q2: Does markup include all agency costs?
A: Yes, markup covers agency overhead, administrative costs, profits, and sometimes statutory benefits for the employee.

Q3: Are there legal limits on temp agency markup in India?
A: While there are no specific legal limits, markup rates are typically market-driven and should be reasonable and transparent.

Q4: How often do markup rates change?
A: Markup rates may vary based on market conditions, demand for specific skills, and duration of assignments.

Q5: Can markup be negotiated with temp agencies?
A: Yes, markup rates are often negotiable, especially for long-term contracts or bulk staffing requirements.