Skip to content
Stafflo.ai
Buy an audit
Stafflo.ai

IT staffing margin calculator

Calculate your true gross margin per placement by factoring in burden and pay rates.

Sets the currency, what the law adds to pay and the rules that move a margin.
What the client is charged an hour, before sales tax. Kforce's average Technology bill rate was about $89 an hour at the end of 2025.
What the consultant is paid an hour.
The law alone adds 7.6% at $104,000 a year. Benefits come on top. Use 0 for a contractor billing through their own company.
What the client or its managed service provider keeps from each invoice, such as a VMS fee or a prompt-pay discount.
2,080 is 52 weeks of 40 hours. Take off holidays and leave the client doesn't pay for.

Gross margin

40%

Show the working

($100 − $50 × (1 + 20%)) ÷ $100 = $40 ÷ $100 = 40%

Bill rate, pay rate and burden rate are your inputs.

Gross profit: $40/hour

Total hourly cost
$60
Pay $50 and burden $10
Markup on pay
100%
$100 billed for $50 paid
Gross profit a year
$83,200
Over 2,080 hours billed
  • Pay $50
  • Burden $10
  • Gross profit $40

Of every $100 billed, $50 pays the consultant, $10 goes on employer costs, and $40 is gross profit: $1,600 a 40-hour week.

Each $1 more an hour in pay costs $1.20 of gross profit, because the burden rises with it.

This is your true margin on the placement after accounting for the consultant's pay, payroll taxes, and benefits.

What a target margin needs
MarginMost you can payLeast you can bill
20%$66.67$75
25%$62.50$80
30%$58.33$85.71
35%$54.17$92.31
40%, yours$50$100

Most you can pay keeps your bill rate; least you can bill keeps your pay. Both keep your burden rate and fees.

Your margin against published gross margins
Whose marginGross margin
Yours
40%
Robert Half, contract
39%
ASGN, commercial
32.8%
Kforce, technology
25.6%
Amadeus FiRe, temps
30.5%
Amadeus FiRe, interim
23.9%
SThree, contract
21.7%
Adecco, group
19.2%
Randstad, group
18.7%
Hays, temps
15.1%

Listed staffing firms' gross margins over all their placements, from their own reports (2025; Hays the year to June 2026): an average over thousands of contracts, not a target for one.

If the consultant stays on your payroll between assignments, each working day on the bench costs $480 in pay and burden: the gross profit of 12 hours billed. Cost the bench with the bench cost calculator.

Gross margin 40%. Gross profit $40 an hour.

An estimate from published figures, checked on 10 October 2026. Not legal, tax or financial advice.

On this page

What the result means

This is your true margin on the placement after accounting for the consultant's pay, payroll taxes, and benefits.

  • Gross margin is the gross profit as a share of the bill rate, after any fees the client takes off it. Gross profit is the bill rate less the consultant's pay and the burden, the employer costs on top of pay.
  • Markup on pay is how much more the client pays than the consultant is paid, as a share of the pay. A 100% markup is a 50% margin before burden, and less after it, so the two are never the same number.
  • Gross profit a year is the hourly gross profit over the hours the client is billed for: what the placement contributes to recruiters' commissions, the office and profit.
  • What a target margin needs gives the most you can pay at your bill rate, and the least you can bill at your pay, for each margin: the figures to take into a rate negotiation.

How it works

Gross margin is the share of what a client pays that the agency keeps after paying for the placement. In IT staffing the cost of a placement is the consultant's pay and the burden: the employer's payroll taxes, social insurance and benefits.

The tool calculates your total hourly cost by applying the burden rate to the hourly pay rate. It then subtracts this total cost from the hourly bill rate to find the gross profit. The margin is the gross profit expressed as a percentage of the bill rate.

  1. Burden amount = hourly pay rate × burden rate ÷ 100.
  2. Total hourly cost = hourly pay rate + burden amount.
  3. Net bill rate = hourly bill rate × (1 − client fees ÷ 100). With no fees, it's the bill rate.
  4. Gross hourly profit = net bill rate − total hourly cost.
  5. Gross margin = gross hourly profit ÷ net bill rate × 100, and 0% when nothing is billed.
  6. Markup on pay = (hourly bill rate − hourly pay rate) ÷ hourly pay rate × 100.
  7. Most you can pay for a margin = net bill rate × (1 − margin ÷ 100) ÷ (1 + burden rate ÷ 100).
  8. Least you can bill for a margin = total hourly cost ÷ ((1 − margin ÷ 100) × (1 − client fees ÷ 100)).
  9. A bench day = total hourly cost × 8 hours, the pay and burden of a working day.

Assumptions

  • Every hour paid is billed. If the consultant is paid for hours the client doesn't pay for (paid holidays, training, travel), put them in the burden rate.
  • The burden rate is a share of pay, so it rises with every rise in pay. Where a cost stops at a ceiling, such as a social security wage base, the share is lower at higher pay; the hint under the burden field shows what the law alone adds at your pay over a full-time year of 2,080 hours.
  • Rates are before sales tax. VAT or GST charged on the invoice is passed on to the tax authority and isn't revenue.
  • Client fees are a share of the bill rate kept by the client or its managed service provider, so the margin is on what you're actually paid.
  • Outside the US, the example rates scale the brief's $50 an hour by each country's example salary in the bench cost calculator, with the bill rate at twice the pay. They are starting points to replace with your own, not market rates.
  • Hourly amounts are rounded to the cent and yearly ones to the whole unit; the margin is rounded to two decimals.

Example

Example: a placement at a 40% margin

Billed at $100 an hour, paid $50 an hour, with a 20% burden rate:

  1. Burden amount: $50 × 20% = $10.
  2. Total hourly cost: $50 + $10 = $60.
  3. Gross hourly profit: $100 − $60 = $40.
  4. Gross margin: $40 ÷ $100 = 40%.

If you bill a client $100 an hour and pay the consultant $50 an hour with a 20% burden rate, your true hourly cost is $60. Your gross profit is $40 an hour, leaving you with a 40% gross margin.

Example: a placement that loses money

Billed at $80 an hour, paid $65 an hour, with a 25% burden rate:

  1. Burden amount: $65 × 25% = $16.25.
  2. Total hourly cost: $65 + $16.25 = $81.25.
  3. Gross hourly profit: $80 − $81.25 = -$1.25.
  4. Gross margin: -$1.25 ÷ $80 = -1.56%.

The true hourly cost is $81.25, more than the bill rate, so the agency loses $1.25 an hour, a -1.56% margin, or $2,600 over a full-time year. Keeping the pay, the bill rate would have to reach $108.33 for a 25% margin.

When this is wrong

This calculation covers direct costs only. It does not factor in agency overhead, software licences, recruiter commissions, or bench time between assignments. Your net margin will be significantly lower.

  • Unbilled paid time. A salaried consultant paid for holidays, training or the days between assignments costs more than the hours billed: add that pay to the burden rate, or cost the bench on its own.
  • Overtime. Hours over the client's standard week may be billed at one rate and paid at another; work out each rate on its own.
  • Rates that change mid-assignment. Equal pay rules in some countries raise an agency worker's pay after a qualifying period (see Rules by country), so a margin that's right in the first month can be wrong in the tenth.
  • Contractors on their own company. A consultant who invoices through a limited company or a corp-to-corp contract carries no burden, so set it to 0: the rate you pay is then the whole cost.
  • Payment terms. A margin says nothing about when the client pays: 60-day terms mean funding two months of payroll on every placement.

To cost the time between assignments, use the bench cost calculator.

What we couldn't confirm

  • Official source unavailable. VAT on staffing in the Philippines: the tax bureau's page doesn't load, and the latest amending law doesn't restate the 12% rate.
  • Official source unavailable. The text of DOLE Department Order 174-17 on contracting in the Philippines; its page has no working link to the order.
  • Official source unavailable. Malaysia's registration rule for contractors for labour (Employment Act, section 33B): the labour department's site refuses visitors from outside Malaysia.
  • Not found in official sources. UAE rules for private employment agencies beyond the recruitment licence.

Rules by country

For each country in the tool: what the law adds to pay, the rules for agencies and agency workers that change what a placement costs, and the gross margins staffing firms there publish.

United States

What the law adds: Social Security 6.2% up to $184,500, Medicare 1.45% and federal unemployment 0.6% of the first $7,000; state unemployment and workers' compensation vary by state. (IRS; IRS; US Department of Labor; US Bureau of Labor Statistics)

  • Overtime below $27.63 an hour. An hourly-paid IT consultant is exempt from overtime only when paid at least $27.63 an hour and employed mainly in systems analysis, programming or software engineering. Below that, hours over 40 a week are paid at time and a half, so bill them at a matching premium or the margin on them shrinks. (29 CFR 541.400; US Department of Labor, Wage and Hour Division)
  • Health cover from 30 hours a week. A staffing firm with 50 or more full-time employees that doesn't offer health cover to those working 30 hours a week or more can owe $3,340 a year for each full-time employee beyond the first 30 in 2026, about $1.61 an hour over 2,080 hours. The plan's cost, or that payment, belongs in the burden rate. (Rev. Proc. 2025-26; IRS ACA employer Q&A)
  • H-1B wage floor. An H-1B consultant must be paid the higher of the actual wage for similar staff or the prevailing wage for the whole labor condition application, including time without work, so the pay rate can't be cut to rescue a margin. (US Department of Labor, Wage and Hour Division; 20 CFR 655.731)
  • 1099 and corp-to-corp. A consultant on 1099 or corp-to-corp terms carries no payroll taxes, so the burden is 0, but whether someone is really an employee turns on who controls the work. (IRS)

Published gross margins: Kforce, Technology contract, 25.6% (2025) (Kforce 10-K 2025); ASGN, Commercial, IT staffing and consulting, 32.8% (2025) (ASGN results 2025); Robert Half, contract talent, 39% (2025) (Robert Half 10-K 2025).

Canada

What the law adds: CPP 5.95% between $3,500 and $74,600, CPP2 4% up to $85,000 and EI at 1.4 times the employee rate up to $68,900 (outside Quebec). (Canada Revenue Agency; Canada Revenue Agency; Canada Revenue Agency; Government of Ontario)

  • A licence in Ontario. Temporary help agencies have needed a licence to operate in Ontario since 1 July 2024, with $25,000 of security posted by letter of credit or surety bond and, from 2026, a $1,500 fee for a licence that generally lasts two years. A client that knowingly uses an unlicensed agency faces penalties from $15,000. (Ontario agency licensing)
  • Conversion fees for six months in Ontario. An agency can charge a client for hiring its worker only in the six months from the worker's first day with that client, and can't charge the worker at all. Clients share liability for unpaid wages, overtime and holiday pay. (Ontario ESA guide)
  • Equal pay from day one in Quebec. Since 1 January 2020 a Quebec placement agency needs a CNESST licence and $15,000 of security, may not pay a worker less than the client's own staff doing the same tasks in the same establishment, and is jointly liable with the client. (Québec agency regulation)
  • GST or HST on top. Staffing fees carry 5% GST, or HST of 13% in Ontario, 14% in Nova Scotia and 15% in the other Atlantic provinces, on top of the bill rate; the margin is on the rate before tax. (CRA GST/HST rates)
United Kingdom

What the law adds: Employer National Insurance at 15% above £5,000 a year and the 3% workplace pension minimum on earnings between £6,240 and £50,270. (HMRC; GOV.UK; The Pensions Regulator; HMRC)

  • Equal pay after 12 weeks. After 12 weeks in the same role with the same hirer, an agency worker on PAYE is owed the same pay and holiday as someone the hirer employs directly, and breaks of up to 6 weeks pause the clock rather than reset it. A margin priced on a lower pay rate shrinks from week 13 unless the bill rate rises with it. (GOV.UK equal treatment; Agency Workers Regulations, reg. 7)
  • Inside IR35. Medium and large clients decide whether a contractor working through their own company falls inside the off-payroll rules. Inside, the agency paying that company becomes the deemed employer and pays employer National Insurance at 15% and any Apprenticeship Levy, so the burden is no longer 0. A client is small, and the contractor decides, if it meets two of: turnover up to £15 million, balance sheet up to £7.5 million, 50 employees; the test uses the last financial year whose accounts were due before the tax year, so years starting before 6 April 2025 still use £10.2 million and £5.1 million. (HMRC; HMRC; HMRC off-payroll for clients; ITEPA 2003, s. 60A; Companies Act 2006, s. 382)
  • Umbrella companies' PAYE. Since 6 April 2026 the agency contracting with the client is jointly and severally liable for PAYE an umbrella company in its supply chain fails to pay; the client is liable instead where it contracts with the umbrella company directly. (HMRC; Finance Act 2026, s. 24)
  • Holiday at 12.07% of hours. Irregular-hours agency workers build up holiday at 12.07% of the hours they work, and can be paid it with each pay packet: about 12% on top of the hourly pay, unless the rate already includes it. (GOV.UK holiday entitlement)
  • Temp-to-perm fees. A transfer fee is allowed only if the hirer was offered an extended hire instead, and not once 8 weeks have passed since the assignment ended or 14 weeks since it started, whichever is later. (GOV.UK transfer fees; Conduct Regulations, reg. 10)

Published gross margins: SThree, STEM contract, 21.7% (2025) (SThree annual report 2025); Hays, temp and contracting, 15.1% (year to June 2026) (Hays FY26 results).

Germany

What the law adds: Employer shares of pension (9.3%), unemployment (1.3%), health (7.3% plus half the 2.9% average top-up), long-term care (1.8%) and the 0.15% insolvency levy, each up to its 2026 ceiling. (Bundesministerium für Arbeit und Soziales; Bundesministerium für Arbeit und Soziales; Bundesministerium der Justiz; Bundesministerium für Gesundheit; Bundesministerium für Gesundheit; Deutsche Gesetzliche Unfallversicherung)

  • A permit and 18 months. Lending a worker to a client needs a permit, the contract must be labelled Arbeitnehmerüberlassung and name the worker before the start, and one assignment to the same client may last at most 18 months in a row. Otherwise the contract is void and the worker becomes the client's employee. (§ 1 AÜG; §§ 9, 10 AÜG)
  • Equal pay from month 10. Agency workers are owed the client's pay for comparable staff. A temp-work collective agreement may pay less only for the first 9 months of an assignment, or up to 15 months if pay steps up to an equivalent level, so a margin priced on the agreement's rate falls from month 10. (§ 8 AÜG)
  • The client guarantees contributions. A client that hires in agency workers is liable, like a guarantor who can be called on directly, for the agency's social insurance contributions on them. (§ 28e SGB IV)
  • Freelancers through an agency. An IT freelancer can't be lent under the AÜG. If the work is really employment, social contributions can be claimed back for 4 years after the year they fell due, or 30 if withheld deliberately; either side can ask Deutsche Rentenversicherung to decide the status first. (Deutsche Rentenversicherung; § 7a SGB IV; § 25 SGB IV)
  • VAT on top. Staffing fees carry 19% VAT on top of the bill rate; the margin is on the rate before tax. (§ 12 UStG)

Published gross margins: Amadeus FiRe, temporary staffing, 30.5% (2025) (Amadeus FiRe annual report 2025); Amadeus FiRe, interim and project, 23.9% (2025) (Amadeus FiRe annual report 2025).

India

What the law adds: Employer PF (EPF and EPS) at 12% of wages up to ₹25,000 a month, EDLI and admin charges at 0.5% each, gratuity at 15 days' wages a year, and ESI at 3.25% where pay is ₹21,000 a month or less. (Gazette of India; Gazette of India; Gazette of India; EPFO; ESIC)

  • Gratuity from year one. Since 21 November 2025 a fixed-term employee qualifies for gratuity after one year, not five, and is owed it pro rata when the term ends, at 15 days' wages for each year: accrue it from the first day of a fixed-term placement. (PIB, Ministry of Labour and Employment; Gazette of India; Gazette of India)
  • A licence from 50 contract workers. A manpower supply contractor that has employed 50 or more contract labour on any day of the past year needs a licence under the Occupational Safety, Health and Working Conditions Code, valid for five years, and if it underpays, the client must pay the wages and recover them from it. (PIB, Ministry of Labour and Employment; OSH Code, contract labour)
  • Pay by the 7th. IT and ITES salaries must be paid by the 7th of every month, so payroll goes out before most clients have paid the month's invoice. (PIB, Ministry of Labour and Employment)
  • GST at 18% and tax deducted at source. Staffing services carry 18% GST on top of the bill rate, unchanged by the September 2025 rate changes. Clients also deduct tax at source from each invoice (2% on contract work by a company, 10% on professional fees) from 1 April 2026; the Income Tax Department's text of the 2025 Act doesn't list supply of manpower as contract work, so clients may apply either rate. It counts against the firm's income tax, but it's cash the firm waits for. (GST services rate schedule; GST classification of services; 56th GST Council; Income-tax Act 2025, s. 393; CBDT, ITA 2025 s. 393; CBDT, ITA 2025 s. 402)
  • What listed firms earn. Indian staffing firms publish margins after their own overheads rather than gross margins: TeamLease's specialised staffing, mostly for global capability centres, made a 7.4% EBITDA margin in the year to March 2026, against 1.1% on general staffing. (TeamLease FY26 results)
Singapore

What the law adds: Employer CPF at 17% of wages up to the S$8,000 monthly ceiling for citizens and permanent residents aged 55 and below, and the Skills Development Levy at 0.25%, at most S$11.25 a month. (CPF Board; CPF Board; CPF Board; CPF Board; Ministry of Manpower, Singapore; Ministry of Manpower, Singapore)

  • A licence to place, none to deploy. Placing jobseekers with employers needs an employment agency licence (a Select Licence, for workers earning over S$4,500 a month, takes a S$20,000 deposit), but employing consultants yourself and deploying them to clients' offices doesn't. (MOM: who needs an EA licence; MOM: which EA licence)
  • Pass salaries set the floor. A foreign consultant on an Employment Pass must earn at least S$5,600 a month (S$6,200 in financial services), rising to S$6,000 for new applications from 1 January 2027, and pass COMPASS; an S Pass needs S$3,300 (S$3,600 from 2027) and costs a S$650 monthly levy. (Ministry of Manpower, Singapore; MOM: Employment Pass eligibility; MOM: S Pass eligibility)
  • GST on top. A GST-registered firm charges 9% GST on top of the bill rate; the margin is on the rate before tax. (IRAS GST rates)
Philippines

What the law adds: SSS at 10% of pay up to ₱35,000 a month plus employees' compensation, PhilHealth at 2.5% up to ₱100,000, Pag-IBIG at up to ₱200 a month, and the 13th-month pay. (Social Security System, Philippines; PhilHealth; Department of Budget and Management, Philippines; Supreme Court of the Philippines E-Library)

  • Registration and 5 million pesos of capital. A contractor supplying workers must register with the labour department under Department Order 174 (2017), with 5,000,000 pesos of paid-up capital and a 100,000-peso registration fee. Without substantial capital it risks being found a labour-only contractor, merely the client's agent. (DOLE contractor registration; Labor Code, Articles 106 to 109)
  • The client shares liability. The client is jointly and severally liable with the contractor for unpaid wages and answers with it for any breach of the Labor Code, so clients expect every statutory benefit, the 13th-month pay included, inside the bill rate. (Labor Code, Articles 106 to 109)
Malaysia

What the law adds: Employer EPF at 13% of wages up to RM5,000 a month (12% above, with no ceiling), SOCSO at 1.75% and the Employment Insurance System at 0.2%, both up to RM6,000 a month. (KWSP (EPF Malaysia); PERKESO (SOCSO); PERKESO (SOCSO))

  • Service tax at 8%. Employment services, contract staffing included, carry 8% service tax from 1 March 2024 for providers above RM500,000 a year: on the fee alone when pay is passed through at cost and shown separately, and on the whole charge when it's marked up or not itemised. (RMCD employment services guide; RMCD IT services guide)
  • EPF for foreign consultants. From October 2025 wages, the employer and the employee each pay 2% into EPF for non-Malaysian staff, against the employer's 12% or 13% for Malaysians. (KWSP (EPF Malaysia))
United Arab Emirates

What the law adds: No income tax or social security for expatriates; an end-of-service gratuity of 21 days' basic wage a year for the first five years, 30 days after. (UAE Government portal (u.ae); UAE Government portal (u.ae); UAE Government portal (u.ae); Dubai Health Authority (ISAHD); Department of Health, Abu Dhabi)

  • Licensed recruitment only. Recruiting or supplying workers needs a licence from the Ministry of Human Resources and Emiratisation, which grants them to UAE citizens only, and workers can't be charged recruitment fees. Firms that employ their consultants assign them to a client on a temporary work permit. (UAE Government portal (u.ae); u.ae: recruitment agencies; u.ae: work permits)
  • Emiratisation. Firms with 50 or more employees must raise the Emirati share of skilled jobs by 2% a year, to 10% by 2026. Each Emirati not employed against the target cost AED 6,000 a month from 2023, rising by AED 1,000 a year until 2026. (u.ae: Emiratisation)
  • VAT on top. Staffing fees carry 5% VAT on top of the bill rate; the margin is on the rate before tax. (u.ae: VAT)
Australia

What the law adds: The Superannuation Guarantee at 12% of earnings up to $270,830 a year, paid on payday from 1 July 2026; state payroll tax and workers' compensation vary by state. (Australian Taxation Office; Revenue NSW; State Revenue Office Victoria; WorkSafe Victoria)

  • Same Job Same Pay. Where the Fair Work Commission has made a regulated labour hire arrangement order for a host, the labour hire employer must pay at least the host's full rate of pay once the work for that host passes 3 months, from 1 November 2024. Hosts with fewer than 15 employees are exempt. (Fair Work Act, Part 2-7A)
  • Payroll tax on every on-hired worker. In New South Wales a labour hire agency is the deemed employer of the workers it on-hires, contractors through their own company included, and pays payroll tax on everything paid to them: 5.45% above the $1.2 million threshold in 2026–27. (Revenue NSW; Revenue NSW: employment agencies)
  • Labour hire licences. Labour hire providers need a licence in Victoria, Queensland, South Australia (every industry since 29 January 2026) and the ACT, and hosts there may only use licensed providers. (Labour Hire Authority, Victoria; Queensland Legislation; Government of South Australia; ACT Legislation Register)
  • What a listed group earns. PeopleIN, a listed labour hire group, reported net revenue (its gross profit) of $101.9 million on $788.7 million of revenue in the year to June 2026, about 12.9%. Staffing fees carry 10% GST on top of the bill rate. (PeopleIN FY26 results; GST Act)
Anywhere else

What the law adds: Not modelled. Enter the burden rate from your own payroll.

  • Equal pay. Many countries require an agency worker to be paid what the client pays its own staff for the same work, from the first day or after a qualifying period, so a margin priced on a lower rate may not last.
  • Sales tax. Where VAT or GST applies to staffing fees, it's charged on top of the bill rate and isn't part of the margin.
  • Contractors. A consultant who invoices through their own company carries no payroll costs, but every country has its own test of who is really an employee.

Published gross margins: Adecco, group, 19.2% (2025) (Adecco results 2025); Randstad, group, 18.7% (2025) (Randstad results 2025).

Sources

Every source this page cites (116)

Each one was opened and checked on the date beside it.

  1. US Bureau of Labor StatisticsEmployer Costs for Employee Compensation, June 2026 (table 1)9 September 2026
  2. European Central BankEuro foreign exchange reference rates9 October 2026
  3. Kforce Inc.Form 10-K for the year ended 31 December 20252026
  4. ASGN IncorporatedASGN Incorporated reports fourth quarter and full year 2025 results4 February 2026
  5. Robert Half Inc.Form 10-K for the year ended 31 December 20252026
  6. SThree plcAnnual Report and Accounts 2025 (year ended 30 November 2025)2026
  7. Amadeus FiRe AGGeschäftsbericht 20252026
  8. Hays plcPreliminary results for the year ended 30 June 202620 August 2026
  9. The Adecco GroupQ4 and full year 2025 results25 February 2026
  10. Randstad N.V.Q4 and full year 2025 results2026
  11. IRSPublication 15 (2026), Employer's Tax Guide2026
  12. IRSTopic no. 759, Form 940, employer's annual federal unemployment (FUTA) tax return24 September 2026
  13. US Department of LaborUnemployment insurance tax topic11 September 2026
  14. eCFR29 CFR 541.400: computer employees, general rule1 October 2026
  15. US Department of Labor, Wage and Hour DivisionDefining and delimiting the exemptions for executive, administrative, professional, outside sales and computer employees: implementation of federal court judgments15 May 2026
  16. Internal Revenue ServiceQuestions and answers on employer shared responsibility provisions under the Affordable Care Act2026
  17. Internal Revenue ServiceRev. Proc. 2025-26: employer shared responsibility payment amounts for 20262025
  18. eCFR20 CFR 655.731: what is the first LCA requirement, regarding wages?1 October 2026
  19. US Department of Labor, Wage and Hour DivisionFact Sheet #62I: Must an H-1B employer pay for nonproductive time?2016
  20. IRSIndependent contractor (self-employed) or employee?19 May 2026
  21. Canada Revenue AgencyCPP contribution rates, maximums and exemptions31 October 2025
  22. Canada Revenue AgencySecond additional CPP contribution rates and maximums31 October 2025
  23. Canada Revenue AgencyEI premium rates and maximums16 September 2025
  24. Government of OntarioEmployer Health Tax (EHT)18 September 2026
  25. Government of OntarioLicensing for temporary help agencies and recruiters4 March 2026
  26. Government of OntarioYour guide to the Employment Standards Act: temporary help agencies7 April 2026
  27. Gouvernement du QuébecEntrée en vigueur du règlement : travailleurs étrangers temporaires et agences de placement de personnel mieux protégés27 November 2019
  28. Canada Revenue AgencyGST/HST calculator (and rates)1 April 2025
  29. HMRCRates and thresholds for employers 2026 to 20271 September 2026
  30. GOV.UKWorkplace pensions: what you, your employer and the government pay2026
  31. The Pensions RegulatorEarnings thresholds2026
  32. HMRCPay Apprenticeship Levy6 April 2026
  33. GOV.UKAgency workers: your rights as a temporary agency worker5 October 2026
  34. legislation.gov.ukThe Agency Workers Regulations 2010, regulation 711 October 2026
  35. HM Revenue & CustomsOff-payroll working for clients30 August 2024
  36. HMRCUnderstanding off-payroll working (IR35)26 February 2026
  37. legislation.gov.ukIncome Tax (Earnings and Pensions) Act 2003, section 60A: when a company qualifies as small for a tax year11 October 2026
  38. legislation.gov.ukCompanies Act 2006, section 382: companies qualifying as small11 October 2026
  39. HMRCUmbrella company market: changes to Income Tax rules to tackle non-compliance26 November 2025
  40. legislation.gov.ukFinance Act 2026, section 24: umbrella companies (ITEPA 2003 sections 61Y and 61Z)2026
  41. GOV.UKHoliday entitlement5 October 2026
  42. GOV.UKEmployment agencies and businesses: fees to hiring companies (transfer fees)5 October 2026
  43. legislation.gov.ukThe Conduct of Employment Agencies and Employment Businesses Regulations 2003, regulation 1011 October 2026
  44. Bundesministerium für Arbeit und SozialesDas ändert sich im neuen Jahr22 December 2025
  45. Bundesministerium für Arbeit und SozialesSozialversicherungsrechengrößen 20268 October 2025
  46. Bundesministerium der Justiz§ 241 SGB V, allgemeiner Beitragssatz2026
  47. Bundesministerium für GesundheitBeiträge3 September 2026
  48. Bundesministerium für GesundheitFinanzierung der Pflegeversicherung14 September 2026
  49. Deutsche Gesetzliche UnfallversicherungZahlen 202522 September 2026
  50. Bundesministerium der Justiz§ 1 Arbeitnehmerüberlassungsgesetz: Arbeitnehmerüberlassung, Erlaubnispflicht22 December 2025
  51. Bundesministerium der Justiz§§ 9 and 10 Arbeitnehmerüberlassungsgesetz: Unwirksamkeit; Rechtsfolgen bei Unwirksamkeit22 December 2025
  52. Bundesministerium der Justiz§ 8 Arbeitnehmerüberlassungsgesetz: Grundsatz der Gleichstellung22 December 2025
  53. Bundesministerium der Justiz§ 28e SGB IV: Zahlungspflicht, Vorschuss2026
  54. Bundesministerium der Justiz§ 7a SGB IV: Feststellung des Erwerbsstatus2026
  55. Bundesministerium der Justiz§ 25 SGB IV: Verjährung2026
  56. Deutsche RentenversicherungScheinselbstständigkeit2026
  57. Bundesministerium der Justiz§ 12 Umsatzsteuergesetz: Steuersätze29 June 2026
  58. Gazette of IndiaS.O. 5109(E): wage ceiling for Chapter III of the Code on Social Security17 September 2026
  59. Gazette of IndiaG.S.R. 525(E): Employees' Provident Fund Scheme, 202629 June 2026
  60. Gazette of IndiaThe Code on Social Security, 202029 September 2020
  61. EPFOContribution rates12 June 2018
  62. ESICCoverage4 April 2025
  63. Gazette of IndiaThe Industrial Relations Code, 202029 September 2020
  64. PIB, Ministry of Labour and EmploymentFour Labour Codes made effective from 21 November 202521 November 2025
  65. Gazette of IndiaThe Occupational Safety, Health and Working Conditions Code, 2020 (Part on contract labour)29 September 2020
  66. GST CouncilGST rates on services (rate schedule for Chapter 99)2023
  67. GST CouncilScheme of classification of services (amended)2024
  68. Press Information Bureau, Ministry of FinanceRecommendations of the 56th meeting of the GST Council3 September 2025
  69. Gazette of IndiaThe Income-tax Act, 2025, section 393(1), table serial 621 August 2025
  70. Income Tax Department, Government of IndiaIncome-tax Act, 2025: section 3938 October 2026
  71. Income Tax Department, Government of IndiaIncome-tax Act, 2025: section 402 (definitions)8 October 2026
  72. TeamLease Services LimitedInvestor presentation, Q4 FY26 (consolidated segment results)20 May 2026
  73. CPF BoardHow much CPF contributions to pay7 October 2026
  74. CPF BoardCPF-related changes taking place in 20267 October 2026
  75. CPF BoardSkills Development Levy2 July 2026
  76. CPF BoardCan I make CPF contributions for foreign employees?20 April 2026
  77. Ministry of Manpower, SingaporeS Pass levy and quota requirements19 February 2026
  78. Ministry of Manpower, SingaporeEmployment Pass: key facts4 May 2026
  79. Ministry of Manpower, SingaporeWho needs to get an employment agency licence2 July 2026
  80. Ministry of Manpower, SingaporeWhich employment agency licence to get27 December 2017
  81. Ministry of Manpower, SingaporeEligibility for Employment Pass28 April 2026
  82. Ministry of Manpower, SingaporeS Pass eligibility1 September 2026
  83. Inland Revenue Authority of SingaporeCurrent GST rates13 June 2025
  84. Social Security System, PhilippinesPay contribution2025
  85. PhilHealthAdvisory 2025-0002: premium contribution rate2025
  86. Department of Budget and Management, PhilippinesCircular Letter No. 2024-2: Pag-IBIG Fund contributions1 February 2024
  87. Supreme Court of the Philippines E-LibraryPresidential Decree No. 851: 13th-month pay1975
  88. Department of Labor and Employment, PhilippinesDOLE Citizen's Charter 2026, first edition: registration of contractors2026
  89. Department of Labor and Employment, PhilippinesLabor Code of the Philippines, 2022 DOLE edition (Articles 106 to 109)2022
  90. KWSP (EPF Malaysia)Mandatory contribution2026
  91. PERKESO (SOCSO)Rate of contribution1 October 2024
  92. PERKESO (SOCSO)Employment Insurance System contribution rates (Act 800)15 November 2024
  93. Royal Malaysian Customs DepartmentPanduan Perkhidmatan Pekerjaan, version 3 (service tax guide on employment services)14 May 2024
  94. Royal Malaysian Customs DepartmentPanduan Perkhidmatan Teknologi Maklumat, version 7 (service tax guide on IT services)26 February 2026
  95. UAE Government portal (u.ae)End of service benefits for employees in the private sector12 August 2026
  96. UAE Government portal (u.ae)Taxation2026
  97. UAE Government portal (u.ae)Labour rights in the private sector8 October 2026
  98. Dubai Health Authority (ISAHD)Health insurance FAQ25 March 2026
  99. Department of Health, Abu DhabiHealthcare Insurers Manual2017
  100. UAE Government portal (u.ae)Federal Decree-Law No. 33 of 2021 regulating labour relations (English text)2022
  101. UAE Government portalSearching for a job12 August 2026
  102. UAE Government portalWork permits24 September 2026
  103. UAE Government portalEmiratis' employment in the private sector12 August 2026
  104. UAE Government portalRegister for VAT (value added tax)30 March 2026
  105. Australian Taxation OfficeSuper guarantee17 April 2026
  106. Revenue NSWPayroll tax thresholds and rates1 July 2026
  107. State Revenue Office VictoriaPayroll tax current rates29 September 2026
  108. WorkSafe VictoriaIndustry rates and key dates29 June 2026
  109. Federal Register of Legislation, AustraliaFair Work Act 2009, Part 2-7A (regulated labour hire arrangement orders)7 July 2026
  110. Revenue NSWEmployment agencies and payroll tax18 September 2026
  111. Labour Hire Authority, VictoriaLabour hire licensing in Victoria30 September 2026
  112. Queensland LegislationLabour Hire Licensing Act 201723 August 2024
  113. Government of South AustraliaAre you ready for SA's labour hire changes?11 April 2026
  114. ACT Legislation RegisterLabour Hire Licensing Act 202026 December 2025
  115. PeopleIN LimitedInvestor presentation, FY26 annual results31 August 2026
  116. Federal Register of Legislation, AustraliaA New Tax System (Goods and Services Tax) Act 1999, sections 9-70 and 38-1901 January 2026

Frequently asked questions

What is a good gross margin in IT staffing?

There's no official standard, but listed firms publish theirs: on IT and professional contract staffing they run from 21.7% to 39%. Kforce 25.6% (Technology contract, 2025), ASGN 32.8% (Commercial, IT staffing and consulting, 2025), Robert Half 39% (contract talent, 2025), SThree 21.7% (STEM contract, 2025), Amadeus FiRe 30.5% (temporary staffing, 2025), Amadeus FiRe 23.9% (interim and project, 2025). Across all kinds of staffing: Hays 15.1% (temp and contracting, year to June 2026), Adecco 19.2% (group, 2025), Randstad 18.7% (group, 2025). Each is an average over thousands of placements, so use it to see where you sit rather than as a floor for one contract.

What is a burden rate?

The burden rate covers the mandatory costs of employing someone beyond their base pay. This includes employer payroll taxes, Medicare, workers' compensation, and any benefits provided. At US private employers the costs the law requires average $3.40 an hour against $32.82 of wages, and health insurance and retirement contributions bring the total to about 26% of wages (Bureau of Labor Statistics, June 2026).

How do I factor in recruiter commissions?

Commissions are usually paid out of the gross profit generated by the placement, meaning they reduce your net margin, not this gross margin figure. A commission set as a share of gross profit falls with the margin; one set as a share of the bill rate doesn't, so on a thin margin it takes a bigger share of what's left.

Why is my margin lower than expected?

High burden rates or under-negotiated bill rates often compress margins. Agencies commonly turn to operational automation to protect their net margins when gross margins tighten. Check the client's fees too: a managed service provider's fee comes off every invoice, so a 3% fee on a 20% margin takes 15% of the gross profit.

What's the difference between markup and margin?

Markup is measured against the pay rate and margin against the bill rate, so markup is always the bigger number. Billing $100 for a consultant paid $50 is a 100% markup, a 50% margin before burden, and a 40% margin after a 20% burden.

Related

Protect your margin by automating the back office.

Let's discuss how reducing manual operations keeps more of your gross profit in the business.

Book a 15-minute call

Built and maintained by Stafflo. Questions or a wrong number: contact. Last updated 11 October 2026.