Employers · 20 June 2026
How Recruitment Agencies Charge Employers in India
If you have never used a recruitment agency or manpower consultancy before, pricing can feel opaque. Here is a clear breakdown of how staffing agencies and placement consultancies in India typically charge, based on the type of hiring.
Permanent staffing fees
For full time hires, most agencies charge 8.33 to 16.67 percent of the candidate's annual CTC. That works out to roughly 1 to 2 months salary as a one-time fee. You pay only after the candidate joins. If they do not join, you pay nothing.
Example: For a role with 6 lakh annual CTC at 8.33%, the fee is approximately 50,000 rupees. For a 12 lakh CTC role, roughly 1 lakh.
Contract staffing fees
For contract staffing (also called temporary staffing or flexi staffing), you pay a monthly invoice that includes the worker's salary, statutory contributions (PF, ESIC), and the agency's margin. The margin is typically 8 to 15 percent on top of total employment cost. No upfront fee. you start paying from the month the worker joins. This is essentially a third party payroll arrangement.
Bulk hiring fees
For volume recruitment (20+ hires), agencies often offer a reduced per-head fee. Instead of percentage-based pricing, you might pay a fixed amount per successful joining. say 5,000 to 15,000 per head depending on the role level. Higher volumes mean lower per-unit costs. See our complete bulk hiring guide.
Executive search and headhunting fees
For senior leadership roles (CXO, VP, Director level), agencies charge 20 to 33 percent of annual CTC. The higher fee reflects the confidential headhunting approach, direct outreach to passive candidates, and extensive market mapping involved in executive search.
Payment terms
Standard payment terms are 15 to 30 days from the candidate's joining date. Some agencies offer a credit period of 30 to 45 days for repeat clients. Payment is usually via bank transfer against a GST invoice.
What is included in the fee
The fee typically covers: requirement understanding, candidate sourcing, phone screening, profile shortlisting, interview coordination, offer negotiation support, and a replacement guarantee (typically 60 to 90 days). If the candidate leaves within the guarantee period, the agency sources a replacement at no extra cost.
What is not included
Background verification (usually a separate vendor), psychometric testing (if needed), and relocation support are typically extra. Discuss this upfront so there are no surprises.
One2Infinite works on a success-based model. No retainers, no upfront fees. Submit your requirement and we will share pricing based on your specific hiring needs.
Related reading: How to choose a placement consultancy · Permanent vs contract staffing · Contract staffing in Gurgaon
How much do recruitment agencies charge in India?
For permanent hires, agencies charge 8.33 to 16.67 percent of annual CTC (roughly 1 to 2 months salary). For contract staffing, a monthly margin of 8 to 15 percent is added on top of employment cost. Bulk hiring uses fixed per-head pricing of 5,000 to 15,000 rupees.
Do recruitment agencies charge candidates any fees?
No. Legitimate recruitment agencies never charge job seekers. All fees are paid by the employer after a candidate successfully joins. If any agency asks you for money, they are not genuine.
When do I pay the recruitment agency fee?
Payment is typically due 15 to 30 days after the candidate joins your company. No payment is required upfront or if the candidate does not join. The invoice is raised with GST after the joining date.
What is included in the recruitment agency fee?
The fee covers requirement understanding, candidate sourcing, phone screening, profile shortlisting, interview coordination, offer negotiation support, and a replacement guarantee (typically 60 to 90 days).
What is a replacement guarantee?
If the placed candidate leaves or is terminated within the guarantee period (usually 60 to 90 days), the agency sources a replacement at no additional cost. This protects employers from paying twice for the same position.