Pay and Charge Rates Explained

Have you ever heard the term “pay and charge” rate used but did not quiet understand how the recruitment business got to their figures; well here is a brief explanation which might dispel some of the myths employers have of the recruitment industry

Background

A Recruitment Agency places people for permanent jobs whereas as a Recruitment Business places people for temporary/contract work, but in essence we both do same roles and are known commonly as Recruitment Agencies. Mynt Recruitment is both

When a company need for extra staff,  rather than going through the cost of employing direct, could use a recruitment agency and as such agree a “pay and charge” rate for the role being filled

The pay and charge structure

The pay and charge rate is made up of several components as follows;

• Pay Rate  - is the rate of pay for a worker
• NI             - National Insurance is calculated at the going rate at that time as laid down by HMRC
• WTD        - In accordance with the Working Time Directive a % is set aside regarding holiday pay are added into the calculation
• Fee          - is the fee that the agency charges for its services
• Charge Rate- Is the total of all above

Typically as an employer all you tend to see is the workers pay rate; but in reality everything excepting the Fee above is your real cost if employed directly by your company
In summary using an agency as all of the benefits of having the right staff doing the job you need doing and without you having the administrative and financial burdens as if you employed then directly; all for a small Fee the agency charges

Example

Pay                          = £7.75
Ni & WTD                 = £1.55
Fee                          = £1.00
Total                        = £10.30

For its Fee the agency manages to whole process of hiring and controlling the worker including all his/her pay and administration and in the case of Mynt Recruitment they are employed on a “Contract of Employment” with the same protected rights that any of your own staff benefit from

For more information on this and other Recruitment issues in general; call your local Mynt Recruitment office today.