Recruitment agency fees in India.
The short answer
In India, permanent-placement agencies typically charge about 8.33% (one month’s salary) to 15% of the hire’s first-year CTC for junior and mid-level roles, and 15–25% for senior or specialist roles. Retained executive search usually runs 20–33%. Contract staffing is priced as a service fee on top of payroll and statutory costs, and RPO as a monthly management fee, often with a per-hire component. GST at 18% applies on top. These are indicative market ranges, not a quote.
“What do you charge?” is the first question most employers ask a recruiter, and the honest answer is: it depends on the model, not just the role. The same ₹6 LPA hire can cost very different amounts as a one-off placement, inside a 200-seat ramp, or on a contract payroll. Here is how each model is priced in India, and what actually moves the number.
The four pricing models
| Model | How it is priced | Indicative range (India) | Best for |
|---|---|---|---|
| Permanent / direct placement | % of first-year CTC, paid on joining (success-based) | 8.33–15% junior–mid; 15–25% senior | Occasional and hard-to-fill roles |
| Executive search | % of first-year CTC, usually retained and paid in stages | 20–33% | CXO and leadership appointments |
| Contract staffing | Service fee on payroll cost, plus statutory costs | Typically a single-digit to low-double-digit % markup | Flexible, project or seasonal headcount |
| RPO | Monthly management fee, often plus per-hire fee | Scoped to volume and SLA | Sustained or high-volume hiring |
Volume fresher hiring — telecallers, branch sales, back office — is frequently priced as a flat fee per joiner rather than a percentage, because the salaries are low and the work is in pipeline management, not search.
What drives the fee up or down
- Scarcity. A credit manager with NBFC underwriting experience in a tier-2 city is a different search from a fresher telecaller.
- Exclusivity. Agencies price lower, and work harder, when they are not racing three competitors on the same role.
- Volume and commitment. Ten roles under one agreement cost less per hire than ten separate briefs.
- Confidentiality. Replacement and leadership searches that cannot be advertised take more research time.
- Guarantee length. A longer replacement guarantee carries more risk for the recruiter.
Costs employers forget
- GST at 18% applies to recruitment and staffing service fees.
- Statutory costs on contract staff — PF, ESIC, bonus and gratuity provisions — are passed through on top of the service fee. Compare quotes on the total cost per head, not the markup alone.
- The cost of a vacancy. An empty sales or collections seat loses revenue every week. A cheaper agency that takes six weeks longer is rarely cheaper.
- The cost of a bad hire — re-hiring, re-training and lost output — usually exceeds any fee saved.
Replacement guarantees
Most permanent placements in India carry a free-replacement guarantee if the hire leaves or is let go within an agreed period, commonly 60 to 90 days for mid-level roles and longer for leadership. Read the conditions: some guarantees exclude redundancy, or require the fee to be paid within a set number of days.
How SForce prices
We keep it simple. Direct placement is success-based — there is no upfront fee and you pay only on a successful hire. Staffing runs on transparent agreed rates. RPO and executive search run on managed or retained models agreed before we begin. Permanent placements carry a replacement guarantee, and executive appointments a 12-month leadership guarantee. We send a clear written proposal up front — and if your hiring would be cheaper done in-house, we will tell you.
For the salary side of the equation, see the India Salary Guide 2026; for choosing between models, read RPO vs in-house hiring.
Quick answers.
How much does a recruitment agency charge in India?
Permanent-placement agencies in India typically charge around 8.33% (one month's salary) to 15% of the hire's first-year CTC for junior and mid-level roles, and 15–25% for senior roles. Executive search is usually 20–33%. GST at 18% is added. These are indicative market ranges, not a quote.
Is GST charged on recruitment agency fees?
Yes. Recruitment and staffing services attract GST at 18%, charged on the agency's service fee.
What is a replacement guarantee in recruitment?
A promise to find a replacement free of charge if a placed candidate leaves or is let go within an agreed period — commonly 60 to 90 days for mid-level permanent roles, and longer for leadership hires.
Is RPO cheaper than paying agency fees?
At sustained volume, usually yes: percentage fees on dozens of hires a year add up faster than a monthly RPO management fee. For a handful of hires a year, per-placement fees are normally cheaper.
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Read more →Want a clear proposal for your hiring?
Tell us the roles and volume — we’ll send a written proposal with no surprises.