Price the hire, not just the fee. Hiring cost estimator.
The placement fee is only part of what a hire costs. Compare an agency placement fee with in-house recruiting once onboarding, the days a seat stays empty and early exits are counted — per hire and for your whole hiring plan.
Your inputs
Replacement guarantee assumed to cover every early exit; check the guarantee period (often 60–90 days) against when people actually leave.
Indicative only. Enter your own fee, costs and days-to-fill; totals exclude GST, which registered businesses usually recover.
Get a recruitment quote →How the hiring cost is calculated
Cost per hire is everything you spend to get one person productive in a seat, divided by the number of hires. We count five parts.
Worked example: 20 hires at ₹3 lakh CTC
The calculator's default inputs: 8.33% fee with a replacement guarantee, ₹12,000 in-house sourcing, ₹5,000 onboarding, 30 days to fill at ₹1,500 a day, 15% early exits.
| Per hire | Agency | In-house |
|---|---|---|
| Sourcing | ₹24,990 (8.33% × ₹3,00,000) | ₹12,000 |
| Onboarding | ₹5,000 | ₹5,000 |
| Vacancy (30 × ₹1,500) | ₹45,000 | ₹45,000 |
| Early-exit rework (15%) | ₹7,500 (15% × ₹50,000; fee waived) | ₹9,300 (15% × ₹62,000) |
| Total per hire | ₹82,490 | ₹71,300 |
| 20 hires | ₹16,49,800 | ₹14,26,000 |
| GST on fee (recoverable) | ₹4,498 per hire | — |
At the same 30 days to fill, in-house is cheaper here. The comparison flips when the agency fills faster: at 15 days instead of 30, the agency route falls to ₹56,615 a hire (vacancy ₹22,500, rework ₹4,125) — below the in-house ₹71,300 at 30 days. Change "Days to fill" to test your own numbers.
What recruitment agencies charge in India
Indicative ranges commonly quoted for permanent recruitment in India. Actual fees depend on seniority, volume, exclusivity and the replacement terms you negotiate.
| Hiring type | Typical fee basis | What to check |
|---|---|---|
| Volume and junior roles | Around 8.33% of annual CTC (one month's salary), or a flat fee per hire | Replacement period, payment on joining vs after probation |
| Mid-level specialist roles | Roughly 10–15% of annual CTC | Whether CTC includes variable pay and joining bonus |
| Senior and executive search | Often 12–20% of annual CTC, and more for top executive search, sometimes with a retainer | Retainer milestones, exclusivity, off-limits clauses |
| RPO (outsourced recruiting) | Monthly management fee plus a per-hire fee | Minimum volumes, SLAs on time-to-fill |
GST on placement fees
Recruitment and placement services attract 18% GST on the fee. Ask for a GST invoice so you can claim input tax credit.
Replacement guarantee
Most agencies replace a candidate who leaves within an agreed period free of charge. Get the period and conditions in writing.
When contract staffing is cheaper
For roles you need for months rather than years, or for volume you cannot forecast, compare with contract vs permanent costs and read how staffing agency fees work.
Hiring cost questions, answered
What is a typical placement fee in India?+
For permanent roles, commonly 8.33% of annual CTC — one month's salary — for volume and junior hiring, rising to 12–20% for senior roles and more for executive search. Treat these as indicative and compare written quotes.
How do you calculate cost per hire?+
Add everything you spend to fill the roles — agency fees or in-house recruiting costs, onboarding, and the cost of the seat staying empty — and divide by the number of hires.
Is GST charged on recruitment fees?+
Yes, 18% on the fee. Registered businesses can usually claim it back as input tax credit, which is why the calculator shows it separately.
Is the placement fee on fixed or total CTC?+
It depends on the contract. Many agencies charge on annual fixed CTC; some include variable pay or joining bonus. Agree the base in writing before the search starts.
What does the cost of a vacancy include?+
Overtime paid to cover the gap, lost output or sales, temporary staff, and supervisor time. Enter your own estimate per day — for operational roles it is often larger than the fee.
When is in-house recruiting cheaper?+
When you hire steadily in the same roles, already pay for job boards and recruiters, and can fill positions as fast as an agency.
Do agencies charge if the candidate leaves early?+
Usually not if the exit falls inside the replacement guarantee — the agency finds a replacement at no fee. Outside that window a new search is billed as a new placement.
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