A UK agency fee is first-year base salary × the agency's percentage, plus 20% VAT. At the typical 20% for tech roles, a £75,000 hire costs £15,000 (£18,000 invoiced); retained search at 30% costs £22,500 with £7,500 due before a CV arrives. The same hire is £5,250 on ON3 Agentic or £15,000 on Atelier, success-only, with free replacement instead of a rebate.
What will this hire cost in recruitment fees?
What the calculator does with your numbers
The fee is the first-year base salary multiplied by the agency's percentage. UK contingency agencies charge 15–25%, with tech roles usually at 18–22%; retained search runs 25–33% and bills in three instalments. VAT at 20% goes on top of every fee, which turns a 20% fee into a 24% invoice. The full fee breakdown by model, seniority and specialism is in our UK recruitment agency fees guide.
- ·Base salary, not package. Most terms define remuneration as base salary. If yours includes bonus, commission or car allowance, enter the total the terms would count.
- ·Retained instalments. The calculator splits a retained fee into thirds. Some firms bill 30 / 30 / 40, and most set a minimum fee of £15,000–25,000 regardless of salary.
- ·The rebate schedule is illustrative. Full refund in the first four weeks, half in weeks five to eight, a quarter in weeks nine to twelve is a common shape, not a standard. Your terms of business are the only version that counts.
- ·Vacancy cost. The weekly figure is salary divided by 52: the direct cost of the seat staying empty, before the drag on the rest of the team.
What common UK engineering hires cost in fees
| Role | Salary | Agency fee | With VAT | ON3 Agentic 7% | ON3 Atelier 20% |
|---|---|---|---|---|---|
| Junior backend engineer | £38,000 | £6,840 (18%) | £8,208 | £2,660 | £7,600 |
| Mid-level full-stack developer | £65,000 | £13,000 (20%) | £15,600 | £4,550 | £13,000 |
| Senior backend engineer | £95,000 | £19,000 (20%) | £22,800 | £6,650 | £19,000 |
| Lead / staff ML engineer | £120,000 | £26,400 (22%) | £31,680 | £8,400 | £24,000 |
| VP of Engineering (retained) | £150,000 | £45,000 (30%) | £54,000 | — | £30,000 |
Agency percentages are the typical UK ranges for each level; the retained example assumes 30% in three instalments. ON3 fees are success-only and exclude VAT.
Across these five hires the agency fees add up to £110,240 before VAT. The same five on ON3 Atelier come to £93,600, with a senior engineer interviewing every finalist, and the four non-executive roles on Agentic come to £22,260.
Four clauses that change the number the calculator gives you
- ·Rebate conditions. Rebates are often void if the invoice was paid late, if the hire was made redundant rather than leaving, or if you didn't notify the agency within a set number of days.
- ·Introduction period. If you hire a candidate the agency introduced within 6–12 months, even through another route, the fee is still due. Keep a record of who introduced whom.
- ·Exclusivity and multi-agency. Two agencies sending the same CV means a dispute over who introduced first. Exclusivity avoids it and is the strongest lever for a lower percentage.
- ·Minimum fee. Common on retained and executive work; on a £60,000 role a £20,000 minimum is a 33% fee in disguise.
ON3's terms are the short version: a success fee of 7% or 20%, nothing invoiced unless you hire, and a free replacement within 60 or 90 days rather than a sliding rebate. The tiers are set out on the pricing page, and the cost comparison with a traditional agency on a real hire is in AI recruiter cost vs agency fees.
Recruitment fees: frequently asked questions
How is a recruitment agency fee calculated?
Do recruitment agencies charge VAT on their fees?
What is a rebate period?
What is the difference between a contingency and a retained fee?
How much do recruitment agencies charge for contractors?
Want the number for your actual role?
Tell us the role, level and location. You get a fee quote on both tiers and a qualified shortlist within 24 to 48 hours.
Get a fee quote →Sources and assumptions
Fee ranges. UK contingency 15–25%, tech 18–22%, retained 25–33% in three instalments: Recruitly (2026), Leonar (2026), Valuable Recruitment (2026).
VAT. Recruitment services are standard-rated in the UK; 20% is added to the fee on every invoice.
Rebate schedule. Illustrative sliding scale over 8 or 12 weeks; agency terms of business vary and govern.
ON3 Works. 7% Agentic and 20% Atelier success fees, no deposit; free replacement within 60 days (Agentic) or 90 days (Atelier).