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Agency charging £12.95 per hour for me, yet i'm getting paid £7.00 per hour!

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Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Personally I only work for minimum wages plus 45p/mile and Jobcentre agrees with me. So if I can walk to work then I'll work for minimum wage no problem...However, if the job is 20 miles away then my rate based on a 7.5 hour day is no less than 40*.45/7.5+6.19 = £8.59 per hour. Just an idea for the future so you aren't losing money on the petrol and the lack of benefits when you are working.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • 19lottie82
    19lottie82 Posts: 6,033 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I don't understand. You were happy with the job / wage until you saw how much the agency was charging their client?

    I know £12.95 seems a lot but think of all the things they have to cover from that £5.95 they have remaining after they have paid you.

    - Rent
    - Wages (payroll, recruitment / cleaners / more)
    - Taxes
    - Your Holidays
    - Insurance
    - Advertising


    The list goes on and on, and that's before they (hopefully) make a profit.

    Your comparison is like going in to a shop, and spending 70p on a bar of chocolate, that the shop keeper has paid 40p for. The 30p "profit" isn't going straight in to the shop keepers pocket, he has loads of overheads to pay as well (similar to the above).

    But on a side note, £7 per hour for a (experienced) PA does seem VERY low. Where I am (Glasgow) a temp role will command about £10 an hour and a perm PA role will be about £20-30 k.
  • paddyrg
    paddyrg Posts: 13,543 Forumite
    If it helps, whilst you cost the hiring company £12.95/hour, if you were on their payroll it would likely be a minimum wage job as well. They wouldn't pay you £12.95 as they would have employee overheads to pay and account for (holiday pay, sick pay, maternity, NI, etc as well as the costs of managing your payroll).

    If you believe you're worth more, see the job out and ask for £12/hr for the next role - if you get one, that's great, if you don't, that's market economics in action. Either way, if you were paid £12/hr, the agency would have to charge maybe £18+ to cover holiday, NI, payroll processing, etc., and so it goes on.
  • PasturesNew
    PasturesNew Posts: 70,698 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I used to be charged out at £100/hour and I got £10/hour.
  • AP007
    AP007 Posts: 7,109 Forumite
    I used to be charged out at £100/hour and I got £10/hour.
    for an agency or company?
    We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com
  • CCFC_80
    CCFC_80 Posts: 1,289 Forumite
    Recruitment Agencies, AHHRRRRGHHHHH:eek::mad:. Unfortunately they appear to be a necessary evil.

    In my opinion the Relationship of a Recruitment agency and their candidate is no different to one between a prostitute and their pimp.
  • My 'time' is charged at about £90 p.h. by my company. I certainly don't earn that.

    It also costs more than the 'salary' an employee is charged at to hire them. I seem to remember that whatever you earn, it costs 40% extra to pay for the tax/overheads/training of hiring you
  • AP007
    AP007 Posts: 7,109 Forumite
    CCFC_80 wrote: »
    Recruitment Agencies, AHHRRRRGHHHHH:eek::mad:. Unfortunately they appear to be a necessary evil.

    In my opinion the Relationship of a Recruitment agency and their candidate is no different to one between a prostitute and their pimp.
    minus the beatings I guess :eek:
    We’ve had to remove your signature. Please check the Forum Rules if you’re unsure why it’s been removed and, if still unsure, email forumteam@moneysavingexpert.com
  • scooby088
    scooby088 Posts: 3,385 Forumite
    As long as I get paid I couldn't give a fig what the agency is charging for my services. Thought it rather a foolish question to ask on the OP's part, and before accepting I always work out the fuel for my petrol too before I accept or turn it down.
  • WantToBeSE
    WantToBeSE Posts: 7,729 Forumite
    I've been Money Tipped! Debt-free and Proud!
    I do some work for an agency (i am a self-employed cleaner). They charge clients £12 p/h and pay me £8 p/h +45p p/mile if they send me more than 5 miles away from the town i live in.

    For private clients i charge £10 p/h, but agreed with the agency that i would accept £8 p/h if they could give me regular hours, so they did :)
    Works out well for me!
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