I’m working haken and can see from the details of my contract that the agency takes 42% of what they charge the company I work at.
This seems high but I have no point of reference. The little I’ve been able to find online seems to point to 30-35% as a more normal range.
I’m aware that anecdotes are not data, but I’m curious how much the other haken out there are losing to their agencies.
2 comments
You think that if the agency lowered its gross margin, you would get paid more? Lots of variables come into play. Your agent has a burden of approximately 20.2% of your salary to cover your statutory benefits. How long is your contract? How rare is your skill set? What is the industry? How good is the relationship with this client? What was their cost to source, screen and place you? Ads aren’t free. Offices aren’t free. Not saying they might not be greedy wankers (some agents are), just pointing out that you don’t automatically get more pay when the agency has a lower gross margin.
When I first came to Japan my agency charged the customer 350,000 per month and gave me 190,000. But they also paid for my social insurance and provided me lodging with utilities at 30,000 per month. The rumor was that after taking everything into account, each of us made them around 80,000 profit per month, enough to hire 2 additional developers in my home country.