Do Temp Agencies Cost Money? Fees for Workers and Businesses Explained

No, legitimate temp agencies don't charge workers to find them a job. The businesses that hire temps pay the agency, usually through a markup on each hour worked (often 25%–75% on top of the worker's pay) or a placement fee for permanent hires. An agency asking you for money upfront is a red flag.

For workers: do temp agencies charge you?

Legitimate agencies are paid by employers. You should not pay to register, apply or be placed. Your pay comes from the agency, minus normal taxes, just like any job.

Possible small costs you might cover yourself: getting to the job site, work boots or a uniform (depending on the job and local law).

For businesses: what temp agencies cost

The markup covers payroll taxes, workers' comp, insurance, recruiting, benefits and the agency's profit.

Red flags of scam agencies

• Asking for money to register or get a job
• Requesting bank or identity details before any interview
• Jobs that sound too good to be true
• No physical address or business registration

Is using a temp agency worth it for businesses?

Often yes for seasonal peaks, fast hiring and trying workers before hiring, even with the markup, because the agency handles recruiting and payroll.

More: What is a temp agency? and How to get hired through a temp agency.

Frequently asked questions

Do temp agencies cost money?

Not for workers. Businesses pay the agency.

Do temp agencies charge you a fee?

Legitimate agencies don't charge workers to find jobs.

How much do temp agencies charge businesses?

Usually the worker's pay plus a 25%–75% markup per hour.

Do temp agencies take part of your paycheck?

They don't deduct a fee from your pay; they earn from the markup billed to the business.

What is a temp-to-hire conversion fee?

A fee a business pays if it hires the temp permanently before a set number of hours.