What fee do you pay recruitment firms, 3 or 4 months’ salary?
Your third-party recruitment company, or executive search firm calculate their service fee as a percentage of the successful candidate’s first year’s annual income.
But what is the percentage and what does annual income mean?
The percentage will typically vary from, and be anywhere in between, 15% and 35% and even up to 40%. A standard definition of annual income is the total of the gross salary per month before tax multiplied by thirteen months plus other monetary benefits such as fixed allowances times twelve (e.g. transport, mobile phone, housing). The thirteenth month represents any fixed and variable bonuses no matter how many months a client ends up paying.
A fixed allowance means a similar amount of money paid every month through the pay-slip and is considered personal income by the Revenue Department. In Thailand, we come across fixed allowances for transport (this could be 20,000 baht per month for a new car below one million in purchase price); mobile phone lik