Pay Rate

A pay rate is the hourly wage a staffing agency pays the worker directly, before the markup that produces the bill rate charged to the client.

The pay rate is what lands in the worker's paycheck (before their own tax withholding). It is set by the agency based on the role, local wage levels, and the worker's skills and experience.

The difference between the pay rate and the bill rate — the markup — funds the agency's employer costs and margin. A worker generally sees the pay rate, while the client sees the bill rate.

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