Employee leasing is your ace up your sleeve when it comes to elegantly bridging staff shortages. But what about the costs of hiring out employees? What does a temporary worker really end up with in their pocket and how does a temporary employment agency calculate its prices?
In this article, you'll get the full scoop on temporary staffing costs, plus a few smart tricks on how to optimise your staffing costs without sacrificing quality.
Table of contents
- Personnel leasing costs - How are they made up?
- How much does a temporary worker earn per hour?
- How does a temporary employment agency earn its money?
- Costs of temporary workers in Germany vs. Eastern Europe: What's the difference?
- What do companies save with personnel from Eastern Europe?
- Employee leasing costs: important fees at a glance
- How long does the application process for temporary employment take?
- How can Temporary Employment International help with the supply of temporary workers?
- FAQ - Frequently asked questions about the costs of temporary employment
Estimated reading time: 10 minutes
Personnel leasing costs - How are they made up?
Temporary employment costs are made up of a whole range of ingredients. Temporary employment agencies pay the temporary workers' wages, social security contributions, holiday pay and, if necessary, shift or weekend bonuses on top.
But that's not all. On top of this comes a placement fee, which the temporary employment agency uses to cover its administrative costs and, of course, its profit margin. The end result is a smart calculation that gives companies the opportunity to bring missing workers into the team quickly and without stress.
How much does a temporary worker earn per hour?
Temporary workers' earnings depend on their profession, sector and qualifications. The statutory minimum wage is the lower limit and currently stands at 12.41 euros per hour (as of 2024).
- Unskilled labour usually earn 12.50 to 13.50 euros per hour.
- Professionalssuch as electricians or mechanics, receive between 16 and 20 euros.
- Academic professions can earn up to 25 euros or more.
Additional factors such as collective labour agreements play a decisive role in remuneration. According to Statista the average gross pay of temporary workers in Germany in 2023 was around 2,400 euros per month, while employees as a whole earned an average of around 3,800 euros.
Temporary workers vsten and if you bring the temporary worker permanently into the team by profession and training
Temporary workers' earnings depend largely on their training and profession. Here is an overview:
| Profession | Hourly wage (average) |
| Unskilled labour | 12,50 € - 13,50 € |
| Skilled worker (e.g. metal) | 16,00 € - 20,00 € |
| Academic professions | 20,00 € - 25,00 € |
Temporary workers in specialised areas such as IT or medicine earn significantly more. The qualification therefore not only influences the salary, but also the costs for you.
How does a temporary employment agency earn its money?
Temporary employment agencies hire temporary workers, cover their labour costs and lend them out to companies. Their income results from the difference between the hourly wage of the temporary workers and the hourly rate that companies pay.
They realise their profit margin through this difference. The more specialised the temporary workers, the higher both the hourly wage and the costs for the company.
How is temporary work calculated?
The calculation in temporary employment is based on clear components. Here are a few points:
- Hourly rate of the temporary worker
- Social security contributions, taxes and holiday pay
- Profit margin of the temporary employment agency
Sample calculation:
Sample calculation:
A temporary worker earns 15 euros per hour. Added to this are social security contributions of 40 %, resulting in a total cost of 21 euros. If the temporary employment agency adds a profit margin of 5 euros per hour, companies pay 26 euros.
What percentage does a temporary employment agency keep?
Temporary employment agencies retain an average margin of 20 to 30 per cent. This varies depending on the qualifications of the temporary worker, the duration of the assignment and the terms of the contract.
Long-term assignments often lead to more favourable conditions. Good planning enables companies to calculate temporary labour costs efficiently.
Who pays the inflation compensation premium for temporary work?
The inflation compensation bonus is a voluntary bonus that employers can pay to their employees. In temporary employment, it is up to the temporary employment agency to pay out this bonus.
Companies that employ temporary workers do not incur any direct additional employee leasing costs as a result of the bonus. Nevertheless, such payments indirectly influence the margins of temporary employment agencies.
How high is the transfer fee for temporary employment?
If a company wishes to take on a temporary worker permanently, a transfer fee is often payable. This covers the temporary employment agency's placement costs.
The amount depends on:
- Duration of assignment of the temporary worker
- Hourly wage
- Qualification
After longer periods of employment, the transfer fee is partially or completely waived. Clarify the exact conditions with the temporary employment agency in advance.
Costs of temporary workers in Germany vs. Eastern Europe: What's the difference?
A comparison shows that temporary workers from Eastern Europe are often cheaper than their German colleagues. The reasons for this are the lower wages and cost of living in Eastern European countries.
However, language barriers and different qualification levels require additional familiarisation time. Companies should weigh up whether they primarily want to save on employee leasing costs or reduce the familiarisation period.
What do companies save with personnel from Eastern Europe?
Companies mainly save on labour costs with temporary workers from Eastern Europe. The hourly wage is lower, but the motivation to work is still high.
In addition, Eastern European workers are flexible and often willing to work overtime. This can be particularly advantageous in sectors such as logistics or construction. What remains important, however, is clear communication and legally compliant contracts to ensure smooth processes.
Employee leasing costs: important fees at a glance
Who wants a We offer employee leasing plans, the following Personnel leasing costs note:
- Initial application: 377 Euro
- First extension2,060 euros (1,316 euros for a simple examination)
- Second extension: 218 Euro
- Permanent licence2,060 Euro
In addition to the fees, there are costs for Social security contributions, non-wage labour costs and commissions to. These vary considerably depending on the industry and application.
What additional costs are incurred when hiring out employees?
In addition to the basic fees, there are a number of other costs. These include the Hourly wage of the temporary employeethe social security contributions to be paid by the temporary employment agency as well as non-wage labour costs such as provisions for continued remuneration and contributions to the employers' liability insurance association.
The Commission from the temporary employment agency of course, they also want to earn something. In some industries, additional industry-specific surcharges ensure that the bill increases, especially for longer assignments. And then there are the administrative costs and, if you want to bring the temporary worker permanently into the team, possible transfer fees.
Are there ways to reduce the costs of hiring out employees?
Companies can optimise their employee leasing costs in a targeted manner. Long-term cooperation with experienced temporary employment agencies helps to pay only for the hours actually required. Digitalisation and automation of administrative processes significantly reduce internal costs. Specialising in certain niche markets also improves efficiency.
Redundant processes can be avoided by reviewing unnecessary administrative work. The use of part-time staff and public funding programmes also help to reduce costs.
How long does the application process for temporary employment take?
The application process usually takes around three months. However, depending on the capacity utilisation of the responsible authority, the processing time can extend to five months or longer. Holiday periods at the end of the year often delay the process. To speed up the process, we recommend Online applicationwhere companies can quickly submit missing documents and track their status. A complete application with no gaps significantly minimises waiting times.
What requirements must be met in order to apply for temporary employment?
Companies must fulfil certain requirements in order to obtain a temporary employment permit. These include the financial reliability and personal suitability of those responsible, as evidenced by certificates of good conduct and extracts from the central trade register.
In addition, companies must submit documents such as a business registration, proof of liquid assets (at least 10,000 euros) and sample employment contracts. They should also be commercially active and pursue the hiring out of employees as their core business.
Conclusion
Employee leasing costs depend on many factors, but offer clear advantages: Flexibility, qualified personnel and quick solutions to bottlenecks.
Use temporary staffing strategically, save on personnel costs and remain competitive. Good cooperation with experienced temporary employment agencies facilitates implementation and reduces overall costs.
How can Temporary Employment International help with the supply of temporary workers?
Zeitarbeit International is an experienced partner that supports companies in the successful implementation of employee leasing, including employee leasing costs. With a comprehensive service package, the platform not only helps with the placement of qualified specialists, but also with cost optimisation and compliance with legal regulations. Particularly in the area of international labour, Zeitarbeit International offers effective solutions for the efficient and legally compliant deployment of qualified personnel from Eastern Europe.
Companies also benefit from fast and smooth processing, as Zeitarbeit International takes care of administrative processes such as applying for authorisations and drafting contracts. Efficient processes save time and reduce sources of error while you concentrate on your core business. You can find further information directly at our Website.
Useful information:
FAQ - Frequently asked questions about the costs of temporary employment
Temporary work is worthwhile for companies as it is the perfect solution for bridging staff shortages quickly and flexibly with qualified temporary workers - like a joker in your HR deck.
The hourly wage of temporary workers depends heavily on their profession and qualifications:
- Unskilled labour: €12.50-13.50
- Skilled labour (e.g. electrician): € 16-20
- Academics: up to €25 or more
Everyone will find the right offer for their budget!
It's all in the mix:
- Hourly wage of the temporary worker
- Social security contributions and non-wage labour costs
- Commissions for the temporary employment agency
Additional costs such as industry-specific surcharges or administrative costs may be added on top.
The temporary employment agency hires out temporary workers to companies and collects the difference between the hourly rate of the labour and what the customer pays.
As a rule, the margin for employee leasing is between 20 % and 30 %. Long-term assignments often bring more favourable conditions.
The so-called transfer fee depends on the duration of the assignment, qualifications and hourly wage. It is often cancelled after longer assignments.
If there's a bonus, it comes from the temporary employment agency - it's cost-neutral for you as a company.
Workers from Eastern Europe receive lower wages, but still have a high work ethic and flexibility. But be careful: you should allow for language barriers and familiarisation periods.
The application for temporary employment normally takes about three months. Longer if the authorities are busy. A complete application and online application help to minimise waiting times.
In addition to the usual suspects (hourly wages, social security contributions), administrative costs, shift allowances and, if applicable, transfer fees may be added.