What is Pay Rate?
The pay rate is the amount a staffing agency or employer pays a worker directly for their time, distinct from the bill rate charged to the client.
Why does Pay Rate matter?
Pay rate has to stay competitive enough to attract and retain quality contractors while leaving enough margin between it and the bill rate for the agency to operate profitably.
How does Pay Rate work?
Agencies set pay rate based on market data, the worker’s experience and skill level, and the bill rate available for the role, then process payroll and required withholdings against that rate.
Frequently asked questions
Does the pay rate include benefits?
Not typically; pay rate usually refers to base hourly wages, with benefits like health coverage handled separately depending on the worker’s classification and the agency’s offerings.
Can pay rate change during a contract?
It can, usually if the assignment is extended, the role changes, or the client renegotiates the bill rate, which then affects available margin.
How BrightMove helps
BrightMove’s Back Office module keeps pay rate, bill rate, and markup connected in one system instead of a separate spreadsheet. See BrightMove’s Back Office billing and invoicing.