What percentage should a consulting company take off the top of your pay?
- by JasonStoltz
Let's say that, hypothetically, a programmer is being paid $40 / hour for a 6 month contract, through a contracting agency. That contracting agency is being paid $85 / hour for every hour that programmer works by the client. So the programmer only actually takes home 47% of what the client is paying per hour. Is this normal, or is the percentage unusually low?
Other things to consider:
The consulting agency isn't paying benefits
P.S (If this is normal, I'd also be curious what the justification would be to take that high of a percentage. And if it is NOT normal, what would be a normal percentage?)