The headline number: 8–15% of annual CTC
For permanent hiring, most Indian recruitment agencies charge a success fee between 8% and 15% of the candidate's annual CTC, payable when the hire joins. Where you land in that band depends on role seniority, how niche the skill is, and how much competition the recruiter faces for the same talent.
Lower-value, high-volume categories — delivery, telecalling, feet-on-street sales — usually attract lower payouts and weaker economics, which is exactly why quality-focused agencies avoid them. For operational, supply chain, finance, HR and other business-critical roles, the 8–15% band is the honest reference point.
Contingent vs retainer vs subscription
Three commercial models dominate the market, and they solve different problems:
- Contingent (success-fee): you pay only when a candidate joins. Flexible and low-commitment, but the recruiter is juggling many mandates and yours competes for attention.
- Retainer: you pay a portion upfront to secure dedicated effort. Common for senior or hard-to-fill roles.
- Subscription / embedded: a monthly fee buys dedicated recruiter bandwidth, and the per-hire percentage drops in exchange. Best for recurring hiring.
The cheapest percentage isn't always the cheapest hire. A model that fills roles faster and with fewer drop-offs usually wins on total cost.
Why a monthly retainer can lower your per-hire cost
It sounds counter-intuitive, but paying a monthly fee can reduce what you pay per hire. When a recruiter has committed, paid bandwidth for your account, the outcome-linked success fee can sit below a standard contingent percentage. That's the logic behind OCNET's Hiring Desk: ₹20,000–40,000/month plus a reduced 6–7% success fee, versus 8%+ on pure contingent hiring.
What about startups hiring 1–3 roles?
Early-stage teams don't want a heavy retainer, but they do want commitment on both sides. A small token retainer — adjustable against final billing — solves this. OCNET's Startup / SME Hiring Pack is a total of 5% of CTC (2% token + 3% on joining) for up to three roles in 90 days, with a 90-day replacement guarantee. For a ₹5 LPA role, that's ₹10,000 upfront and ₹15,000 on joining.
Five questions to ask before you sign
- Is the fee a percentage of fixed CTC or total CTC (including variable)? It matters.
- What's the replacement guarantee, and how long is the window?
- Is BGV bundled or a separate, optional cost? (It should be optional.)
- Do you get visibility into the pipeline, or just a stream of CVs by email?
- Who actually works your account — a dedicated recruiter or a rotating desk?
The bottom line
In 2026, expect 8–15% for standard contingent hiring in India. If you hire often, a subscription model can cut your effective per-hire cost. If you're small, a token-based pack keeps entry costs low. And whatever you pay, insist on process visibility — it's the difference between a vendor and a hiring partner.