Recruitment agency cost in India (2026)
Recruitment agencies in India typically charge 8.33%–16.67% of a hire's annual CTC — that is one to two months' salary as a one-time placement fee — with 8–15% the common band for permanent roles in 2026. Cost per hire ranges from about ₹35,000 (~$410) for entry-level to ₹2,50,000+ (~$2,950) for executive roles. RPO and dedicated recruiters are priced monthly from $1,500.
Cost breakdown
| Item | India | US / global | Note |
|---|---|---|---|
| Entry-level / bulk placement fee | 8.33% of CTC (≈1 month) | 15–20% (US) | One-time |
| Mid-level / specialised fee | 12.5% of CTC (≈1.5 months) | 18–25% (US) | One-time |
| Senior / niche / executive fee | 16.67%+ of CTC (≈2 months) | 25–35% (US) | One-time |
| Cost per hire (all-in) | ₹35,000–₹2,50,000+ ($410–$2,950) | $4,000–$20,000 (US) | Incl. sourcing, BGV |
| RPO / dedicated recruiter (monthly) | From $1,500/mo | $6,000–$10,000/mo (US) | AB7 managed FTE |
Ranges are 2026 market context, not quotes. AB7's transparent floor is $1,500/month per dedicated full-time professional.
India vs US — the honest delta
Contingency placement fees in India (8–17% of CTC) sit well below US agency fees (15–35%), and a dedicated India-based recruiter or RPO pod costs 60–70% less than a US equivalent. For high-volume or ongoing hiring, an RPO retainer is usually cheaper per hire than per-placement contingency fees.
What drives the cost
- Permanent placement vs contract/C2H vs RPO retainer
- Seniority and how hard the role is to fill
- Volume — bulk hiring lowers per-hire cost
- Replacement-guarantee period included
- Whether background verification (BGV) is bundled
Watch for hidden costs
- Replacement cost if the guarantee period is short
- Background-verification and assessment add-ons
- Job-board and sourcing-tool pass-through on some models
What AB7 charges
AB7 runs full-RPO and dedicated recruiters from its Mohali Phase 8B hub at $1,500/month per recruiter, with ATS administration (Greenhouse, Lever, Workday), candidate screening and a replacement guarantee. A US scale-up hiring 10+ roles a quarter gets a predictable monthly RPO cost instead of stacking contingency fees.
See the full pricing page, the ROI calculator, or other cost-in-India guides.
Common questions
How much does a recruitment agency cost in India?▾
Most charge 8.33%–16.67% of the hire's annual CTC — one to two months' salary as a one-time fee — with 8–15% common for permanent roles in 2026. All-in cost per hire runs ₹35,000–₹2,50,000+ depending on seniority. AB7 also offers monthly RPO from $1,500 per dedicated recruiter, which is cheaper for ongoing hiring.
What is the recruitment fee percentage in India?▾
Typically 8.33% (≈1 month CTC) for entry-level and bulk roles, 12.5% (≈1.5 months) for mid-level, and 16.67%+ (≈2 months) for senior or niche hires. US agencies charge 15–35%. AB7 prices high-volume hiring as a monthly RPO retainer to avoid stacking per-placement fees.
What is the average cost per hire in India?▾
About ₹35,000 (~$410) for entry-level up to ₹2,50,000+ (~$2,950) for executive roles, including sourcing, agency fee, background verification and internal time. A dedicated RPO recruiter at $1,500/month often lowers the effective per-hire cost when you are filling many roles.
How much cheaper is India than the US for recruitment?▾
Placement fees are roughly half (8–17% of CTC versus 15–35% in the US), and a dedicated India recruiter or RPO pod costs 60–70% less than a US equivalent. AB7 delivers RPO from its Mohali hub at $1,500/month per recruiter with a replacement guarantee.
Are there hidden costs with Indian recruitment agencies?▾
Watch the replacement-guarantee length, background-verification add-ons and sourcing-tool pass-through. AB7 states the guarantee period and what is included up front, and bundles ATS admin and screening into the monthly RPO price.
Related
Want an exact quote for recruitment & staffing? Talk to AB7 at +1-321-341-7733 (US) or +91-98780-67778 (India), email director@ab7solutions.com, or book a 30-minute scoping call.