Recruitment agencies in Singapore typically charge employers 15% to 25% of the hire’s annual salary for a permanent placement on a contingency basis, with senior and specialist roles at the upper end. Retained executive search is usually priced as a share of first-year total cash compensation (often around a third) and paid in instalments. Fees charged to employers are agreed commercially in 2026, not set by law.
The percentage is only part of the answer. What the percentage is applied to, when you pay and what happens if the hire leaves early can move the real cost by thousands of dollars. This guide explains each model with worked examples in SGD.
The three main fee models
| Model | Typical price | When you pay | Best for |
|---|---|---|---|
| Contingency (success fee) | Commonly 15% to 25% of annual salary (JTE Recruit) | Only when the candidate is hired | Mid-level and specialist roles, several agencies at once |
| Retained search | A share of first-year total cash compensation; JRG Partners quotes 33% | In stages, part upfront and the balance on completion | Senior, confidential and hard-to-fill roles |
| Contract or temporary staffing | An ongoing rate bundling salary, CPF, SDL and the agency’s margin | Monthly, for as long as the worker is on assignment | Projects, cover and interim roles |
Contingency
JTE Recruit says contingency fees in Singapore “commonly sit somewhere around 15% to 25% of annual salary”. It notes the rate varies with seniority and specialisation, hiring volume, the calculation basis and the length of the replacement guarantee. Because you only pay on success, contingency suits roles where several agencies can compete and the candidate pool is reasonably visible.
Retained
Retained search is an exclusive engagement. The firm is paid to run a defined process, including market mapping and direct approaches, rather than only for the result. JRG Partners describes a typical structure of 33% of first-year total cash compensation, paid in three instalments: on signing, on delivery of the candidate shortlist and on offer acceptance, with a reconciliation invoice if the final package differs from the estimate. Rates and stages differ between firms, so treat this as one example rather than a market standard.
If you are deciding between the two for an insurance leadership role, our guide to retained vs contingency search goes into the trade-offs.
Contract and temporary staffing
For contractors, JTE Recruit explains that agencies charge “an ongoing rate that bundles the worker’s salary, statutory contributions (CPF, SDL) and the agency’s margin”, either as a markup on an hourly or daily rate or a fixed monthly fee per person. Second Talent gives an indicative range of 20% to 25% for Singapore staffing arrangements, with technology and finance roles at the upper end.
Worked examples in SGD
These are illustrations of how the percentages translate, not quotes. Annual salaries are hypothetical.
| Scenario | Fee basis | Fee |
|---|---|---|
| Underwriter, base S$90,000, 15% contingency | Base salary | S$13,500 |
| Same role, 20% contingency | Base salary | S$18,000 |
| Same role, 20% on base plus S$15,000 fixed bonus | Total package S$105,000 | S$21,000 |
| Head of Claims, S$250,000 total cash, 25% contingency | Total cash | S$62,500 |
| Chief Underwriting Officer, S$450,000 total cash, 33% retained | Total cash | S$148,500, in three stages |
The third row shows why the basis matters: the same 20% costs S$3,000 more when a fixed bonus is included. JTE Recruit’s advice is to “confirm whether the percentage is on base salary or total package”.
What the law says about fees in Singapore and Hong Kong
Singapore
The Ministry of Manpower regulates what agencies can charge workers, not employers. In a 2024 forum reply, MOM explained that agencies may charge workers up to one month of fixed monthly salary for each year of service, capped at two months’ salary; must refund half the fee if the employment ends within six months; must not collect fees upfront before a placement is secured; and must issue itemised receipts. For professional and executive hiring, the employer normally pays the full fee and the candidate pays nothing.
You can check an agency’s licence and its consultants’ registration on MOM’s EA Directory.
Hong Kong
The Labour Department caps the commission an agency can take from a job seeker at 10% of the first month’s salary after placement, and charging job seekers anything else is an offence with a maximum penalty of HK$350,000 and three years’ imprisonment. As in Singapore, employer fees are a matter of contract.
Contract terms to check before you sign
- Fee basis: base salary, base plus fixed bonus, or total cash including variable bonus and sign-on.
- Guarantee: the length of the replacement or refund period and what triggers it (resignation, dismissal, failed probation).
- Payment terms: invoice on offer acceptance or on start date, and the number of days to pay.
- Exclusivity: whether you can use other agencies or hire directly during a retained search.
- Introduction period: how long a fee is payable if you hire a candidate the agency introduced, even for a different role.
- Expenses: whether advertising, assessment or travel costs are charged separately.
- Cancellation: what you owe if you stop a retained search part way through.
How to keep the cost down without losing quality
- Write a sharp brief. A clear role definition shortens the search, whatever the model.
- Use the right model for the level. Paying retained for a junior role wastes money; running a C-suite search on contingency across five agencies can expose a confidential search.
- Agree volume terms. JTE Recruit notes rates are often lower when an agency fills multiple positions.
- Move quickly once you have a shortlist. Slow interviews lose candidates and force a restart. Our guide to how long senior insurance hires take shows where time is usually lost.
For help choosing the agency itself, see how to choose an insurance recruitment agency in Singapore.
How LUNOS can help
LUNOS is a boutique search firm for insurance, contracting and consulting roles across APAC, headquartered at 50 Raffles Place in Singapore with offices in Malaysia and Hong Kong. We run search and executive headhunting, contracting and consulting, market mapping and salary analysis. If you are budgeting for an insurance hire and want to understand the market before choosing a fee model, talk to one of our consultants in confidence.
Frequently asked questions
Do job seekers pay recruitment agency fees in Singapore?
Agencies can legally charge workers, but MOM caps it at one month of fixed salary per year of service, up to two months. For professional and executive roles the employer normally pays and the candidate pays nothing.
Is the agency fee calculated on base salary or total package?
It depends on the contract. Some agencies use base salary, others base plus fixed bonus or total cash. Always confirm in writing, because it can change the fee materially.
How much does retained executive search cost?
Retained search is typically priced as a share of first-year total cash compensation and paid in stages. JRG Partners, for example, quotes 33% paid on signing, on shortlist and on offer acceptance.
Are employer recruitment fees regulated in Hong Kong?
Hong Kong regulates what agencies charge job seekers, capped at 10% of the first month’s salary. Fees paid by employers are agreed commercially.