Labour hiring guide
How much do labour agencies charge?
Updated 2 October 2026 · 4 min read
Labour agencies in the UK typically keep 20% or more of the difference between what a construction company pays and what the worker actually receives. Here's what that means in pounds, why the true cost is higher than the headline rate, and what you can do about it.
The typical agency markup
Most UK construction labour agencies work on a margin. You agree an hourly rate with the agency, the agency pays the worker less, and the difference — commonly 20% or more — is the agency's cut.
On a typical £18-per-hour labourer, that can mean the worker receives around £14 while you pay £18. The same maths scales across every worker, every hour, every week on site.
- You pay the agency rate
- The worker receives noticeably less
- The agency keeps the difference — often 20% or more
Why the true cost is higher than the headline rate
The percentage is only part of it. Agency labour comes with costs that never appear on the rate card:
Agencies also tend to send whoever is available rather than who is best. Unreliable labour that lasts less than a week means paying to fill the same gap again and again.
- Replacing no-shows and short-term workers, which costs you time on site
- Admin chasing timesheets and pay disputes between the agency and the worker
- Re-briefing new faces every week because crews churn
- Little visibility over who is actually turning up — ratings and attendance stay hidden
How LabourBase prices differently
LabourBase charges the hiring company a flat £1 per hour per worker — under 4% of a typical rate, against the 20%+ an agency can take. The worker receives their full chosen rate, and your company pays LabourBase £1 separately. There is no percentage markup or worker deduction.
You post a job with the trade, rate, site location and start date, then choose from a labour pool of 2,000+ qualified and vetted workers with visible ratings, attendance percentages, verified CSCS cards and work history.
Questions
How much do labour agencies charge per hour?
Most UK labour agencies keep a margin of 20% or more between what the company pays and what the worker receives. On an £18-per-hour labourer, the worker may only see around £14.
Is there a cheaper alternative to using a labour agency?
Yes. LabourBase charges the hiring company a flat £1 per hour per worker — under 4% of a typical rate — and lets you hire vetted workers directly with no percentage markup.
Does the agency markup mean the worker earns less?
Yes. The agency's cut comes out of the money the company pays, so the worker receives less than the company is charged. On LabourBase the worker receives their full chosen rate, while the hiring company pays LabourBase a separate £1 per hour fee.
Ready to hire directly?
Post a job and choose from 2,000+ qualified and vetted construction workers. Your company pays LabourBase a flat £1 per hour per worker; workers keep their full rate.