Placement Fees: Calculation, Amount and Law

A placement fee (Vermittlungsprovision) is the success-based fee a recruitment agency or executive search firm earns for filling a role — typically 20 to 30 percent of a candidate's annual salary, though the single biggest source of disputes is which salary figure that percentage applies to. When the fee falls due also varies by contract: at contract signature, on the candidate's start date, or only after the probation period ends.

This article works through the money side only: the calculation base, typical rates, due dates, refund clauses, and where standard-terms clauses cross a legal line — plus the statutory cap that applies when placing jobseekers. The placement process itself is covered in the companion article Personalvermittlung; fee models specific to senior search sit in Executive Search.

What calculation base decides the size of a placement fee?

A placement fee is almost always a percentage of a salary figure — but no law defines which salary figure that is, so it gets negotiated contract by contract. Four bases are common in practice:

• Base salary — the fixed annual gross salary only, no variable pay.
• On-target earnings (OTE) — base salary plus the variable pay expected at 100 percent target achievement.
• Total compensation — OTE plus benefits-in-kind such as a company car, converted into a euro value.
• Guaranteed first-year bonus — if the employment contract guarantees a bonus for year one instead of tying it to targets, some placement contracts use that guaranteed figure instead of the target bonus.

How much that shifts the final number becomes clear in a worked example at a 25 percent fee rate — the midpoint of the 20-to-30-percent market range (source and as of: qupex.de, accessed September 10, 2026):

Between the lowest and highest row in this example sit 7,500 euros — purely from how the base is defined, not from any extra work by the agency. Reading the calculation base as carefully as the percentage is the single most effective way to avoid a dispute at final invoicing.

How high are placement fees typically?

For permanent placements, fees typically run 20 to 30 percent of the agreed annual salary; hard-to-fill specialist or leadership roles often sit at the top of that range or slightly above it (source and as of: qupex.de, accessed September 10, 2026). Senior leadership searches often use different fee structures entirely — retainer payments in installments rather than a pure success fee — covered in Executive Search. Placing freelancers or interim managers uses a different model again, a markup on the day rate, which this article does not cover.

To place the fee inside a full hiring budget — alongside job-ad spend, tool licenses, and internal time — see the calculation templates in Recruitment Budget Templates.

When does a placement fee fall due — signature, start date, or after probation?

Every placement fee legally rests on the success principle: Section 652(1) BGB, applied by analogy to placement contracts, makes the fee claim arise only once the placed contract actually comes into existence; if it is concluded subject to a condition, the fee cannot be claimed until that condition is met. On that basis, three due-date models have become standard, freely agreed between client and agency:

The later the fee falls due, the lower the client's financial risk — and the later the agency sees the cash. Both are negotiable business terms, not a legal requirement, unless the contract is a statutory jobseeker-placement agreement under Section 296 SGB III (see below).

Under what conditions must a placement fee be refunded?

Refund clauses are common in placement contracts but purely contractual — no law requires a refund in a B2B placement deal. Typical structures are tiered: a full refund if the hired person resigns or is dismissed during probation within the first four to eight weeks, a partial refund for departures shortly after that, and no refund once an agreed guarantee period (often three to six months) has passed. Agencies that only invoice after probation (see the table above) usually skip this clause entirely — the risk is already covered before payment is due.

Where do standard-terms clauses in placement contracts cross a legal line?

When a recruitment agency uses standard business terms (Allgemeine Geschäftsbedingungen) for its placement conditions, German law subjects them to a content review under Section 307 BGB: a clause is void if it unreasonably disadvantages the other party contrary to good faith — for instance by departing from the essential principles of the statutory rule it replaces, or by restricting essential rights so far that the purpose of the contract is put at risk (Section 307(1) and (2) BGB). In practice, three clause types tend to fall into this zone: a refund obligation that applies regardless of why the person left — including cases where the client itself terminates or the role is eliminated; a calculation base that silently folds in future salary increases instead of anchoring to the originally agreed salary; and a double-fee clause that still demands payment even when the hire is demonstrably sourced through a different channel. Whether a specific clause actually fails always depends on its exact wording and the individual case.

What applies to placing jobseekers — where does the statutory cap sit?

Unlike B2B recruitment placement, fees for classic jobseeker placement — a private agency placing an unemployed or job-seeking individual into a role — are capped by law. Section 296 SGB III requires the placement contract to be in writing and states that the jobseeker only owes the fee if the placement actually resulted in an employment contract; the agency may neither demand nor accept advance payment (Section 296(1) and (2) SGB III). The fee itself, including VAT, may not exceed 2,000 euros; no fee at all may be charged for placing marginal employment (geringfügige Beschäftigung), and for au pair placements the limit is 150 euros (Section 296(3) SGB III).

A higher fee is only permitted if the jobseeker presents a valid Aktivierungs- und Vermittlungsgutschein (activation and placement voucher) under Section 45 SGB III. Using it to choose a success-fee agency, the fee for a successful placement into employment subject to social insurance is 2,500 euros, or up to 3,000 euros for the long-term unemployed and people with disabilities (Section 45(6), sentences 3 and 4, SGB III). It is paid in two installments: 1,250 euros after six weeks of employment, the remainder after six months. No success fee is owed if the employment is limited from the outset to less than three months, or if it is with a former employer where the person was already employed subject to social insurance for more than three months within the last four years (Section 45(6), sentences 5 and 6, SGB III). Unemployed people entitled to unemployment benefit qualify for such a voucher once they have been unemployed for six weeks and remain unplaced after three months (Section 45(7) SGB III).

This section sets out the legal framework based on the cited provisions and does not replace individual legal advice.

Frequently asked questions about placement fees

What percentage is a typical placement fee?

For permanent placements, it typically runs 20 to 30 percent of the agreed annual salary (source and as of: qupex.de, accessed September 10, 2026). Just as important is which salary figure the percentage applies to — base salary, OTE, or total compensation produce very different amounts at the same rate.

Who pays the placement fee?

In classic permanent placement, the hiring company pays. Under the statutory jobseeker-placement regime in Section 296 SGB III, the jobseeker can instead be liable to pay — but only if the placement actually led to an employment contract, and only up to the statutory cap.

Is the calculation base of a placement fee negotiable?

Yes — in B2B placement contracts, both the percentage and the reference figure (base salary, OTE, or total compensation) are freely negotiable, since no law prescribes either. Fixing the calculation base in writing before the assignment starts avoids the most common dispute at final invoicing.

Do I have to refund a placement fee if the hire resigns?

That depends on the refund clause in the contract, not on the law. Tiered arrangements are typical: a full refund for a resignation within a few weeks of the start date, a partial refund shortly after, and no refund once an agreed guarantee period has passed.

What is the Aktivierungs- und Vermittlungsgutschein?

A voucher under Section 45 SGB III that the German employment agency issues to unemployed people under certain conditions, entitling them to choose a success-fee private placement agency. With a valid voucher, the fee can exceed the usual 2,000-euro cap and reach 2,500 or up to 3,000 euros.

Is there a statutory cap on placement fees?

Yes, but only for private agencies placing jobseekers under Section 296 SGB III: the fee, including VAT, may not exceed 2,000 euros unless an activation and placement voucher permits a different amount. No statutory cap applies to B2B placement contracts between companies and recruitment agencies.