Ever wonder why your paycheck feels smaller than expected after a temp job? You’re not alone. This article breaks down how much staffing agencies take out of your pay, what that means for your earning, and how online staffing platforms and the best gig apps in 2025 are changing the game.
So how does temp work work? There are basically two ways to work in temp labor.
The first is through a traditional staffing agency. These are the typical temp workers and jobs. Businesses sign contracts with temp agencies and the agencies send workers to work for the business on a temporary basis.
The second option is online staffing apps, or gig work. Staffing apps are the technology-driven way for businesses to find temp labor and for workers to find temp work.
With gig work apps, businesses post the shifts they need filled onto the platform. Workers get notified of the new opportunities and can apply for the shift if they are interested.
With that background knowledge let’s discuss the pay and fees for temp workers.
What Temp Agencies Take out of Your Pay?
The Answer
A common misconception is that temp agencies and staffing apps take half your paycheck. The reality is that most agencies do not take half their workers' paychecks.
This misconception stems from the markup fee that agencies charge businesses. The markup fee is a percentage that is added on top of the worker wages.
For example if a worker's wages were $15 an hour and the agency's markup fee is 50%, the temp agency charges the business $22.50 an hour – $15 of which is the worker’s wage, and $7.50 goes to the temp agency.
This markup fee ranges greatly from agency to agency, so a 50% markup fee is completely normal for a temp agency. This is where the misconception of temp agencies taking half of their workers’ paychecks comes from.
So do temp agencies and staffing apps take some of your pay? Usually, yes they do. The amount they take varies depending on the agency.
Online staffing platforms usually charge a platform fee, this is often under $1/hr worked. This fee helps cover worker insurance and worker support. Temp agencies also charge a fee, sometimes as much as $100.
Exceptions
Because there are over 27,000 staffing companies, there are always going to be exceptions. Some companies may take more from worker wages, so be sure to do your research before signing with a temp agency.
There are also sometimes small fees that agencies charge workers like bank processing fees. These fees are to cover the payment processing fee and are usually around $0.50. There are also commonly quick pay options that have a higher fee but also a faster turnaround time between payments. Staffing apps will typically charge a smaller fee than temp agencies.
How Much Do Staffing Apps Pay?
A common question when you are looking into temp agencies near me or online staffing apps is how much they pay. The average overall pay for traditional temp agencies is $19/hr. With the high being $26/hr and the low being just $10/hr.
The average pay from staffing apps is similarly $19.89/hr. Though there is little difference in the average hourly rate, there is a difference of choice and options.
Staffing apps create an online marketplace. When shifts are posted, job seekers have the ability to view the shifts, expectations, and hourly pay. If the pay is attractive to the gig worker, they apply for the shift. If the pay is not attractive, they simply find another shift to work. This choice of shifts and pay is not available with traditional staffing agencies.
Online staffing platforms also have more options in more industries. Wages for shifts in different industries vary because of the skill set or difficulty of the work.
Warehouse temp staffing averages $16.74/hr, events staffing and hospitality shifts average $16.83 and $15.85 respectively. Shifts in manufacturing have a higher average of $27.15/hr and Delivery shifts average $24.99, with shift wages for general labor staffing averaging at $17.76/hr.
Taxes
Both traditional temp agencies and staffing apps vary in the classification of their workers, so make sure to do your research to know in which category your choice of temporary jobs puts you.
The most common categories are w2 and 1099 contractors.
The biggest difference between the two is with w2 workers, the business is responsible for taking money out of your paycheck for taxes. With 1099 contractors, the workers are responsible for tracking how much they make and paying taxes themselves.
Conclusion
Traditional staffing agencies and staffing apps do not take 50% of workers’ paychecks. They charge a markup fee that is paid by the business, not the worker. The platform fee staffing apps charge workers is minimal while traditional staffing agencies tend to charge a larger fee to their workers.
Staffing apps and temp agencies have a similar national average with worker wages. However, staffing apps give workers freedom of choice when choosing which shifts they apply for.
If you are interested in trying out gig work, check out Bacon to find shifts and get paid quickly.
