Temp Agency Markup Calculator Updated 2026

man deciding between two temp agency quotes

Temp Agency Markup Calculator and Staffing Agency Bill Rate Calculator (Ontario Only)

When you’re comparing staffing agencies in Ontario, one of the most important questions is: what’s actually included in the bill rate? That’s exactly why we built the temp agency markup calculator and staffing agency bill rate calculator.

At first glance, a staffing agency’s bill rate may seem straightforward. But one important detail to check is how statutory holiday pay is treated. In Ontario, employers must pay for statutory holidays, and agencies may either build this cost into their markup or bill it separately. Knowing which approach is being used ensures you’re comparing quotes on an equal basis.

Our calculator is designed to normalize agency quotes so you can make an apples-to-apples comparison, no matter how a particular agency treats statutory holiday pay.

Here’s the issue:

  • When statutory holiday pay is included in the markup, the bill rate reflects the full cost of staffing. This makes it easier to understand the true rate you’ll be paying without any additional charges later.
  • When statutory holiday pay is billed separately, the initial bill rate may look lower, but the overall cost will increase once holidays are factored in. In some cases, agencies may also apply a separate markup to those holiday hours.
  • This means  the effective markup on regular hours ends up being higher than it first appears, since statutory holiday pay and any related charges are added on top of the original quote.

How the Calculator Works

The calculator is tailored to Ontario, Canada and reflects 2025 statutory obligations. Here’s what you’ll input:

  • Hourly Wage: This defaults to Ontario minimum wage, but you can adjust it to reflect the actual pay rate you’ll be offering.
  • Quoted Markup on Regular Hours (%): Enter the percentage markup the agency is quoting you on regular hours. For example: a 40% markup on a $20/hour wage = $28/hour bill rate.
  • Estimated Regular Hours: Enter the number of regular hours you expect to use agency staff for during the period you want to measure.
  • Estimated Statutory Holiday Hours: Enter the number of statutory holiday hours you expect during that same period.
  • WSIB Class: Select the WSIB class that applies to your company. The calculator uses the 2026 average premium rate as a placeholder (actual WSIB rates vary by agency).
  • Does the Agency Cover Stat Holidays? (Yes/No): This is the key setting. Check your agency’s quote: if statutory holiday pay is included in the markup, select Yes. If it’s excluded, select No.
    • If you select No, an extra field will appear where you can enter a markup on statutory holiday hours. Some agencies not only pass on stat holiday pay but also add a markup to it.
    • If your agency charges stat holiday pay with no markup, just leave it at 0%.

Once you’ve entered the information, click Calculate. The following calculated outputs are before applicable taxes, namely HST. 

Temp Agency Markup Calculator Output

The temp agency markup calculator produces three outputs:

  • Total Cost of Staffing: The total bill you’ll pay the agency, including both regular hours and statutory holiday hours.
  • Cost Per Regular Hour:  The total cost divided by the number of regular hours. This gives you a fair per-hour comparison point across different agencies.
  • Normalized Markup: The most important output. This shows you the true markup once stat holiday treatment is factored in.

If your agency covers stat holidays, the normalized markup will equal the quoted markup. If your agency excludes stat holidays, the normalized markup will be higher, showing the real cost of using that agency.

Staffing Agency Bill Rate Calculator Output

Below these outputs, the staffing agency bill rate calculator generates a pie chart that shows how your bill rate is distributed. Slices of the pie chart include: 

  • Wages (the base hourly pay)
  • Employment Insurance (EI)
  • Canada Pension Plan (CPP)
  • Employer Health Tax (EHT)
  • WSIB premiums (based on your selected class rate)
  • Vacation Pay (accrued as required by Ontario law)
  • Stat Holiday Pay (only if the agency does not include it in markup)

  • Agency Fee 

If the agency covers statutory holidays, the stat holiday slice will disappear from the chart — since it’s already baked into the markup. Note that while the calculator uses 2026 rates and best assumptions, the exact amounts can vary by agency or employee (for example, vacation accruals and WSIB class premiums). Think of the pie chart as a close estimate rather than an exact breakdown.

Understanding the Agency Fee

The agency fee is what the agency earns to cover the cost of running a professional staffing business. A proper markup pays for: 

  • Recruiting and screening candidates
  • Payroll processing and administration
  • Employment standards compliance
  • Risk management and insurance coverage
  • HR support and recordkeeping
  • Ongoing client services

A reasonable markup ensures your staffing provider can deliver reliable workers, manage payroll, and stay compliant with Ontario labour laws — giving you a seamless experience.

When the Calculator Flags an Issue

If the markup you’ve entered is below what we have assumed is needed to cover all the required employer contributions (EI, CPP, WSIB, EHT, vacation pay, stat holiday pay), the calculator will not display a pie chart. Instead, it will show a warning:

“Based on our calculations, the agency does not appear to be charging enough to cover all required payroll deductions and remittances.”

If a staffing agency’s quoted bill rate doesn’t appear to cover mandatory costs like WSIB or statutory holiday pay, it’s worth pausing. At best, you may see additional charges later. At worst, those obligations may not be met at all.

That puts your business at risk. If a temporary worker is injured and proper WSIB coverage isn’t in place, liability could fall on you. Missed remittances for CPP or EI can also create compliance issues for your company. A transparent bill rate that includes all required costs protects both your budget and your business.

Why this Matters

At GHRC Staffing Solutions, we build statutory holiday pay directly into our markup so there are no hidden charges or surprises and our clients enjoy fully transparent pricing. 

We encourage you to use this temp agency markup calculator to get a clear picture of the true cost behind any quote you receive. And if you’d like a second set of eyes on a proposal or need help interpreting the details, please get in touch, we’re here to help.