The chain is: client pays agency, agency pays payroll/umbrella company, umbrella company pays you. Each take their cut. Sometimes the agency runs its own payroll company, but for understanding treat them as separate entities.
Client pays agency 1000. Agency pays your umbrella company/payroll company 800 (this is your fee, this is what was advertised). From the 800 the umbrella company takes an admin fee. That leaves, e.g. 750. From the 750 comes ALL the employment expenses, including all employer expenses - like certain insurances and employer social contributions.
That leaves you with a gross daily salary of, perhaps, 600.
Client pays agency 1000. Agency pays your umbrella company/payroll company 800 (this is your fee, this is what was advertised). From the 800 the umbrella company takes an admin fee. That leaves, e.g. 750. From the 750 comes ALL the employment expenses, including all employer expenses - like certain insurances and employer social contributions.
That leaves you with a gross daily salary of, perhaps, 600.
So your gross is 75% of your fee. It could even be less - much depends on your personal situation and exactly where you live. Now deduct tax, employee's social, insurances, rolled up holiday pay, pension. Yes, maybe that does leave you with 58% retention.
Your agency should be able to give you a complete breakdown of deductions - have you asked them for it?
btw - get your tickets for the Basel Panto (Basel English Pantomime Group – Every Christmas something magical happens in Basel). You can reserve tickets for the Gay Beggars (the theatre group of the Basel University English department) from here The Gay Beggars Drama Group Basel.
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