Assignment Rate
The total amount paid by the recruitment agency to the umbrella company for your services — before any deductions.
The assignment rate is the gross income the umbrella company receives from the recruitment agency on your behalf. It is typically equal to your negotiated day rate multiplied by the number of days worked in the pay period.
All umbrella company deductions begin from this figure — employer National Insurance (15% above the £5,000 threshold), the apprenticeship levy (0.5%), and the umbrella company's margin are taken from the assignment rate before your gross salary is calculated.
It is important to understand that the assignment rate is not your gross salary. On a £500/day rate working 5 days/week for 48 weeks, your assignment rate is £120,000 — but your gross salary will be considerably less, typically around £100,000–£101,000 after pre-gross deductions.
When comparing umbrella company quotes, always ask what deductions are taken from the assignment rate so you can calculate your true gross and net pay.