Day Rate
The daily fee a contractor charges for their services, agreed with the end client or agency.
The day rate is the amount you negotiate with the agency or end client for a day's work. It is typically quoted exclusive of any expenses or holiday pay add-ons.
For most umbrella arrangements, your day rate and your assignment rate are the same figure — the amount the agency pays the umbrella company on your behalf. Some agencies quote a 'contract rate' that already includes or excludes holiday pay — always clarify.
The day rate is the starting point for calculating your take-home pay, but it is not what you receive. Employer NI (15%), apprenticeship levy (0.5%), and the umbrella margin are deducted from the day rate equivalent (assignment rate) before your gross salary is set.
Use our calculator to enter your day rate and see the full deduction chain to net pay.