How to calculate staff commission: 3 models
Percentage, fixed amount per service or base pay plus commission: which model suits your salon, who pays for materials and why the numbers rarely match.
The figure that causes the most arguments in a salon isn’t salary — it’s commission. A stylist saying “I saw 40 clients this month” while the till says something else is a situation most salons know well. The cause is usually that the commission model was never written down, and nobody is clear on who pays for materials.
Below are the three models salons use most, a worked example for each, and when each one works. The numbers are illustrative — swap in your own prices.
Model 1 — Straight percentage
The most common model. The stylist gets a set percentage of the service price.
Example. Hair colouring at 120 ₼. Stylist commission 40%.
| Item | Amount |
|---|---|
| Service price | 120 ₼ |
| Stylist’s share (40%) | 48 ₼ |
| Left with the salon | 72 ₼ |
| Materials (colour + developer) | 18 ₼ |
| Salon’s net | 54 ₼ |
Note: the stylist takes 48 ₼, while the salon keeps 54 ₼ after materials. So although “60% stays with the salon” on paper, the salon’s real share is 45% — and that’s before rent and utilities.
When it works: when the stylist brings their own clients, is experienced and keeps an eye on material usage.
The risk: when materials get more expensive, the salon’s share shrinks while the percentage stays the same. Recalculate the percentage once a year.
Model 2 — Fixed amount per service
The stylist earns a fixed amount for each service, whatever the price.
Example. A haircut sells for 25 ₼; the stylist’s share is 8 ₼. On a promotion day the same stylist does the cut for 18 ₼ — and still gets 8 ₼.
| Case | Price | Stylist | Salon |
|---|---|---|---|
| Normal day | 25 ₼ | 8 ₼ | 17 ₼ |
| Promotion | 18 ₼ | 8 ₼ | 10 ₼ |
When it works: in barbershops, where prices are stable and services are standard. Predictable for the stylist, easy to calculate for the salon.
The risk: the entire discount comes out of the salon’s pocket. Factor that in before you plan a promotion.
Model 3 — Base pay plus commission
The stylist gets a fixed monthly base, plus a percentage of their turnover on top.
Example. A base of 400 ₼ + 15% of turnover.
- Monthly turnover of 3,200 ₼: 400 + 480 = 880 ₼
- Turnover of 1,800 ₼: 400 + 270 = 670 ₼
- Turnover of 5,000 ₼: 400 + 750 = 1,150 ₼
When it works: in newly opened salons and for newly hired stylists. The base gives the stylist security; the percentage gives them a reason to work.
The risk: in slow months the base weighs heavily on the salon. Set it at a level you can pay even in your worst month.
Who pays for materials
This causes more arguments than the commission itself. There are three options:
- The salon pays. The simplest. The stylist’s percentage is a little lower.
- Split. Expensive materials such as colour are shared; disposables stay with the salon.
- The stylist pays. Only if the stylist works with their own products. In that case the percentage is usually considerably higher.
Whichever you choose, put it in writing. By month six, a verbal agreement is remembered differently by each side.
Three reasons the numbers don’t match at month end
1. Where was the discount applied? You gave a client 10 ₼ off. Is the stylist’s share calculated on 120 ₼ or 110 ₼? Agree the rule in advance and apply it the same way every time.
2. Appointments that didn’t happen. The client didn’t turn up, but the appointment stayed in the calendar as “completed”. It’s on the stylist’s list but not in the till. Mark a missed appointment as cancelled straight away, with the reason “Customer did not come”.
3. Two people did one service. One person washed, another coloured. Whose commission is it? If it’s split, in what ratio? Put this rule in writing too.
Don’t do it by hand
Say your salon has 6 stylists and 700 appointments a month. Running this calculation in Excel takes hours and turns into an argument every time — because nobody can see where the number came from.
In Rezneed, payroll is set up per service: each service gets a percentage or a fixed amount, and commission on product and package sales is set separately. When an appointment is completed, the commission is calculated automatically and lands in the staff member’s payroll report — line by line, showing what came from which appointment. Advances and pay periods are handled there too, and every table exports to Excel.
Models 1 and 2 are set up directly in the system. For Model 3, Rezneed calculates the commission part; there’s no separate section for the fixed base, so you pay it your own way.
Materials work on the same logic: you attach a recipe card to a service (how much colour and developer one colouring takes), and when the appointment is completed the materials are written off stock automatically and the cost of goods is calculated. Products staff use for themselves are recorded as internal use and can be deducted from their pay. So the answer to “I pay 40%, but what’s actually left?” is in your reports at the end of the month.
In short
- Percentage — for experienced stylists with their own clients.
- Fixed amount — for barbershops and standard services.
- Base plus commission — for new stylists and newly opened salons.
- Write down your materials rule.
- Decide the rules for discounts, missed appointments and shared services in advance.
- Let a system do the calculation so everyone can see where each number comes from.
Want to set up commission with your own services and check it? Try Rezneed free for 45 days — no card required.
