How to calculate salon staff commission: 3 methods and a worked example
A percentage of each service, a flat amount, or a salary plus commission? A practical comparison of the three, a worked example, and rules to agree with your team before the first month.
Most end-of-month disputes in a salon aren't about the rate itself but about which services count. That's why a written rule matters more than the number.
3 common ways to calculate commission
| Method | How it works | Suits | Drawback |
|---|---|---|---|
| Percentage of the service price | Staff earn a fixed share of each service they do | Most salons and barbershops | Needs every service recorded with who did it |
| Flat amount per service | For example a set amount per haircut | Few services at similar prices | Needs updating whenever prices change |
| Base salary + commission | A salary guarantees income, with a lower rate on top | New staff or slow periods | A fixed cost even on quiet days |
Rules that prevent end-of-month disputes
- Commission on completed services only. A cancelled booking or a no-show earns no commission.
- On the price actually charged. If a customer got a discount, agree in advance whether commission is before or after it.
- The service goes to whoever did it. If two people share a job, record each part as a separate service in each name.
- Products are separate. Selling shampoo or cream has its own rule, or no commission at all.
- Staff see their numbers as they go. When they can see their month building up, the last day holds no surprises.
A worked example
One rate for the whole team, or a rate per person?
A rate per person is usually fairer: a senior barber with a loyal client base isn't the same as a trainee. But write down the reason for the difference and explain it to the team, so it doesn't look like favouritism.
How commission works in Dorak
You set each staff member's commission rate on the team page. Dorak calculates commission from the completed services recorded in their name over the period you choose, and shows each person's number of services, revenue and commission; the total is deducted from net in your accounts. Staff with the "staff" role see only their own numbers.
Dorak currently supports commission as a percentage per staff member. If you pay a flat amount per service, you can calculate it by hand from the number of services shown for each person.
Start a 14-day free trial and try a week of commission, or see Dorak for barbershops.
Frequently asked questions
Do I pay commission on tips?
Tips usually go to the staff member in full and stay outside commission. Agree on this in writing.
What if I change a service price mid-month?
Commission is calculated on the price the customer paid at the time, so earlier services aren't affected.
How often should I pay staff?
Monthly is most common, but a quick weekly look at the numbers with the team cuts surprises.
