Pay Structure

What is Commission? A Guide for Salon Owners (2026)

Definition

Commission is a pay model where stylists earn a percentage of the service (and sometimes retail) revenue they generate. It is one of the most common UK salon pay structures alongside hourly wages and chair rental.

Industry context (2026)

UK salon commission often sits around 30–50% on services, with retail usually lower. Employer National Insurance and pension rules still apply for employed stylists. The hiring chapters stress that pay design must attract talent and still leave salon margin – racing to the highest split without pricing discipline wrecks both sides.

💷 30%–50% of service revenue (typical UK range, 2026)

How to manage commission with Appointica

Frequently asked questions

What is a typical UK commission rate?

Many salons land near 40% for mid-level stylists, with juniors lower and seniors higher. Retail is often a smaller percentage. Always model salon margin, not only stylist happiness.

Is commission better than chair rental?

Different risks. Commission keeps quality control and PAYE duties. Chair rental shifts self-employment to the stylist and gives the salon more predictable rent income.

Do I pay commission on retail?

Most UK salons pay a smaller retail split to encourage product sales. Decide it in writing so there are no end-of-month arguments.

How does VAT affect commission?

Commission is usually calculated on the ex-VAT service amount. Confirm with your accountant and keep the rule consistent in software.

Where do I learn the people side?

The hiring academy lesson and hiring book chapter cover attracting talent – commission is only one lever beside culture and retention.

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