Yoga Income Guide for Yoga Teachers
A Comprehensive Guide Exploring Income, Employment Types, and Fees for Service for Yoga Teachers
by Heather Agnew, senior trainer, ERYT-500
In this discussion we will explore income opportunities for yoga teachers and look at the different employment types and fee structures you can expect as a yoga teacher. We have a lot to talk about as we explore a range of topics, including:
- Employee vs independent contractor or freelancer
- Average salaries and fees for services
- Average per class rates and annual salaries in Canada, US, and Australia
- Average rates for group classes, privates, corporates, and events
- What you should charge as an independent contractor for your own classes, privates, online, or events.
Through this exploration we hope to equip yoga teachers with the knowledge and tools necessary to navigate the financial aspects of their profession effectively.
So, let’s begin with an understanding of how you might be employed or employ others as a yoga teacher in two of the most common environments, the gym or yoga studio, and the two most common hiring arrangements, employee, or independent contractor.
Note: Please note that the information provided in this income guide for yoga teachers is intended as general guidance and should not be interpreted as personalized business or tax advice for your specific circumstances.
Teaching in Yoga Studios and Gyms – Employee vs Independent Contractor
Over the past few years, in Australia, Canada, and the US, there has been an increased scrutiny of yoga studios due to regulations around what is an independent contractor vs what is an employee.
In Australia, they outlined some clear-ish guidelines for businesses like yoga teachers:
If you teach the same number of hours each week, at the same time, at the same location, you are likely considered an employee.
If you teach for a specific project, like a workshop or retreat, or a certain timeframe, for example covering someone maternity leave or holiday leave, usually on an irregular basis, and you run your own business under your own business name/number, you might be classified as an independent contractor.
One basic definition I found from Australia is: The critical differences between an employee and independent contractor are: an employee serves in your business and performs their work as a representative of your business. an independent contractor provides services to your business and performs work to further their own business.
Seek Guidance
If you aren’t sure, it’s best to get guidance from the tax office, an accountant, or business advisor, especially as a business owner because, should you make the wrong choice about how to classify teachers who teach for you and you are audited, you could be liable for penalties and fees.
So, let’s just dig in for a moment and talk about what is an independent contractor vs what is an employee. Note that this might differ depending on where you live, but in general:
What is an Independent Contractor?
Also called ‘freelancer’ or ‘sub-contractor’, an independent contractor is a self-employed individual who works for a business or organization under the terms of a specific agreement, known as an independent contractor agreement. Unlike employees, independent contractors are not on the company’s payroll and are responsible for handling their own taxes and benefits.
Independent contractor agreements outline the scope of work, payment terms, and contract duration, establishing a relationship that complies with federal and state/provincial laws governing independent contractors.
One key aspect of being an independent contractor is autonomy. Contractors have more control than an employee over how they perform their work, including their schedule and methods, without as much direct supervision from the company.
Unlike employees, independent contractors do not receive benefits such as healthcare or vacation pay from the company. Additionally, they are not obligated to align with the company’s vision or mission since they operate their own independent businesses.
Independent contractors have to consider the costs of running their own business when it comes to fees for services. You’ll have costs associated with your business – insurance, accounting services, marketing costs, website, travel, and setting aside funds for retirement and taxes, etc. You’ll also have to consider the time-costs of running your own business, marketing, administration, client communications, invoicing and financial management, travel time, etc.
What is an Employee?
An employee is generally defined as an individual who works for a business, like a gym or studio, in exchange for compensation, unless they meet the criteria of an independent contractor or another exception to the definition of an employee. Employees may or may not have formal employment agreements or job descriptions.
Employees typically have taxes withheld from their pay by the employer and may receive benefits such as healthcare, paid sick leave, or vacation time. The business exercises more control over its employees, including expectations for them to support and promote the business’s vision and mission statement.
Employees work within the framework set by the business, with guidelines and supervision provided by the employer.
As an employee you might be earning less per hour, but you’ll have a lot less costs associated with each hour of teaching, and a lot less admin time – you basically walk in, check students in, and teach.
What do you pay an independent contractor?
As a studio or contracting employer, the pay for an independent contractor is higher than that of an employee. Part of this is due to not have the costs of paying payroll tax, super/retirement fund, benefits, vacation pay etc. As well, freelancers take on a greater financial risk than employees do by not having regular employment, and therefore having availability to take on short term contracts. Because the independent contractor is paying additional costs and living with additional risk in order to be available to freelance, their pay should reflect that.
What do you charge as an independent contractor?
For independent contractors, a general rule of thumb is to charge approximately 50% more than an equivalent employee’s rate. As an independent contractor, you are responsible for your own tax payments, insurance coverage, retirement savings contributions, business management costs, etc. As well, as a freelancer you have to account for the fluctuations in income, times when you are not being contracted to teach, and having enough income to cover those slow period. Therefore, the fee you propose to a business should reflect these added financial responsibilities and risks.
Preparing for taxation as an independent contractor (Australia)
In Australia, depending on what you earn per annum, as an independent contractor your tax rate will usually be somewhere between 19-33%. It’s a good idea to set aside funds in a dedicated savings account each week/month so you’ll have the funds available when it comes time to report and pay your income tax.
In Australia, the super rate is around 9.5%. You can create your own super or retirement fund with the help of your financial advisor, bank, or superfund.
If you are earning more than $75k per year, you will also have to charge GST and remit these fees (minus your input tax credits) to the government on a quarterly or annual basis.
Using a basic spreadsheet or business accounting program (QuickBooks Self-Employed, Xero, FreshBooks etc.) will help you to keep track of all your income, expenses, GST, input tax credits, and make reporting much easier when tax time comes around.
Yoga Income Guide for Yoga Teachers
So, what are people earning out there? It depends!
- Depends on whether you are an employee or independent contractor
- Depends on whether you are teaching classes, privates, online
- Depends on where you are teaching – country, state, big city or rural area
- Depends on your years of experience and education
- Depends on whether you teach general classes or specialty classes
- Depends on where you are teaching – gym, studio, corporates, in-home, online
- Depends on the length of the class – express class, 60-minutes, 90-minutes
It’s a worthwhile exercise to take some time to outline these points to determine where you fit on the pay scale as an employee, or to validate your fees as an independent contractor.
Average salaries/Fees for service
- Gym: as an employee, you can expect anywhere from $30 to $50 per class
- Studio: as an employee, you can expect anywhere from $40 to $75 per class
- Corporate: it depends on the arrangement, but commonly corporates pay $200-$400 per class
- Privates: $40-$120 per session
Average Salaries Around the World
Canada
The average salary for yoga teachers in Canada is $36 per hour and for a full-time teacher $50,000 to 60,000 a year. (ca.indeed.com, ziprecruiter.com. glassdoor.com)
According to Canada Job Bank, yoga instructors can expect a strong job outlook for this profession between 2019-2028.
USA
In the US the average salary is $28-$35 per hour, and for a full-time teacher $40,000 to $80,000 per year (indeed.com)
Australia
Since most of my yoga teachers-in-training and graduates are in Australia, let’s dig in a little more on that:
Most salary/employment sites seem to agree at a number around $40-50 per hour, and $50,000 to 70,000 per year for a full-time yoga teacher.
Yoga Australia published salary guidelines in 2018, so it’s a little outdated, but here’s what they said:
Group Based Classes
- Gym, studio or similar: $45-70/hour
- Corporate, party, retreat: $55-80/hour
- Home or own location: $30-150/hour
Private sessions
- Studio, gym, or similar: $45-90/hour
- Corporate/party/event: $75-150/hour
- Home or own location: $60-150/hour
What Do I Charge for My Own Classes or Private Sessions?
Again, all the dependencies I mentioned before apply to what you might charge if you are running your own business, teaching group classes, corporates, and private sessions.
A few things that might guide your fee structure include:
- Your years of experience
- The venue and extras (community hall, park, boutique or luxury environment)
- Duration of classes
- Specialized classes
First, take some time to consider:
- What is the average cost for yoga services in your area?
- What are people charging for similar services in your area: personal training, mat-based Pilates, boutique fitness classes, bootcamp classes, martial arts classes?
- What are your costs per class? Venue, online studio setup, travel, employees, booking software or payment gateway costs, etc.
- What is the size of your clientele? A boutique business or specialized teaching practice may charge more for smaller class sizes, more individual attention, education/specialization.
Average Fees for Group Classes, Privates, Online
In-Person Classes
- One-off classes these days seem to be around $20-$30 per class
- Blocks of classes seem to be around $150 for a 10 class block/term
- Monthly memberships $80-150 per month
Online Classes:
- Usually charging less than in-person classes to reflect lower venue costs. Average $12-$20 per class
Private Sessions:
- Home or own location: 60-150/hour
- Online Privates: you might adjust your usual private session fee to reflect lower travel costs. Average costs $80-$120 per class (or lower for a pre-booked block of classes)
Corporate Classes/Events:
- Corporate classes: $150-400 per class for a block of classes
- One-off classes: $250-500 per hour
Yoga Events:
This one is tricky, you’ll charge different rates for specialty programs like hen’s parties, partner programs (yoga in the vineyard, kids camps, yoga and art/surf/hike events), one-day or residential retreats, corporate events, conferences etc. You’ll have to factor in your time and costs for preparing the class, travel, accommodation, etc., and consider the average industry rate for your area and the type of event. In my own experience, depending on the event I would charge somewhere between $500-$2,500 an hour.
In Conclusion: Yoga Income Guide for Yoga Teachers
Okay, that was a lot! I hope that you have a few takeaways to guide your own yoga business. As you can see, the landscape of earning potential for yoga teachers is quite varied. We’ve looked at the distinctions between employment types, explored average salaries and fees for service across different regions, and examined the nuances of pricing strategies for various class formats. Through our discussion I hope you’ve taken away some insight to guide and navigate your career with confidence and clarity.
Whether you’re just starting out or seeking to enhance your existing income streams, understanding the factors that influence earning potential is crucial.
As you continue on your journey as a yoga teacher, I hope that you find fulfillment not only in the practice and teaching itself (which are many!) but also in the financial rewards that reflect the value you bring to your students and the broader community.
Remember, your education, passion and dedication are invaluable assets, and by developing a strategic approach to pricing and employment, you can thrive professionally while sharing this practice we all love so much!
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