How Much Does an Employer of Record (EOR) Cost in 2026?
Complete breakdown of EOR pricing — provider fees, statutory employer costs by country, hidden fees, and how to calculate total employment cost.
The cost of using an Employer of Record (EOR) depends on three factors: the provider's fee, the statutory employer costs in the target country, and any additional services you need. This guide breaks down each component so you can accurately budget for international hiring.
EOR Pricing Models
EOR providers use one of two pricing models:
Fixed Fee Per Employee Per Month
Most providers charge a flat monthly fee per employee, typically $400 to $700. This is the most common and predictable model.
| Provider | Starting Price | Model |
|---|---|---|
| Remofirst | $199/mo | Flat fee |
| Multiplier | $400/mo | Flat fee |
| Deel | $599/mo | Flat fee |
| Remote | $599/mo | Flat fee |
| Oyster HR | $599/mo | Flat fee |
| Papaya Global | $650/mo | Flat fee |
| G-P | Custom | Flat fee |
| Velocity Global | Custom | Flat fee |
Percentage of Salary
Some providers charge 10-20% of the employee's gross salary. This model:
- Costs less for lower-salary countries
- Costs more for higher-salary countries and senior roles
- Makes budgeting less predictable as salaries change
What's Included in the EOR Fee
| Typically Included | Often Extra |
|---|---|
| Payroll processing | Premium health insurance |
| Tax withholding and filing | Equity/stock option admin |
| Statutory benefits administration | Immigration/visa support |
| Employment contract drafting | Background checks |
| Onboarding and offboarding | Equipment procurement |
| Compliance management | Contractor management |
| Basic leave tracking | Relocation support |
Statutory Employer Costs by Country
Beyond the EOR provider fee, you pay the statutory employer costs for each country — these are the mandatory contributions the EOR makes on your behalf and bills back to you.
| Country | Statutory Employer Cost (% of gross salary) | Key Components |
|---|---|---|
| UAE | 2-8% (expats); 15-22% (locals) | GOSI (locals only), health insurance, gratuity |
| Singapore | 0.25% (foreigners); 17-18% (locals) | CPF (locals/PRs only), SDL |
| UK | 15-20% | NICs (15%), pension (3%+) |
| South Africa | 2-4% | UIF (1%), SDL (1%), COIDA |
| Nigeria | 12-15% | Pension (10%), NSITF (1%) |
| USA | 8-12% | FICA, FUTA, state taxes |
| Australia | 14-20% | Super (12%), workers' comp, payroll tax |
| Canada | 12-16% | CPP, EI, provincial taxes |
| India | 15-20% | EPF (12%), ESI (3.25%) |
| New Zealand | 5-7% | KiwiSaver (3.5%), ACC (1.67%) |
| Turkiye | 19-24% | SGK (23.75% before incentives) |
| Germany | 20-22% | Pension, health, unemployment, care insurance |
| Netherlands | 25-35% | AWf, Aof, holiday allowance (8%), pension |
| Philippines | 20-25% | SSS, PhilHealth, Pag-IBIG, 13th month |
| Indonesia | 20-25% | BPJS (health + employment), THR |
| Argentina | 30-35% | Social security (24-26.4%), aguinaldo |
| Mexico | 30-40% | IMSS, INFONAVIT, SAR, aguinaldo, PTU |
| Colombia | 35-45% | EPS, pension, ARL, parafiscals, prima, cesantías |
| Brazil | 35-45% | INSS (20%), FGTS (8%), 13th salary, vacation bonus |
Important
Statutory costs are in addition to the EOR provider fee and the employee's gross salary. Always factor in all three components when budgeting.
Total Cost of Employment: Examples
Example 1: Software Developer in India ($18,000/year salary)
| Component | Annual Cost |
|---|---|
| Gross salary | $18,000 |
| Statutory employer costs (~17%) | $3,060 |
| EOR provider fee ($400/mo) | $4,800 |
| Total annual cost | $25,860 |
Example 2: Marketing Manager in Germany ($65,000/year salary)
| Component | Annual Cost |
|---|---|
| Gross salary | $65,000 |
| Statutory employer costs (~21%) | $13,650 |
| EOR provider fee ($600/mo) | $7,200 |
| Total annual cost | $85,850 |
Example 3: Customer Support Rep in Philippines ($7,500/year salary)
| Component | Annual Cost |
|---|---|
| Gross salary | $7,500 |
| Statutory employer costs (~22%) | $1,650 |
| EOR provider fee ($400/mo) | $4,800 |
| Total annual cost | $13,950 |
Hidden Costs to Watch For
Deposit requirements. Some providers require 1-2 months of payroll as a security deposit, especially in countries with high severance obligations.
Currency conversion fees. FX markups of 1-3% can add significant cost, particularly for high-salary employees in non-USD countries.
Minimum contract periods. Early termination fees if you cancel before 12 months. Some providers require 30-90 days notice.
Per-country minimums. Some providers require a minimum number of employees per country (often 3-5) or charge a premium for single-employee countries.
Benefits markup. Providers may mark up health insurance and other benefits by 10-20% above their cost.
Offboarding costs. Terminating employees in countries with mandatory severance (Brazil, Germany, Argentina, etc.) can trigger significant costs. Understand your exposure before hiring.
EOR vs Local Entity: Cost Comparison
| Employees | EOR Annual Cost (est.) | Local Entity Annual Cost (est.) | Winner |
|---|---|---|---|
| 1-3 | $15K-$25K in fees | $25K-$100K setup + ongoing | EOR |
| 4-8 | $30K-$70K in fees | $25K-$100K setup + $10K-$30K ongoing | Depends on country |
| 10+ | $70K-$100K+ in fees | $25K-$100K setup + $10K-$30K ongoing | Usually local entity |
The break-even point varies dramatically by country — from 3-5 employees in the UK or Singapore to 15-25 in the Philippines or Brazil. See our country-specific EOR guides for detailed break-even analysis.
How to Reduce EOR Costs
- Negotiate volume discounts. Most providers offer lower per-employee fees for 10+ employees.
- Choose the right pricing model. Flat fee works better for higher salaries; percentage model for lower salaries.
- Bundle countries. Some providers offer multi-country packages.
- Avoid unnecessary add-ons. Only pay for visa support, background checks, and equipment procurement if you actually need them.
- Plan for transitions. If you expect to hire 10+ employees in a country, negotiate an EOR-to-entity transition timeline upfront.
For provider comparisons, see our Best Employer of Record Companies guide. For an overview of how EOR works, see What Is an Employer of Record?
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