What does an Employer of Record cost?
EOR cost has three parts: the provider fee, the employee’s salary, and the employer’s statutory contributions. Estimate the all-in figure for any country below.
An Employer of Record typically costs US$300–$800 per employee per month, but that provider fee is only one of three parts of the real number. Your all-in cost is the EOR fee, plus the gross salary you agree with the employee, plus the country’s statutory employer contributions, social security, pension, health, and similar, which vary enormously, from low single digits to more than 30% of salary. So the same salary can cost very different totals in two countries. Some providers charge a flat monthly fee per employee; others take a percentage of payroll, which gets expensive at higher salaries. Setup fees are usually waived, but watch for deposits, FX margins, and off-boarding charges. The calculator below estimates the fully-loaded monthly and annual cost for any country we cover, using each country’s verified employer- contribution rate where we publish one.
Estimating a hire in Bahrain. Statutory on-costs use this country’s verified employer-contribution rate.
The three components of EOR cost
First, the EOR provider fee, a flat charge per employee per month, typically US$300-$800, or a percentage of payroll. Second, the gross salary you agree with the employee. Third, the employer’s statutory contributions, social security, pension, health, and similar, which vary enormously by country, from low single digits to 30%+.
The calculator above uses each country’s verified employer-contribution rate where we publish one. For countries where that rate is disputed or not a clean percentage, we withhold it and exclude it from the estimate rather than show a number we can’t stand behind. For exact local figures, open a country guide or compare providers in the best EOR services guide.
Frequently asked questions
An EOR typically charges US$300–$800 per employee per month, or a percentage of payroll. Your all-in cost is that fee plus the gross salary plus the country’s statutory employer contributions, which range from low single digits to over 30% of salary.
No. The provider fee is usually the smallest part. The larger variable is statutory employer contributions (social security, pension, health), which differ enormously by country. The calculator adds these where we publish a verified rate.
Most major EOR providers waive setup fees and bill monthly, but watch for deposits, off-boarding fees, FX margins on local payroll, and charges for extras like equipment or visa support. Always confirm the full fee schedule before signing.
For a small headcount, almost always. Incorporating and running a foreign entity costs tens of thousands per year plus months of setup. An EOR usually becomes more expensive only once you have many employees in one country.