How employer of record pricing works
We are an independent guide, not an EOR vendor, so this explains how providers price their services and what really drives the all-in cost. Estimate your own figure with the free calculator.
The two EOR pricing models
Most providers charge in one of two ways. A flat fee per employee per month (commonly US$300 to $800) is predictable and does not change as salary rises. A percentage of payroll (often 10% to 15%) scales with the employee’s pay, which can cost more for senior hires. A few providers offer both and let you choose.
What drives the all-in cost
The provider fee is only one part. You also pay the employee’s gross salary and the employer’s statutory contributions, which vary enormously by country, from low single digits in some markets to over 30% in parts of Europe and Latin America. Country choice usually moves the total far more than the choice of provider.
Setup, deposits, and extras
Major providers usually waive EOR setup fees, but watch for security deposits (often one month of fees or salary held in advance), currency conversion margins, and separate charges for work permits or visas in countries that require them.
Frequently asked questions
Two common models: a flat fee per employee per month (typically US$300 to $800), or a percentage of the employee’s payroll (often 10% to 15%). Flat fees are easier to predict; percentage pricing scales with salary.
Three parts: the provider fee, the gross salary, and the employer’s statutory contributions (social security, pension, health), which range from low single digits to over 30% depending on the country.
Most major providers waive EOR setup fees, but some require a security deposit (often one month of fees or salary) and charge separately for work permits or visas.
For higher salaries a flat fee usually works out cheaper, since percentage pricing keeps rising with pay. For lower salaries the two can be similar. Compare both against the specific salary.