Global EOR Pricing Explained: How Much Does an Employer of Record (EOR) Cost?
Hiring international talent through a Global Employer of Record (EOR) is a cost-effective way to grow your team across borders—without setting up legal entities.
How Is EOR Pricing Structured?
Most Global EOR providers use one of the following pricing models:
Flat Monthly Fee per Employee
You pay a fixed monthly rate for each employee hired through the EOR. This rate typically covers:
Local payroll processing
Tax compliance
Employment contracts
Mandatory benefits
HR support and administration
Onboarding and termination handling
Range:
Flat rates generally start from $50 to $1,000+ per employee per month, depending on the country and provider.
Percentage of Employee’s Gross Salary
Some EORs charge a percentage-based fee, usually between 10% to 20% of the employee’s gross monthly salary.
This pricing model scales with the employee’s compensation and can be more expensive for high-salaried roles.
What Affects EOR Pricing?
Several variables influence how much you’ll pay:
| Factor | Impact on Cost |
|---|---|
| Country of Employment | Compliance complexity and statutory costs vary widely. Hiring in India is cheaper than in Switzerland. |
| Seniority of the Employee | Higher salaries = higher % fees (if not on flat rate). |
| Number of Employees | Volume discounts may apply. |
| Type of Benefits Required | More comprehensive benefits = higher cost. |
| Customization & Support Level | Premium support or tailored contracts may increase pricing. |
| Contract Duration | Long-term hires may be priced lower than short-term or project-based ones. |
What’s Included in the EOR Fee?
Your EOR provider typically handles:
Drafting compliant employment contracts
Running country-specific payroll
Withholding taxes and social contributions
Providing statutory benefits (pension, healthcare, leave)
Managing local HR and labor law compliance
Onboarding, offboarding, and termination assistance
Handling employment-related risks and liabilities
Peace of mind, legal protection, and compliance—all in one monthly fee.
What’s Not Usually Included?
Employee’s gross salary and bonus
Equity or stock option management (may incur extra fees)
Optional benefits (private insurance, supplemental perks)
Recruitment services or candidate sourcing
Hardware, remote tools, or operational expenses
Quick Example:
Hiring a software developer in India earning $2,000/month:
Flat EOR Fee: $49/month (average for India)
Total Monthly Cost: $2,049
You avoid: entity setup, legal registration, payroll tax management, and compliance risks
Final Thought:
EOR pricing is predictable, scalable, and transparent—especially when compared to the hidden costs and time involved in setting up legal entities and managing compliance in-house.