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An employer of record charges a service fee on top of an employee’s pay and applicable employment costs. Advertised service fees include EOR from $99 per employee per month at Native Teams, Flex from $199 at RemotePeople, and US$699 at Remote. Each offer has its own terms. You’ll also need to pay the employee’s salary, employer contributions and other employment costs.
Your budget should include gross pay, employer contributions, required benefits and extra pay, the EOR service fee, and any agreed additional services. List refundable deposits and advance payroll payments separately so you can see both the employment cost and the cash you need upfront. Check what each quote includes before comparing monthly fees.
Pricing and sources checked 19–20 September 2026. RemotePeople publishes this guide and offers EOR services. The comparison covers 30 EOR providers and one adviser. It compares published prices, not service quality, and does not cover every provider. The budget examples use assumed figures; they are not customer case studies or quotes for a particular country.
What is an employer of record?
An employer of record, or EOR, employs a worker locally while the client company directs their day-to-day work. This can let you hire in a country where you don’t have your own local company. The service agreement and local law determine who handles payroll, employment documents, benefits and other administration.
Before comparing fees, confirm which entity will employ the person, whether the arrangement is available for that role and country, and which responsibilities remain with your company. Your company may still have employment, tax, immigration or business-licensing obligations under local law.
This video explains how an EOR works. Availability, onboarding times and costs vary by country, role and provider agreement.
What does the total EOR cost include?
Ask each provider to separate these six items in its quote.
| Component | What to include | How to treat it |
|---|---|---|
| Gross pay | Salary and agreed variable compensation before employee deductions. | Check whether the annual figure already includes additional statutory salary payments. |
| Employer contributions | Applicable social insurance, pension, payroll taxes and other employer charges. | Apply each component to its own legal base and ceiling. Employee withholding is not an extra employer expense. |
| Benefits and additional pay | Required or agreed insurance, holiday allowances, bonuses and relevant accruals. | Separate cash payments from provisions and avoid counting a benefit twice. |
| EOR service fee | The provider’s recurring charge for the agreed employment service. | Record currency, billing period, minimums, inclusions and country conditions. |
| Additional services | Agreed onboarding, equipment, immigration, off-cycle payroll, FX or exit charges. | Separate one-time charges from recurring costs and show the basis of any markup. |
| Refundable funding | Security deposits and cash advanced to fund payroll. | Show the cash requirement separately. A refundable deposit is not automatically an expense; prefunding may pay expenses already included above. |
Annual cost formula: annual employment expense = gross pay + employer contributions + additional benefits and compensation not already included + annual EOR service fees + applicable additional charges.
You may need extra cash upfront for a deposit or advance payroll payment. Ask when each payment is due and which amounts are refundable.
EOR provider pricing comparison
We checked the official pricing and service pages linked below on . These are advertised EOR service fees per employee per month, not the full cost of employment or a binding quote. Budget separately for salary, employer contributions, benefits, deposits, currency conversion and additional services. Prices and availability can vary by country and contract.
RemotePeople publishes this comparison and sells EOR services. The table lists published fees and billing conditions, with links to each provider’s page, including our own. Where no price is listed, you’ll need a quote. We keep the currency labels used by each provider: US$ means the page explicitly identifies US dollars; $ means the page shows a dollar sign without specifying which dollar currency it uses. Confirm the billing currency in your quote. Ask for an itemized quote to check for additional charges.
| Business | Advertised EOR service fee | Pricing conditions and source |
|---|---|---|
| RemotePeople | Flex: from $199 Plus: from $399 |
Flex is billed monthly with no commitment or minimum employee count. Plus is for 5+ employees, paid annually with an annual commitment and no deposit. Final pricing depends on the countries and requirements. RemotePeople pricing. |
| Remofirst | From $199 | Country requirements can affect the price. The page advertises no annual contract or minimum employee count. Remofirst pricing. |
| Payoneer Workforce Management (formerly Skuad) | From $199 | The employee EOR starting price is separate from contractor management and agent-of-record products. Workforce Management pricing. |
| Native Teams | From $99 | The page lists this as an employee EOR offer; contractor services have separate plans. Confirm the destination country’s rate and inclusions. Native Teams pricing. |
| Borderless AI | $579 | The EOR fee is separate from contractor management and global payroll products. Confirm currency and country-specific terms. Borderless AI pricing. |
| Lano | From €499 | Tailored quotes and volume discounts are available. Some countries may cost more than the starting price. Lano pricing. |
| Boundless | From €175 or $199 | Prices vary with local employment requirements. The page advertises monthly billing without a long-term commitment or headcount minimum. Currency options are listed as advertised, not converted here. Boundless pricing. |
| Multiplier | Core: $459/month, annual billing; $499/month, monthly billing Growth: $519/month, annual billing; $559/month, monthly billing |
Amounts are monthly rates under the stated billing option. Country exceptions apply. The pricing page mentions mandatory add-ons and applicable implementation fees, while the FAQ says no setup, onboarding or offboarding fees. Resolve the difference in your quote. Multiplier pricing; FAQ. |
| Oyster | US$699 | Annual discounts are available; confirm the discounted rate and commitment. Oyster pricing. |
| Justworks | $599 | The EOR offer lists no base fee. Check account and plan eligibility when requesting a quote. Justworks pricing. |
| Deel | $599 | This price is for employee EOR services. Confirm the scope and any additional services in your quote. Deel pricing. |
| Remote | US$699 standard rate | The pricing page and official support guidance identify the standard employee management fee. Confirm any discount separately. Remote pricing; management-fee guidance. |
| Rippling | Request a quote | The linked pricing page does not publish an EOR fee. The core Rippling Platform is required; confirm the combined price of the products you need. Rippling pricing. |
| WorkMotion | From US$549 / €499 / £399 / CHF459 | Starting rates are shown in the provider’s advertised currencies. Confirm the country rate and billing currency. WorkMotion pricing. |
| Gloroots | From $199 | The page advertises monthly billing with no default long-term lock-in or minimum headcount. Confirm any optional services. Gloroots pricing. |
| Atlas HXM | From $599 | Volume pricing is available. The page also identifies currency-conversion markup and mobility add-ons, so the starting fee should not be treated as an all-inclusive invoice. Atlas pricing. |
| Foothold America | $650–$1,000 estimated range | The provider publishes this employee EOR range and offers a customized quote for US employment. Confirm the applicable rate and terms. Foothold America pricing. |
| Pebl | $399 | This is the advertised employee EOR price. Confirm country availability and contractual conditions. Pebl EOR pricing. |
| G-P | From US$599 | Volume discounts are available. The pricing FAQ states that EOR has no minimum contract length. G-P pricing. |
| Papaya Global | From $499 | The pricing page advertises $499, while the provider’s EOR cost article refers to $599. We show the pricing-page offer; confirm the applicable rate in writing. Papaya pricing; EOR cost article. |
| Safeguard Global | Request a quote | The linked service page does not publish an EOR fee. Ask for the country rate and an itemized quote. Safeguard Global EOR. |
| Magnit | Request a quote | The linked page does not publish a price. Its EOR offer focuses on contingent workers; confirm that its service model fits the role you need to fill. Magnit EOR. |
| Mauve Group | Request a quote | The linked page does not publish an EOR fee. Ask for country-specific pricing and inclusions. Mauve Group EOR. |
| Mercans | $299–$599 Plus $300 implementation per employee |
The service page publishes the monthly recurring range and separate implementation charge. Confirm the country rate, currency and full quote. Mercans EOR pricing. |
| People2.0 | Request a quote | The linked page does not publish an EOR fee. Confirm the service scope for your workforce and the applicable country pricing. People2.0 EOR. |
| BIPO | Request a quote | The linked page does not publish an EOR fee. Ask for a quote that separates EOR charges from other HR or payroll products. BIPO EOR. |
| TopSource Worldwide | Request a quote | The page describes a flat monthly service fee plus statutory costs but does not publish an EOR fee. TopSource Worldwide EOR. |
| INS Global | From US$299 | The final quote depends on the country and headcount. INS Global pricing. |
| Auxadi | Request a quote | The linked page does not publish an EOR fee. Request the price and scope for each hiring country. Auxadi EOR. |
| Rivermate | US$319–$639 | The checked page displayed this range in US dollars. Pricing varies by country, headcount, project and whether the employee is a local or expatriate hire. Rivermate pricing. |
Independent adviser
| Business | Advertised EOR service fee | Pricing conditions and source |
|---|---|---|
| Bradford Jacobs | Partner rates from US$250 | Bradford Jacobs describes itself as an independent adviser that evaluates EOR partners. The advertised starting rate is for its EOR partners. Confirm the selected provider, country and contract. Bradford Jacobs services and partner pricing. |
Use these figures to build a shortlist, then request comparable quotes for the same country, salary, benefits and start date. Compare the full employment cost and the support included, not just the service fee. For RemotePeople specifically, compare Flex’s monthly terms with Plus’s annual payment, 5+ employee requirement and no-deposit offer before choosing a plan.
How EOR pricing models work
Fixed monthly fee
A fixed fee is charged per employee for the agreed plan, rather than calculated directly from salary. It can still vary by country, service level, headcount or contract term. A $199 monthly fee, for example, is $2,388 a year before other charges.
Percentage-based fee
A percentage quote should state both the rate and the amount it applies to: base salary, gross compensation or a broader employment-cost total. Check for monthly minimums, caps and services bundled into that percentage.
For example, a 12% fee on a $100,000 annual salary would cost $12,000 a year, or $1,000 a month. Compared with a $199 monthly fee, the difference is $9,612 a year. That comparison is useful only if the two offers cover equivalent services and the percentage really applies to salary alone.
Combined or custom pricing
A proposal may combine a platform charge, employee fees and separately priced services. Request an itemized example using the same employee profile for every provider. Check that the quotes include the same benefits and required services.
When does a fixed fee become cheaper?
If the percentage applies only to annual salary, this formula shows the salary at which both fees cost the same:
Annual salary at which both fees cost the same = monthly fixed fee × 12 ÷ percentage rate.
- $199 a month versus 12%: $19,900 annual salary.
- $400 a month versus 12%: $40,000 annual salary.
- $599 a month versus 10%: $71,880 annual salary.
These are hypothetical fee comparisons, not current offers from named vendors. Above that salary, the fixed fee costs less. Below it, the percentage fee costs less. Minimum charges, caps and differences in service can change the comparison. For example, 12% on a $25,000 salary is $250 a month, so it still exceeds a $199 monthly fee.
Employer costs by country
There is no single percentage that reliably turns gross salary into total employment cost in every country. Contributions can depend on salary ceilings, age, residency, state or province, employer size, risk classification, collective agreements and available relief.
The table below covers employer costs in 25 countries. Use it to check a local payroll quote; it doesn’t give the full cost of a hire in each country. Confirm which rules apply to your employee and their legal employer.
| Country | Main employer costs and conditions | Official source |
|---|---|---|
| United States | In 2026, the employer pays Social Security at 6.2% on wages up to $184,500 and Medicare at 1.45% without that wage ceiling. Federal and state unemployment taxes are separate. Ask for a state-specific breakdown that also identifies benefits and other applicable employer costs. | IRS: 2026 employer tax guide |
| Canada | Outside Quebec, 2026 employer CPP is 5.95% on pensionable earnings between C$3,500 and C$74,600, with CPP2 of 4% on the next band up to C$85,000. The standard employer EI rate is 2.282%, up to C$68,900 of insurable earnings. Quebec rules, provincial payroll taxes and workers’ compensation need their own calculation. | CRA: 2026 CPP and EI rates |
| United Kingdom | For 2026–27, standard employer National Insurance is 15% above the £5,000 annual secondary threshold, subject to the employee’s category and applicable relief. Workplace pension contributions are separate; the usual minimum employer contribution is 3% of qualifying earnings, subject to the scheme’s rules. A quote should show both calculations. | HMRC: 2026–27 rates; GOV.UK: workplace pensions |
| Germany | Employer costs include pension, unemployment, health and long-term care contributions, plus other applicable levies. In 2026, pension and unemployment contributions use an annual ceiling of €101,400; health and care contributions use €69,750. The health insurer and location affect the calculation, so request a breakdown in euros rather than applying one percentage to the full salary. | 2026 statutory contribution ceilings; TK: employer contribution shares |
| France | Employer contributions include health, retirement, unemployment, family benefits and occupational-accident cover, with different bases and company-specific charges. The general contribution relief introduced in 2026 depends on pay, so a flat 40–45% estimate won’t fit every hire. Ask for a calculation that identifies the salary, employee status, company location and applicable collective agreement. | CLEISS: contribution components; Service Public: 2026 contribution relief |
| Spain | For an ordinary indefinite contract in 2026, employer contributions include 23.6% for common contingencies and 5.5% for unemployment, plus other statutory contributions and the applicable accident premium. Contribution bases and ceilings matter. The two statutory extra salary payments can be spread over 12 payments where the collective agreement allows; confirm whether they’re already included in the quoted annual gross salary. | 2026 contribution order; Workers’ Statute, article 31 |
| Italy | Social-insurance contributions depend on the employer’s sector and the worker’s classification. Budget separately for TFR, the accrued end-of-employment benefit: the gross formula is eligible pay divided by 13.5, with a 0.5% contribution deduction where applicable. Check the relevant collective agreement when budgeting additional salary payments. | INPS: contribution calculation; INPS: 2026 TFR rules, section 3 |
| Netherlands | The 2026 employer health levy is 6.10%, up to €79,409 of contribution income; employee-insurance premiums depend on the contract and employer. Holiday allowance is usually at least 8%, with defined exceptions. Confirm whether the annual salary already includes that allowance and whether a sector pension contribution applies. | Belastingdienst: health levy; employer insurance premiums; government holiday-pay guidance |
| Poland | Employer contributions include pension at 9.76%, disability insurance at 6.5%, accident insurance and applicable employment funds. The 2026 annual contribution-base cap for pension and disability is PLN282,600. For employees participating in PPK, add the basic employer contribution of 1.5%; don’t assume it’s included in a generic social-insurance estimate. | ZUS: employer contribution shares; ZUS: 2026 limits; official PPK guidance |
| Romania | Ask the provider to separate the employer’s work-insurance contribution, known as CAM, from pension and health amounts withheld from the employee. The quote should identify the current contribution base, any special working-condition obligations and minimum-contribution adjustments that apply. Employee deductions shouldn’t be added again as employer costs when your starting figure is gross salary. | ANAF: consolidated Fiscal Code, employer contributions |
| Brazil | Budget for employer social-insurance contributions, occupational-risk contributions, FGTS deposits and applicable additional charges; the tax regime and business activity affect the result. FGTS is ordinarily 8% of covered remuneration. Show the 13th salary and vacation supplement separately, and check that paid leave already covered by annual salary hasn’t been counted twice. | Receita Federal: employer contributions; Labour Ministry: FGTS; worker benefits |
| Mexico | Itemize social-insurance contributions, the employer’s housing contribution and applicable state payroll tax, using the correct integrated salary and contribution bases. The statutory annual aguinaldo is at least 15 days’ salary, with a proportional entitlement for part of a year. A full extra month is a contractual assumption, not the nationwide statutory minimum; confirm how any bonus is treated in the annual salary quote. | Social Security Law; INFONAVIT: employer contributions; Federal Labour Law, article 87 |
| Argentina | ARCA lists employer social-security rates of 18% or 20.4%, depending on the employer’s classification; the employer health contribution is separately 6%. Work-risk insurance and applicable adjustments also affect the quote. The annual supplementary salary, or SAC, is paid in two installments based on the highest monthly remuneration in each half-year, so budget it explicitly. | ARCA: employer contributions; health contribution law, article 16; government SAC guidance |
| Colombia | Request separate employer amounts for health, pension, occupational risks and applicable family-compensation, SENA and ICBF contributions. Exemptions and contribution bases depend on the employer and worker, so the same headline percentage won’t fit every hire. Ask for a current payroll calculation that also lists statutory employment benefits separately. | UGPP: 2026 employer guide; DIAN: contribution exemptions |
| Chile | From August 2026, the employer pension contribution is 3.5% of earnings subject to pension contributions, including its disability and survivor-insurance allocation. Employer unemployment contributions are separately 2.4% for ordinary indefinite contracts or 3% for fixed-term contracts. Add occupational-accident contributions, starting with the 0.9% base rate, and have the quote show applicable ceilings and other charges. | ChileAtiende: pension contribution timetable; AFC: unemployment contributions; SUSESO: accident contribution |
| India | Calculate EPF, ESI and gratuity separately: coverage, statutory wage definitions and contribution limits affect the result. A high salary does not automatically attract ESI, and a gratuity provision is different from a monthly contribution. Ask for a breakdown based on the employee’s salary components, membership status and the rules effective on the hiring date. | Government EPFO update; ESIC coverage guidance; Labour Ministry gratuity guidance |
| Philippines | Employer SSS contributions are 10% of monthly salary credit, capped at a ₱35,000 credit, plus the employer-only Employees’ Compensation contribution. Budget separately for PhilHealth and Pag-IBIG; the standard Pag-IBIG employer contribution is 2% on a salary base capped at ₱10,000 per month. Covered rank-and-file employees also receive at least one-twelfth of basic salary earned as thirteenth-month pay, so check whether the annual salary quote already includes it. | SSS rates and limits; PhilHealth premium schedule; Pag-IBIG contribution update; DOLE benefits handbook |
| Vietnam | Calculate social, health and unemployment insurance on their applicable contribution bases; foreign employees have different coverage from Vietnamese employees. From July 2026, the maximum monthly salary base for compulsory social and health insurance is ₫50.6 million, while unemployment insurance has a separate ceiling. Check occupational-risk rates and any applicable trade-union funding separately. | VSS July 2026 contribution limits; VSS foreign-worker contributions; Trade-union funding rules |
| Singapore | The employer CPF rate is 17% for eligible citizens and permanent residents aged 55 or younger at full contribution rates; age, wage band and years of permanent residence can change the rate. The ordinary-wage ceiling is SGD8,000 per month in 2026, with separate rules for additional wages such as bonuses. Skills Development Levy is additional: generally 0.25% of monthly wages, subject to a SGD2 minimum and SGD11.25 maximum per employee. | CPF employer rates; 2026 CPF tables; Skills Development Levy |
| Hong Kong | For a covered, monthly paid employee, the employer’s mandatory MPF contribution is 5% of relevant income, capped at HKD1,500 per month. The cap corresponds to HKD30,000 of monthly relevant income; MPF alone is not a complete employment-cost budget. | MPFA contribution rates and caps |
| Australia | Super guarantee is 12% of eligible qualifying earnings under the rules applying from July 2026. State or territory payroll tax is separate and depends on taxable wages, thresholds and grouping rules; for example, NSW’s 2026–27 rate is 5.45% above the applicable threshold. Ask the EOR how payroll tax and other required employer costs affect your quote. | ATO super guidance; NSW payroll-tax rates and thresholds |
| South Africa | The employer UIF contribution is 1% of remuneration up to R17,712 per month; the employee’s separate 1% is a payroll deduction. Skills Development Levy is generally 1%, with an exemption where the employer’s relevant payroll is not expected to exceed R500,000 over the following 12 months. These two items do not include every employer obligation, so request separate confirmation of Compensation Fund and any applicable sector costs. | SARS UIF contributions; SARS SDL exemptions and calculation |
| Nigeria | For employees covered by the contributory pension scheme, the employer contributes at least 10% of monthly emoluments. Applicable ITF contributions and employer-funded Employees’ Compensation Scheme payments are separate costs. Keep employee PAYE and NHF deductions separate from additional employer contributions when comparing quotes. | Pension Reform Act; ITF contribution requirements; Employees’ Compensation Scheme; LIRS payroll-deduction guidance; FMBN NHF guidance |
| United Arab Emirates | Pension costs for UAE nationals depend on the applicable pension authority and scheme: GPSSA’s newer federal scheme uses a 15% employer contribution, with government support for qualifying private-sector employees, while some older-scheme employers bear 12.5%. Covered full-time expatriates under federal labour law have a separate end-of-service gratuity entitlement, normally 21 days of basic wage per year for the first five years and 30 days per year thereafter, after qualifying service. Confirm nationality, jurisdiction, scheme and salary base before budgeting. | GPSSA newer-scheme contributions; GPSSA older-scheme contributions; MOHRE gratuity guidance |
| Japan | Employees’ Pension Insurance generally requires an employer share of 9.15% of the applicable standard remuneration and bonuses, subject to scheme limits. Health insurance varies by insurer and prefecture, with additional age-related care contributions and child-related contributions where applicable. Employer employment insurance for general businesses is 0.85% in the April 2026–March 2027 year; work-injury insurance depends on the business category. | 2026 Tokyo health and pension contribution table; 2026 health-insurance guidance; FY2026 employment-insurance rates |
Check the salary definition first. Additional salary payments and holiday allowances may already be included in an annual compensation figure. Adding them again would overstate the budget. A provision for a future termination benefit also needs different treatment from a contribution paid each month.
For a cross-country comparison, specify the employee profile, local-currency salary, work location and calculation date. If you translate the result into dollars, state the exchange rate and date. Comparing different local salaries can be useful, but it answers a different question from comparing the employment charges on the same salary.
What does a $100,000 employee cost through an EOR?
In this example, an employee earning a $100,000 annual salary costs $123,688 in the first year, before any refundable deposit. The employer contributions, benefits and additional charges are assumed figures, not costs for a specific country. Replace them with a local payroll calculation and your provider’s quote.
| Item | Assumption | Annual amount |
|---|---|---|
| Gross salary | Annual base pay | $100,000 |
| Employer contributions | Assumed 18% of salary | $18,000 |
| Additional benefits | Assumed benefit expense, not included above | $2,400 |
| EOR service fee | $199 × 12 months | $2,388 |
| Other recurring charges | Assumed annual charge | $600 |
| Recurring annual expense | Sum of the five lines above | $123,388 |
| One-time onboarding | Assumed onboarding charge | $300 |
| First-year expense | Recurring expense plus onboarding | $123,688 |
A refundable $10,000 deposit would increase the cash required to $133,688 if you pay all first-year expenses during the year and the provider still holds the deposit. Employment expenses would remain $123,688 while the deposit remains recoverable. Check the agreement for payment dates and refund conditions, and confirm the accounting treatment with your accountant.
This example excludes notice pay, severance, exchange-rate changes and other costs that may arise. Ask the provider to estimate them separately.
Additional EOR fees to check
Before hiring, ask which extra fees may apply, how they are calculated, when they are charged and whether you must approve them first.
- Onboarding: Does the quote include contract preparation, checks and implementation? Is the fee per employee or per country?
- Deposits: What determines the amount, when can it change, what can be deducted, and when is the balance returned?
- Currency conversion: Which reference rate is used, when is it fixed, and what spread, bank charge or adjustment is added?
- Off-cycle payroll: What does an additional bonus, correction or expense run cost? Are provider-caused corrections treated differently?
- Benefits: Separate the premium, administration fee and any broker or provider charge.
- Equipment: Itemize the equipment, shipping, customs, setup, support and return costs.
- Immigration: Confirm eligibility and separate government, legal and service fees. Do not assume a work-permit timeline applies to every hire.
- Termination or transfer: Distinguish provider administration charges from employee notice pay, leave balances, severance and other legal entitlements.
A 2% currency-conversion charge on $1.4 million of converted payroll would add $28,000. Apply that percentage only to amounts actually converted. The charge alone doesn’t tell you the provider’s profit.
EOR vs. setting up a company: five-year costs
With an EOR, you pay a recurring service fee for each employee. With your own local company, you pay to set it up and run it, and take on the responsibilities of employing people directly. Compare the two over the same period, using the same salaries, benefits and employer contributions.
For an entity budget, distinguish government incorporation fees, professional advice, registrations, payroll administration, accounting, insurance, office or director requirements, capital and ongoing filings. The incorporation fee alone won’t tell you how much it costs, or how long it takes, to start employing people.
Assumptions for this five-year example
- One country, constant headcount and $100,000 annual salary per employee.
- Assumed employer contributions of 18% under both options.
- Entity setup: $50,000; entity operating overhead: $20,000 a year.
- EOR service fee: $199 per employee per month.
- No wage increases, FX movement, financing, discounting, migration costs, differing benefits or other EOR charges.
The setup and running costs are assumptions for this example, not country averages. Replace them with quotes for the country where you plan to hire.
| Employees | Entity cost | EOR cost | Lower-cost route |
|---|---|---|---|
| 1 | $740,000 | $601,940 | EOR by $138,060 |
| 5 | $3,100,000 | $3,009,700 | EOR by $90,300 |
| 10 | $6,050,000 | $6,019,400 | EOR by $30,600 |
| 25 | $14,900,000 | $15,048,500 | Entity by $148,500 |
| 50 | $29,650,000 | $30,097,000 | Entity by $447,000 |
| 100 | $59,150,000 | $60,194,000 | Entity by $1,044,000 |
Entity cost = employees × $118,000 × 5 + $50,000 + $20,000 × 5. EOR cost = employees × ($118,000 + $199 × 12) × 5.
How many employees make a local entity cheaper?
Where employment costs are identical and the only difference is entity overhead versus the EOR service fee:
Break-even headcount = (entity setup + annual entity overhead × years) ÷ (monthly EOR fee × 12 × years).
In this five-year example, $150,000 ÷ $11,940 = 12.56. The entity becomes cheaper at 13 whole employees. Over three years, the same setup and annual overhead produce $110,000 ÷ $7,164 = 15.35, so the entity becomes cheaper at 16 employees. The time horizon changes the answer.
Higher setup costs mean you need more employees before a local company costs less, assuming the other figures stay the same. Higher EOR fees lower that number. If your team will grow, calculate the cost month by month using the number of employees you expect to have.
Cost is only one reason to switch. Consider the work the entity needs to perform, management capacity, licensing, expected time in the country and the legal treatment of employee transfers. Do not assume a transfer avoids consent, notice or severance. For example, UK TUPE rules protect employees in specified qualifying transfers, but do not establish the outcome of every EOR change.
Is a contractor a cheaper alternative?
A genuine independent contractor is a different working arrangement. You should not choose it solely to avoid employee costs. Classification depends on the facts and local law, including the degree of control and the nature of the relationship. As one jurisdiction-specific example, the US IRS considers behavioral control, financial control and the parties’ relationship.
Contractor fees, payment administration, tax and reporting obligations can still create costs. If the role should be employment, compare compliant employment options first. Misclassification penalties vary by country, so check the local consequences before choosing a contractor arrangement.
How to compare EOR quotes
Give each provider the same country, salary, work location, employee profile, start date and required benefits. Ask for an annual expense estimate, the initial cash requirement and a sample invoice. Then compare these items:
- Service fee: currency, per-employee amount, billing term, minimum headcount and inclusions.
- Employer contributions: each component, contribution base, ceiling, relief and calculation date.
- Compensation and benefits: required extra pay, premiums, allowances and what is already included in gross salary.
- Onboarding: one-time fees and the event that triggers each charge.
- Deposits: funding basis, top-up rules, permitted deductions and refund timing.
- Payroll funding: invoice date, cutoff, payment method, credit terms and late-payment consequences.
- FX: reference rate, conversion timing, spread and settlement adjustments.
- Additional services: off-cycle runs, equipment, immigration and approval requirements.
- Contract duration: renewal, price changes, minimum commitment and exit notice.
- Employee exit or transfer: provider charges, accrued entitlements, legal process and continuity of benefits.
- Service and data protection: what you need to provide for onboarding, how payroll errors are resolved, support response times, responsibility for personal data and supporting security documents.
- Responsibility and remedies: employing entity, partner involvement, liability limits, indemnities, exclusions and insurance.
Check when you must send payroll funds; don’t assume your usual supplier payment terms apply. For example, Deel’s EOR invoice guidance specifies five calendar days for standard invoices. Make sure your payment process can meet the deadline.
Check which services a security report covers, the period it assesses and any exceptions it identifies. A SOC 2 report or ISO certificate can help with due diligence, but neither a certificate nor a higher fee guarantees security or compensation for a loss.
For personal data, establish the parties’ roles and the required contractual terms. ICO guidance explains binding controller–processor arrangements where applicable; it does not require every arrangement to use a separate document with the same title. Cross-border transfers and other local requirements need their own review.
RemotePeople EOR pricing
RemotePeople’s public pricing page lists EOR Flex from $199 per employee per month with monthly terms and no commitment, and EOR Plus from $399 per employee per month, paid annually with an annual commitment, a five-employee minimum and no deposit. Confirm that the plan covers your hiring country and required services, and request the final price in writing.
Request an itemized EOR proposal with your intended countries, headcount, salaries, start dates and required services. Ask for both the annual expense estimate and the cash needed before the first payroll.
Frequently asked questions
How much does an EOR cost per month?
The service fee depends on the provider, country, plan and commitment. The linked offers in this guide include advertised starting prices of $99 and $199 per employee per month, and a US$699 standard offer. Salary, employer contributions and other applicable costs are additional. Use the provider table to find the current offer and its conditions.
What is the average EOR cost?
The prices in this guide aren’t a market-wide average. Public starting prices are not the same as what customers actually pay, and offers use different currencies, terms and inclusions. An itemized quote for your country and employee profile is more useful for budgeting.
Why do EOR fees differ?
Compare the actual service scope: employment administration, payroll, benefits support, systems, account support and any additional services. Country requirements and commercial terms can change the quote. Ask how the provider delivers the service, who employs the worker and what security controls it uses. Price alone won’t answer those questions.
Is EOR cheaper than setting up an entity?
It depends on setup costs, annual overhead, the EOR quote, headcount over time and how long you expect to operate. In the hypothetical five-year model above, entity cost becomes lower at 13 employees. That result is specific to those assumptions, not a rule for every country.
Does an EOR charge setup fees or a deposit?
Some offers include setup; others charge implementation or onboarding separately. Deposit requirements also vary by provider and plan. Ask for the amount and conditions in writing, and keep refundable deposits separate from employment expenses.
Can an EOR cost less than $199 per month?
Yes. Native Teams’ linked pricing page advertises EOR from $99 per employee per month. The final price may be higher in some countries. Confirm availability, what’s included and any additional charges.
Are EOR costs tax deductible?
Tax treatment depends on where your company pays tax, the type of expense and the arrangement. Ask your tax adviser to assess the actual agreement and supporting invoices. Payroll contributions, service fees and refundable deposits should not be assumed to have identical tax treatment.
What should I check before switching EOR providers?
Confirm the employment-transfer process, employee consent where required, continuity of service and benefits, accrued entitlements, notice, potential severance and immigration implications. Then compare the providers’ exit charges, deposit refunds and payroll cutover plan. The outcome depends on the jurisdiction and agreements.
