An employer of record (EOR) is a service with a typical cost of $300 to $800 or more per employee per month. In September 2026, the broader market range is approximately $299 to $1,000 per employee per month, depending on the country, provider and services included.
The EOR service fee is only part of the employment budget. You also need to account for salary, employer taxes, statutory contributions, benefits and country-specific charges.
EOR Cost at a Glance
| Cost | Typical pricing | Usually paid by |
|---|---|---|
| EOR service fee | $300 to $800 or more per employee/month | Employer |
| Employee salary | Agreed gross salary | Employer |
| Employer taxes and social contributions | Varies by country and salary | Employer |
| Statutory benefits | Varies by country | Employer |
| Private benefits | Depends on the plan and employee | Employer |
| Onboarding, termination or amendment fees | Included by some providers, charged separately by others | Employer |
| Currency conversion and payment fees | Depends on the provider and country | Employer |
What Does the EOR Monthly Fee Include?
The EOR monthly fee usually covers the legal and administrative work needed to employ someone in a country where your company does not have its own legal entity.
Typical services include:
- Preparing a local employment contract
- Onboarding the employee
- Processing payroll
- Withholding and filing employment taxes
- Administering benefits
- Handling employment compliance
- Providing local HR support
- Managing leave and time off
- Processing termination
Deel, for example, says its EOR fee includes onboarding, local compliance, payroll processing, tax filings, benefits administration and HR and legal support.
The advertised fee does not always include every employment-related cost. Benefits premiums, severance, immigration support, equity administration, expenses and some offboarding services may be charged separately.
What Is the Total Cost of Hiring Through an EOR?
The total cost is:
Gross salary + employer taxes and statutory contributions + benefits + EOR service fee + additional charges
For example, suppose a US company hires an employee through Deel on a salary of $100,000 per year:
- Salary: $100,000
- Deel EOR fee: $599 per month, or $7,188 per year
- Estimated US employer costs: approximately 9.42% to 25.36% of salary
- Estimated total before optional benefits: approximately $116,608 to $132,548 per year
The US estimate includes employer payroll taxes, state unemployment insurance, workers' compensation and other applicable costs. Deel estimates that total US employer costs above salary range from 9.42% to 25.36%.
This example is illustrative. The actual amount depends on the employee's state, salary, benefits package, workers' compensation classification and the EOR's commercial terms.
How Much Do EOR Providers Charge per Employee?
Published EOR prices include:
| Provider | Published EOR price |
|---|---|
| Deel | From $599 per employee/month |
| Remote | $699 per employee/month |
| Oyster | $699 per employee/month |
| Rippling | Custom pricing in its current public materials |
| Enterprise providers | Usually quote-based |
Deel advertises EOR pricing from $599 per employee per month. Remote lists a standard EOR price of $699 per employee per month, and Oyster lists the same price.
Some providers offer introductory or volume pricing. Enterprise customers may receive different rates based on employee numbers, countries and contract length.
What Factors Affect EOR Pricing?
Country of Employment
EOR fees and total employment costs vary by country. Payroll rules, mandatory benefits, severance requirements and compliance obligations can all affect the cost of employing someone locally.
Some providers charge one service fee across countries. Others use country-specific pricing.
Employee Salary
A flat-fee EOR charges the same service fee regardless of salary. A percentage-based EOR charges a percentage of payroll, often reported in the range of 10% to 15%. Percentage pricing may cost less for lower-paid employees but more for highly paid employees.
For example:
- A 12% fee on a $50,000 salary equals $6,000 per year.
- A 12% fee on a $150,000 salary equals $18,000 per year.
A flat fee is easier to forecast when you are hiring senior or highly paid employees.
Benefits and Insurance
Mandatory benefits are part of the employment cost in many countries. Private medical insurance, supplemental pension contributions, life insurance and other enhanced benefits may cost extra.
In the United States, employer costs can include FICA, state unemployment insurance, workers' compensation and paid-leave programs. Benefits are separate from both salary and the EOR service fee.
Onboarding and Offboarding
Some EORs include onboarding and termination in the monthly price. Others charge separate fees for:
- New-hire onboarding
- Contract amendments
- Employee termination
- Severance processing
- Final payroll
- Immigration or visa services
- Annual tax or payroll activities
Oyster notes that some providers charge separately for offboarding and contract changes. The advertised monthly price may not represent the full cost.
Number of Employees and Contract Length
Hiring several employees in the same country may give you room to negotiate. Providers may offer discounts for:
- Larger headcount
- Annual commitments
- Multiple-country contracts
- Pre-funded balances
- Enterprise agreements
Month-to-month pricing can cost more in some cases, but it avoids paying for unused capacity.
Is an EOR Cheaper Than Setting Up a Local Company?
An EOR is not always cheaper over the long term. Its main financial benefit is avoiding the setup and operating costs of creating your own foreign entity.
Setting up a local entity can involve:
- Incorporation and registration
- Local directors or representatives
- Accounting and tax filings
- Payroll infrastructure
- Legal advice
- Registered office requirements
- Annual government filings
- Local HR and compliance staff
An EOR is often a practical financial choice when a company is hiring a small number of employees, testing a new market or needs to hire quickly. A local entity may become more economical when a company has a larger, permanent workforce in one country. The break-even point depends on the country and operating model.
Which EOR Pricing Model Is Best?
For many small and mid-sized companies, a flat monthly fee per employee is the easiest pricing model to compare and forecast.
Choose a flat-fee EOR when:
- You want predictable monthly costs.
- You are hiring senior or highly paid employees.
- You expect salaries to change.
- You need a clear budget.
Consider percentage-based pricing when:
- Employees have relatively low salaries.
- The provider offers a substantially lower rate.
- You have confirmed what the percentage includes.
- There are no minimum monthly charges or expensive add-ons.
Do not compare EORs using the monthly fee alone. Compare the complete annual cost, including employer contributions, benefits, onboarding, termination, currency conversion and required deposits.
Bottom Line
An EOR quote should show more than the monthly subscription price. Before signing, request a country-specific breakdown of:
- Monthly EOR fee
- Employer taxes and statutory contributions
- Benefits costs
- Onboarding and termination charges
- Currency and payment fees
- Deposits or minimum commitments
- Severance and offboarding treatment
That comparison gives you a more accurate employment budget than comparing advertised EOR prices alone.