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EOR Guide & Directory · 2026

Employer of Record (EOR) services: what they are and how they work

An Employer of Record legally employs someone on your behalf in a country where you have no entity. This page explains how the arrangement works, what the service covers, what it typically costs, and shows the statutory employer-cost rate for each of the 39 markets we track.

What is an Employer of Record?

An Employer of Record (EOR) is a third-party organisation that legally employs your workers in countries where you don't have a registered entity. You keep day-to-day management; they carry the legal employer side.

  • Runs local payroll and tax withholding
  • Pays social security and statutory contributions
  • Issues compliant employment contracts
  • Administers statutory benefits and leave
  • Handles terminations under local law
EOR
Days

First hire onboarded in 2–5 business days. Typically has the lowest verified cost below roughly 5 hires per country, as a planning heuristic that varies by jurisdiction.

Own entity
~2–6 months

Incorporation, bank account, local payroll setup. Wins economically at scale.

Major providers, Deel, Remote, Oyster, Multiplier, Pebl (formerly Velocity Global), Rippling EOR, Papaya Global, RemoFirst, charge a flat fee (roughly USD 199699/employee) or 8–15% of gross salary. On top, you pay gross salary plus statutory employer contributions, ~3% (South Africa) to ~45% (France). This directory ranks providers by lowest verified cost per country at every salary band.

How an Employer of Record arrangement works

Three parties are involved. Your company selects the person, agrees the role and the pay, and directs the work. The EOR signs the local employment contract and appears as the legal employer on payroll and tax filings in that country. The employee works for your team day to day while being formally employed by the EOR. You pay the EOR one invoice covering salary, statutory employer contributions and the platform fee.

What an EOR normally handles

  • A locally compliant employment contract
  • Payroll and statutory deductions
  • Employer taxes and social contributions
  • Statutory benefits and leave administration
  • Onboarding paperwork and right to work checks
  • Offboarding, notice and statutory severance

What usually stays with you

  • Day to day direction of the work
  • The role, objectives and performance conversations
  • Deciding pay, budget and headcount
  • Tools, equipment and access decisions
  • Commercial risk on the hire itself

The split above describes the typical arrangement rather than a universal legal rule. The exact allocation of responsibilities, including intellectual property, confidentiality, performance management and liability, varies by jurisdiction and by the agreement you sign with the provider. Read the provider contract for the country in question before relying on any particular split.

When companies typically use an EOR

  • Hiring in a country where you have no registered entity
  • Testing a market before committing to incorporation
  • A small number of employees in each of several countries
  • A temporary or fixed-term international project
  • Keeping an existing employee who relocates abroad

What EOR services typically cost

Across the providers we track, published platform fees run from USD 199 to USD 699 per employee per month, and some vendors price as a percentage of gross salary instead. The platform fee is the smaller part of the bill: you also pay gross salary plus statutory employer contributions, which range from roughly 3% of salary in the lowest-cost markets we cover to roughly 45% in the highest.

Comparing providers head-to-head? See the best EOR providers of 2026 ranked by real cost, Deel vs Rippling, Deel vs Remote, or the best Deel alternatives.

Europe

18 countries · click any market for the full cost breakdown

Americas

7 countries · click any market for the full cost breakdown

Asia Pacific

10 countries · click any market for the full cost breakdown

Middle East and Africa

4 countries · click any market for the full cost breakdown

Frequently asked questions

An Employer of Record (EOR) is a third-party organisation that legally employs workers on your behalf in countries where you don't have a registered entity. The EOR handles local payroll, taxes, statutory benefits, employment contracts and compliance, while you keep day-to-day management of the employee. It lets companies hire internationally in days instead of the roughly 2–6 months it typically takes to incorporate a foreign subsidiary, though timelines vary widely by country.

EOR stands for Employer of Record. The EOR is the legal employer of record on government filings (payroll tax, social security, employment contracts) while you remain the functional employer who directs the work.

EOR providers charge either a flat monthly fee (roughly USD 199–699/employee/month across providers like RemoFirst, Multiplier, Deel, Remote, Oyster and Papaya Global) or a percentage of gross salary (8–15%). On top of that, you pay the employee's gross salary plus statutory employer contributions, which range from ~3% in low-tax jurisdictions like South Africa to ~45% in France. Use the calculator for an estimated total in any covered country.

A PEO (Professional Employer Organization) co-employs workers in your own legal entity, mostly used domestically in the US. An EOR is the sole legal employer in a country where you have no entity, used for international hiring without setting up a foreign subsidiary.

The major international EOR providers are Deel, Remote, Oyster, Multiplier, Pebl (formerly Velocity Global), Globalization Partners (G-P), Rippling EOR, Papaya Global, and Skuad. Pricing and country coverage differ, this directory shows the provider with the lowest verified cost per country at every salary band.