What an Employer of Record actually costs
Vendors quote a tidy "$599/employee/month", then the invoice arrives at 4× that. Here's every line that goes into the real number, with worked examples by country.
| Cost line | Typical range | What it is |
|---|---|---|
| Platform fee | $400 – $700 / employee / month | Flat fee charged by Deel, Remote, Oyster, etc. |
| Gross salary | Whatever you offered the employee | Paid in local currency by the EOR |
| Statutory employer contributions | +10% (US) to +45% (France) | Social security, healthcare, pension, unemployment |
| FX spread | +1% to +3% | Markup on USD → local currency conversion |
| Deposit | 1–2 months of salary | Held as security; refunded on offboarding |
| Optional benefits | +$50 to +$400 / month | Private health, equity admin, pension top-ups |
| Setup / offboarding | $0 to $2,000 | Most major platforms don't charge; some do |
Worked examples
All-in monthly cost (platform fee + gross salary + statutory + FX). Rounded for clarity.
| Country | Gross salary | All-in / month | What's driving it |
|---|---|---|---|
| Germany | €60,000 | ~€6,400 / mo | Employer contributions ~20%, platform fee ~$599 |
| United Kingdom | £55,000 | ~£5,300 / mo | NI + pension ~15%, lower-friction market |
| India | $30,000 | ~$3,300 / mo | PF + ESI ~12%, low-cost country |
| Brazil | R$ 200,000 | ~R$ 26,500 / mo | Heavy social charges ~28% |
| United States | $120,000 | ~$11,800 / mo | Lower statutory load (~10%), high salary |
Get the exact number for your hire
The numbers above are typical ranges. For your specific country, salary, and HQ currency, the EOR cost calculator shows live pricing across 7 platforms (Deel, Remote, Oyster, Rippling, RemoFirst, Multiplier, Velocity Global) with FX and statutory contributions baked in.
Hiring 15+ in one country? Check the EOR vs Entity break-even calculator , fixed entity costs usually beat per-employee EOR fees above that threshold.
FAQ
How much does an employer of record cost?
EOR fees typically range from $400–$700 per employee per month for the platform fee alone. On top of that, you pay the employee's gross salary plus statutory employer contributions (social security, healthcare, pension), which add 15–35% depending on country. A €60k hire in Germany costs roughly €6,400/month all-in; the same hire in India costs about $5,800/month.
What does an EOR fee actually include?
The monthly fee covers legal employment in-country, payroll processing, statutory tax filing, benefits administration, employment contracts, and compliance updates. It does NOT include the employee's salary, statutory employer contributions, optional benefits (private health, equity), or FX conversion spread (typically 1–3%).
Are there hidden EOR fees to watch for?
Yes, three big ones. (1) FX spread: most platforms quote in USD but pay in local currency at a 1–3% markup over mid-market rates. (2) Deposits: 1–2 months of salary held as security. (3) Offboarding fees: some vendors charge $500–$2,000 to terminate. Always ask for the all-in monthly cost in your billing currency.
Is there a cheaper alternative to an EOR?
For 1–10 hires per country, EOR is almost always the cheapest option. Above ~15–20 employees in one country, opening your own entity becomes cheaper despite the $15k–$50k setup and $10k–$30k/year compliance overhead. For pure cost arbitrage, contractors are cheaper than EOR but carry serious misclassification risk in most countries.
Why is the EOR cost in some countries so much higher?
It's not the EOR fee, that's roughly flat globally. The difference is statutory employer contributions. France adds ~45% on top of gross salary; the US adds ~10%; Singapore adds ~17%. The platform fee is the smallest line item; the country's tax regime drives the total.