How much does an Employer of Record Cost?

Hiring internationally comes with a big question: how much does an Employer of Record (EOR) really cost?
This guide breaks down the key factors that influence EOR pricing, compares EORs with other global hiring options, and helps you understand what you’re really paying for, beyond the numbers.

If your company is planning to grow globally, this resource will help you weigh the cost of using an EOR against the time, risk, and effort it can save you.

What You’ll Learn

• What’s included in EOR pricing, from setup to monthly service fees
• How EORs compare to alternatives like setting up an entity, using legal counsel, or partnering with a PEO
• What drives cost: team size, geography, and contract length
• Examples of typical fees, including FX, onboarding, payroll, and add-ons like visa support
• What hidden costs to watch for, and how to avoid overpaying

Key Comparisons

EOR vs Setting Up a Local Entity

• Lower upfront cost with EOR, faster launch, but higher per-employee fees
• Local entities give you more control long term, but bring complex compliance and exit costs

EOR vs Legal Counsel

• EOR offers all-in-one pricing
• Legal firms offer deeper expertise but charge hourly, and you’ll still need to manage payroll separately

EOR vs PEO (Professional Employer Organization)

• PEO requires your own entity, with lower ongoing fees
• EOR becomes the legal employer, ideal for small or testing-phase teams, at a slightly higher cost

Typical EOR Costs

Here’s what you might expect to pay when working with an EOR:

• Setup Fee: $600 to $1,200 per employee
• Monthly Service Fee: $200 to $1,000+, depending on country and provider
• FX & Currency Conversion Fees: Often included in invoicing, but may vary
• Add-On Services: $50 to $500 for extras like background checks or visa support
• Employee Costs: Salary, payroll taxes, and mandatory contributions are paid to the EOR, based on local laws

Factors That Impact Cost

• Company size: More employees may mean discounts, but more complexity too
• Employee location: Higher-cost countries typically mean higher EOR fees
• Contract length and scale: Longer terms and larger volumes can reduce per-employee pricing

What Else to Consider (Beyond the Price)

The lowest rate doesn’t always equal the best value. Ask yourself:

• Does this provider offer real human support when things get complex?
• Are there any surprise fees hidden in the contract?
• How well do they support your team’s experience, onboarding, and benefits?

A strong EOR helps with more than payroll, they support retention, engagement, and compliance, all of which impact your bottom line.

Ready to Estimate Your EOR Costs?

Download “How Much Does an Employer of Record Cost?”, and get a clear, no-nonsense look at what you can expect to invest, and what you’ll save in return.