How Much Does An Employer Of Record Cost?

Though not cheap, EORs can be more cost-effective than maintaining local entities and legal teams, especially for smaller teams.

EOR services usually charge either a percentage of the employee’s salary or a flat monthly fee per employee. This fee typically ranges from 10 to 20 percent of gross salary, depending on the country, complexity, and number of employees.

The price includes services such as contract drafting, payroll processing, tax submissions, and compliance management. While EORs may appear more expensive than direct hiring at first glance, they are often more cost-effective when compared with the expenses and risks of setting up and running a legal entity in a foreign country, especially when hiring only a few people or working in unfamiliar jurisdictions.