Understanding EOR Pricing

EOR pricing varies significantly between providers and countries. Understanding the cost structure helps you budget accurately and choose the right provider.

EOR Pricing Models

Flat Monthly Fee

Most common model. You pay a fixed amount per employee per month regardless of salary.

• Range: $199-699/month
• Best for: High-salary employees
• Predictable budgeting

Percentage of Salary

Some providers charge a percentage of employee compensation.

• Range: 10-20% of salary
• Best for: Lower-salary markets
• Costs scale with compensation

Hybrid Model

Combination of flat fee plus percentage or tiered pricing.

Price Comparison by Provider

| Provider | Starting Price | Model | |----------|---------------|-------| | Deel | $599/month | Flat fee | | Remote | $599/month | Flat fee | | Oyster | $599/month | Flat fee | | Papaya Global | Custom | Hybrid | | Rippling | $600/month | Flat fee |

What's Included in EOR Fees

Standard inclusions:

• Employment contract creation
• Payroll processing
• Tax filing and compliance
• Benefits administration
• HR support

Often extra:

• Equipment provisioning
• Background checks
• Immigration support
• Equity administration

Total Cost of Employment

Your total cost = Gross Salary + Employer Taxes + EOR Fee

Example (Germany):

• Gross salary: $80,000
• Employer contributions (21%): $16,800
• EOR fee: $7,200/year ($600/month)
• Total: $104,000/year

Cost Comparison: EOR vs Entity

| Cost Category | EOR (Year 1) | Entity (Year 1) | |--------------|--------------|-----------------| | Setup | $0 | $25,000 | | Monthly fees | $7,200 | $0 | | Accounting/Legal | $0 | $15,000 | | HR staff | $0 | $50,000+ | | Total | $7,200 | $90,000+ |

For fewer than 10 employees, EOR is almost always more cost-effective.