An EOR invoice has three parts: the employee's gross salary, the employer costs required by local law (social security, insurance, statutory bonuses) and the EOR's service fee. The first two are set by the salary you agree and the country's rules; only the fee is the provider's price.
That means the cheapest provider is the one with the lowest fee and add-ons for the same employment, not the one with the lowest total invoice. Employer costs should be identical across providers for the same salary and benefits. If they aren't, ask why.
| Model | How it works | Watch out for |
|---|---|---|
| Flat fee per employee | A fixed monthly fee (e.g. US$400–700) regardless of salary | Can be expensive relative to lower salaries; monthly vs annual billing rates |
| Percentage of salary | Fee as a share of gross pay (often 10–20%) | Grows with salary; can be costly for senior hires |
| Plan tiers | Bundles of features at set prices | Paying for features you don't need, or needing a higher tier |
| Quote-based | Custom pricing negotiated per customer | Harder to compare; ask for an itemised quote |
- Security deposit: often one to two months of total employment cost, refundable at the end. Ask when and how it's returned.
- Currency conversion margin: if you pay in one currency and salaries are paid in another, a margin of 1–3% can apply to every invoice.
- Benefits: health insurance, pensions and allowances may be priced separately from the fee.
- Onboarding and offboarding fees: some providers charge for contract set-up or termination handling.
- Termination costs: statutory severance and settlements are usually passed through to you.
- Conversion fees: a fee or minimum term for moving employees to your own entity later.
- Add-on products: equipment, visas, background checks and HR tools are often extra.
Request quotes from two or three providers for the same country, salary and benefits, and ask each one to itemise every component above. Then compare the annual cost excluding salary and statutory employer costs: that is the true price of the service.
Use our country guides to check statutory employer costs independently, and our provider checklist for the questions to ask.
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