How EOR Pricing Works: What US Companies Actually Pay in 2026

EOR pricing is frequently misunderstood. Providers quote a management fee, but the total cost of EOR employment includes four distinct components — and confusion about which costs are included vs. extra can produce significant budget surprises.

This guide breaks down every component of EOR cost, compares the major pricing models, and shows you how to build an accurate total cost model before signing with a provider.

The Four Components of EOR Cost

1. Worker gross salary

This is what you pay the worker — their base salary plus any variable compensation (bonus, commission). This flows directly through the EOR to the worker and is not marked up by the EOR. You set the salary; the EOR is a pass-through.

2. Employer statutory contributions

These are mandatory employer-side statutory contributions under local law. They are not the EOR's margin — they are legal obligations that any employer (you directly, via EOR, or via your own entity) would pay.

• India: 12% EPF employer contribution + 3.25% ESI (below wage threshold) + gratuity accrual (~4.81%) = approximately 17–20% of gross salary
• Poland: ZUS contributions total approximately 20.5% of gross salary
• Philippines: SSS + PhilHealth + Pag-IBIG = approximately 10–12% of gross salary
• Colombia: social security contributions = approximately 30% of gross salary (highest in this list)
• UK: National Insurance employer contributions = 13.8% above the secondary threshold

3. EOR management fee

This is the actual EOR provider margin — what they charge for the service of employing the worker on your behalf, managing payroll, handling compliance, and providing HR support.

• Flat fee model: $299–$699/employee/month depending on provider and country
• Percentage model: 10–15% of gross monthly salary
• Hybrid: some providers use tiered flat fees by salary band

4. Add-on costs

Costs beyond the standard management fee:

• Health insurance (above statutory minimum): $50–$150/employee/month in India
• Background check: $50–$200 per hire depending on depth
• Equipment procurement and shipping: provider-specific; $100–$500 markup over hardware cost
• Termination management fee: $200–$1,000 per termination (provider-specific)
• Visa and work permit processing: highly variable
• Onboarding setup fee: $0–$500 per new hire (provider-specific)

Flat Fee vs Percentage: Which Is Better for You?

For high-salary employees, flat fee is cheaper. For low-salary employees, percentage is cheaper. The crossover point depends on the specific fees and percentage — typically around $3,000–$4,500/month gross salary.

Example: Senior India engineer at $40,000/year ($3,333/month).

• Flat fee ($450/month): $5,400/year EOR fee
• Percentage (12% of gross): $4,800/year EOR fee
• Percentage is cheaper at this salary level

Example: Senior Poland engineer at $65,000/year ($5,417/month).

• Flat fee ($499/month): $5,988/year EOR fee
• Percentage (12% of gross): $7,800/year EOR fee
• Flat fee is cheaper at this salary level

EOR Cost by Country (2026 Benchmark)

• India: Management fee $350–$500/month + 17–20% statutory = total overhead 35–40% above gross salary
• Poland: Management fee $450–$650/month + 20.5% statutory = total overhead 40–50% above gross
• Philippines: Management fee $299–$450/month + 10–12% statutory = total overhead 25–35% above gross
• Colombia: Management fee $400–$550/month + 30% statutory = total overhead 50–60% above gross
• UK: Management fee $500–$699/month + 13.8% statutory = total overhead 35–50% above gross
• Germany: Management fee $550–$699/month + 20% statutory = total overhead 40–55% above gross

Building Your EOR Cost Model

To build an accurate model, use this formula:

Total annual EOR cost = Gross salary + (Gross salary × statutory rate%) + (EOR monthly fee × 12) + health insurance premium + estimated add-on costs

Example: India senior engineer, $38,000 gross, Remvix flat fee $420/month:

• Gross salary: $38,000
• Statutory (18%): $6,840
• EOR fee: $5,040
• Health insurance top-up: $960
• Total: $50,840/year
• vs US senior engineer total cost: ~$280,000/year
• Savings: $229,160 (82%)

What to Ask Providers Before Signing

• 'What is included in the management fee and what triggers add-on billing?'
• 'Do you have a termination fee? What does managing an exit cost?'
• 'What is your FX markup if you convert USD to local currency for payroll?'
• 'Is there a minimum contract term or minimum headcount?'
• 'What is included in the statutory benefits package vs what do we add on top?'
• 'What is your invoicing currency and cycle?'