EOR (Employer of Record) fees are structured with a combination of initial setup fees, monthly service charges, and other variable costs, making them flexible based on the specific needs of the business and the location of the employees. Here’s a breakdown of typical EOR pricing components:
Setup and Onboarding Fees:
EOR providers often charge a one-time setup fee for new hires to cover the initial costs associated with bringing an employee on board. This fee typically includes:
- Contract drafting and preparation
- Employee registration on government platforms
- Enrollment in health plans and other statutory benefits
- Payroll setup
The range for these fees can vary:
- Low-end: Some EORs charge as little as $500 for setup and onboarding6.
- Mid-range: Many providers fall within the $900 to $1,500 range12.
- High-end: Premium services or complex situations may incur fees up to $2,000 or more.
Monthly Service Fees:
The core fee for EOR services is a recurring, per-employee monthly charge. This fee, which can range from several hundred to over a thousand dollars per month, includes payroll processing, tax management, and compliance monitoring. EORs may offer a fixed rate across regions or adjust based on the country’s legal and employment cost requirements.
- Employee Compensation and Local Benefits: The employer is responsible for reimbursing the EOR for employee salaries, taxes, and social contributions mandated by local law. The EOR handles these payments on behalf of the client, and each jurisdiction’s requirements can significantly affect the total cost.
- Additional Employee Benefits: Many companies opt to offer supplementary benefits, such as healthcare or retirement plans, to remain competitive in different regions. EORs typically bill for these optional benefits and may add a small management fee.
- Currency Conversion and Transaction Fees: Some EORs charge a fee to manage foreign exchange transactions if employee payments are required in local currency. This fee may vary depending on the currency exchange policies and payment options offered by the EOR.
- Compliance and Consulting Services: Some EORs provide optional legal and regulatory consulting services to help manage compliance complexities. These may be included in the monthly fee or charged as a separate consulting cost, particularly if there are frequent changes in employment laws that the company must navigate.
How Wisemonk Can Help Manage EOR Fees?
Wisemonk, a top Employer of Record in India, provides transparent, competitive pricing for its services, with customized and flexible fee structures, clear cost breakdowns, and no hidden charges. Our comprehensive, all-in-one pricing covers integrated HR and payroll management, minimizing extra fees and enabling real-time expense tracking for predictable monthly billing. With value-added services like compliance management, tax optimization, and full employee support, Wisemonk offers scalable, upfront cost communication that transforms EOR management into a strategic advantage. This holistic approach gives you cost visibility and extensive support, ensuring smooth, efficient global hiring in India.
