Best EOR

What is an Employer of Record?

An Employer of Record, usually shortened to EOR, is a company that legally employs someone on your behalf in a country where you have no legal entity. It issues the employment contract, runs local payroll, withholds income tax, files the statutory employer contributions and administers benefits. You choose the person, direct the work and set the salary. The EOR carries the employment relationship on paper.

How much does an EOR cost per employee per month?

The fee is roughly a quarter of what you actually pay. The country decides the rest. Published EOR list prices run from $199 to $650 per employee per month, with 599 dollars the figure most providers converge on. Two of the 10 publish nothing at all and quote every deal. On top of that fee you pay gross salary, statutory employer contributions, any mandatory 13th month pay, and benefits.

EOR or your own entity?

An EOR is pure variable cost: a fee per employee per month, for as long as you employ them. A local entity is mostly fixed cost: incorporation, accounting, audit, payroll processing and a registered address, all of which barely move between two employees and twenty. Two lines with different slopes cross at one point. On running costs alone the crossover is often four or five employees.

How to choose the best EOR, in three steps?

Most EOR regret traces back to one of these being skipped, usually the second. 01 Work out the real cost Salary is 60 to 75 percent of what an international employee costs. Statutory contributions, mandatory bonuses, benefits and the provider fee make up the rest, and they vary enormously by country. Know the fee and the local loading before you shortlist anyone.