EOR pricing confuses buyers because invoices mix a service fee with employee costs. This guide separates what is usually included in the EOR fee from pass-through salary and statutory amounts.
How Employer of Record pricing works
With an Employer of Record (EOR), the provider legally employs your worker in-country while you manage day-to-day work. Pricing typically has two layers: the EOR service fee and pass-through employment costs.
What’s usually included in the EOR service fee
- Employment contract administration under the EOR
- Monthly payroll calculation and payslips
- Statutory contribution calculation support (as applicable by country)
- Onboarding / offboarding workflow coordination
- Standard HR/payroll reporting to your HQ
- Local helpdesk for employee payroll questions (scope varies)
What is usually pass-through (not the “EOR margin”)
- Gross salary and contractual allowances
- Employer statutory contributions (e.g. CPF, EPF, BHXH, BPJS, Super — by market)
- Employee withholdings remitted to authorities
- Mandatory bonuses or 13th-month where contractually due
- Benefits premiums if enrolled (medical, insurance) at cost
- Work-pass / immigration fees when in scope (often separate)
Common EOR fee models
- Per employee per month — fixed service fee regardless of salary (within bands)
- Percentage of salary — fee scales with compensation
- Hybrid — minimum monthly fee plus percentage above a threshold
- Setup / deposit — onboarding or security deposit depending on country risk and benefits
EOR pricing vs payroll outsourcing pricing
EOR costs more than entity payroll outsourcing because the provider carries employment liability and entity infrastructure. If you already have a local company, outsourcing is usually the better-priced path. Compare strategically on our EOR vs entity pages by country.
Questions to ask in an EOR quote
- Is the service fee fixed PEPM or % of salary?
- Which benefits are mandatory vs optional add-ons?
- Are off-cycles, corrections, and visa support included?
- What is the deposit / notice period to exit or transfer to your entity?
- How are FX and billing currency handled?
FAQ
Is EOR salary marked up?
Reputable EORs pass salary and statutory costs through at cost, then charge a separate service fee. Always confirm this in the MSA.
Why do EOR quotes differ so widely?
Country, benefits, seniority, immigration needs, and whether the fee is % or PEPM change totals quickly.
Need a scoped quote?
Asia Payroll Hub supports payroll outsourcing, EOR, and HR SaaS across Asia.