How much does an Employer of Record cost?

EOR pricing models come in two main types: percentage rates and flat rates.

Percentage rates are calculated based on your employees' salaries. This structure can be a viable choice for businesses with a small workforce, but it may become more expensive over time as you retain experienced employees through promotions, incentives, and salary increases.

While percentage rates were once the industry norm, an increasing number of companies are shifting to flat rates due to the cost-effectiveness of this approach.

With flat rates, you pay a set fee per employee. The typical cost for an Employer of Record service falls within the range of $250 to $500 per employee per month, depending on the specific needs of each employee.

Although the flat rate pricing structure may involve a higher initial expense, it tends to be more economical in the long run. This knowledge can provide you with greater flexibility in budgeting your resources or investing in other valuable projects for your business.