How to hire international employees: entity, EOR or contractor

Three ways to hire a person abroad

The three ways differ in one main point: who is the legal employer. That decides who signs the contract, who runs the payroll and who carries the duties of an employer.

A payroll company or a professional employer organisation (PEO) works only with your own company. Compare all the options.

Sources: Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026

How to hire an employee abroad, step by step

1. Check if the person is an employeeThe law looks at how the work is done, not only at the contract. A person who works on your instructions and as part of your team can count as an employee.
2. Choose the wayWith no company in the country, use an EOR or set up a company. For one or a few people, an EOR is simple. For a large team that stays, compare it with your own company.
3. Check the rules of the countryRead the employment rules, such as the notice periods and the paid leave. For an EOR, also read the local rules for agency work.
4. Work out the full costAdd the employer costs to the gross salary, and the fee if you use an EOR. Each country guide has a calculator.
5. Agree the terms and sign the contractAgree the salary, the start date and the leave with the person. The legal employer signs the contract under the local law: your company, or the EOR.
6. Run the payrollEach pay period, the legal employer pays the salary, takes out the income tax and pays the social contributions.

The steps are the same in each country, but the rules are local. See the steps to choose between the options.

Employee or contractor: decide this first

A contractor works for themselves and sends you invoices. You pay no employer costs. But in each of our countries, the law looks at how the work is done, not only at the contract. A person who works like an employee can count as one. See the employee test in each of our countries.

A contractor of record (COR) can engage and pay a contractor for you. It does not change who counts as an employee. Read about a contractor of record.

Your own company or an EOR

With your own company, you employ people directly and you pay no EOR fee. But you pay to set up and run the company, and for payroll, accounting and HR support. In some countries, a foreign company can also register as an employer with no local company. See what your own company needs in each country.

An EOR employs the person for you, so you need no company in the country. You direct the work, and the EOR signs the contract and runs the payroll. Read how an employer of record works.

Before you sign with an EOR, check its price, its licence, the legal employer and the contract terms. Read how to check an EOR provider.

How to pay international employees

An employee gets a salary through a payroll in the country where they work. The legal employer runs it: your own company there, or the EOR.

• With your own company, you run the payroll, or a local payroll company runs it for you. You pay the salary, the tax and the contributions.
• With an EOR, the EOR runs the payroll. You pay one invoice each month: the salary, the employer costs and the fee.
• A contractor sends you invoices instead, and pays their own tax.

When you pay in one currency and the employee gets paid in another, the provider converts the money. Check which exchange rate it uses. Read how payroll works through an EOR.

What it costs in each country

On top of the gross salary, the employer pays the employer costs that the law requires. In our countries, they are 4.0% of the gross salary in India to 50.9% in Brazil. You pay them with your own company and with an EOR.

An EOR adds its fee. This is the all-in cost with an EOR in each of our 10 countries, at the salary of each guide. Each guide has a calculator for your own salary.

Germany

In 2026, the all-in EOR cost of a €70,000 gross salary in Germany is €86,984 to €92,672 a year. This is the salary, the employer costs and the provider fee.GKV-Spitzenverband, lohn-info.de, Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026

United Kingdom

In 2026, the all-in EOR cost of a £60,000 gross salary in the UK is £71,659 to £77,059 a year. This is the salary, the employer costs and the provider fee.HMRC, rates and thresholds for employers 2026 to 2027, The Pensions Regulator, making contributions, DWP, review of the automatic enrolment thresholds for 2026/27, HMRC, pay Apprenticeship Levy, Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026

Canada

In 2026, the all-in EOR cost of a CA$90,000 gross salary in Canada is CA$101,322 to CA$109,314 a year. This is the salary, the employer costs and the provider fee.Canada Revenue Agency, CPP rates and maximums, Canada Revenue Agency, CPP2 rates and maximums, Canada Revenue Agency, EI premium rates and maximums, Ontario, Employer Health Tax, Boundless pricing, Remote pricing, European Central BankChecked 1 Oct 2026

India

In 2026, the all-in EOR cost of a ₹2,400,000 gross salary in India is ₹2,724,046 to ₹3,299,055 a year. This is the salary, the employer costs and the provider fee.S.O. 3582(E), EPF contribution rate (PDF), S.O. 3580(E), EPS contribution rate (PDF), EPF Scheme, 2026, G.S.R. 525(E) (PDF), S.O. 5109(E), EPF wage ceiling of ₹25,000 (PDF), S.O. 3581(E), EDLI contribution rate (PDF), EDLI Scheme, 2026, G.S.R. 526(E) (PDF), Code on Social Security, 2020 (PDF), Ministry of Labour and Employment, FAQs on the Labour Codes (PDF), Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026

Philippines

In 2026, the all-in EOR cost of a ₱900,000 gross salary in the Philippines is ₱1,192,005 to ₱1,568,248 a year. This is the salary, the employer costs and the provider fee.SSS Circular No. 2024-006, contribution schedule (PDF), SSS, contribution table, PhilHealth Advisory No. 2025-0002 (PDF), PhilHealth Advisory No. 2026-0042 (PDF), PhilHealth Circular No. 2020-0005 (PDF), DBM Circular Letter No. 2024-2, Pag-IBIG contributions (PDF), Republic Act No. 9679 (Pag-IBIG Fund Law), section 7, Presidential Decree No. 851, 13th month pay, Supreme Court, G.R. No. 188949 (26 Jul 2010), Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026

Netherlands

In 2026, the all-in EOR cost of a €60,000 gross salary in the Netherlands is €78,882 to €84,570 a year. This is the salary, the employer costs and the provider fee.Belastingdienst, low and high AWf premium, Belastingdienst, rates and amounts for payroll taxes from 1 Jan 2026 (PDF), Belastingdienst, employee insurance contributions (English), Belastingdienst, Handboek Loonheffingen 2026 (PDF), Minimum Wage and Minimum Holiday Allowance Act, articles 15 to 17, Rijksoverheid, how much is the holiday allowance, Boundless pricing, Oyster pricing, European Central BankChecked 2 Oct 2026

Singapore

In 2026, the all-in EOR cost of a S$120,000 gross salary in Singapore is S$139,505 to S$147,735 a year. This is the salary, the employer costs and the provider fee.CPF Board, how much CPF contributions to pay, CPF Board, contribution rates from 1 Jan 2026 (PDF), CPF Board, the Ordinary Wage ceiling, CPF Board, Skills Development Levy, Boundless pricing, Remote pricing, European Central BankChecked 2 Oct 2026

Brazil

In 2026, the all-in EOR cost of a R$120,000 gross salary in Brazil is R$193,491 to R$224,707 a year. This is the salary, the employer costs and the provider fee.Lei 8.212/1991, articles 22 and 28, Decreto 3.048/1999, articles 202 and 202-A, Decreto 3.048/1999, Annex V (RAT by activity), IN RFB 2.110/2022, Annex III (FPAS 515), Lei 8.036/1990, articles 15 and 18, Lei 4.090/1962, the 13th salary, Constitution of Brazil, article 7, Consolidation of Labour Laws (CLT), Boundless pricing, Oyster pricing, European Central BankChecked 2 Oct 2026

Spain

In 2026, the all-in EOR cost of a €50,000 gross salary in Spain is €68,178 to €73,863 a year. This is the salary, the employer costs and the provider fee.Orden PJC/297/2026, the 2026 contribution rules (BOE), Seguridad Social, bases and rates 2026, General Social Security Act (LGSS), additional provision 61, Real Decreto-ley 3/2026 (BOE), RemoFirst pricing, Oyster pricing, European Central BankChecked 2 Oct 2026

Mexico

In 2026, the all-in EOR cost of a MX$600,000 gross salary in Mexico is MX$835,430 to MX$944,183 a year. This is the salary, the employer costs and the provider fee.IMSS, Social Security Act (LSS) (PDF), INEGI, the 2026 UMA values (DOF, 9 Jan 2026), Decree on the minimum wage and the UMA (DOF, 27 Jan 2016), Pension reform decree, transitory article 2 (DOF, 16 Dec 2020), INFONAVIT Act, article 29 (Orden Jurídico Nacional), Mexico City Tax Code 2026, articles 156 to 159 (PDF), Jalisco Revenue Act 2026, article 13 (PDF), Federal Labour Act (LFT), SEP copy (PDF), Boundless pricing, Oyster pricing, European Central BankChecked 2 Oct 2026

The totals leave out the costs beyond the fee, such as a deposit or an exchange rate margin. Compare the all-in cost in every country.

The risks to check

• A contractor who works like an employee can count as one, whoever signs the contract.
• In some countries, the rules for agency work or the supply of workers limit an EOR.
• Staff abroad can create a taxable presence for your company, also with an EOR or a contractor.

The tax risk has a name: permanent establishment. A person who habitually concludes contracts for your company can create one, with no office. Read about permanent establishment.

The local rules for an EOR differ by country. See the local rules in each of our countries.