Guide

What is an employer of record (EOR), and what does it cost?

Updated on 4 Oct 2026. Each figure shows its source and the date of our last check.

An employer of record (EOR) employs a person for your company. The EOR is the legal employer. You choose the person and direct the daily work.

This guide explains how an EOR works, what it costs in our 10 countries, and when it fits.

Key facts

Employer of record (EOR): A company that employs a person for your company. It is the legal employer and runs the payroll.
Your company: Chooses the person, sets the tasks and pays the EOR each month. It needs no company in the country.
EOR fees: US$197 to US$796 a month for each employee, in the published prices of our 10 countries.Boundless pricing, Oyster pricing, European Central BankChecked 1 Oct 2026
Employer costs: 4.0% of the gross salary in India to 50.9% in Brazil, on top of the salary.

What an employer of record is

EOR stands for employer of record. An EOR is a company that employs a person for another company, its client.

The EOR is the legal employer. It signs the employment contract under the local law. It runs the payroll and pays the tax and the social contributions.

The client directs the daily work. It chooses the person, sets the tasks and pays the EOR each month. Companies use an EOR to hire in a country where they have no company.

Who does what with an employer of record
Task	The EOR	Your company
Chooses the person and agrees the salary	No	Yes
Signs the employment contract	Yes, as the employer	No
Runs the payroll and pays the tax and the social contributions	Yes	No
Follows the local employment rules, such as holiday and notice	Yes, as the employer	Agrees the terms with the EOR
Sets the tasks and manages the daily work	No	Yes
Pays the money	Pays the salary to the employee	Pays the salary, the employer costs and the fee to the EOR

How an EOR works

Compare providers and ask for quotesAsk for the monthly fee in the country, the deposit, the exchange rate and the notice period of the EOR contract.
Agree the employment termsAgree the salary, the start date, the probation period and the holiday with the candidate.
The EOR signs the contractThe EOR becomes the legal employer. It gives the employee a contract under the local law.
The EOR runs the payrollEach month, the EOR pays the salary, takes out the income tax and pays the social contributions. It sends you an invoice.
You manage the daily workYou set the tasks and the goals. The EOR handles the employment administration.

Each country guide gives the local rules for these steps, such as the written terms and the notice periods.

What an EOR costs

You pay three parts: the gross salary, the employer costs that the law requires, and the fee of the EOR.

In our 10 countries, EOR providers publish fees of US$197 to US$796 a month for each employee. Some providers give a price only in a quote.

The employer costs are 4.0% of the gross salary in India to 50.9% in Brazil.

Together, the employer costs and the lowest published fee add 12.6% of the gross salary in Canada to 61.2% in Brazil. See the all-in cost in each country.

Some providers also charge other costs, such as a deposit, an exchange rate margin or an exit fee. See the hidden costs of each provider.

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

Own company or local partner

Some providers employ people through their own company in the country. Others work with a local partner company, which then signs the employment contract. Ask each provider which company will be the employer.

What the providers in our country guides say about it:

Germany: 6 of 12 providers say that they employ people through their own company in Germany. 2 use a local partner. 4 do not say.Deel blog, 31 Jan 2025, Remote Germany page, Oyster Germany page, Rippling Germany page, Boundless Germany guide, RemoFirst pricing, Playroll blog, 18 Feb 2026, Multiplier Germany guide, Papaya Global Germany page, WorkMotion blog, 18 Apr 2026, Skuad Germany page, G-P Germany EOR pageChecked 1 Oct 2026
United Kingdom: 6 of 12 providers say that they employ people through their own company in the UK. 2 use a local partner. 4 do not say.Deel blog, 9 Jun 2026, Remote UK page, Oyster UK page, Rippling UK guide, 10 Sep 2026, Boundless UK guide, RemoFirst blog, 10 Sep 2026, Playroll blog, 21 Aug 2026, Multiplier FAQ, Papaya Global UK page, WorkMotion blog, 28 Jun 2026, Skuad UK page, G-P UK pageChecked 1 Oct 2026
Canada: 4 of 12 providers say that they employ people through their own company in Canada. 2 use a local partner. 6 do not say.Deel blog, 4 Aug 2026, Remote Canada page, Oyster Canada page, Rippling Canada page, Boundless Canada guide, RemoFirst Canada guide, Playroll blog, 15 Dec 2025, Multiplier Canada page, Papaya Global Canada page, WorkMotion Canada page, Skuad Canada page, G-P Canada pageChecked 1 Oct 2026
India: 5 of 12 providers say that they employ people through their own company in India. 1 uses a local partner. 6 do not say.Deel blog, 30 Jun 2026, Remote India page, Oyster India page, Rippling blog, EOR guide for India, Boundless India guide, RemoFirst India guide, Playroll India page, Multiplier India page, Papaya Global, EOR solutions, WorkMotion India page, Skuad India page, G-P India pageChecked 1 Oct 2026
Philippines: 3 of 12 providers say that they employ people through their own company in the Philippines. 2 use a local partner. 7 do not say.Deel blog, EOR in the Philippines, Remote Philippines page, Oyster Philippines page, Rippling blog, EOR guide for the Philippines, Boundless Philippines guide, RemoFirst Philippines guide, Playroll Philippines page, Multiplier Philippines page, Papaya Global, EOR solutions, WorkMotion Philippines page, Skuad Philippines page, G-P Philippines pageChecked 1 Oct 2026
Netherlands: 4 of 12 providers say that they employ people through their own company in the Netherlands. 1 uses a local partner. 7 do not say.Deel blog, EOR in the Netherlands, Remote Netherlands page, Remote local terms, Oyster library, EORs in the Netherlands, Rippling Netherlands page, Boundless Netherlands guide, RemoFirst blog, EOR in the Netherlands, Playroll blog, EOR in the Netherlands, Multiplier Netherlands page, Papaya Global Netherlands page, WorkMotion Netherlands page, Skuad Netherlands page, G-P Netherlands pageChecked 2 Oct 2026
Singapore: 2 of 12 providers say that they employ people through their own company in Singapore. 2 use a local partner. 8 do not say.Deel blog, EOR in Singapore, Remote Singapore page, Oyster Singapore page, Rippling Singapore page, Boundless Singapore guide, RemoFirst blog, EOR services in Singapore, Playroll Singapore page, Multiplier Singapore page, Papaya Global Singapore page, WorkMotion Singapore page, Skuad Singapore page, G-P Singapore pageChecked 2 Oct 2026
Brazil: 3 of 12 providers say that they employ people through their own company in Brazil. 1 uses a local partner. 8 do not say.Deel blog, EOR in Brazil, Remote Brazil page, Remote local terms, Oyster Brazil page, Rippling Brazil page, Boundless Brazil guide, RemoFirst pricing, Playroll Brazil page, Multiplier Brazil page, Papaya Global Brazil page, WorkMotion Brazil page, Skuad Brazil page, G-P Brazil pageChecked 2 Oct 2026
Spain: 4 of 11 providers say that they employ people through their own company in Spain. 3 use a local partner. 4 do not say.Deel blog, EOR in Spain, Remote Spain page, Remote local terms, Oyster, hiring employees in Spain, Rippling Spain page, RemoFirst blog, EOR in Spain, Playroll Spain page, Multiplier Spain page, Papaya Global Spain page, WorkMotion blog, Deel vs Remote vs WorkMotion, WorkMotion Spain page, Skuad Spain page, G-P Spain pageChecked 2 Oct 2026
Mexico: 5 of 12 providers say that they employ people through their own company in Mexico. 1 uses a local partner. 6 do not say.Deel blog, EOR in Mexico, Remote Mexico page, Remote local terms, Oyster library, EORs in Mexico, Rippling Mexico page, Boundless Mexico guide, RemoFirst blog, EOR in Mexico, Playroll blog, EOR in Mexico, Multiplier Mexico page, Papaya Global Mexico page, WorkMotion Mexico page, Skuad Mexico page, G-P Mexico pageChecked 2 Oct 2026

When an EOR fits

An EOR fits when:

You want to hire in a country where you have no company.
You want to hire one or a few people, or test a market.
The person must be an employee, not a contractor.
You do not want to set up and run a company in the country.

With a large team that stays in one country, your own company can cost less. Compare an EOR with a PEO, your own company and a contractor.

Is an employer of record legal?

The law of each country decides how an EOR may work. Some countries treat it as agency work or the supply of workers. Others do not name it at all.

These rules can ask for a licence or limit how long one person works for you. Ask each provider how it meets the rules of your country. See the answer for each of our 10 countries.

Questions and answers

What does EOR stand for?

EOR stands for employer of record. It is the company that is the legal employer of a person who works for another company.

What is an EOR employee?

A person whom an EOR employs for its client. The EOR is the legal employer and runs the payroll. The person works on the tasks of the client.

Who pays the employee?

The EOR pays the salary. It takes out the tax and pays the social contributions. Each month, the client pays the EOR the salary, the employer costs and the fee.

Is an EOR the same as a PEO?

No. An EOR is the legal employer, so you need no company in the country. A PEO works with your own company, which generally stays the employer.

How much does an employer of record cost?

In our 10 countries, EOR providers publish fees of US$197 to US$796 a month for each employee. You also pay the salary and the employer costs. Each country guide gives the all-in cost with each provider.

Can an EOR end the employment?

Yes. As the legal employer, the EOR ends the contract. It must follow the local rules for notice and dismissal. Each country guide gives these rules.

Change log

4 Oct 2026: We published this guide.

See every change on the site.

Warning: This page is not legal or tax advice. The figures come from official sources, but your case can be different. Check them with a payroll expert before you hire.