How to Calculate Global EOR Cost
Employer-of-record cost per hire against setting up your own entity.
How this number is built
Calculating it yourself
Step 1
Use fully loaded salary including statutory employer contributions for the country.
Step 2
Get the real EOR fee, which often varies by country and by headcount tier.
Step 3
Price entity setup properly: incorporation, local director, accounting and payroll provider.
Step 4
Compare across a realistic horizon rather than a single year.
Step 5
Find the headcount where the entity overtakes the EOR before committing either way.
What people ask next
When does an entity make sense?
Usually past roughly ten to fifteen employees in one country, or when local contracts require a domestic legal presence.
Is an EOR the same as a contractor?
No. An EOR employs the person properly. Misclassifying employees as contractors is where the real liability sits.
Searches this page answers
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