Navigating Employer of Record Payroll Services: A Comprehensive Guide

Employer of Record services can make international hiring significantly easier, but the advertised monthly fee tells only part of the story.

To understand what businesses actually need to budget for, we reviewed publicly available Employer of Record pricing from six international EOR providers and examined the statutory employment costs involved in hiring an employee in the Philippines.

Our analysis found that publicly advertised EOR prices among the providers studied ranged from $199 to $699 per employee per month, with a median advertised price of $549 per employee per month.

For employers hiring in the Philippines, the EOR service fee sits on top of salary, 13th-month pay, Social Security System contributions, PhilHealth, Pag-IBIG and other applicable employment costs.

The result is an important distinction for companies considering global hiring:

An employee's salary is not the same as their total employment cost, and an EOR's advertised price is not the same as the total EOR payroll bill.

Key Findings

Our July 2026 review found:

• Publicly advertised EOR pricing among six providers ranged from $199 to $699 per employee per month.

• The median advertised price in our sample was $549 per employee per month.

• The average advertised price was approximately $499 per employee per month.

• The difference between the cheapest and most expensive publicly advertised starting prices was $500 per employee per month.

• At published prices, EOR platform fees alone can range from approximately $2,388 to $8,388 per employee per year.

• A company employing 10 workers could therefore potentially spend between roughly $23,880 and $83,880 per year on EOR service fees alone, before salaries, benefits and statutory employment costs.

• In the Philippines, employers must also account for obligations such as SSS, PhilHealth, Pag-IBIG and 13th-month pay.

• For a modeled Philippine employee earning ₱50,000 per month, base salary alone is ₱600,000 per year, but statutory employer costs and 13th-month pay push the direct employment cost materially higher even before an EOR service fee is added.

These findings show why EOR comparisons should focus on total cost of employment, rather than only the provider's headline monthly price.

Methodology

This study was conducted in August 2026.

We reviewed publicly available Employer of Record pricing published by six providers:

• RemoFirst

• Multiplier

• Papaya Global

• Deel

• Remote

• Oyster

We recorded the lowest publicly advertised EOR price available from each provider.

Where providers offer discounts for annual billing, we used the publicly displayed annual-plan price and noted the distinction.

We then modeled Philippine employment costs using publicly available information from Philippine government agencies, including:

• Social Security System

• PhilHealth

• Pag-IBIG Fund

• Department of Labor and Employment

The Philippine payroll example in this study is an illustrative model, not an EOR quotation. Actual costs can vary according to salary, benefits, employment classification, EOR provider, exchange rates and other employment conditions.

EOR prices can also change after publication, so companies should request a current quotation before making a hiring decision.

What Is Employer of Record Payroll?

An Employer of Record, or EOR, legally employs a worker on behalf of another company.

The client company still manages the employee's day-to-day responsibilities, projects and performance, while the EOR manages the formal employment relationship.

EOR services commonly include:

• Local employment contracts

• Payroll processing

• Salary payments

• Tax withholding

• Statutory contributions

• Benefits administration

• Payslips

• Employee onboarding

• Leave administration

• Employment compliance

• Employee offboarding

The primary attraction is that a company can employ workers in countries where it does not have its own legal entity.

For example, a US company that wants to hire an employee in the Philippines may use a Philippine EOR instead of establishing its own Philippine corporation.

What Do Employer of Record Services Cost?

Pricing varies considerably.

Our review found the following publicly advertised starting prices.

*Remote advertises $599 per employee per month when paid annually and $699 with monthly billing.

RemoFirst publicly advertises EOR services starting at $199 per employee per month.

Multiplier states that its EOR pricing starts at $400 per employee per month.

Papaya Global lists Employer of Record services starting at $499 per employee per month.

Deel publicly lists EOR services at $599 per employee per month.

Remote lists EOR pricing at $599 per month with annual billing or $699 with monthly billing.

Oyster lists its Employer of Record service starting at $699 per employee per month.

These are advertised service prices, not total employment costs.

A company still has to fund the employee's salary, employer contributions, mandatory benefits and potentially other charges.

The Difference Becomes Significant at Scale

A difference of a few hundred dollars per month may not look significant when hiring one employee.

It becomes much more material as headcount grows.

Using the lowest and highest publicly advertised prices in our sample:

These figures represent EOR service fees only.

They do not include:

• Salaries

• Statutory contributions

• Benefits

• Insurance

• Bonuses

• Currency conversion

• Deposits

• Termination costs

• Other country-specific employment expenses

This demonstrates why companies hiring a larger international workforce should pay close attention to EOR pricing.

At 50 employees, the difference between a $199 and $699 monthly EOR fee is $300,000 per year.

That does not automatically make the cheaper provider better. Service quality, compliance infrastructure, benefits, country coverage, local entities, support and additional fees also matter.

It does mean that headline pricing can become a major component of international workforce costs.

EOR Pricing Is Only One Part of the Payroll Bill

The EOR management fee is generally added to the actual cost of employing the worker.

A simplified monthly invoice might look like:

Employee gross salary

Employer statutory costs

Benefits and allowances

EOR management fee

Other applicable fees

=

Total employer cost

This distinction is particularly important in countries where employers have substantial statutory employment obligations.

The Philippines provides a useful example.

Employer of Record Payroll in the Philippines

Companies hiring employees in the Philippines need to account for several payroll obligations beyond base salary.

These may include:

• Social Security System contributions

• PhilHealth

• Pag-IBIG

• 13th-month pay

• Income tax withholding

• Holiday pay

• Overtime where applicable

• Night-shift differential where applicable

• Leave obligations

• Other benefits or employment requirements

An EOR can administer these obligations on behalf of the foreign company.

Philippine SSS Employer Contributions

The Philippine Social Security System states that, effective January 1, 2025, the Social Security contribution rate is 15% of Monthly Salary Credit, with 10% paid by the employer and 5% by the employee.

The contribution base is capped at a Monthly Salary Credit of ₱35,000.

Employers also fund Employees' Compensation contributions. For employees with a Monthly Salary Credit of ₱15,000 and above, the employer contribution is ₱30.

At the maximum contribution base, this means an employer can contribute approximately:

SSS employer share: ₱3,500/month

Employees' Compensation: ₱30/month

=

₱3,530/month

That is approximately ₱42,360 per year.

Philippine PhilHealth Contributions

PhilHealth's published contribution schedule sets the premium rate at 5% of monthly basic salary, subject to the applicable income floor and ceiling.

For the published 2025 schedule, the contribution base ranges from ₱10,000 to ₱100,000 per month.

PhilHealth states that the premium is shared between the employer and employee.

For an employee earning ₱50,000 per month:

Total PhilHealth premium

₱50,000 × 5% = ₱2,500/month

With the premium shared equally:

Employer share = approximately ₱1,250/month

or:

₱15,000/year

PhilHealth also requires employers to remit both the employer and employee portions of applicable contributions.

Pag-IBIG Contributions

Pag-IBIG requires employers to provide a counterpart contribution for covered employees.

Published Pag-IBIG guidance provides for a 2% employer contribution rate for employees above the applicable compensation threshold.

Current Pag-IBIG payment guidance references a ₱10,000 maximum fund salary for mandatory membership savings calculations.

Using that contribution base, the standard employer counterpart is approximately:

₱10,000 × 2% = ₱200/month

or:

₱2,400/year

13th-Month Pay Changes the Annual Salary Calculation

US employers hiring in the Philippines also need to understand 13th-month pay.

The Department of Labor and Employment states that the required 13th-month pay is generally calculated as:

Total basic salary earned during the calendar year ÷ 12

for eligible employees.

DOLE reiterated the mandatory nature of 13th-month pay in its 2025 guidance.

For an employee earning ₱50,000 in basic salary each month for a full year:

Annual base salary

₱50,000 × 12 = ₱600,000

13th-month pay

₱600,000 ÷ 12 = ₱50,000

Therefore, salary plus 13th-month pay becomes:

₱650,000

before employer SSS, PhilHealth, Pag-IBIG or EOR fees.

Case Study: What Does a ₱50,000 Philippine Employee Actually Cost?

We can combine the statutory figures above into an illustrative employment-cost model.

Assume:

• Monthly basic salary: ₱50,000

• Full-year employment

• No bonuses

• No overtime

• No additional insurance or voluntary benefits

• Maximum applicable SSS contribution

• Standard PhilHealth contribution

• Standard Pag-IBIG contribution

The result is:

This means that a ₱600,000 annual base salary becomes approximately ₱709,760 in this simplified model before the EOR service fee and any additional benefits are included.

That represents approximately:

18.3% above the employee's 12-month base salary.

Not all of this should be described as an employer "tax." The additional amount includes the employee's 13th-month pay as well as employer statutory contributions.

It is more accurately described as additional direct employment cost.

Then Add the EOR Fee

The EOR fee comes on top.

Consider an EOR charging $599 per employee per month.

The annual EOR management fee would be:

$599 × 12 = $7,188 per year

The business would therefore fund:

₱709,760 estimated Philippine direct employment cost

$7,188 annual EOR service fee

Any additional benefits, FX charges or provider-specific costs

This demonstrates why simply comparing a Philippine salary with a US salary gives an incomplete picture.

The employer should calculate the fully loaded cost of employment.

How Much Does EOR Payroll Cost for a Team?

EOR management fees scale largely with headcount when providers use per-employee pricing.

Using the median public price from our six-provider sample of $549 per employee per month:

Again, these are service fees, not salaries.

This illustrates one of the fundamental economic characteristics of the EOR model:

It can be extremely attractive for the first few employees in a country, but per-worker fees become increasingly important as headcount grows.

When Does Setting Up a Local Entity Make More Sense?

There is no universal EOR break-even point.

Opening an entity involves its own costs, including:

• Incorporation

• Legal work

• Accounting

• Payroll infrastructure

• Tax registration

• Banking

• Government registrations

• HR administration

• Compliance

• Local management

• Corporate reporting

• Entity maintenance

For three international employees, paying an EOR may be much easier than building all of this infrastructure.

At 50 or 100 employees, the calculation can change.

For example, at our sample median EOR fee:

10 employees = approximately $65,880/year in EOR service fees

25 employees = approximately $164,700/year

50 employees = approximately $329,400/year

100 employees = approximately $658,800/year

At sufficient scale, it becomes reasonable to compare those fees with the cost of establishing and operating a local entity.

The break-even point varies dramatically by jurisdiction and company, so employers should model both scenarios rather than relying on a fixed rule such as "establish an entity after 20 employees."

Why Headline EOR Pricing Can Be Misleading

Price comparisons have another complication: not every provider includes exactly the same services.

A provider advertising $399 per month may not necessarily be cheaper than one advertising $599.

Potential additional expenses include:

• Security deposits

• Onboarding fees

• Benefits

• Health insurance

• FX spreads

• Bank charges

• Off-cycle payroll fees

• Expense processing

• Immigration support

• Equipment services

• Background checks

• Offboarding fees

• Termination reserves

• Payroll corrections

Papaya Global itself notes that the per-employee-per-month fee is only one part of EOR cost and that employer contributions, termination liabilities, deposits and add-on costs can affect the final amount.

Employers should therefore request a fully loaded sample invoice, not only a sales quote showing the platform fee.

Fixed EOR Fees vs. Percentage-Based Pricing

EOR providers can also use different pricing structures.

The two common models are:

Fixed Per-Employee Fee

Example:

$500 per employee/month

The provider fee remains $500 whether the employee earns $2,000 or $10,000 per month, subject to the provider's terms.

Percentage of Payroll

Suppose an EOR charged an illustrative 10% of gross salary.

For a worker earning $2,000 per month:

10% = $200/month

For a worker earning $5,000 per month:

10% = $500/month

For a worker earning $10,000 per month:

10% = $1,000/month

This can substantially change the economics for highly compensated employees.

Remote specifically cautions employers to examine percentage-based EOR pricing and currently uses a flat-fee model for its EOR service.

EOR Payroll vs. Ordinary Payroll Outsourcing

Employer of Record payroll should also not be confused with payroll outsourcing.

With ordinary payroll outsourcing:

Your company is the employer.

The payroll company processes salaries, taxes and deductions.

With an EOR:

The EOR is the legal employer.

This difference matters most when entering a country where your business does not already have an employing entity.

For example:

A US company with an existing Philippine corporation can employ workers directly and use a payroll provider.

A US company without a Philippine entity may instead use an EOR to provide the local employment infrastructure.

EOR vs. PEO

Employer of Record services are also frequently compared with Professional Employer Organizations.

A PEO generally operates through a co-employment relationship.

An EOR, by contrast, becomes the legal employer of workers hired through the service.

A simplified comparison is:

For US businesses hiring internationally, the legal-entity question is often the deciding factor.

EOR vs. Independent Contractors

Some companies avoid EOR costs by hiring international workers as independent contractors.

That can be appropriate when the person is genuinely operating as an independent service provider.

However, the decision should not be made solely because contractors are cheaper to administer.

Employment classification depends on the actual relationship between the business and worker.

An EOR can be useful when a company wants an international worker to be formally employed but does not have a local entity.

Companies uncertain about worker classification should obtain appropriate professional or legal advice.

What Should Employers Compare Between EOR Providers?

Based on our analysis, comparing only the monthly EOR fee is insufficient.

Employers should ask providers for:

1. EOR management fee

What is the actual monthly charge per employee?

2. Billing model

Is the fee fixed or linked to employee salary?

3. Annual commitment

Does the lowest price require annual payment or a minimum contract?

4. Deposit

How much working capital must be deposited before payroll?

5. Foreign-exchange costs

Which exchange rate is used when funding payroll?

6. Benefits

Which mandatory and optional benefits are included?

7. Statutory employment costs

How are local employer contributions calculated?

8. Off-cycle payroll

Are bonuses, commissions or corrections charged separately?

9. Termination

Are there additional termination, severance or offboarding fees?

10. Local employment entity

Does the EOR employ workers through its own entity or another local partner?

11. Employee support

Who assists the employee with payroll and employment questions?

12. Sample invoice

Ask the provider to show exactly what a real monthly invoice would look like.

What the Data Shows

Three conclusions stand out from our analysis.

1. EOR Prices Vary Dramatically

The publicly advertised prices in our six-provider sample ranged from $199 to $699 per employee per month.

That is a $500 monthly difference per worker between the lowest and highest advertised prices.

2. EOR Fees Become Significant as Teams Grow

At one employee, a few hundred dollars of monthly price difference may be relatively manageable.

At 50 employees, that same difference can amount to hundreds of thousands of dollars per year.

Companies should therefore reconsider the economics of their EOR arrangement as international headcount grows.

3. Salary Is Only One Component of International Employment Cost

Our Philippine example demonstrates this clearly.

A worker earning ₱50,000 per month receives ₱600,000 in 12-month base salary.

Our simplified statutory model increases the direct annual employment cost to approximately ₱709,760 before EOR fees and optional benefits.

That difference should be included when companies compare international salaries and prepare hiring budgets.

Frequently Asked Questions

How much does an Employer of Record cost?

In our August 2026 sample of six providers with publicly available pricing, advertised EOR fees ranged from $199 to $699 per employee per month.

The median was approximately $549 per employee per month.

Actual quotations may differ by country, provider, headcount and services.

Is salary included in the EOR fee?

Generally, no.

The advertised EOR management fee is normally charged in addition to the employee's salary and applicable employment costs.

Does an EOR pay the employee?

Typically, the EOR administers payroll and pays the employee, while the client company funds the employee's salary, employer costs and EOR fees.

Who is the legal employer under an EOR?

The Employer of Record acts as the legal employer, while the client company manages the employee's day-to-day work.

How much does it cost to employ someone in the Philippines?

It depends on salary and employment conditions.

In our simplified model, an employee earning ₱50,000 per month has a base salary of ₱600,000 per year.

After adding 13th-month pay and modeled employer contributions for SSS, PhilHealth and Pag-IBIG, the estimated direct annual cost reaches approximately ₱709,760, before EOR fees and other benefits.

Does an EOR handle SSS in the Philippines?

A Philippine EOR would generally administer applicable SSS contributions for employees it legally employs. Companies should confirm the specific services included with the provider.

Does an EOR handle PhilHealth and Pag-IBIG?

These statutory programs are normally part of Philippine employment administration. Employers should confirm that their EOR handles registration, calculation, deduction and remittance.

Does an EOR handle 13th-month pay?

For eligible Philippine employees, an EOR should account for applicable 13th-month pay requirements as part of payroll administration.

Is an EOR cheaper than establishing a company?

For a small number of employees, an EOR can avoid much of the cost and complexity associated with establishing and operating a foreign entity.

As headcount grows, however, recurring per-employee EOR fees can become substantial.

Companies should model both options based on their expected workforce size.

Conclusion

Employer of Record services remove one of the biggest barriers to international hiring: the need to establish an employing entity before making the first hire.

But convenience comes at a measurable cost.

Our review of six publicly priced EOR providers found advertised fees ranging from $199 to $699 per employee per month, with a median of approximately $549.

For one employee, that can mean several thousand dollars in annual EOR fees.

For 50 employees, it can mean hundreds of thousands.

And those fees sit on top of the actual cost of employment.

The Philippines demonstrates why this distinction matters. A ₱50,000 monthly salary equals ₱600,000 in annual base pay, but our simplified model increases direct annual employment cost to approximately ₱709,760 after 13th-month pay and key employer statutory contributions, before EOR charges and optional benefits.

For employers evaluating EOR payroll services, the most useful question is therefore not:

"What is your monthly EOR fee?"

It is:

"What will this employee cost us in total, including salary, statutory costs, benefits, EOR fees, foreign exchange and any additional charges?"

That figure provides a much more realistic basis for comparing providers and deciding whether an Employer of Record is the right structure for international expansion.

Data Sources

EOR pricing was collected from the providers' publicly available pricing information in August 2026:

• RemoFirst: starting at $199 per employee/month.

• Multiplier: starting at $400 per employee/month.

• Papaya Global: starting at $499 per employee/month.

• Deel: $599 per EOR employee/month.

• Remote: $599/month with annual billing or $699 monthly.

• Oyster: starting at $699 per employee/month.

Philippine employment data was sourced from:

• Philippine Social Security System: contribution rates and Monthly Salary Credit rules.

• PhilHealth: premium contribution and employer remittance requirements.

• Pag-IBIG Fund: employer counterpart contribution requirements and current payment guidance.

• Philippine Department of Labor and Employment: 13th-month pay guidance.

All provider pricing and statutory requirements should be reconfirmed before making employment or financial decisions because pricing, contribution rates and regulations can change.