Employer of Record (EOR)
Cost Calculator
Featured EOR Solutions
Breakdown of EOR Calculator Inputs
1. Country of Employment
What it is: The country where the employee will legally be employed.
Why it matters: Labor laws, employer obligations, tax rates, and social contributions differ drastically between countries. The choice of country determines the legal and compliance requirements the Employer of Record (EOR) must meet.
Why it’s included: To calculate accurate employer costs and ensure compliance, you must first define the country of employment. This selection drives applicable taxes, benefits, and EOR fees.
2. Currency
What it is: The preferred or local currency in which the employer will pay the employee.
Why it matters: Currency conversion impacts payroll budgeting and financial planning, especially in cross-border hiring. Choosing the right currency helps standardize salary expectations and avoid unexpected conversion losses.
Why it’s included: Since many EOR providers operate globally, currency selection ensures the final cost estimates align with your budgeting and reporting standards.
3. Monthly Base Salary
What it is: The gross monthly salary agreed upon between the employer and employee.
Why it matters: This is the foundation of the total employment cost. Most employer-related expenses, like taxes, EOR fees, and benefits, are calculated as a percentage of this base.
Why it’s included: To help employers see the full financial impact of a specific salary offer in a global context.
4. Employer Tax & Benefits (%)
What it is: An estimate of the mandatory employer contributions such as social security, healthcare, pension, unemployment insurance, and statutory benefits.
Why it matters: These costs can range from 5% to over 40% depending on the country. Ignoring them can lead to severely underestimating total compensation obligations.
Why it’s included: To give a realistic view of employment costs beyond just salary, critical for budget forecasting and financial planning.
5. EOR Fee (%)
What it is: The percentage fee charged by the Employer of Record provider to manage local compliance, payroll, tax filing, and employment infrastructure.
Why it matters: This is the operational cost of using an EOR versus opening a legal entity in the country. EOR fees vary based on region, service complexity, and contract length.
Why it’s included: To help you compare EOR solutions and understand the trade-offs between cost, speed, and compliance.
6. Additional Employer Costs (Optional)
What it is: Any extra, non-mandatory costs like relocation allowances, bonuses, stipends, private health insurance, or custom benefits.
Why it matters: Many global roles come with added benefits. Factoring them in ensures you’re seeing the total cost of employment per hire.
Why it’s included: To customize your calculation for specific employee scenarios, like senior hires or competitive benefits packages.
7. Show Yearly Cost (Checkbox)
What it is: An option to toggle between monthly and yearly cost views.
Why it matters: Some teams budget annually while others forecast monthly. This feature makes the calculator more flexible and suited for various financial reporting needs.
Why it’s included: To allow instant comparison between recurring monthly costs and total annual expenditure.
EOR Cost Calculator – FAQs
Q1: What is an Employer of Record and why do companies use it?
An Employer of Record (EOR) is a third-party provider that legally hires employees on your behalf in another country. It handles local compliance, payroll, taxes, and HR, without needing you to set up a legal entity.
Q2: How accurate is this EOR cost estimate?
This calculator provides an estimate based on typical tax rates, benefit structures, and EOR fees. Exact costs may vary depending on the provider, role seniority, and country-specific nuances.
Q3: Why do EOR fees vary by country?
EOR fees reflect legal complexity, payroll administration costs, labor law risks, and support level. Countries with stricter compliance or slower bureaucracy often have higher EOR costs.
Q4: What’s included in “Employer Tax & Benefits”?
These usually include social security contributions, public healthcare, unemployment insurance, pensions, and other statutory obligations required by local law.
Q5: Can I use this calculator for contractor or freelancer costs?
No. This calculator is built for full-time employees hired through an EOR model. Contractor payments are structured differently and do not include employer taxes or benefits.