You’ve found amazing talent in another country. Now comes the fun part: figuring out how to legally hire them without having to set up shop in multiple countries.
That’s where Employer of Record services come in. The good news? There are plenty of providers who can handle the legal maze so you can focus on what you do best—growing your business.
The not-so-good news? Understanding what you’re actually paying for isn’t always straightforward.
Here’s what happens: You start shopping around and see these attractive monthly rates that make global hiring look simple and affordable. But those headline numbers? They’re just the beginning of the conversation.
What starts as a clean monthly fee often grows into something more complex once you dig into the details. Suddenly, you’re looking at add-ons, compliance fees, and charges that weren’t part of that initial pitch. It’s like ordering a burger and discovering the fries, drink, and napkins all cost extra.
The real challenge isn’t finding an EOR provider—it’s finding one that’s upfront about the total cost from day one. Because when you’re building a global team, the last thing you need is billing surprises. And those hidden fees also take a toll on what should be a trusted partnership—what other costs might be lurking in the fine print?
You know what separates the EOR providers worth your time from the ones that’ll give you headaches? The good ones tell you everything upfront.
No “Oh, by the way” moments three months in. No discovering that basic compliance comes with a premium price tag. Just honest numbers from the start—so you can plan your budget instead of playing billing roulette.
When you’re expanding globally, surprises are expensive. You need to know what you’re paying before you sign anything, not after your first invoice arrives. The right EOR partner gets this. They’ll walk you through every potential cost because they want you to succeed, not scramble to explain unexpected charges later.
Here’s what this means for you: predictable costs, reliable budgeting, and the confidence to grow your team without wondering what hidden fees are coming next. Because when you’re building something global, trust isn’t just nice to have—it’s everything.
What is an EOR fee?
An EOR fee is what you pay experts to manage the complex world of global hiring. These charges cover everything from ensuring employees get paid correctly to navigating the maze of local labor laws that vary from country to country. EOR providers take on the complexities of compliance, payroll taxes, benefits enrollment, and employment regulations so you can focus on your business.
EOR providers like to begin pricing discussions with one of two approaches. Some charge a flat monthly fee per employee that typically ranges from $200 to $800, depending on which country the hire is located in and how much the service package includes. Others prefer a percentage-based model that takes a slice of each employee’s total pay—usually somewhere between 8% and 15% of gross salary.
Here’s where things get interesting for budget planning. Those core charges are just the starting point for many EOR partnerships.
Setup fees can appear for getting new employees into the system and handling initial paperwork. Termination fees cover ending employment relationships following local labor laws. Country-specific add-ons cover local requirements like mandatory insurance programs or specialized reporting that some jurisdictions mandate beyond standard employment practices.
7 hidden EOR fees you should watch for
EOR providers love to talk about their competitive pricing during sales conversations, but the real cost picture often becomes clearer after the ink dries on your contract. These unexpected fees can turn what seemed like a reasonable investment into a budget-exhausting headache.
1. Currency conversion and FX markups
EOR providers often add their own markup to foreign exchange rates without making this crystal clear during initial pricing conversations. These extra charges sit on top of already fluctuating exchange rates, which can result in a double hit that can vary significantly from month to month. What looks like standard currency conversion suddenly becomes a profit center that’s difficult to track or predict.
2. Setup or onboarding fees
New employee excitement can quickly turn into sticker shock when setup charges appear on the first invoice. These fees might cover everything from contract creation to background checks to getting employees into the provider’s systems.
Some EOR companies charge per country, others per employee, and many treat these as unavoidable administrative costs. The reality is that hundreds or thousands of dollars can disappear into “onboarding expenses” without much warning.
3. Termination or offboarding fees
Nobody likes to think about endings during the hiring process, but termination fees can create unpleasant surprises. Countries with complex labor laws make offboarding particularly expensive, with charges covering everything from severance calculations to final compliance paperwork. These costs hit especially hard in jurisdictions that require lengthy notice periods or detailed termination documentation that providers treat as premium services.
4. Benefit administration add-ons
Benefits management should be table stakes for any EOR service, but many providers have found creative ways to charge extra for essential compliance activities. Health insurance enrollment, retirement plan administration, and statutory benefits processing can all trigger separate fees that weren’t part of the original pricing discussion. What seems like comprehensive employment support can quickly fragment into a menu of premium services that drive up monthly costs.
5. Government filing or tax reporting fees
Tax filings and regulatory reporting are the bread and butter of EOR compliance work, yet some providers treat these standard responsibilities as billable extras. Standard activities like employment tax submissions, social security reporting, and mandatory government notifications can generate separate line items on invoices. These charges are particularly frustrating because they cover work that should be central to any legitimate EOR service offering.
6. Payroll processing fees
Monthly payroll should be the most straightforward part of EOR services, but even this basic function can generate surprise charges. Some providers bill separately for payslip generation, salary calculations, or payment processing that most employers assume would be included in standard service delivery. Payroll corrections or mid-month adjustments can trigger additional fees that add up quickly across multiple employees and pay periods.
7. Annual contract renewal or platform access fees
Technology platforms and data access can become hostages during contract renewal discussions. Charges for dashboard access, historical data storage, or system maintenance often appear when initial contract terms expire. These fees create awkward situations where companies are forced to pay additional amounts just to have access to their own employment data and essential platform functionality that was previously included in service delivery.
Questions to ask when evaluating EOR fees
Want to dodge those surprise fees? Ask the uncomfortable questions upfront.
Don’t just accept the headline price—dig deeper to find out what else you might pay for. Push for specifics about every potential cost, from onboarding through offboarding.
The EOR providers worth your time will answer these questions openly. They’ll walk you through their entire fee structure because they want you to know exactly what you’re signing up for. The ones who dodge, deflect, or give vague answers? That’s your red flag.
Here’s what good EOR providers do: they show you real numbers, explain every line item, and help you budget accurately from day one. Because they know that trust starts with honest pricing, not billing surprises three months later.
- What is included in your base EOR pricing? You’ll know what the base price covers—and what it doesn’t.
- Are there any additional charges for payroll, benefits, or contract changes? Understanding these potential fees helps you budget for routine HR activities that should be part of standard service delivery.
- How do you handle currency conversion—do you charge an FX margin? This question tells you whether the provider applies markups to exchange rates that could make a huge difference in your payroll costs over time.
- Are there fees for onboarding or offboarding employees? Knowing these costs upfront helps you accurately calculate the true expense of hiring and potential team changes.
- Will I be billed for platform use, compliance filings, or renewals? This question uncovers technology and administrative fees that might not surface until after your initial contract period.
Always request a complete itemized pricing breakdown before making any commitments. Reputable EOR providers will readily provide detailed cost structures that account for various scenarios and potential additional charges. This transparency shows their commitment to building honest partnerships rather than maximizing revenue through surprise fees.
The difference between EOR partners? Honest pricing.
Transparent pricing transforms EOR relationships from transactional arrangements into strategic partnerships that support long-term growth. When HR teams can accurately predict employment costs, they can build realistic budgets that support sustainable global expansion. This predictability enables confident hiring decisions and removes the anxiety that comes with wondering what surprise charges might appear on future invoices.
Clear fee structures also eliminate friction during critical business moments like employee transitions, company audits, or contract renewals. Nobody wants to spend time arguing about unexpected charges when dealing with complex terminations or preparing for financial reviews. Transparent providers make these processes smoother by ensuring all costs are understood and agreed upon from the beginning.
Most importantly, upfront pricing honesty signals that an EOR provider values building lasting partnerships rather than maximizing short-term revenue through hidden fees. Companies that prioritize transparency show their commitment to mutual success and long-term collaboration. These providers understand that sustainable business growth comes from helping clients succeed, not from surprising them with creative billing practices that damage trust and complicate future planning.
We tell you everything upfront. No surprises.
Here’s how Velocity Global does EOR pricing differently: everything you actually need is included from day one. Payroll processing, tax filings, compliance work, benefits administration—it’s all part of your standard service, not an expensive add-on you discover later.
When you work with us, you get a clear picture of what global hiring will cost from onboarding through offboarding. No hidden foreign exchange fees. No surprise charges for “premium” compliance work. No extra bills for basic employment functions that should just be part of the service.
What does this mean for you? You can actually budget for global expansion without wondering what charges will show up next month. Your finance team gets predictable costs. Your hiring managers can make decisions without worrying about surprise fees derailing the budget.
We handle hiring in 185+ countries this way because we believe transparency isn’t a nice-to-have—it’s how global employment should work.
Ready to see what upfront pricing looks like? Let’s talk.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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Topic:
Employer of Record
