How much does it really cost to hire someone abroad through an Employer of Record (EOR) in 2025? If you’ve been researching providers, you’ve probably noticed a wide gap between the marketing pitch (“simple monthly fee”) and the reality (setup charges, deposits, statutory bonuses, indirect taxes).

In this guide, we’ll break down the real numbers—using Flexhire’s global pricing and a Brazil case study—so you can see exactly what you’ll pay when hiring without a local entity.

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What is EOR Pricing in 2025?

An Employer of Record (EOR) lets you hire talent in another country without setting up a local legal entity. The EOR becomes the official employer for payroll, compliance, benefits, and taxes, while you manage the employee’s day-to-day work.

EOR pricing in 2025 typically includes four components:

1. Initial setup fee – one-off cost to onboard a worker.
2. Monthly service fee – recurring fee per employee.
3. Offboarding fee – one-off charge at termination.
4. Refundable deposit – usually one month of total employment costs.

On top of these, you may also see statutory bonuses, severance accruals, indirect taxes, and out-of-pocket expenses.

Breaking Down the Fees

Every EOR comes with four core charges. Here’s what they mean in practice, across the Americas ($625), EMEA ($700), APAC ($650), and Middle East/Africa ($650):

• Setup fee ($625–$700): Covers compliance checks, contract drafting, payroll system setup, and local registrations to make the hire legally valid.
• Monthly fee ($625–$700): Pays for ongoing payroll runs, compliance filings, HR support, and benefits administration each month.
• Offboarding fee ($625–$700): Covers the full termination process, including legal filings, severance administration, and compliance reporting.
• Refundable deposit (≈1 month’s total cost): Held as a safety net to cover statutory obligations such as severance, final taxes, or last payroll. Refunded once all obligations are cleared.

These are the transparent, fixed Flexhire fees—but the true cost of hiring is shaped by local laws. Statutory bonuses, employer contributions, severance accruals, and indirect taxes can significantly increase monthly costs. That’s why we always model the real in-country total cost before you commit.

Case Study: Hiring in Brazil Without a Local Entity

Brazil is one of the most complex labor markets in the world—statutory bonuses, high employer contributions, and mandatory severance accruals all add up.

Here’s an example of hiring a software engineer in Brazil with an annual salary of BRL 300,000 (~USD 56,000).

Setup Month

• Compensation: $4,978.21
• Employer contributions: $2,684.42
• Accrued severance: $245.20
• Setup fee: $625
• Refundable deposit: $8,413.79 (≈1 month’s employment cost)
• Out-of-pocket expenses: $21.25
• Indirect taxes: $50.11

Total setup month: $8,910.15

Regular Monthly Cost

• Compensation: $4,978.21
• Employer contributions: $2,684.42
• Accrued severance: $245.20
• Monthly service fee: $625
• Out-of-pocket expenses: $21.25
• Indirect taxes: $910.63

Total monthly: $9,264.71

Bonus Month (13th Salary)

• Compensation: $4,978.21
• Statutory bonus: $6,637.61
• Employer contributions: $5,060.69
• Accrued severance: $533.65
• Monthly service fee: $625
• Out-of-pocket expenses: $21.25
• Indirect taxes: $1,922.89

Total bonus month: $19,579.29

Key Takeaway

The total annual employer cost through an EOR is closer to $110K–120K once you add contributions, bonuses, severance, and fees. This is why transparent EOR pricing matters—you need to see all the layers, not just the headline monthly fee.

Hidden Costs to Watch For in EOR Pricing

Many providers advertise only the monthly fee, but you should always ask about:

• Statutory bonuses (e.g. Brazil’s 13th salary)
• Employer contributions (social security, insurance, pension)
• Accrued severance (mandatory in some countries)
• Indirect taxes (VAT/GST on fees)
• Out-of-pocket expenses (pass-through costs, often +5%)

Flexhire is upfront: we show you full breakdowns before you hire, so there are no surprises.

Why Flexhire’s Pricing is Different

Other EORs bury costs in fine print. At Flexhire, we:

• Use a flat, transparent fee structure ($625–$700 baseline).
• Provide country-specific simulations (like the Brazil example above).
• Handle find, employ, manage, and pay in one platform:
• Find: Pre-screened candidates + AI video interviews.
• Employ: EOR in 100+ countries with full compliance.
• Manage: Contracts, expenses, rate changes, onboarding.
• Pay: Global payroll in one click.

Instead of juggling 3–4 different vendors, you get all-in-one global hiring with Flexhire.

How Flexhire compares to other EOR providers in 2025

Most leading EORs — Deel, Remote, Rippling, Oyster HR, Papaya Global, G-P (Globalization Partners), Velocity Global, Omnipresent, Multiplier, Atlas — cluster around a similar sticker price per employee. The difference isn’t the headline fee; it’s everything around it. Teams pick Flexhire because:

• True cost clarity: country-by-country simulations that include deposits, 13th salary, employer contributions, severance accruals, indirect taxes, and pass-throughs—no “surprise line items.”
• All-in-one platform (Find → Employ → Manage → Pay): source from our pre-screened Expert Network, add AI video screening & ranking, then EOR, payroll, expenses, and contracts in one place.
• Faster time-to-hire: standardized onboarding and locally compliant contracts that cut cycles from weeks to days.
• Transparent Americas pricing: simple $625 setup/month/offboarding for the Americas.
• Operational control: live invoices by worker, country, and cost component so finance can forecast and reconcile without guesswork.
• Hands-on compliance: local experts in 100+ countries to navigate terminations, bonuses, and edge cases the first time—correctly.
• Human support + AI where it helps: a real account team backed by automation, not a ticket queue.

FAQs

What is included in EOR pricing?

EOR pricing includes setup, monthly payroll and compliance support, offboarding, and a refundable deposit. In addition, you’ll pay statutory bonuses, employer contributions, and taxes based on local law.

How much does EOR cost in 2025?

Global baseline fees range from $625–$700 per worker per month, plus setup and offboarding charges. The true cost depends on the employee’s salary and local laws (e.g. in Brazil, $56K salary → ~$110K total).

Why do EOR providers require deposits?

Deposits cover final obligations like severance, social security, and taxes. Once the employment is closed and obligations are settled, the deposit is refunded.

What hidden costs should I expect with EOR?

Watch for statutory bonuses (13th month), accrued severance, indirect taxes (10%+), and out-of-pocket expenses. Always request a full cost simulation from your provider.

How much does it cost to hire in Brazil with an EOR?

For a $56K salary, expect ~$9.2K monthly and ~$19.5K in the annual bonus month, totaling ~$110–120K annually including contributions, fees, and taxes.

More to read — hand-picked by Flexhire:

• video interviewing → https://flexhire.com/blog/yana/video-interviewing-in-2025-smarter-hiring-fewer-calls-better-people
• AI recruiting tools → https://flexhire.com/blog/yana/20-best-ai-recruiting-software-tools-in-2025
• AI sourcing → https://flexhire.com/blog/brian/ai-sourcing-candidates-the-future-of-smarter-hiring
• payroll solutions → https://flexhire.com/blog/yana/payroll-solutions-in-2025-pay-without-the-pain
• HRIS software → https://flexhire.com/blog/yana/best-hris-software-in-2025-who-s-saving-hr-teams-and-who-s-stuck-in-the-90s

Get started on Flexhire →

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