5 Signs You're Paying Too Much for Your EOR

The EOR market has repriced significantly

EOR pricing has become significantly more competitive since 2020. The entry of well-funded providers like Deel, Remote, and Rippling drove flat fees down from $800–$1,200/month to $400–$700/month for most markets. If you've been with the same provider for 2+ years without renegotiating, there's a strong chance you're paying above market rate.

Sign 1: Your fee is percentage-based and above 8% of gross salary

If you're on a percentage model at 8% or above and your employees earn more than $4,000/month gross, you're likely paying $320+/month per employee. Flat-fee providers offer the same service for $400–$600/month flat — which is cheaper for any hire earning above $5,000–$7,500/month.

Sign 2: You're being charged for FX conversion

If your provider charges a markup on currency conversion — even 1–2% — you're overpaying. Multiple top-tier providers (Deel, Remote) offer mid-market rate conversion with no markup as standard. On a $5,000/month employee, a 2% markup is $100/month — $1,200/year — for nothing.

Sign 3: Your support is ticket-only and SLAs are measured in days

If every payroll question requires a support ticket and you're waiting 48–72 hours for resolution, you're not getting value for your fee. At $500–$700/month per employee, you should have access to a named account manager or at minimum a same-day response channel.

Sign 4: You've had repeated payroll errors

One payroll error in 24 months is within tolerance. Two or more is a pattern. Payroll errors damage employee trust, create compliance risk, and consume disproportionate internal time to resolve. They're not a cost of doing business — they're a signal of operational weakness.

Sign 5: You haven't renegotiated in 2+ years

EOR market rates have fallen significantly since 2020–2021. If you've never renegotiated or benchmarked your current provider against the market, you're almost certainly paying above the current rate. Use Compareor to run a quick benchmarking comparison — it takes under 10 minutes.