EOR Pricing Models Explained: Per-Employee Fee vs Percentage of Salary

Two pricing models, very different outcomes

Most EOR providers use one of two pricing models: a flat monthly fee per employee, or a percentage of the employee's gross salary. At first glance the difference seems minor. In practice, it can mean the difference between a predictable cost and one that spirals as you hire more senior talent.

Flat monthly fee

The most common model among modern EOR providers. You pay a fixed amount per employee per month — typically $300–$700 — regardless of the employee's salary. Deel ($599/month), Remote ($599/month), and Oyster ($699/month) all use this model.

Advantages: predictable, easy to budget, doesn't penalise you for hiring senior or highly-paid talent. Disadvantages: can feel expensive for markets where salaries are low (a $599/month fee on a $800/month Indian junior developer is a 75% markup).

Percentage of salary

Some providers — particularly older enterprise platforms — charge 5–15% of gross monthly salary. On a $5,000/month salary, a 10% fee is $500/month — comparable to the flat fee. On a $15,000/month senior hire, that same 10% is $1,500/month.

Advantages: lower absolute cost for junior hires in low-salary markets. Disadvantages: unpredictable, expensive for senior talent, and creates a perverse incentive for the provider to encourage higher salaries.

Which model to choose

• If you're hiring mid-to-senior talent at $5,000+/month gross: flat fee is almost always better
• If you're hiring primarily junior talent in lower-cost markets at under $2,000/month gross: percentage models may be cheaper
• Always calculate total annual cost per employee using both models before signing

Watch for hybrid models

Some providers charge a low flat fee plus a percentage of salary above a certain threshold, or a flat fee plus a percentage for benefits admin. Always ask for a fully-loaded cost example using your specific salary levels before committing.