The cost breakdown of EOR payroll services

• Learn what makes up the total cost of employer of record (EOR) payroll services.
• Understand how pricing models vary between providers and what factors influence fees.
• Discover how mauve group delivers value through transparent, compliant EOR payroll solutions.

Expanding into new markets often means navigating a complex web of employment regulations, payroll requirements, and legal compliance. Employer of Record (EOR) payroll services offer an attractive solution for companies wishing to hire quickly without establishing a local entity.

An EOR becomes the legal employer of your staff in the target country. It manages payroll, tax, benefits, and compliance on your behalf.

Understanding the cost breakdown of EOR payroll services is essential for accurate budgeting and informed decision-making.

According to the Global Payroll Payments Report for 2025, 15% of businesses handle over 11 payment providers internationally. Meanwhile, 75% of respondents operate payroll in up to 25 countries. Needless to say, attempting to ensure 100% compliance across multiple jurisdictions is a compliance risk and administrative headache.

Delegating your global employment and payroll responsibilities to an experienced provider is helpful. It instantly mitigates risk, reduces the burden on your HR staff. Ultimately, it frees your teams to focus on driving innovation.

This article explores how fees are structured and identifies the factors that influence pricing. It also discusses how businesses can get the most value from their investment.

What are EOR payroll services?

Employer of Record payroll services combine two key functions:

Employer responsibilities

The EOR becomes the legal employer for your staff in the chosen country, taking on compliance with local employment laws, tax filing, and hr administration.

Payroll management

The EOR processes salaries and manages tax withholdings. It also handles benefits administration, and ensures timely, accurate payments in the employee’s local currency.

By outsourcing to an EOR, companies can hire in a new country without setting up a legal entity. This significantly reduces time to market.

How EOR payroll costs are structured

Although pricing varies across providers, EOR payroll services typically include several cost components:

Base service fee

This is the standard charge for EOR payroll services, often calculated per employee per month (PEPM). It covers payroll processing, compliance monitoring, and administrative support.

Onboarding fees

Some providers charge a one-time setup or onboarding fee per employee. This covers contract preparation, registration with relevant authorities, and initial payroll configuration.

Benefits administration costs

The EOR may offer health insurance, pensions, or other statutory and additional benefits. These costs are either included in the service fee or charged separately.

Government contributions

These are mandatory employer costs, such as social security, pension contributions, unemployment insurance, or healthcare levies. The exact amounts vary by country.

Currency conversion and transfer fees

Paying employees in their local currency may incur conversion fees or bank transfer charges. This may depend on the payment method and currency used.

Optional add-on services

Some EORs offer extras such as HR consultancy, talent acquisition, or enhanced reporting tools. These often come with additional costs.

Factors that influence EOR payroll pricing

Several variables can affect the overall cost of EOR payroll services:

Country of employment

Local employment laws, statutory benefits, and tax rates vary significantly between countries.

Number of employees

Many providers offer volume discounts for larger teams.

Seniority and salary levels

Higher salaries can lead to increased government contributions and benefits costs.

Benefits packages

Comprehensive benefits add to the cost but may be essential for attracting talent.

Contract length

Longer-term engagements may allow for more competitive pricing.

Comparing EOR payroll providers

When evaluating EOR payroll providers, cost is only one part of the equation. Weighing pricing against a number of factors is essential.

Compliance expertise

Does the provider have in-country specialists to ensure you meet all local regulations?

Transparency

Are all fees clearly explained up front, without hidden charges.

Technology

Is the payroll platform secure, reliable, and easy to integrate with your existing systems?

Service quality

Will you have a dedicated account manager or point of contact?

Global reach

Can the provider support you in every country you plan to operate in?

Choosing the cheapest provider can be risky if it compromises compliance or service quality.

Cost vs. Value in EOR payroll services

While cost control is important, the value of a trusted EOR payroll partner can far outweigh the fees. A high-quality provider reduces the risk of compliance errors, payroll delays, and legal penalties. These issues can be far more expensive than the service itself.

The best EOR payroll services deliver:

Peace of mind

Knowing that all legal and payroll obligations are handled correctly.

Faster market entry

Avoiding the delays of entity setup.

Administrative efficiency

Freeing HR and finance teams to focus on strategic priorities.

Example cost scenario

To illustrate, here’s a simplified example for hiring one employee in a European country through an EOR:

• Base service fee: £500 per month.
• Onboarding fee: £250 (one-time).
• Statutory employer contributions: £750 per month (varies by salary and location).
• Currency transfer costs: £50 per month.

Total monthly cost: £1,300 plus one-time onboarding.

Costs will differ widely by market, but this breakdown demonstrates the main categories to budget for.

Why Mauve Group for EOR payroll services?

Mauve Group has over 30 years’ experience helping organisations hire and manage staff in more than 150 countries. We designed our EOR payroll service for transparency, compliance, and scalability.

With Mauve Group, clients benefit from clear, upfront pricing with no hidden fees. Our in-country expertise ensure compliance with all local employment and tax laws.

Integrated payroll technology for accuracy and visibility. Flexible, scalable solutions support changing workforce needs.

Whether you are hiring one specialist in a new market or building a global team, Mauve Group ensures your payroll is accurate, compliant, and cost-effective.

Frequently Asked Questions

1. What’s included in the cost of EOR payroll services?

Typical costs include base service fees, onboarding fees, government contributions, benefits administration, and any optional add-ons such as HR support.

2. Why do EOR payroll prices vary between countries?

Differences in labour laws, social security rates, benefits requirements, and tax systems mean that employer costs differ from one country to another.

3. Can EOR payroll services save money compared to setting up a local entity?

Yes, in most cases, EOR services are more cost-effective and faster to implement, especially for smaller teams or short-term projects.