Key Takeaways
- An employer of record, or EOR, legally employs staff abroad and runs their payroll, benefits, and compliance, so a company can hire without a local entity.
- Global EOR platforms such as Deel, Remote, Oyster, and Papaya Global start at $599 to $699 per employee per month, and EORganic by Sourcefit charges $199.
- Statutory costs add about 13% plus a 13th-month payment in the Philippines, 16.3% to 16.5% plus a Christmas salary in the Dominican Republic, and up to about 2% in South Africa.
- Global platforms suit hiring a few people in many countries, and regional EORs with in-country HR teams suit building a team in a few markets
- Before signing, get a written total monthly cost for one employee at a real salary.
A company can now hire a full-time employee in Manila, Cape Town, or Santo Domingo without opening a local entity. An employer of record, or EOR, becomes the legal employer in that country. It runs payroll and statutory benefits and keeps the contract compliant while the client directs the work.
The market has grown crowded. Providers like Deel, Remote, Oyster and Papaya Global each cover well over 100 countries, and a smaller group of regional providers focus on a handful of markets.
Most of what a company pays for an EOR employee is salary and statutory contributions, which local law sets and which stay the same whichever provider it chooses. The EOR fee sits on top of that, and providers differ most in what the fee covers and how they support employees day to day.
Global Platforms and Regional Providers
Most EOR providers follow one of two models. Global platforms built software first and run employment through owned entities or local partners. Their strength is breadth: one dashboard, one contract template, and consistent onboarding across dozens of countries.
Regional providers cover fewer countries and usually keep their own HR staff in each one, so employees deal with people who know the local labor law and work in their time zone.
The right model depends on the hiring plan. A company hiring one engineer in each of 15 countries needs breadth. A company building a team of 10 or 50 people in one country usually gets more from depth in that country.
Six Questions to Ask Before Signing
- Who owns the legal entity? Some providers own their entity in each country. Others route employment through a local partner, which adds a party between the employee and the company that pays them.
- What is the total monthly cost? The EOR fee is one line. Statutory contributions, any 13th-month pay the country requires, salary deposits, currency margins, and benefits markups all sit on top of it.
- Where is the nearest HR person? An employee raising a payroll issue at 9 a.m. in Manila should reach someone that day, in their own time zone.
- Who handles IT and equipment? Ask who supplies, secures, and replaces laptops, and who removes system access when someone leaves.
- Can the provider recruit? Some EORs only employ people the client has already found. Others source and screen candidates in-country, which matters in a market where the client has no network.
- What are the exit terms? Check notice periods, minimum terms, and any fee to move staff onto the client’s own entity later.
How Five Providers Compare
The fees below are published starting prices per employee per month, before salary and statutory costs. Most providers discount for volume or annual billing.
- Deel: global platform, from $599. Best for hiring across many countries at once. Deel is one of the best-known platforms and also runs global payroll and contractor management.
- Remote: global platform with owned entities, $599 on annual billing or $699 monthly. Best for roles where IP protection matters. Remote owns the entities it employs through and charges no setup or onboarding fees.
- Oyster: global platform, from $699 and lower on annual plans. Best for remote-first startups. Oyster covers more than 180 countries from one dashboard.
- Papaya Global: payroll-led platform, $599 to $750. Best for enterprises running payroll, contractors, and full-time staff across many countries.
- EORganic by Sourcefit: regional provider, $199. Best for teams of several people in one of its markets. EORganic operates in the Philippines, South Africa, the Dominican Republic, Madagascar, Armenia and the UK, with an in-country HR team in each. Clients manage their EOR employees through Knit, Sourcefit’s workforce platform, which keeps attendance, leave, scheduling and performance in one dashboard. Because Sourcefit also runs offshore staffing and managed services, clients can add recruiting, IT support with equipment provisioning, and office or co-working space from the same provider.
What Each Country Adds to the Bill
Statutory costs vary more between these countries than EOR fees do. The Philippines and the Dominican Republic also require a 13th-month payment, which adds one-twelfth of annual salary to the cost of most employees.
Philippines. Employers pay 10% of the monthly salary credit to the Social Security System, 2.5% to PhilHealth, and 2% to Pag-IBIG, each up to a cap. For a salary near the PHP 35,000 cap, these add about 13% of salary, and the 13th-month pay is due by December 24.
South Africa. Employers contribute 1% of salary to the Unemployment Insurance Fund, on earnings up to R17,712 a month, and 1% of payroll as a skills development levy once annual payroll passes R500,000, plus an annual compensation fund assessment. The country’s time zone overlaps the UK and Europe, one reason more founders now build teams there.
Dominican Republic. Employer social security contributions total about 16.3% to 16.5% of salary, covering pension, health, occupational risk, and training. The Christmas salary is due by December 20, and the country runs on Atlantic time, which matches US Eastern daylight time.
Choosing Between Them
Start with the hiring plan. A few people spread across many countries points to a global platform, and a team of several people in one or two of these markets points to a regional provider with HR staff in those countries.
Then test each shortlisted provider on the same three things. Ask for a written total monthly cost for one employee at a real salary, including statutory costs, 13th-month accruals and deposits. Ask to speak with the HR person who would support that employee. Ask who handles equipment, and what it costs to leave.
The providers that answer all three clearly, in writing, are the ones worth a contract.
Frequently Asked Questions
What Does an Employer of Record Do?
An employer of record legally employs workers on another company’s behalf in the country where they live. It handles compliant contracts, payroll, taxes, statutory benefits, and HR administration, while the client company directs the employee’s daily work.
How Much Does an Employer of Record Cost in the Philippines?
Published EOR fees in the Philippines range from $199 per employee per month at EORganic by Sourcefit to $599 to $699 at global platforms such as Deel, Remote and Oyster. Salary, statutory contributions of about 13%, and a 13th-month payment of about 8.3% come on top of the fee.
Do I Need a Local Entity to Hire Employees in the Philippines or South Africa?
No. An EOR becomes the legal employer in the country, so a foreign company can hire full-time staff in the Philippines, South Africa, or the Dominican Republic without registering a local entity.
Can an Employer of Record Convert Contractors Into Full-Time Employees?
Yes, in the countries where the EOR operates. The process includes reviewing the worker’s role, issuing a compliant employment agreement, setting up payroll and statutory benefits, and completing onboarding.
What Is the Difference Between an EOR and a PEO?
A PEO shares employer responsibilities with a company that already has a legal entity in the country. An EOR is the sole legal employer, which is why companies without a local entity use an EOR for international hiring.
