Global Employer of Record (EOR) Cost & Hidden FX Fee Calculator
Auditing the true Total Cost to Company (TCTC). Calculate mandatory statutory employer taxes, SaaS seat fees, and undisclosed 1.5%–2.5% foreign exchange conversion markups across Deel, Remote, Oyster, and Multiplier.
An Employer of Record (EOR) true monthly cost includes employee gross salary, mandatory local statutory employer taxes (16% to 43%), the provider SaaS seat fee ($400 to $699/month), and an undisclosed 1.5% to 2.5% foreign exchange conversion spread. For a $5,000 gross employee, true company expense typically reaches $6,300 to $7,600 monthly.
01. True Cost to Company (TCTC) Simulator
Real-time multi-currency breakdown including local tax brackets, platform charges, and FX spreads.
Includes FGTS (8%), INSS (20-28%), 13th month & vacation accruals.
Owned infrastructure in 100+ nations. Standard 1-mo security deposit.
Effective employer overhead: +55.3% above employee gross salary.
Comparative Provider Total in Brazil ($5,000 Gross Salary)
2026 EOR Platform Architecture & Fee Schedule
Comparing Deel, Remote.com, Oyster, and Multiplier across legal entity ownership, currency conversion margins, and contract terms.
| Metric / Policy | Deel | Remote.com | Oyster HR | Multiplier |
|---|---|---|---|---|
| Monthly Seat Fee (Monthly billing) | $599 / seat | $699 / seat | $599 / seat | $400 / seat |
| Annual Commitment Discount | $499 / seat / mo | $599 / seat / mo | $499 / seat / mo | $300–$350 / seat |
| Estimated FX Markup Spread Spread over interbank mid-market | 1.8% – 2.2% | 1.2% – 1.6% | 2.0% – 2.5% | 1.7% – 2.1% |
| Entity Infrastructure Model | 100+ Owned Entities | 100% Owned (No Partners) | Hybrid (Owned + Partner) | Hybrid (Owned APAC/LATAM) |
| Security Deposit Requirement | 1 Month (Salary + Taxes) | 1 Month (Salary + Taxes) | 1 – 2 Months (Country dependent) | 1 Month (Salary + Taxes) |
| Contractor Management Add-on | $49 / contractor / mo | $29 / contractor / mo | $29 / contractor / mo | $40 / contractor / mo |
| Offboarding & Severance Admin | Statutory legal pass-through; standard $0 fee | Included in base fee; localized severance council | Statutory pass-through; exit package documentation | Included in enterprise contract tier |
Essential EOR & Remote Hiring Audits
In-depth mathematical breakdowns and legal frameworks for international workforce expansion.
Deel vs Remote.com: 2026 Pricing & Hidden Fees Breakdown
Unpacking the fine print: owned entity versus partner networks, offboarding legal liabilities, security deposit lockups, and FX conversion spreads.
Contractor vs EOR: Legal Misclassification Risk Matrix
When does paying a 1099/B2B international contractor trigger civil liabilities, retroactive social security arrears, and Permanent Establishment exposure?
Hiring Remote Engineers: LATAM vs Eastern Europe EOR Cost
Senior software engineering salary benchmarks, statutory 13th-month bonuses, mandatory vacation burdens, and real Total Cost to Company across Brazil and Poland.
Frequently Asked Questions: Global EOR Costs
Clear, unvarnished explanations of international payroll compliance and vendor pricing mechanisms.
What hidden fees do Employer of Record (EOR) platforms charge beyond the monthly SaaS fee?
The largest hidden cost is the foreign exchange (FX) spread. Providers convert employer funding (USD or EUR) into local currency (BRL, PLN, INR) at rates with a 1.5% to 2.5% markup over the mid-market interbank rate. Other secondary costs include mandatory 1–2 month upfront security deposit locks, localized benefit administration commissions, offboarding/severance calculation fees, and contractor-to-employee conversion surcharges.
How do EOR platforms make money on foreign exchange (FX) spreads?
When an employer funds payroll in USD and the employee is paid in Brazilian Real (BRL) or Polish Zloty (PLN), the EOR executes an FX conversion. Rather than passing through wholesale spot rates, providers add a 1.5%–2.5% markup to the converted sum. Crucially, this markup applies to both the employee gross salary and the mandatory employer tax remittances sent to local treasuries.
What are mandatory employer social contributions, and why do they vary so widely?
Mandatory employer contributions represent taxes that companies must pay above gross salary directly to local governmental bodies for pension, public healthcare, unemployment insurance, and statutory accident coverage. In civil law regimes like Brazil, employers face total burdens exceeding 40% when factoring in FGTS (8%), INSS (up to 28%), and mandatory 13th-month salary and vacation accruals. In common law jurisdictions like the UK, employer National Insurance is lower (~13.8%–15.0%).
Why do EORs require a security deposit of 1 to 2 months salary upfront?
Because the EOR holds the legal employment contract, local labor tribunals hold the EOR strictly liable for all compensation, tax obligations, and statutory severance if a client company defaults on invoice payments. To protect against customer insolvency, EORs require an upfront refundable cash escrow equivalent to 1 or 2 months of total compensation and statutory employer taxes.
When does it make financial sense to incorporate an owned local entity instead of using an EOR?
The economic break-even threshold typically sits between 8 and 15 full-time employees in a single country. At $599/month per seat, maintaining 12 employees through an EOR costs $86,256 per year in SaaS platform fees alone (excluding FX markups). In contrast, setting up and maintaining a private limited company (accounting, statutory filings, corporate director services) usually totals $15,000 to $30,000 annually.