Best Employer of Record (EOR) Services in 2026
An honest pricing comparison of EOR providers for hiring global employees, from budget options at $199/month to premium platforms at $599+.
By Toolradar Editorial Team · Updated
For most companies, Deel is the best overall EOR because it combines the widest country coverage (150+), a mature platform with built-in HRIS, contractor management, and global payroll in one dashboard -- starting at $599/employee/month. Remote is the pick if intellectual property protection matters (they own their own entities in every country) at $599/employee/month. Multiplier hits the sweet spot for mid-market budgets at $400/employee/month with 150+ countries and no setup fees. RemoFirst is the cheapest viable option at $199/employee/month for cost-conscious startups. Oyster at $699/employee/month is best for companies that want a polished employee experience with guided compliance workflows. Skip Omnipresent -- they were acquired by Deel in late 2025 and redirect to Deel's platform.
Here is the reality of hiring internationally in 2026: setting up a legal entity in another country costs $20,000-80,000 upfront, takes 3-6 months, and requires ongoing legal and accounting maintenance. For most companies hiring 1-20 people in a foreign market, an Employer of Record is the only financially rational option.
But the EOR market has become confusing. There are 60+ providers, pricing ranges from $199 to $1,200 per employee per month, and every vendor claims to cover "180+ countries." The differences are in the details -- who owns the legal entities, how payroll actually works, what happens when something goes wrong with local labor law, and how much you will actually pay after the "starting at" price.
This guide compares EOR providers based on real pricing, actual country coverage, platform maturity, and the things that matter when you are responsible for paying real people in other countries. No affiliate-driven rankings, no vendor-funded "research."
What It Is
An Employer of Record (EOR) is a third-party organization that legally employs workers on your behalf in countries where you do not have a local entity. The EOR handles employment contracts, payroll processing, tax withholding, statutory benefits, and labor law compliance. Your company manages the employee's day-to-day work, but the EOR is the legal employer on paper.
Think of it as outsourcing the legal and administrative burden of international employment. Instead of incorporating a subsidiary in Germany to hire one developer, you use an EOR that already has a German entity. They put the employee on their German payroll, ensure compliance with German labor law (which includes things like mandatory 20+ vacation days, strict termination protections, and complex social security contributions), and invoice you a flat monthly fee plus the employee's compensation.
The key distinction: an EOR is not a staffing agency. You recruit, select, and manage the employee. The EOR only handles the employment infrastructure. Your hire works exclusively for you -- they just happen to receive their paycheck from the EOR's local entity.
Why It Matters
The cost of getting international employment wrong is severe. Misclassifying employees as contractors (a common shortcut companies take to avoid EOR costs) can result in fines of $10,000-50,000 per worker in countries like France, Germany, and the UK, plus back-payment of taxes, social contributions, and sometimes even criminal liability for company directors.
Beyond compliance risk, the talent market has gone permanently global. 73% of tech companies now hire internationally, and the best candidates increasingly expect location flexibility. If your hiring pool is limited to one country, you are competing with one hand tied behind your back.
The financial math usually works in EOR's favor for teams of 1-15 employees per country. At 15+ employees in a single country, setting up your own entity starts to make economic sense (the EOR fees add up). But for distributed teams with 1-5 people across multiple countries, an EOR saves $100,000+ in entity setup and maintenance costs per country.
The EOR market has also matured significantly. In 2022, most EOR providers were reselling through partner networks (meaning your employee in Brazil was actually employed by a local agency the EOR subcontracted). Today, the top providers own their own entities in major markets, which means faster onboarding, better compliance control, and fewer intermediary headaches.
Key Features to Look For
Whether the EOR owns legal entities in each country or subcontracts to local partners. Own-entity EORs (Remote, Deel in major markets) offer faster onboarding, better compliance control, and more predictable costs. Partner networks can cover more countries but add intermediary risk and slower response times.
Accurate salary calculations with local tax withholding, social security contributions, mandatory benefits, and statutory deductions. The EOR must handle country-specific payroll cycles (monthly in most of Europe, bi-weekly in others) and generate compliant payslips in local languages.
Locally compliant employment contracts that reflect the laws of the employee's country. This includes mandatory clauses (notice periods, severance terms, non-compete limitations), local language requirements, and updates when labor law changes.
Statutory benefits (pension, health insurance, parental leave) vary dramatically by country. A good EOR handles mandatory benefits automatically and offers optional supplemental benefits (private health insurance, dental, life insurance) to help you remain competitive.
Many companies use a mix of employees and contractors internationally. EOR platforms that also handle contractor payments, contracts, and compliance in one dashboard reduce tool sprawl and misclassification risk.
Ensuring that intellectual property created by your international employees is legally assigned to your company, not the EOR. Some jurisdictions (especially in Europe) have strict rules about IP ownership. Look for EOR providers with clear IP assignment clauses in their contracts.
How quickly a new hire can start working after signing. Ranges from 24 hours (best case, own-entity markets) to 4-6 weeks (partner networks in complex markets). Faster onboarding means faster productivity.
Evaluation Checklist
Pricing Overview
Cost-conscious startups hiring in common markets (Western Europe, LATAM) with simple employment needs
Growing companies needing reliable EOR with good platform UX, transparent pricing, and solid country coverage
Companies prioritizing own-entity coverage, IP protection, integrated HRIS, and enterprise-grade compliance
Large companies with complex needs: custom SLAs, dedicated legal counsel, managed benefits, and white-glove service
Pricing Comparison
| Provider | EOR Price | Contractors | Countries |
|---|---|---|---|
| RemoFirst | $199/mo | Free mgmt, $25/mo payments | 185+ |
| Multiplier | $400/mo | $40/mo | 150+ |
| Rippling | $499–$1,000/mo * | Custom quote | Custom |
| Deel | $599/mo | $49/mo | 150+ |
| Papaya Global | $599/mo | $30/mo | 160+ |
| Remote | $599/mo (annual) | $29–99/mo | 90+ |
| Oyster | $699/mo | $29/mo | 120+ |
* Rippling EOR pricing is not public and requires a custom quote. All prices are per employee per month and represent the EOR management fee only — employee salary, taxes, and statutory benefits are additional. Sorted from cheapest to most expensive.
Top Picks
Based on features, user feedback, and value for money.
Companies that want an all-in-one platform for global hiring with the widest country coverage and the most mature feature set.
Companies hiring engineers, designers, or other IP-producing roles internationally who need airtight IP assignment and own-entity compliance.
Remote-first companies that prioritize employee experience and want a platform their international hires will enjoy using. Best if budget is not the primary concern.
Growing companies that need reliable EOR in 150+ countries at a more accessible price point than Deel or Remote.
Startups and small businesses that need basic EOR services at the lowest possible price, primarily hiring in common markets.
Mid-to-large companies with 50+ international employees that need advanced workforce analytics, payroll auditing, and multi-entity management.
Tech companies already using or considering Rippling for domestic HR that want to add international hiring without switching platforms.
Mistakes to Avoid
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Choosing the cheapest EOR without understanding the partner network trade-off -- a $199/month provider using an untested local partner in Brazil is a different product than a $599/month provider with their own Brazilian entity
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Assuming all 180+ countries work equally well -- most EOR providers are strong in 20-30 major markets and rely on partners for the rest, with variable quality
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Forgetting to budget for country-specific costs on top of the EOR fee -- the management fee is just the EOR's margin; you still pay the employee's salary, taxes, and statutory benefits
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Using an EOR when you have 15+ employees in one country -- at that point, setting up your own entity is usually cheaper and gives you more control
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Not reading the IP assignment clauses carefully -- some EOR contracts technically assign IP to the EOR, not your company, which is a disaster for tech companies
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Treating international employees as contractors to save on EOR costs -- misclassification penalties in Europe alone can exceed $50,000 per worker
Expert Tips
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Start with one or two employees in a single country before scaling. This lets you evaluate the EOR's actual service quality (onboarding speed, payroll accuracy, support responsiveness) without significant risk.
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Negotiate pricing based on volume commitments. Most EOR providers offer 10-20% discounts for 10+ employees, and enterprise deals with 50+ employees can bring premium providers down to mid-market pricing.
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Use the EOR's total cost calculator before making an offer to a candidate. The gap between gross salary and total employer cost varies dramatically by country -- in France, expect 40-45% on top of gross salary for social contributions.
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Plan your entity setup timeline. If you are growing to 10+ employees in a single country, start the entity incorporation process 6 months before you plan to transition off the EOR. The EOR can usually support the transition.
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Always have the EOR's employment contract reviewed by independent local counsel in the employee's country. The $500-1,000 cost of a contract review is trivial compared to the risk of a flawed employment agreement.
Red Flags to Watch For
- !Claiming own-entity coverage in 150+ countries -- no provider owns entities everywhere; this likely means a partner network
- !Refusing to share sample employment contracts before you commit -- the contract is the core product
- !Charging setup fees or onboarding fees on top of the per-employee monthly price
- !No clear process for handling employee terminations, including severance calculations and notice period compliance
- !Requiring long-term annual contracts with no monthly billing option -- the EOR market is competitive enough that monthly billing should be available
- !Unable to provide references from companies hiring in your specific target countries
- !Vague answers about who the actual legal employer is in each country (the EOR's own entity or a local partner)
The Bottom Line
For most companies hiring internationally, Deel is the safest default choice -- it has the widest coverage, the most mature platform, and a feature set that covers EOR, contractors, global payroll, and HRIS in one place at $599/employee/month.
If IP protection is your top concern (tech companies, startups with proprietary technology), go with Remote at $599/employee/month -- they own every entity and have the strongest IP assignment framework.
For mid-market budgets, Multiplier at $400/employee/month offers the best price-to-coverage ratio with transparent, no-fee pricing and 150+ countries.
If you are a seed-stage startup and $400-599/employee/month is too much, RemoFirst at $199/employee/month gets the job done for basic EOR needs in common markets -- just expect less polish and slower onboarding.
For enterprise teams with 50+ international employees, Papaya Global provides the analytics and payroll auditing tools that justify its premium pricing.
The worst decision is trying to avoid EOR costs by misclassifying employees as contractors. The fines, back-taxes, and reputational damage far exceed what you would have spent on a proper EOR.
Frequently Asked Questions
How much does an Employer of Record cost per employee?
EOR pricing ranges from $199 to $1,200 per employee per month, depending on the provider and service level. Budget providers like RemoFirst start at $199/month. Mid-tier providers like Multiplier charge around $400/month. Premium providers like Deel and Remote charge $599/month. Enterprise providers can exceed $700-1,200/month. These fees cover the EOR's management overhead only -- you also pay the employee's gross salary, local taxes, and statutory benefits (which vary by country, e.g., 40-45% extra in France, 20-25% in the UK).
What is the difference between an EOR and a PEO?
An EOR (Employer of Record) is the sole legal employer of your international workers in countries where you have no entity. A PEO (Professional Employer Organization) is a co-employer that shares employment responsibilities with you -- but you must already have a legal entity in that country. In practice: use an EOR when you have no local entity and want to hire quickly, use a PEO when you have an entity but want to outsource HR administration. EOR costs more ($199-599/employee/month) because the EOR assumes all legal employment risk. PEO is cheaper ($59-150/employee/month) because risk is shared.
When should I switch from an EOR to my own entity?
The break-even point is typically 10-15 employees in a single country. At $599/month per employee, 15 EOR employees cost $107,820/year in management fees alone. Entity incorporation costs $20,000-80,000 upfront (depending on the country) plus $30,000-60,000/year in maintenance (accounting, legal, compliance). At 15+ employees, your own entity becomes cheaper within 12-18 months. However, the decision is not purely financial -- entity setup takes 3-6 months, requires local directors in some countries, and creates ongoing administrative burden. Many companies keep the EOR for markets with fewer than 10 employees and set up entities only in their largest markets.
Can I hire contractors through an EOR instead of full employees?
Most EOR providers also offer contractor management services, typically at $25-49/contractor/month. This handles compliant contractor agreements, payments in local currency, and tax document generation. However, using contractors when the relationship actually looks like employment (fixed hours, company equipment, single client) creates misclassification risk. The EOR's value here is partly in helping you assess whether a role should be contractor or employee. If in doubt, the safer path is always full employment through the EOR -- the $599/month management fee is far cheaper than a $50,000 misclassification fine.
How long does it take to onboard an employee through an EOR?
Onboarding timelines range from 3 business days to 6 weeks depending on the provider and country. Own-entity EOR providers (Deel, Remote) in major markets like the UK, Germany, or Canada can onboard in 3-5 business days. Partner-network providers or complex markets (India, Brazil, some African countries) typically take 2-4 weeks due to local documentation requirements. The fastest option is usually Deel in their own-entity countries, where employees can sometimes start within 48 hours if all documents are ready.
What happens to my employees if I switch EOR providers?
Switching EOR providers requires terminating the employee's contract with the old EOR and re-hiring them through the new EOR. In most countries, this means the employee technically gets terminated and rehired -- which can trigger severance obligations, notice period requirements, and loss of tenure-based benefits. The best practice is to coordinate with both EOR providers to ensure a seamless transition with no gap in employment. Some EOR providers offer transition assistance. Budget 4-8 weeks for a provider switch and communicate openly with affected employees -- they understandably get nervous about employment contract changes.
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