How Much Does an Employer of Record Cost in India in 2025?

An Employer of Record (EOR) acts as the official employer on behalf of your company, handling everything from payroll and benefits to taxes and legal compliance in another country.

But when it comes to understanding how much an EOR costs—especially in a country like India with its own set of regulations—it can get tricky.

In this blog, we’ll break down the key factors that influence EOR pricing and give you a clearer picture of what to expect when budgeting for EOR services in India in 2025.

Let’s dive in.

5 Factors That Influence EOR Costs in India

Several factors impact EOR pricing. Here’s what to consider when evaluating services in India:

1. Geographic Location

Even within India, costs can vary based on regional compliance rules, city-specific payroll contributions, and cost of living. Generally, hiring in India is more cost-effective compared to countries with strict labor laws and high employer contributions like France or Brazil.

2. Number of Employees

Most EOR providers—including DevX EOR—offer tiered pricing. Larger teams may benefit from volume-based discounts, while small businesses or one-off hires might experience slightly higher per-employee costs.

3. Scope of Services

Not every EOR offers the same level of service. Some provide comprehensive support—from onboarding and benefits to legal assistance—while others stick to basic compliance. Full-service packages naturally come at a higher cost.

Optional services like visa support or talent acquisition can also add to your total.

4. Type of Contract or Worker

Managing full-time employees is typically more expensive than freelancers or contractors due to added benefits, long-term contracts, and local perks. Industries like healthcare or manufacturing may also incur higher costs due to stricter compliance needs.

5. Level of Customisation or Support

If you need dedicated account managers, faster onboarding, or help with complex HR policies, expect to pay more. Custom processes, reporting, or integration support can drive up the cost, compared to standardised service.

Common Pricing Models for EOR Services in India

Here are some typical pricing structures you’ll come across when working with an EOR provider like DevX EOR in India:

1. Flat Monthly Fee per Employee (PEPM)

A fixed monthly fee for each employee. This is predictable and great for budgeting. It usually includes payroll, benefits, taxes, and compliance support. However, always check what's included to avoid surprises.

2. Percentage of Payroll

This is a popular model where the EOR charges a percentage(typically 10–25%) of the employee’s gross monthly salary. It's important to clarify what's covered in that percentage and whether there are hidden fees.

3. Pay-as-You-Go

Ideal for companies with variable hiring needs. You pay only for what you use—whether it’s payroll processing or short-term HR support. Pricing could be per transaction or hourly.

4. Bundled Packages

Some EORs offer pre-defined bundles that combine core services with extras like visa sponsorship or recruitment assistance. These can be cost-effective but make sure the services included are relevant to your needs.

5. Hybrid Models

A mix of pricing types—like a fixed fee for core services and a percentage of salary for additional benefits. These are flexible and allow companies to tailor services based on needs and budget.

Hidden EOR Costs You Should Watch Out For

Even with clear pricing, there are potential hidden fees tobe aware of. Ask your provider—like DevXEOR—for full transparency on thefollowing:

1. Onboarding or Setup Fees

Some providers charge one-time fees for employee registration or payroll setup. While some say “no setup fees,” they may add admin charges later.

2. Termination or Offboarding Fees

You might be charged when an employee exits—covering final payments, legal documents, and system removal.

3. Currency Conversion & Banking Fees

International payroll involves currency exchange. Always check if your provider marks up the exchange rate or charges banking fees for fund transfers.

4. Benefit Administration Markups

Some EORs add a fee to manage third-party benefits like insurance or leave tracking. Compare this cost with managing benefits in-house or through a separate provider.

5. Compliance Updates

India’s labor laws are evolving. Some EORs charge extra to implement legal changes or update processes. Ensure your provider is proactive and transparent about these costs.

4 Quick Tips to Avoid Hidden Fees – Explained

1. Read the Fine Print

Contracts can include vague terms like “processing fees,” “system upgrades,” or “premium support” that aren’t clearly defined. Always read the service agreement thoroughly and ask for clarification on ambiguous clauses. What looks like a small fee can quickly add up across multiple employees.

2. Ask for Itemised Pricing

Don’t settle for bundled quotes. Request a detailed breakdown showing exactly what each charge covers—such as payroll processing, compliance handling, benefits, and admin fees. This transparency helps evaluate cost vs. value and prevents unexpected charges.

3. Confirm Exchange Rates

Many international EORs convert salaries into local currency (like INR) and may apply a markup on the exchange rate. Always ask what rate they use, whether it changes daily, and if there are any additional currency conversion or wire transfer charges.

4. Define Offboarding Terms Early

Terminating an employee often involves costs for legal paperwork, final payments, and government reporting. Ensure your contract clearly outlines the termination process and associated costs. This helps avoid disputes or surprise bills when an employee exits.

A Quick Checklist to Evaluate EOR Pricing – Explained

Transparency - Are All Costs Clearly Stated?

A reliable EOR provider should offer full, upfront visibility into pricing. That means clear terms for every fee: onboarding, payroll, taxes, benefits, compliance, and offboarding. Avoid providers who can’t offer this clarity.

Total Cost of Ownership

Beyond monthly service fees, consider all associated expenses:

• Setup or implementation charges
• Currency conversion fees
• Benefits management markups
• Costs for additional services like visa processing or legal reviews

Calculating the total cost helps you avoid underestimating your budget.

Value-Added Services

Some EORs (like DevX EOR) go beyond the basics and offer extra perks like:

• Local in-country HR support
• Fast-track onboarding
• Employee self-service portals
• Automation for reports or compliance updates

These features can save time and reduce internal admin overhead.

Get Multiple Quotes

Don’t go with the first provider you find. Comparing quotes from at least 2–3 vendors helps benchmark pricing, evaluate service coverage, and spot inflated costs. It also gives you negotiating power.

Check SLAs and Reviews

Service Level Agreements (SLAs) define how quickly the EOR resolves issues like payroll delays or compliance queries. Review these terms—along with real user feedback—to assess reliability, support quality, and client satisfaction.

Conclusion

Navigating the cost of EOR services in India involves more than just comparing base prices. It’s about understanding what’s included, identifying hidden fees, and choosing a partner who aligns with your business goals.

If you’re planning to expand your team in India and want are liable, cost-transparent partner DevX EOR is here to help. With deep expertise in Indian labor laws, local payroll management, and tailored onboarding processes, DevX EOR offers flexible EOR solutions designed to scale with your business.