The $400–$699/mo EOR fee you see on pricing pages represents roughly 4–8% of your actual cost of employment. The rest — statutory contributions, benefits, FX margins, off-cycle payroll, termination fees — is what providers don’t put in the headline number. Here’s what you’re actually paying.
The Advertised Monthly Fee Is Not the Total Cost
The full cost of employing someone through an EOR has eight components:
- EOR service fee (advertised)
- Gross salary (your main cost)
- Employer-side statutory contributions (passed through)
- Benefits costs (health insurance, if you add it)
- FX conversion margins (on non-USD payroll)
- Off-cycle payroll fees (for bonuses, commissions)
- Termination/offboarding fees (sometimes charged)
- Amendment fees (for contract changes)
1. Employer Statutory Contributions — The Biggest Hidden Cost
Most EOR providers pass through mandatory employer contributions at cost. But these add 15–30% on top of gross salary depending on the country.
| Country | Total Employer Burden (on top of gross) |
|---|---|
| Singapore (SC/PR) | +17% CPF |
| Singapore (EP holder) | +0% CPF, but SHG levy may apply |
| India | +13% approx (PF 12% + ESIC 3.25% where applicable, PT) |
| Philippines | +8–10% (SSS 8%, PhilHealth 2.5%, Pag-IBIG 2%) |
| Indonesia | +5–6% (BPJS Ketenagakerjaan + Kesehatan, JHT, JP) |
| Japan | +15% approx (pension 9.15%, health 5%, unemployment 0.95%) |
| Malaysia | +14% approx (EPF 13%, SOCSO, EIS, HRD) |
| South Korea | +11% approx (NPS 4.5%, NHI 3.5%, UI 0.9%, WC varies) |
| Vietnam | +21.5% (SHUI: social 17%, health 3%, unemployment 1%) |
| Thailand | +5% (SSF) |
Example: Hiring an engineer in Singapore at SGD 8,000/mo gross (Singapore Citizen):
- Gross salary: SGD 8,000
- CPF employer contribution: SGD 1,360 (17%)
- EOR fee ($400 USD ≈ SGD 540): SGD 540
- Total monthly cost: ~SGD 9,900 (before benefits)
The headline “$400/mo” fee is less than 6% of the total cost of employment.
2. Benefits Markup
EOR providers earn 5–20% referral margin on benefits premiums sold through their marketplace. This is often not disclosed.
Ask whether the EOR earns a referral fee on benefits sold. Then compare the quoted premium against direct market rates — AIA, Prudential, Great Eastern in Singapore. The markup is frequently 10–20% above what you’d pay a local broker directly.
Typical health insurance cost in Asia:
- Singapore: SGD 150–400/employee/month (hospitalisation + outpatient)
- India: USD 30–80/employee/month (basic group mediclaim)
- Philippines: PHP 2,000–5,000/employee/month (HMO)
- Japan: Included in statutory social insurance; supplement adds JPY 5,000–15,000/mo
3. FX Conversion Margins
Your company pays the EOR in USD. The EOR pays employees in local currency. The FX conversion happens inside the EOR’s system — and they earn a margin on it.
Typical FX margins: 0.5–2.0% on the converted amount
On a USD 5,000/mo salary in India or Vietnam, a 1.5% FX margin costs USD 75/mo — nearly USD 900/year per employee. Not catastrophic, but worth knowing before you sign.
- Deel and Multiplier are relatively transparent on FX
- Others are less so — ask explicitly: “Do you apply a spread above mid-market rate? What percentage?“
4. Off-Cycle Payroll and Bonus Processing Fees
Standard monthly payroll is included in the monthly fee. Off-cycle runs — 13th month bonuses, performance bonuses, commissions, mid-month adjustments — often trigger additional charges of $50–$200 per off-cycle run.
In the Philippines, Indonesia, and some India cases, off-cycle bonus processing is mandatory and recurring. Ask before signing:
- Is 13th month bonus processing included?
- What is the fee for a one-time bonus payment outside the regular cycle?
Multiplier and Remote include these in the monthly fee for most markets. Deel charges for off-cycle runs.
5. Termination and Offboarding Fees
Some providers charge a termination processing fee on offboarding. Separate from statutory severance.
Typical range: $0 (most providers) to $500 per employee
The more significant issue: severance under-provisioning. In Japan (30 days notice or pay in lieu), Indonesia (severance can reach 2–9× monthly salary under Manpower Law depending on tenure and reason), and South Korea (mandatory 1 month per year after 12 months), the statutory obligations are material. If your EOR is not provisioning these from day one, the invoice at offboarding is a financial surprise.
6. Contract Amendment Fees
Salary increases, title changes, role scope changes, adding benefits — may trigger amendment processing fees.
Typical range: $0–$200 per amendment
Deel, Remote, and Multiplier process standard salary changes at no extra charge. Complex amendments (restructuring notice periods, adding equity clauses) may cost extra.
True Cost Comparison: Hiring a Singapore Engineer via EOR
| Cost Component | Monthly (SGD) |
|---|---|
| Gross salary (SGD 10,000) | 10,000 |
| CPF employer contribution (17%) | 1,700 |
| EOR service fee (Multiplier, ~$400 USD) | ~540 |
| Health insurance (hospitalisation + GP) | ~350 |
| FX margin (est. 0.75% on payroll) | ~75 |
| Total monthly cost | ~12,665 |
| Annual total | ~SGD 151,980 |
The EOR fee is ~4.3% of total employment cost in this example.
How to Compare EOR Providers on True Cost
Use this checklist when evaluating proposals:
- What is the monthly service fee per employee?
- Are statutory employer contributions passed through at actual cost or marked up?
- What is the FX conversion policy? Mid-market rate + what spread?
- Is 13th month / bonus processing included?
- Are off-cycle payroll runs charged separately?
- Is there a termination/offboarding fee?
- Are contract amendments billed separately?
- What is the markup on benefits purchased through the platform?
- Are there setup/onboarding fees per country?
- Is there a minimum contract term or early termination penalty?
Provider-by-Provider Fee Transparency Rating
| Provider | Base Fee | Off-Cycle Fees | Benefits Markup | FX Transparency | Overall |
|---|---|---|---|---|---|
| Multiplier | $400 | Included | Moderate | Good | ★★★★★ |
| Deel | $599 | Charged | Disclosed | Good | ★★★★☆ |
| Remote | $599 | Included | Disclosed | Good | ★★★★☆ |
| Rippling | ~$500+ | Varies | Moderate | Moderate | ★★★★☆ |
| Oyster | $699 | Included | Moderate | Moderate | ★★★☆☆ |
| Payoneer WFM | From $199 | Included | Limited data | Limited data | ★★★☆☆ |
Frequently Asked Questions
What is the average total cost of an EOR employee in Asia? The EOR service fee is 4–8% of total employment cost. The dominant costs are gross salary and employer statutory contributions (15–25% on top of salary depending on country). For a USD 3,000/mo role in Southeast Asia, total cost including a $400/mo EOR fee is typically USD 3,900–4,500/mo.
Do EOR providers mark up statutory contributions? Reputable providers pass through at actual cost. Verify this in the contract — ask for a sample payroll breakdown showing each statutory line item at the statutory rate. Any markup on statutory contributions is a red flag.
Which EOR has the lowest hidden fees? Multiplier ranks best for overall fee transparency in Asia, particularly ASEAN markets. Remote and Deel are both clear on their pricing structure. Any provider that cannot give you a full cost breakdown before signing is a provider to avoid.
Is EOR more expensive than hiring locally via my own entity? For fewer than 8–12 employees, EOR is almost always cheaper when you factor in entity setup, ongoing compliance, local payroll software, and HR administration. Above that headcount, entity setup becomes cost-competitive in most Asian markets.
What happens if I use an EOR and need to add a 13th month bonus in Philippines? The 13th month pay (1/12 of basic annual salary) is mandatory in the Philippines, payable by December 24 each year. Multiplier, Remote, and Deel include this processing in the monthly fee and calculate it automatically. Confirm this explicitly during due diligence — don’t assume.
