Are you planning to expand your business operations in India? Wondering how to engage talent from India compliantly? Well, you are exactly where you ought to be! Navigating the complex landscape of global workforce management requires a deep understanding of the Employer of Record India cost involved. After all, getting a grasp of the pricing structure will help you take an informed decision as to whether it is going to be a suitable choice for you.
For businesses like yours, looking to expand their operations in India, the Employer of Record (EOR) service plays a pivotal role in ensuring compliance, managing payroll, and providing a smooth entry into the Indian market. In this comprehensive guide, we’ll delve into the intricacies of Employer of Record services in India, exploring the cost factors and the pricing structure.
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Contents
- What is an EOR?
- How do the Employer of Record Services Work?
- Key Employer of Record India Services
- Factors Influencing the Employer of Record India Cost
- Is an EOR More Cost-Effective Than Setting Up an Entity?
- How Much Does an Employer of Record Cost in India?
- Employer of Record Pricing Structure
- Smart Ways to Avoid Hidden EOR Costs in India
- Final Words – Employer of Record India Cost
What is an EOR?
Before delving into the cost structure, it’s essential to understand the role of an Employer of Record. An EOR is a third-party entity that takes on the responsibility of managing HR, payroll, and compliance matters for businesses operating in a foreign country. In a country like India, where regulatory complexities and stringent labor laws abound, an EOR becomes a strategic partner for international companies.
To simplify the idea of EOR further, consider it as a professional service that enables companies to expand their operations into a new country without the complexities of establishing a legal entity. Resorting to EOR services allow a foreign entity to hire and manage employees, handle payroll, ensure compliance with local labor laws, and oversee HR functions without setting up a legal presence in the country. As a result, things become a whole lot simpler and more smooth. The hassle of decoding the elaborate laws and compliance mechanisms can be easily avoided because the EOR service provider will do the core work of simplifying things and ensuring that you stay compliant- by adhering to all the norms of the land.
Hire in India Without a Legal Entity
Onboard your first employee in just 48 hours — no company setup required.
Also Read: EOR India- A Detailed Guide on Employer of Record
How do the Employer of Record Services Work?
- The EOR service provider in India becomes the legal employer of the company’s workforce in India.
- It manages payroll, tax withholding, benefits, and labor law compliance.
- The client company retains full control over daily operations and employee management.
- The EOR only handles HR, payroll, and compliance, without interfering in internal functions.
What Services Does an Employer of Record Provide in India?
Employer of Record (EOR) services in India simplify workforce management by handling compliance, payroll, benefits, and HR administration. These services ensure that foreign businesses can hire and manage employees seamlessly while staying fully compliant with India’s labor laws.
1. Compliance and Legal Requirements
- India’s regulatory landscape is complex and frequently changing.
- An EOR ensures full compliance by managing employment contracts, tax obligations, and labor law requirements.
2. Payroll Processing
- Accurate and timely payroll management is critical for business operations.
- EOR services handle salary disbursement, tax withholding, and adherence to India’s payroll regulations.
- PwC reports that 75% of companies in India consider payroll complexity a major challenge.
3. Employee Benefits and Insurance
- Statutory benefits like Provident Fund (PF) and Employee State Insurance (ESI) are managed by the EOR.
- EORs also oversee additional benefits and insurance, ensuring employee satisfaction and compliance.
Useful resources on statutory benefits in India (PF & ESI):
4. Administrative Support
- EORs provide end-to-end administrative support.
- This includes employee onboarding, offboarding, and maintaining accurate personnel records.
Factors Influencing the Employer of Record India Cost
A host of diverse factors influence the Employer of Record (EOR) India cost. For instance, determinants such as company size, geographical location, and service period cast a direct impact on the EOR cost. Let's check out what these factors are, and to what extent do they impact the Employer of Record India cost:
1. Size of the Company
- Company size is a key factor in determining Employer of Record (EOR) costs.
- Smaller companies generally have fewer employees, leading to lower EOR pricing.
- Larger enterprises employ a bigger workforce, requiring more extensive HR, payroll, and compliance services.
- The greater the employee strength, the broader the scope of EOR services needed.
- As services scale up with workforce size, this escalates the overall Employer of Record India cost.
2. Geographical Location of Hires
- EOR pricing varies by country of hire, with costs influenced by local labor expenses and legal complexities.
- High-cost nations with strict compliance laws typically result in higher EOR fees.
- India stands out as a cost-effective option, offering access to highly skilled talent at lower living costs.
- EOR providers in India add more value by combining affordability with strong compliance and dedicated support.
3. Tenure of EOR Service
The duration of using Employer of Record services greatly impacts costs - longer engagements often come with discounts. EOR in India strikes the perfect balance between affordability and effectiveness, offering value-for-money solutions. With competitive rates and exceptional service, it stands out as a leading choice among EOR providers.
Is EOR in India Cheaper than Setting Up an Entity?
Absolutely - particularly in the short to medium term. Establishing a local entity requires significant investment, including:
- Incorporation and legal registration fees
- Appointment of local directors
- Payroll infrastructure setup
- Ongoing compliance filings and audits
- HR and administrative overheads
In contrast, an Employer of Record allows businesses to expand quickly with minimal upfront expense. It provides a compliant framework for hiring, payroll, and benefits, while eliminating the burden of entity setup. This approach enables companies to test the market, build initial teams, and operate seamlessly - without taking on unnecessary risk or long-term commitments.
Recommended Read: A Guide to Employer of Record (EOR) vs. Entity Establishment in India
How Much Does an Employer of Record Cost in India?
Owing to an array of factors impacting the Employer of Record India cost, there is no absolute figure of the price. However, getting an idea of the price range of EOR services will help you take a better stock of the purchasing decision. As a standard, the EOR price range lies between 5% to 15% of the compensation of employees. Further, additional charges for customization or special arrangements may be applicable on top of it.
In most cases, the EOR service providers calculate the charges in one of the these two following ways:
- As a percentage of the usual salary of employees;
- As fixed monthly charge for each employee
Asanify offers exquisite EOR services at an unbelievably reduced rate. Using it will give you the best return as it is the most economical option available in the market at the moment. Services ranging from HR and payroll administration, compliance management to taxation, everything will be taken care of. The best thing is that you get to save lots of time that you can tactly use in building your business rather than worrying about compliances and penalties.
Employer of Record Pricing Structure
The cost of EOR services in India can vary based on factors such as the size of the workforce, industry, and the scope of services offered. Here's a general breakdown:
1. Service Fees
- EOR providers typically charge a service fee. This can be a percentage of the total payroll or a fixed monthly amount.
- According to industry reports, service fees can range from 4% to 10% of the total payroll.
2. Setup Fees
- Some EOR providers charge a one-time setup fee to cover the initial onboarding and customization of services.
- Setup fees may range from $1,000 to $5,000, depending on the complexity of the engagement.
3. Foreign Transaction (FX) Fees
- As is obvious, you will have to pay your employees in the currency as is applicable in their jurisdiction (in this case, INR). Failure to do so may be interpreted as violation of Indian labor laws. For your ease, the EOR company might provide you with invoices that would reflect the amounts in your currency.
- Doing so would incur an additional FX fee because the service provider needs to take it into account for currency exchange coverage.
4. Additional Costs
- Additional costs may include expenses related to compliance audits, legal support, and customized services.
- These costs are usually outlined in the service agreement and can vary based on specific client needs.
Employer of Record (EOR) India Cost Comparison (2025)
| Provider | Pricing Model | Approx. Cost (per employee/month) | Transparency Level | Best For |
|---|---|---|---|---|
| Asanify | Flat fee + statutory costs | $200 – $300 | Fully transparent | Startups & SMEs scaling in India |
| Wisemonk | % of payroll (10–15%) | $250 – $400 (depending on salary) | Varies with salary | Global companies hiring mid-level roles |
| Deel | Flat fee | $599 – $650 | Transparent | Large enterprises with global reach |
| Remote | Flat fee | $599 – $650 | Transparent | Distributed teams with multiple countries |
| Papaya Global | Tiered pricing | $650+ | Add-ons required | Enterprises with complex compliance needs |
| Multiplier | Flat fee | $400 – $500 | Transparent | Mid-market companies expanding fast |
Smart Ways to Avoid Hidden EOR Costs in India
Based on our experience guiding companies through EOR partnerships, staying ahead of hidden costs is vital for accurate budgeting and sustainable growth. With the right approach, businesses can ensure transparency, compliance, and maximum value.
Here’s how you can stay cost-smart:
1. Evaluate Multiple Options
- Explore different EOR providers to compare pricing models and service clarity.
- Check case studies, client reviews, and third-party coverage to verify reliability.
2. Discuss and Adjust Pricing
- Many EORs are flexible with fees, especially for large-scale hiring or long-term contracts.
- Use team size or commitment length as leverage to negotiate better rates and reduce extra charges.
3. Examine Contracts Closely
- Go through agreements in detail, paying attention to fee structures, service inclusions, and potential add-on charges.
- Ask providers to explain or confirm anything that isn’t crystal clear before signing.
Tips to Secure the Best Value
- Do your homework: Research prevailing market rates and service standards.
- Spell out your needs: Be upfront about expectations and budget limits.
- Leverage scale: Ask about discounts for bulk hiring or extended commitments.
- Keep options open: Be ready to walk away if terms don’t fit your business.
Also Read: Everything You Need to Know About the New Labor Code in India
Final Words - Employer of Record India Cost
As we wrap up our exploration of Employer of Record (EOR) services in India, it’s clear that choosing an EOR is not just a financial decision but a strategic investment in growth. While cost is important, the real value lies in compliance, scalability, and long-term benefits delivered by the right provider.
Selecting an EOR in India means balancing affordability with comprehensive solutions that align with your business goals and regulatory requirements. Success comes from seamless workforce integration, reduced compliance risks, and the freedom to focus on core objectives. Providers like Asanify stand out by boosting employee satisfaction, productivity, and retention while saving valuable time.
Ultimately, the right EOR partnership today can drive efficient operations, peace of mind, and sustainable business growth in the future.
Frequently Asked Questions- Employer of Record India Cost
The average EOR India cost ranges between $200–$500 per employee/month. Global providers charge higher ($599+) due to multi-country operations, while India-focused providers like Asanify keep costs lower and transparent.
Key factors include:
- Base employee salary (fixed + variable)
- Statutory contributions (Provident Fund, ESIC, gratuity)
- EOR service fee (flat vs % of payroll)
- Additional charges for onboarding, tax filing, or benefits
Yes. Setting up a local entity in India involves $15,000–$20,000 in setup costs plus ongoing compliance. In contrast, an EOR in India charges only a monthly per-employee fee, making it faster and cheaper for global companies.
Yes, reputable providers (like Asanify) include payroll, tax filing, PF/ESIC compliance, and statutory benefits in their service fee. Always confirm whether add-ons (like insurance or visa sponsorship) are extra.
In many cases, yes. Providers may offer volume discounts if you are hiring multiple employees or scaling quickly. India-focused providers usually offer more flexible and competitive pricing than global EORs.
Because Asanify is India-focused, it does not add unnecessary global overhead. This allows pricing in the $200–$300 per employee/month range, with the same compliance coverage as Deel or Papaya Global.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
