As global hiring becomes more mainstream, companies are rethinking how they build international teams. But hiring across borders comes with a set of challenges—legal compliance, payroll, benefits, taxes, and local labor laws.
That’s why many companies are turning to Employer of Record companies—third-party service providers that make it possible to hire talent in different countries without having to set up a local legal entity.
One question that often comes up in leadership and HR circles:
How much does an Employer of Record actually cost?
Let’s unpack it.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is a company that legally employs workers on your behalf in a country where you don’t have a local presence.
While you handle day-to-day work responsibilities and performance, the EOR manages:
- Local employment contracts
- Payroll processing and taxes
- Mandatory benefits and insurance
- Labor law compliance
- Visa and work permit processes (for expat hiring)
EORs simplify global hiring so you can focus on growing your team—without worrying about regulatory hurdles.
How Is EOR Pricing Structured?
EOR pricing generally follows two models:
1. Fixed Monthly Fee per Employee
A flat charge—regardless of the employee’s salary.
Common range: $500–$1,000/month per employee
2. Percentage of Gross Salary
A variable fee, usually between 8% and 15% of the employee’s gross monthly salary.
This model scales with seniority or role complexity.
The exact cost depends on the country you’re hiring in, the type of role, visa requirements, and the service level you choose.
What Factors Affect the Cost of an EOR?
EOR pricing isn’t one-size-fits-all. Several things can affect your final cost:
-
Country of Employment
Labor law complexity, social contributions, and admin costs vary by region.
-
Number of Employees
Hiring at scale often leads to discounted rates.
-
Type of Hire
Contractor vs. full-time employee, local vs. foreign national.
-
Services Included
Some EORs offer just payroll; others provide full HR support, compliance, visa handling, etc.
How Do EOR Costs Vary by Region?
| Region | Average Monthly Cost per Employee |
| North America | $700 – $1,000 |
| Europe | $800 – $1,200 |
| Asia-Pacific | $400 – $700 |
| Middle East (incl. Saudi Arabia) | $600 – $900 |
| Africa | $350 – $600 |
A Closer Look: EOR Costs in Saudi Arabia
Saudi Arabia is becoming a popular destination for global businesses thanks to its strategic location, infrastructure investments, and business reforms under Vision 2030. It’s also home to some of the best employers in Saudi Arabia, across sectors like energy, tech, logistics, and finance.
But hiring in Saudi comes with:
- Labor nationalization policies (Saudization/Nitaqat)
- Visa and Iqama processes for foreign workers
- GOSI contributions
- End-of-service benefits
These layers add to EOR complexity—and cost. Most Employer of Record companies in Saudi Arabia offer services in the $600–$800/month range, though pricing may vary depending on the employee’s nationality and the sector you’re hiring in.
Is an EOR Worth the Cost?
If your goal is to test a new market, hire remote employees abroad, or expand without the burden of legal entity setup, then yes—EORs are worth it.
They save time, reduce risk, and let you focus on building your business while they handle compliance and local complexities.
Choosing the Right EOR Partner
When selecting an EOR, consider:
- Regional expertise (especially for markets like Saudi Arabia)
- Transparency in pricing
- Service scope and HR support
- Integration with your existing systems
- Reputation and reviews
Final Thought: Hiring in Saudi Arabia?
If Saudi Arabia is on your expansion radar, and you’re looking for a reliable local partner, Connect Resources Saudi Arabia is a trusted name in the region. With deep knowledge of local labor law, fast visa processing, and a track record of supporting global companies in the Kingdom, they’re worth considering as your EOR partner.
