The cost of PEO services in India ranges from $99 to $600+ per employee per month, depending on the provider and service level. Basic services start at $99 per employee, with premium options for larger businesses and more complex needs.
Planning to hire employees in India but unsure what PEO services actually cost?
The cost of a Professional Employer Organization (PEO) in India ranges from $99 to $600+ per employee per month, depending on your provider and service level. But what drives these differences, and how do you know if you're getting a fair rate?
This guide breaks down the pricing models, compares costs across service tiers, and explains what factors influence your final bill. Whether you're hiring your first employee or scaling to 50+ team members, you'll know exactly what to expect.
Let's get to the real numbers.
Common Pricing Models
When you're evaluating PEO services in India, pricing structures vary widely depending on the provider and your business size.
Let me break down the three main models you'll encounter:
1. Per Employee Per Month (PEPM)
This is the go-to pricing model for small to mid-sized businesses because it gives you predictable monthly costs. You pay a fixed fee for each employee you hire through the professional employer organization.
Here's what the market looks like:
- India-focused providers like Wisemonk start at around $99 per employee per month. This lower entry point works well if you're testing the Indian market or running lean operations.
- Global platforms such as Skuad or Deel typically charge between $169 and $599 per employee monthly. The higher fees usually come with expanded compliance and risk management features, multi-country support, and premium HR services.
- The broader market for quality PEO providers in India sits between $250 and $450 per employee per month. Some basic services start as low as $40 PEPM, but these often lack the robust compliance support and HR management tools you need for navigating India's complex labor laws.
The real advantage here is budgeting clarity. Whether you're managing 5 employees or 50, you multiply your headcount by the monthly rate and know your costs.
2. Percentage of Payroll
Larger companies with fluctuating headcounts or variable compensation structures often prefer this model. The PEO service providers charge between 2% and 12% of your total gross payroll each month.
This pricing makes sense when you have significant salary variations across your workforce. If you're hiring a mix of junior developers and senior leadership, the percentage model adjusts naturally to your actual payroll expenses.
The trade-off is less predictability. Bonuses, salary increases, and new hires directly impact your monthly peo costs. But for organizations with established operations and steady cash flow, this flexibility can work better than fixed per-employee fees.
3. Hybrid Models
Some peo firms now offer combined pricing that blends a smaller PEPM base fee with a reduced percentage of payroll. You might see structures like $100 PEPM plus 2% of gross wages.
This approach balances the predictability of flat fees with the fairness of percentage-based pricing. It's particularly useful if you're scaling quickly or have both high-salary and entry-level roles on your team.
The model you choose really depends on your global expansion journey. If you're just entering the indian market, starting with a transparent PEPM provider gives you control and clarity as you build your local workforce.
The pricing tier you choose should align with your global expansion journey. If you're entering the Indian market for the first time, starting with a local PEO around the $99-$150 range gives you solid compliance support without overinvesting.
As your workforce grows and compliance needs become more complex, you can scale into mid-range or premium services.
Factors Influencing Cost
The pricing you'll pay for peo services in India isn't just about the base rate. Several factors push costs up or down, and understanding these helps you negotiate better and avoid surprises.
Here's what moves the pricing needle:
Workforce Size
The more employees you hire, the lower your per-employee rate. Most peo providers offer volume discounts once you cross 10-15 employees. A rate of $250 PEPM for 5 employees might drop to $180 PEPM at 20 employees.
Employee Compensation Levels
If you're using percentage-of-payroll pricing, higher salaries mean higher peo costs. A senior developer at $60,000 annually costs more in fees than a junior hire at $15,000, even though the payroll processing work is identical.
Service Level
Basic peo services cover payroll management, statutory benefits (EPF, ESI), and standard compliance support. Premium hr services add dedicated account managers, custom employee benefits, talent acquisition support, and advanced hr management tools. These upgrades typically add $50-$200 per employee monthly.
Industry Complexity
Manufacturing, pharma, and financial services face stricter regulatory compliance under indian labor laws, which increases costs. Tech companies generally sit at the lower end because compliance is more straightforward.
Geographic Location
Hiring in Bangalore, Mumbai, or Delhi costs slightly more than tier 2 cities due to higher statutory benefits calculations and local labor laws variations. The difference isn't huge but adds up with larger teams.
Contract Length
Annual commitments get you 10-20% discounts compared to month-to-month billing. If you're serious about your global expansion in India, locking in yearly rates saves money.
Customization Needs
Want health insurance beyond statutory minimums? Complex bonus structures with special tax deductions? Each add-on increases your monthly costs. Standard packages work for most companies and keep expenses predictable.
Employee Turnover
High turnover (over 30-40% annually) creates more administrative work for employment contracts, offboarding, and settlements under india's employment laws. Some peo firms charge extra for frequent employee changes.
The takeaway: A startup hiring 3 employees through basic PEO services might pay $300-450 monthly in total. A mid-sized company with 25 employees and premium compliance support could be looking at $5,000-7,000 monthly. Your specific needs determine where you land in that range.
Why Choose Wisemonk as Your PEO in India[toc=Why Choose Wisemonk PEO]
If you're looking to hire employees in India without compliance risks, Wisemonk makes it simple.
We've supported over 300 global companies in managing more than 2,000 employees across India, processing over $20 million in payroll. Our platform handles everything from payroll processing and statutory benefits to employment contracts and tax filing.
What sets Wisemonk apart:
We own our local legal entity in India, so you work directly with the professional employer organization (Indian EOR), not intermediaries. Our team understands both Indian labor laws and the specific challenges international companies face. This means faster onboarding, transparent pricing with no hidden fees, and better employee support through our on-ground HR teams.
Here's how to get started:
Schedule a brief call with our team to discuss your hiring needs. We'll walk you through our platform, break down the exact costs for your situation (salaries, statutory contributions, and our service fee), and answer any questions about compliance and risk management.
Most clients onboard their first employee within 48 hours of deciding to proceed.
Ready to build your team in India? Book a call with Wisemonk and see how we simplify global hiring while ensuring full compliance.
Frequently asked questions
What is the average cost of a PEO?
The average cost of PEO services in India ranges from $150 to $300 per employee per month for mid-range providers. Budget options start at $99 PEPM, while premium global platforms charge $300 to $600+ PEPM depending on service levels and compliance support.
What is PEO in India?
A Professional Employer Organization (PEO) in India acts as the legal employer for your workforce, handling payroll processing, statutory benefits, tax filing, and compliance with Indian labor laws. You retain control over day-to-day management while the PEO manages all administrative HR tasks and employer responsibilities.
What is the cost of payroll per employee in India?
Beyond salaries, expect to pay 20-25% of gross wages for statutory contributions (EPF, ESI, gratuity) plus the PEO service fee. For example, an employee earning $2,000 monthly costs roughly $400-500 in statutory benefits, plus $150-300 in PEO fees, totaling $2,550-2,800 monthly.
How much money PEO?
PEO pricing typically ranges from $99 to $600 per employee per month depending on your service tier and provider. Some PEO firms also offer percentage-based models charging 2-12% of total payroll, which works better for companies with larger or fluctuating workforces.
Are there setup fees when starting with a PEO in India?
Most PEO providers charge one-time setup fees between $500 and $2,500 for onboarding, employment contract preparation, and initial compliance documentation. Some providers like Wisemonk waive these fees for annual commitments or longer-term contracts.
Does PEO cost include all mandatory employee benefits?
No, the PEO service fee covers administrative services like payroll management and compliance support. Statutory benefits (EPF, ESI, gratuity) are separate costs calculated as 20-25% of employee gross wages, which you pay in addition to the PEO fee.
Is it cheaper to use a PEO or set up my own entity in India?
Setting up your own legal entity costs $5,000-15,000 upfront plus ongoing compliance, accounting, and HR staff expenses that easily exceed $3,000-5,000 monthly. A PEO makes sense if you're hiring fewer than 20 employees or testing the Indian market before committing to a local entity.
