The cost of Employer of Record services in India depends on several operational, regulatory, and employee-specific variables. Based on our experience supporting US companies hiring across multiple Indian states, pricing shifts mainly with workforce size, role complexity, location, and the level of customization required.
Key factors that affect EOR pricing in India[toc=Key Factors]
After guiding many global teams through India expansion, we’ve found that EOR pricing typically depends on a few predictable factors.
- Employee count and compensation: EOR fees often vary depending on how many employees you onboard and their salary levels. Larger teams sometimes qualify for volume-based discounts, while senior roles or higher salaries may increase costs, especially with providers that charge a percentage of payroll rather than a flat monthly rate.
- Role complexity and industry requirements: Positions in heavily regulated industries (like finance, healthcare, or pharma) or roles requiring specialized compliance overhead may carry higher EOR pricing. This is because the provider must manage additional statutory processes, contractual protections, and documentation.
- Geographic location of employees: Hiring in major metros such as Bengaluru, Mumbai, or Delhi can cost more due to higher local minimum wages, statutory requirements, and benefit norms. Tier-2 and tier-3 cities may offer relatively lower EOR costs because state-level rules and wage structures vary across India.
- Customization and additional services: Unique needs, such as enhanced benefits, equity support, IP and confidentiality protections, HR advisory, laptop procurement, or visa/relocation assistance, can influence the final cost. More tailored support generally means higher service involvement.
- Fee structure used by the EOR provider: EORs follow different billing models. Some charge a flat monthly fee per employee, while others apply a percentage of payroll. Providers may also include one-time onboarding fees, refundable security deposits, or administrative charges depending on the complexity of your setup.
- Compliance and payroll administration: Pricing is also shaped by the depth of statutory management required, such as PF, ESI, Professional Tax, TDS withholding, payroll processing, benefits management, and central/state-level filings. The more comprehensive the compliance workload, the higher the cost.
- Currency exchange exposure: For foreign clients, FX markups or currency conversion charges can quietly increase the overall cost of the EOR service. Providers that build FX spreads into their pricing may appear cheaper but end up more expensive over time.
From our experience guiding 500+ US companies across early-stage and scale-up hiring, the EOR model remains predictable and cost-efficient because it consolidates multiple compliance and administrative expenses into one transparent monthly cost. The pricing ultimately reflects how much complexity the provider absorbs on your behalf.
Why companies choose Wisemonk?[toc=Why Choose Wisemonk]
Wisemonk is an India-specialist Employer of Record that helps global companies hire quickly and compliantly with transparent, flat pricing and zero hidden markups. We manage payroll, compliance, benefits, statutory filings, and onboarding while your team focuses on work, not administrative overhead.
“Working with the Wisemonk team in India has been a genuinely positive experience from day one… I value the quality of compliance Wisemonk brings.”
- Lisa Jones, Chief People Officer at Couch Health
Need help with your global expansion in India? Contact our team to learn how we can support your global operations.