Yes. While many Employer of Record providers present simple monthly pricing, hidden or unclear fees can appear if the contract is not fully transparent. These costs typically show up in areas like onboarding, currency exchange, benefits administration, or offboarding. From our experience helping US companies hire in India, the most common issue is unfamiliarity with how Indian statutory processes interact with provider pricing.
Below is a clear breakdown of where hidden costs commonly arise and how to avoid them.
Common fees and potential hidden costs
These are the most common fee areas where companies may face unexpected charges when working with an EOR in India.
- Service Fees: Some EORs advertise a single monthly amount but add extra charges for HR tasks, payroll complexities, tax filings, or employee support. If services are not clearly defined, you may end up paying layered fees that were not obvious upfront.
- Setup and Onboarding Charges: Several providers bill one-time fees for adding new employees, verifying documents, drafting customized contracts, or handling role-specific complexities. These charges vary widely by provider.
- Foreign Exchange (FX) Markups: FX conversion fees are a common hidden cost. Some EORs apply a markup on currency exchange when converting USD to INR for payroll, which increases your total monthly spend. Always compare FX terms and ask how conversions are calculated.
- Benefit Administration Markups: Beyond statutory programs like PF and ESI, some EORs add markups on private benefits such as health insurance, life insurance, or wellness allowances. These fees should be clearly itemized before signing.
- Termination and Offboarding Fees: Offboarding in India involves final payroll, full-and-final settlement, benefit closures, and statutory documentation. Some EORs charge additional fees for each exit, which can escalate when managing larger teams.
- Compliance and Statutory Costs: Although compliance is usually included, certain providers charge extra for updates to payroll calculations, statutory rule changes, late penalty management, or specialized filings. Without clear contract language, these can become surprise expenses.
- Contract Ambiguity: Loosely defined service agreements often lead to unexpected charges when your team grows, job roles evolve, or policies need customization. Missing details around timelines, responsibilities, or scope can quickly lead to add-on fees.
How to avoid hidden fees?
Use these steps to stay protected and ensure complete pricing transparency before signing with any EOR provider.
- Read the contract thoroughly: Ensure the EOR outlines every service included in the base fee payroll, benefits, compliance, offboarding, and employee support.
- Demand full visibility on all charges: Ask explicitly about onboarding fees, FX fees, contract termination charges, benefit markups, and any role-specific pricing.
- Confirm statutory benefit coverage: Verify that PF, ESI, gratuity, and Professional Tax handling are included without extra charges.
- Choose transparent pricing models: Flat, predictable pricing is generally safer than percentage-based billing.
- Select EORs with proven compliance: Providers with strong reputations reduce downstream risks like penalties, incorrect filings, or avoidable legal expenses.
Why companies choose Wisemonk?
Wisemonk is an India-specialist Employer of Record that provides clear, flat, fully transparent pricing with no hidden markups. We handle payroll, taxes, statutory benefits, compliance updates, and employee support with complete clarity on what is included. Our clients consistently highlight our transparency, responsiveness, and reliability.
“I'm very happy that I discovered Wisemonk… Their attention to detail is impressive, and the individuals they sourced have been some of the best engineers I’ve ever worked with.”
– Dan Sampson, Head of Engineering at Cobu
Wisemonk helps global teams hire in India quickly and confidently, without unexpected fees or administrative surprises. Need help with your global expansion in India? Contact our team to learn how we can support your global operations.