How to compare EOR costs beyond the monthly fee

Separate four parts of the quote

• Employment costs: salary, employer contributions and benefits for the same hiring plan.
• Provider charges: service fees, currency markup and itemised additional fees.
• Contingent charges: costs triggered by an off-cycle payroll, amendment, termination or other event.
• Cash requirements: deposits and pre-funding, including refund terms.

A deposit is not automatically a fee. It can still affect working capital and currency exposure. Do not add a refundable deposit to annual expenses without explaining the treatment.

Use a consistent annual comparison

Annual provider charges = monthly service fee × employees × 12 + annual FX markup cost + other annual provider fees.

This formula compares provider charges, not total employment spend. For a complete budget, add the relevant employment costs separately and document uncertain or conditional amounts. If the hiring plan changes during the year, calculate each month rather than multiplying a single month by 12.

Put FX into the buying criteria

First check that each supplier meets the required country coverage, employment model, service and compliance needs. Then compare the disclosed cost for that same scope.

Make FX disclosure an evidence requirement: a named rate source, an explicit markup, an invoice example and proposed contract wording. A lower markup is a cost advantage only after you account for other fees and relevant differences in service.

Keep uncertainty visible

Use “not disclosed” for missing information. Do not rank a supplier as cheaper by filling a blank FX field with zero. Request a clarification, then record the source and date alongside the response.

Our RFP asks every supplier the same questions so you can resolve these unknowns before choosing.

Sources & calculation basis

The buying checklist and examples are EOR Truth’s analysis. Examples are illustrative, not observed supplier prices. See our calculation methodology and editorial standards.