Introduction
EOR and HR outsourcing pricing in India is more than a per-employee monthly fee. Employer statutory contributions, benefits, and state-level compliance can materially change your total cost of employment. This guide breaks down what you should budget in 2026.
Model costs with MonoHR pricing and our salary calculators.
Common EOR pricing models in India
- Per-employee monthly fee: Most common; covers employment admin, payroll, and compliance coordination
- Setup or onboarding fee: Some providers charge per hire; others include it
- Percentage of payroll: Occasional in enterprise deals; harder to predict
- Add-ons: Benefits administration, equipment, visa support, recruiting
Sample total cost components (beyond EOR fee)
| Cost component | Typical employer burden |
|---|---|
| EOR service fee | Varies by provider; confirm on MonoHR pricing |
| Provident Fund (PF) | 12% of applicable wages (employer share) |
| ESI (if applicable) | 3.25% of gross (employer share) for eligible wages |
| Gratuity accrual | ~4.81% of basic (accrual); payable after 5 years continuous service per Payment of Gratuity Act |
| Professional tax | State-dependent; employee deduction in most states |
| Benefits | Health insurance, allowances per your policy |
See India payroll requirements for statutory detail.
Illustrative monthly cost by team size
Example for mid-level tech roles (₹15–25 Lakh CTC). EOR fees vary by provider — confirm quotes directly:
| Team size | Illustrative EOR fee (per employee/mo) | Employer statutory (approx.) |
|---|---|---|
| 1–5 employees | ₹8,000–₹25,000+ (provider-dependent) | ~12% PF on applicable wages + ESI if eligible + gratuity accrual |
| 6–20 employees | Often negotiable volume pricing | Same statutory stack; benefits costs scale |
| 20+ employees | Compare EOR vs entity break-even | Entity adds fixed compliance overhead |
See best EOR providers for India and Deel alternatives for provider comparison.
Hidden costs to watch for
- FX markup on INR payroll funded from USD/EUR accounts
- Charges for statutory filings that should be included
- Off-cycle payroll or correction fees
- Contractor misclassification penalties (far exceeding EOR savings)
How to compare quotes fairly
- Request all-in cost per employee for a sample CTC
- Confirm which statutory filings are included
- Ask about transition fees for existing employees
- Compare support SLAs in IST business hours
Conclusion
Transparent EOR pricing in India requires separating service fees from statutory employer costs. Start with MonoHR for a customized quote aligned to your roles and locations.