EOR vs contractor: cost and risk by country (2026)
At the example salaries on this site, an employer of record costs about 9.7% to 95.3% more per month than paying the same person as a contractor. Statutory employer costs add 1.6% to 50.9% on top of gross salary across the 18 countries covered; a contractor has none of them, but carries misclassification risk. On fees, contractor-management plans start at $5 to $49 per month ("from" prices; contractor-of-record products are priced higher and not included) and EOR providers charge from $199 to $699 per month.
Monthly cost by country
| Country | Example gross per month | As contractor (USD per month) | Via EOR (USD per month) | Difference (USD per month) |
|---|---|---|---|---|
| Argentina | ARS 2,000,000 | $1,300 to $1,344 | $2,017 to $2,517 | $717 to $1,173 |
| Australia | AUD 8,000 | $5,453 to $5,497 | $6,301 to $6,801 | $848 to $1,304 |
| Brazil | BRL 10,000 | $1,787 to $1,831 | $2,889 to $3,389 | $1,101 to $1,557 |
| Canada | CAD 7,000 | $4,915 to $4,959 | $5,470 to $5,970 | $555 to $1,011 |
| Colombia | COP 15,000,000 | $4,566 to $4,610 | $6,320 to $6,820 | $1,753 to $2,209 |
| Germany | EUR 6,000 | $6,646 to $6,690 | $8,488 to $8,988 | $1,842 to $2,298 |
| India | INR 100,000 | $1,068 to $1,112 | $1,322 to $1,822 | $254 to $710 |
| Ireland | EUR 4,500 | $4,986 to $5,030 | $5,822 to $6,322 | $837 to $1,293 |
| Mexico | MXN 40,000 | $2,153 to $2,197 | $3,037 to $3,537 | $884 to $1,340 |
| Netherlands | EUR 5,000 | $5,539 to $5,583 | $7,166 to $7,666 | $1,627 to $2,083 |
| Philippines | PHP 50,000 | $789 to $833 | $1,126 to $1,626 | $337 to $793 |
| Poland | PLN 10,000 | $2,517 to $2,561 | $3,225 to $3,725 | $708 to $1,164 |
| Singapore | SGD 7,000 | $5,447 to $5,491 | $6,575 to $7,075 | $1,128 to $1,584 |
| South Africa | ZAR 40,000 | $2,395 to $2,439 | $2,628 to $3,128 | $233 to $689 |
| Spain | EUR 3,500 | $3,879 to $3,923 | $5,318 to $5,818 | $1,439 to $1,895 |
| Ukraine | UAH 60,000 | $1,325 to $1,369 | $1,810 to $2,310 | $484 to $940 |
| United Kingdom | GBP 5,000 | $6,626 to $6,670 | $7,876 to $8,376 | $1,250 to $1,706 |
| Vietnam | VND 30,000,000 | $1,173 to $1,217 | $1,641 to $2,141 | $468 to $924 |
When a contractor fits
A contractor suits a project or a service for several clients, where the person sets their own hours, uses their own tools and can be replaced. You pay the agreed fee and a platform fee, with no statutory employer contributions, paid leave or notice obligations.
When an EOR fits
An employer of record fits a person who works like an employee (set hours, one client, long term) when you have no legal entity in the country. The EOR employs the person locally and runs payroll, so you pay salary, statutory costs and the EOR fee, and the person gets the leave and protections that local law gives employees.
Misclassification risk
If a person is called a contractor but works like an employee, authorities or courts in many countries can treat them as an employee and claim unpaid contributions, leave and other amounts, sometimes with penalties. The tests differ by country. Read the contractor rules for each country and ask a local adviser before you choose.
- Argentina: contractor rules and costs
- Australia: contractor rules and costs
- Brazil: contractor rules and costs
- Canada: contractor rules and costs
- Colombia: contractor rules and costs
- Germany: contractor rules and costs
- India: contractor rules and costs
- Ireland: contractor rules and costs
- Mexico: contractor rules and costs
- Netherlands: contractor rules and costs
- Philippines: contractor rules and costs
- Poland: contractor rules and costs
- Singapore: contractor rules and costs
- South Africa: contractor rules and costs
- Spain: contractor rules and costs
- Ukraine: contractor rules and costs
- United Kingdom: contractor rules and costs
- Vietnam: contractor rules and costs
Own legal entity as a third option
You can set up a company in the country and employ the person yourself. Statutory costs are the same as with an EOR, but there is no EOR fee; instead you carry setup, accounting, legal and compliance costs, which this site does not estimate. It makes more sense with several employees in one country. Details on each country page:
- Argentina: own entity
- Australia: own entity
- Brazil: own entity
- Canada: own entity
- Colombia: own entity
- Germany: own entity
- India: own entity
- Ireland: own entity
- Mexico: own entity
- Netherlands: own entity
- Philippines: own entity
- Poland: own entity
- Singapore: own entity
- South Africa: own entity
- Spain: own entity
- Ukraine: own entity
- United Kingdom: own entity
- Vietnam: own entity
Next: the calculator for your own salary, and the provider price table.
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FAQ
Is an employer of record more expensive than a contractor?
Yes, at the example salaries here by about 9.7% to 95.3% per month, because an EOR adds statutory employer costs and a provider fee. See the EOR cost by country.
Why not just hire everyone as a contractor?
Because a contractor who works like an employee can be reclassified, which can bring back contributions, leave and other claims. The cheaper option on paper can cost more later.
What does a contractor platform cost?
Published "from" prices for contractor-management plans are $5 to $49 per month per contractor; contractor-of-record products cost more. See the provider price table.
When should I open my own entity instead?
When you plan several hires in one country and can carry setup and running costs. For one or two hires an EOR is usually simpler. This is not advice; ask a local adviser.