Indian EOR pricing has three layers: the headline per-employee fee, the pass-through statutory and salary costs, and the often-invisible add-ons. Compare on total monthly outflow per engineer, not just the marketing number.
Headline pricing by tier
| Tier | Per employee per month (USD) | Setup fee |
|---|---|---|
| Global multi-country EOR | $499 - $799 | $0 - $1,500 |
| India-specialist EOR | $199 - $349 | Usually nil |
| Local Indian payroll firm as EOR | $99 - $199 | Often 1-month deposit |
Total landed cost — worked example
Senior engineer at ₹60L CTC in Bengaluru, on an India-specialist EOR at $249/month. Monthly cost to the US parent:
| Component | Amount (USD/month) | Notes |
|---|---|---|
| Engineer gross salary | $5,020 | ₹5L gross / month at FX 83 |
| Employer PF (12% of Basic) | $300 | 12% of ₹2.5L Basic |
| Employer gratuity provision | $120 | 4.81% of Basic |
| Group health insurance | $70 | Premium pass-through |
| EOR service fee | $249 | Headline fee |
| FX margin (0.75%) | $45 | Assuming 0.75% FX margin on the gross |
| Total monthly cost | ~$5,804 | All-in |
Total annual cost: ~$69,650 for a ₹60L (~$72,300) engineer. The EOR fee is roughly 4% of total. Predictable and manageable.
Transparent FX, no hidden fees
FastLegal's pricing is $249-299 per employee per month all-in. We use the RBI reference rate plus a flat 0.5% FX margin (which is disclosed in every invoice). No setup fee, no off-cycle charges, no per-document costs. Your consultant explains each invoice line item.
Hidden fees to watch for
- FX margin — anywhere from 0.5% (clean) to 3% (predatory). On ₹5L monthly gross, 3% is $180/month invisible cost.
- Off-cycle payroll runs — $50-200 per event at some EORs. Add up across joiners / exits / corrections.
- PoSH training session — $200-500 per session at some EORs.
- Background verification — $25-50 per check; can be pass-through or marked up.
- Form 16 amendment after issue — $50-100 per amendment.
- Wire transfer fees — banks charge $25-50 per wire; some EORs absorb, others pass through.
- Specialist insurance add-ons — incremental premium for higher sum insured or specialist coverage.
- Year-end true-up service — some EORs charge an additional 'audit support' fee.
Vs. own subsidiary — total cost comparison
| Path | 5 employees | 15 employees | 30 employees | 60 employees |
|---|---|---|---|---|
| EOR (specialist, $249/employee) | $15k/month | $45k/month | $90k/month | $180k/month |
| Own subsidiary (platform + CA + ops) | $5-7k/month | $5-8k/month | $6-9k/month | $8-12k/month |
| EOR (global $599/employee) | $36k/month | $108k/month | $216k/month | $432k/month |
The crossover where own subsidiary becomes cheaper than EOR sits around 15-22 employees for India-specialist EOR pricing, around 7-10 for global multi-country EOR pricing.
Negotiation tips
- Tiered pricing at 10 / 25 / 50 employees — most EORs offer this if asked.
- Multi-year commit discount — 10-20% off for 24-month commit (verify exit clauses).
- FX margin cap — negotiate a fixed 0.5-1% margin in the MSA.
- Setup fee waiver — easy concession at the sales stage.
- Off-cycle runs included — common ask, usually granted.
Frequently asked questions
What's the cheapest credible EOR for India in 2026?+
India-specialist tier at $199-249/month is the price floor with credible compliance. Below $199 either skips compliance or has hidden fees.
Do EORs offer freemium / trial?+
Usually not. Some offer a discounted first-month rate for proof of process. Trial isn't possible because employment is a real legal relationship.
Are EOR fees deductible for our US parent?+
Yes — billed as an operating expense on your foreign parent's books. Standard treatment.
Does the engineer's salary go up if EOR fees go up?+
Independent variables. Engineer salary is contractually fixed; EOR fee is contractually fixed separately. Both adjust at renewal, not mid-contract.
Stop reading circulars. Start running clean payroll.
Every FastLegal plan ships with a dedicated payroll consultant — a real human who runs your PF, ESI, PT, TDS and Form 16 issuance, configured to your salary structure, your state, and your hiring plan. You sign off. We do the rest.