When you sign with an Indian EOR, the master services agreement defines exactly what's covered. The headline 'we handle everything' rarely matches the detailed scope. Read the contract; check the inclusions; negotiate the gaps.
What every credible EOR includes
- Employment contract drafting and execution.
- Onboarding — KYC, PAN / Aadhaar capture, UAN setup, bank-account configuration.
- Monthly payroll computation and net-pay disbursement.
- Statutory deposits — PF (15th), ESI (15th), PT (state-specific), TDS (7th of next month).
- Quarterly TDS return (24Q) and annual Form 16 / Form 130.
- Group health insurance enrolment (typically family floater).
- Exit processing — full and final settlement, UAN transfer.
- Single monthly USD invoice with FX-converted line items.
Commonly excluded — verify and negotiate
- Background verification (BGV) — often a pass-through cost (₹1,500-3,500 per employee). Confirm whether the EOR handles or you do.
- Equipment (laptop, monitor) — purchase, shipping and provisioning typically excluded. Some EORs offer it as paid add-on.
- Premium health insurance upgrades — base policy included; higher sum-insured or specialist add-ons billed separately.
- PoSH training delivery — required by law for 10+ employees. EORs facilitate but may charge for the actual session.
- ESOP administration — typically excluded. EORs aren't set up for parent-company ESOP plan execution. Plan this separately.
- International payment processing fees — wire fees, FX margin (if EOR sets the rate). Negotiate transparency.
- Off-cycle payroll runs (mid-month joiner, mid-month exit) — some EORs charge per off-cycle event.
- Statutory show-cause / notice handling — base scope covers compliance; defending notices may be billed.
Transparent scope from your FastLegal consultant
FastLegal's EOR engagement covers the full standard scope plus PoSH training, BGV coordination and off-cycle runs at no extra charge. ESOP administration is included on our higher-tier plans. Your dedicated consultant explains the line items in your monthly invoice — no surprise charges.
Fee model patterns
| Model | Typical price | Notes |
|---|---|---|
| Per employee per month, flat | $199-799 USD | Most common. India-specialists $199-349; global multi-country $499-799. |
| Percentage of gross salary | 10-18% | Less common; tilts in favour of EOR at higher salaries. |
| Setup fee + monthly | $0-1,500 setup | Some EORs charge one-time setup, especially for first hire. |
| Tiered pricing | Discounts at 10 / 25 / 50 employees | Negotiate this upfront if you expect to scale. |
Service-level expectations to verify
- Implementation time — 7-10 working days for clean first-hire onboarding.
- Payroll run accuracy — zero errors in monthly cycle; corrections in next cycle if needed.
- Statutory filings — 100% on-time. Any late-fee borne by the EOR, not passed through.
- Query response — same business day for routine queries; 24-48 hours for complex.
- Reporting cadence — monthly summary in USD by the 5th of the following month.
- Audit support — EOR provides documentation for your annual audit / due diligence on request.
Frequently asked questions
What's a fair monthly fee for one Indian engineer at ₹60L CTC?+
India-specialist: $249-349/month. Global multi-country: $499-699/month. Indian local: $99-199/month (often with quality trade-offs).
Should we negotiate the FX rate the EOR uses?+
Yes — most EORs use a buy-side margin of 0.5-1.5% on top of the RBI reference rate. Negotiate transparency and a fixed margin upfront.
What's the typical contract length?+
12-24 months with 60-day exit notice. Avoid lock-in clauses with penalties for early exit.
Does the EOR handle visa support for our engineers?+
Letter for B-1 business visa: yes. H-1B / O-1 sponsorship: no, that's your US entity's job.
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.