How Much Does an Employer of Record Cost?
Multiplier, Deel, and most providers quote one number. In reality, an EOR bill has two very different parts. This guide breaks down EOR pricing across Singapore, Malaysia, Indonesia, Vietnam, and Thailand for 2026 — service fees, statutory contributions, one-time costs, and the hidden charges that rarely appear in a brochure.
In This Guide
- The Two Components of Every EOR Cost
- EOR Service Fees Across ASEAN
- Statutory Employer Contributions by Country
- Full Cost Breakdown: All 5 ASEAN Markets
- One-Time Costs: Work Permits, Visas & Onboarding
- Hidden Costs to Watch For
- EOR vs Own Entity: The True Cost Comparison
- How to Compare EOR Providers on Price
- Frequently Asked Questions
The Two Components of Every EOR Cost
Every EOR invoice has two distinct parts. Many companies conflate them, and that single mistake skews every provider comparison. So before you compare anyone, separate the two.
1. The EOR Service Fee
First, you pay the provider a service fee. This is the number sales teams quote. In short, it covers payroll processing, statutory compliance, HR administration, contract management, and — depending on the provider — work permit sponsorship for foreign hires.
2. The Statutory Employer Cost
Second, you pay statutory employer costs. These are government-mandated, and they exist whether you use an EOR or hire directly. For example, CPF applies in Singapore, EPF in Malaysia, BPJS in Indonesia, BHXH in Vietnam, and SSF in Thailand. They are not EOR charges. Rather, they are legal obligations every employer carries, and a reputable EOR passes them through at cost on every invoice.
- USD 249–799 — Typical monthly EOR service fee per employee across ASEAN. This is the part that varies by provider and market.
- 7.5–21.5% — Range of statutory employer contribution rates across the five markets. Governments fix these, so they do not change by provider.
- 2 line items — What a clear invoice shows: the service fee on one line, and statutory pass-through costs itemised separately on another.
Key Takeaway: Compare service fees, not total employment cost. Two providers may quote the same total, yet charge very different service fees if one buries statutory costs in a blended rate. Therefore, always ask for a line-by-line breakdown.
EOR Service Fees Across ASEAN
Service fees track two things: how complex the local compliance environment is, and how high local salaries run. As a result, Singapore sits at the top of the range, while Vietnam and Thailand sit at the lower end. The table below shows the realistic fee landscape for 2026.
| Market | EOR Service Fee Range | Primary Complexity Drivers |
|---|---|---|
| 🇸🇬 Singapore | USD 399 – USD 799 / employee / month | CPF age-tiered rates, COMPASS EP framework, MOM Fair Consideration Framework, SDL, annual OW Ceiling revisions |
| 🇲🇾 Malaysia | USD 299 – USD 699 / employee / month | EPF foreign worker enrolment, Employment Pass via ESD, SOCSO + EIS, e-Invoicing mandate, minimum wage updates |
| 🇮🇩 Indonesia | USD 299 – USD 599 / employee / month | BPJS Ketenagakerjaan (4 programmes), BPJS Kesehatan, KITAS/IMTA sponsorship, Omnibus Law, THR, provincial minimum wages |
| 🇻🇳 Vietnam | USD 249 – USD 499 / employee / month | BHXH/BHYT/BHTN (21.5% employer burden), work permit + TRC, four-zone minimum wage, Tết bonus cycle |
| 🇹🇭 Thailand | USD 249 – USD 499 / employee / month | Social Security Fund, Work Permit via DOE, Non-B visa, BOI considerations, Labour Protection Act |
Within each range, four factors move the price. First, the employee’s salary: higher pay usually means more complex tax and contribution calculations. Second, sponsorship: a work permit or visa adds processing overhead. Third, volume: more employees usually push fees toward the lower end. Finally, the provider’s model — in-country specialists charge more than global aggregators, but they generally deliver more reliable compliance in return.
Watch for “percentage of salary” pricing: Some providers quote 10–15% of gross salary instead of a flat fee. However, that model gets expensive fast as salaries rise. For example, a senior engineer in Singapore on SGD 12,000/month could cost USD 1,500+/month in EOR fees alone. So in higher-salary markets, flat-fee providers almost always win at senior levels.
Statutory Employer Contributions by Country
These government-mandated costs apply no matter which EOR you choose. They are not negotiable, and a transparent provider cannot mark them up. Understanding them is essential for accurate headcount budgeting.
| Market | Programme(s) | Employer Rate | Salary Ceiling / Notes |
|---|---|---|---|
| 🇸🇬 Singapore | CPF + SDL | 7.5%–17% CPF (age-dependent) + 0.25% SDL | CPF capped at SGD 7,400/month OW (2026). EP/S Pass holders are exempt from CPF. S Pass holders attract Foreign Worker Levy (SGD 330–650/month). |
| 🇲🇾 Malaysia | EPF + SOCSO + EIS | 12–13% EPF + ~1.75% SOCSO + 0.2% EIS | EPF: 13% for salaries ≤ RM5,000; 12% above. Foreign workers: 2% EPF (from Oct 2025). SOCSO capped at RM6,000; EIS capped at RM4,000. |
| 🇮🇩 Indonesia | BPJS Ketenagakerjaan + BPJS Kesehatan | ~6.24% + 4% | JP ceiling: IDR 9,559,600/month. BPJS Kesehatan capped at IDR 12,000,000/month. Foreign nationals (≥6 months): most programmes apply. |
| 🇻🇳 Vietnam | BHXH + BHYT + BHTN | 17.5% + 3% + 1% = 21.5% | Capped at VND 36,000,000/month (2026). BHTN applies to Vietnamese nationals only. Foreign work-permit holders (≥12 months): BHXH + BHYT apply. |
| 🇹🇭 Thailand | Social Security Fund | 5% SSF | Capped at THB 15,000/month base; max THB 750/month. Foreign work-permit holders enrolled from day one. Provident Fund is voluntary. |
Vietnam clearly carries the heaviest statutory burden at 21.5% — nearly three times Thailand’s 5% SSF rate. Singapore’s CPF, by contrast, is age-tiered: as low as 7.5% above 65, but up to 17% below 55. Indonesia’s burden is easy to underestimate, because it spans two agencies and five programmes.
Note on foreign nationals: In most ASEAN markets, foreign hires join some — but not all — statutory programmes. For example, Singapore EP/S Pass holders skip CPF yet attract the Foreign Worker Levy, while Vietnamese and Indonesian foreign workers join the main schemes. So always confirm each foreign hire’s exact obligations with your EOR before you finalise salary packages.
Full Cost Breakdown: All 5 ASEAN Markets
Next, here is a worked example for a mid-level local hire in each market. Each table combines the EOR service fee with employer statutory costs to show the total monthly cost above gross salary. Work permit costs are excluded here; the following section covers them separately.
🇸🇬 Singapore
| Example gross salary | SGD 6,000 / month |
| CPF employer (17%, below 55) | SGD 1,020 |
| SDL (0.25%) | SGD 11.25 |
| EOR service fee (mid-range) | ~USD 550 (≈ SGD 730) |
| Cost above gross salary | +29% |
| Total employer cost | ~SGD 7,761 / month |
🇲🇾 Malaysia
| Example gross salary | MYR 7,000 / month |
| EPF employer (12%, >RM5,000) | MYR 840 |
| SOCSO + EIS (~1.95%) | MYR 137 |
| EOR service fee (mid-range) | ~USD 450 (≈ MYR 2,115) |
| Cost above gross salary | +44% |
| Total employer cost | ~MYR 10,092 / month |
🇮🇩 Indonesia
| Example gross salary | IDR 20,000,000 / month |
| BPJS Ketenagakerjaan (~6.24%) | IDR 1,248,000 |
| BPJS Kesehatan (4%, capped) | IDR 480,000 |
| EOR service fee (mid-range) | ~USD 399 (≈ IDR 6,384,000) |
| Cost above gross salary | +41% |
| Total employer cost | ~IDR 28,112,000 / month |
🇻🇳 Vietnam
| Example gross salary | VND 30,000,000 / month |
| BHXH + BHYT + BHTN (21.5%) | VND 6,450,000 |
| EOR service fee (mid-range) | ~USD 349 (≈ VND 8,750,000) |
| Cost above gross salary | +51% |
| Total employer cost | ~VND 45,200,000 / month |
🇹🇭 Thailand
| Example gross salary | THB 80,000 / month |
| SSF employer (5%, capped) | THB 750 |
| EOR service fee (mid-range) | ~USD 349 (≈ THB 12,600) |
| Workmen’s Compensation Fund | 0.2–1% (varies by industry) |
| Cost above gross salary | +17% |
| Total employer cost | ~THB 93,350 / month |
How to read these numbers: The “cost above gross salary %” includes both the service fee and statutory contributions. In practice, it answers one question fast: what does this hire really cost me? Simply multiply the gross salary by that percentage, then add it on. Note that the exchange rates here are illustrative, so your actual USD cost will move with FX.
One-Time Costs: Work Permits, Visas & Onboarding
Beyond the monthly costs, some hires trigger one-time government fees. Fortunately, these are predictable. Therefore, budget them as part of the cost of hire rather than discovering them on the first invoice.
| Market | Work Authorisation | Typical Government Fee | Validity / Renewal |
|---|---|---|---|
| 🇸🇬 Singapore | Employment Pass (EP) | SGD 105 + SGD 225 (issuance) | Up to 2 years; renewable |
| 🇸🇬 Singapore | S Pass | SGD 60 + SGD 100 + FWL SGD 330–650/month | Up to 2 years; FWL is monthly |
| 🇲🇾 Malaysia | Employment Pass (Cat I–III) | RM 2,400 – RM 5,000 (by category) | Cat I: up to 5 years; Cat III: up to 12 months |
| 🇮🇩 Indonesia | IMTA + KITAS | USD 1,200/year IMTA + IDR 2.55M–3.05M KITAS | Both valid 1 year; annual renewal |
| 🇻🇳 Vietnam | Work Permit + TRC | VND 400k–600k + USD 25–145 TRC | Work permit up to 2 years; TRC aligned |
| 🇹🇭 Thailand | Work Permit + Non-B Visa | THB 3,000 + THB 2,000 | Up to 1 year; renewable annually |
Government fees stay modest across ASEAN. The real cost of a foreign hire is usually the lead time and process overhead. Vietnam is a good example, because apostilled criminal record checks can take 4–6 weeks from some countries. Indonesia is another, since RPTKA approval, IMTA, and KITAS run as sequential steps across two agencies. In other words, budget time, not just money.
4–8 weeks: the typical end-to-end work-authorisation timeline for a foreign hire across most ASEAN markets. This is the main reason companies use an experienced EOR rather than managing the process from abroad.
Hidden Costs to Watch For
The EOR market is not uniformly transparent. In fact, some costs surface only after you sign. So here is what to ask about before you commit — not after.
1. Onboarding and Offboarding Fees
Some providers charge a one-time onboarding fee per employee, typically USD 100–500. Others charge an offboarding fee at the end. Both are legitimate. However, they should be disclosed upfront, not discovered on your first invoice or on the way out.
2. Work Permit Markup
Government fees are fixed, and a transparent EOR passes them through at cost. Some providers, however, add a 20–50% markup without disclosure. So ask directly: “Do you charge above the published government fee for work permit and visa applications?”
3. FX Conversion Margins
If you pay in USD and your employee is paid locally, an FX conversion happens somewhere in the chain. Some providers add a 0.5–2% margin above mid-market on every cycle. Across ten employees over a year, that adds up. Therefore, ask which rate they use, and whether it is mid-market or marked up.
4. Statutory Bonus Administration Fees
THR in Indonesia, the Tết bonus in Vietnam, the 13th-month payment elsewhere — these are major annual events. Some providers charge to process them. That is reasonable if disclosed, but unreasonable as a November surprise. So confirm upfront whether bonus processing costs extra.
5. Amendment Fees
When a salary, title, or contract term changes, some providers charge an amendment fee of USD 50–150 per change. For fast-growing teams that review pay often, this adds up quickly.
6. Opaque "All-In" Rates
Finally, the biggest transparency issue is the all-in monthly fee. It bundles statutory contributions and the service fee into one number. As a result, you cannot verify the statutory amounts, and you cannot compare the real service fee against competitors. So if a provider will not show a line-by-line invoice, treat that as a red flag.
Key Takeaway: Before you sign, request a fully itemised sample invoice for a hypothetical employee in your target market. If the provider cannot produce one, find a provider who can.
EOR vs Own Entity: The True Cost Comparison
The most common question is simple: at what headcount does our own entity become cheaper than EOR fees? The answer depends on the market, but it is more nuanced than a quick estimate suggests.
Entity maintenance is only part of the picture. Yes, you pay for a corporate secretary, registered address, annual filings, and audit. However, the larger cost is often your finance and HR team’s time — managing local compliance, tracking regulatory change, and running payroll in a language they may not read fluently.
| Cost Element | EOR Model | Own Entity |
|---|---|---|
| Incorporation / Setup | None | USD 500 – USD 5,000+ (PT PMA Indonesia: high capital requirement) |
| Corporate Secretary | Included | USD 800 – USD 3,000 / year |
| Annual Audit / Returns | Not required | USD 1,500 – USD 8,000 / year (SG, MY thresholds) |
| Registered Address | Not required | USD 400 – USD 2,000 / year |
| Local Director / Legal Rep | Not required | USD 2,000 – USD 10,000 / year |
| Payroll & HR | Included | USD 5,000 – USD 25,000 / year |
| Per-Employee Monthly Cost | USD 249 – USD 799 service fee | Fixed costs ÷ headcount (falls as you grow) |
| Break-Even Headcount | 12–15 in SG/MY; 15–20 in VN/TH; higher in ID | — |
One factor rarely makes these comparisons, yet it matters most: time to first hire. An entity can take 8–12 weeks to set up, or 3–4 months in Indonesia. Every day of delay has a real cost — delayed revenue, delayed product, delayed client relationships. EOR, by contrast, gives you day-one hiring. For a company in growth mode, that speed alone often justifies EOR well past the nominal break-even point.
We ran the numbers three times. Every time, EOR came out ahead for our first year. The corporate secretary alone in Singapore would have cost more than two months of EOR fees — and we would have spent weeks setting it up rather than hiring.
— Regional Expansion Lead, Series B Fintech | Singapore / Malaysia / Vietnam
How to Compare EOR Providers on Price
Price comparison is harder than it should be, because providers present costs differently. So use this repeatable framework to get a like-for-like view.
Step 1: Isolate the Service Fee
First, ask every provider to quote the service fee separately from statutory costs. If they quote an all-in rate, ask them to split it. This one question sorts transparent providers from opaque ones quickly.
Step 2: Confirm What the Fee Includes
Next, compare scope, not just price. A USD 299 fee that includes work permit management beats a USD 249 fee that bills every permit separately. So build a checklist: payroll, statutory remittance, payslips, leave, contracts, work permits, bonus processing, and offboarding. Then ask each provider what is included and what costs extra.
Step 3: Request a Sample Invoice
Then, ask for an itemised sample invoice. It should show gross salary, each statutory contribution as a separate line, the service fee, and any one-time charges. If the invoice is one line, it is not transparent.
Step 4: Ask About FX Rates
Also ask which exchange rate they apply and when they lock it. Mid-market with no markup is the standard for transparent providers.
Step 5: Check Commitment Terms
Finally, check the contract. Some providers require 12-month minimums or charge early termination fees. If you are still validating a market, flexibility has real value. So confirm whether you can exit on standard 30-day notice without penalty.
For detailed rates, work-permit timelines, and full breakdowns by market, see the country guides:
Frequently Asked Questions
How much does an Employer of Record cost per month?
Service fees in Southeast Asia run from roughly USD 249 to USD 799 per employee per month. Vietnam and Thailand sit at the lower end, while Singapore sits at the higher end. Importantly, these figures cover the service fee only. Statutory employer contributions — CPF, BHXH, BPJS, EPF, SSF — sit on top, alongside the gross salary.
What is the total cost of employing someone through an EOR?
Total employer cost = gross salary + statutory employer contributions + EOR service fee. Across these five markets, the combined overhead runs from about 17% above gross salary in Thailand to 51% in Vietnam. The percentage shifts with salary, because the service fee is usually flat while statutory contributions are percentage-based up to a ceiling.
Are statutory contributions included in the EOR fee?
No. In almost all cases, providers charge statutory contributions separately and pass them through at cost. They are government-mandated, so they apply either way. A transparent EOR itemises them on every invoice. By contrast, providers who bundle them into an all-in fee make verification impossible — so always ask for a breakdown.
Does EOR cost more than hiring directly?
Below 12–15 employees, EOR is almost always cheaper once you count full entity costs: incorporation, corporate secretary, filings, audit, address, and internal compliance time. Above 15–20 employees, an entity starts to win. Even then, the result depends on the market, your salaries, and the compliance capability you can realistically build in-house.
Which ASEAN market has the highest EOR cost?
Singapore has the highest absolute service fee (USD 399–799/month), driven by higher salaries and CPF/MOM complexity. Vietnam, however, carries the highest statutory burden by percentage (21.5%). Thailand has the lowest (5% SSF, capped at THB 750/month). So the total depends on which factors apply to your specific hire.
What hidden costs should I watch for?
Watch for six in particular: onboarding and offboarding fees; work-permit markups above government fees; FX margins on multi-currency payroll; bonus administration fees (THR, Tết, 13th month); contract amendment fees; and opaque all-in pricing. To catch them all, request a fully itemised sample invoice before you sign.
Want a Cost Estimate for Your Situation?
Tell us your target market, headcount, and role types. We’ll send a clear, itemised breakdown — service fee and statutory contributions shown separately — within 24 hours. No commitment required.
Related Country Guides: