EOR PRICING IN INDIA

Employer of Record India pricing

Most EOR providers will not give you a number without a sales call. This page explains exactly how India EOR pricing is built up, what should be included, and what the industry quietly charges extra for, so you can compare any two quotes properly.

First, what Cost to Company means

Indian salaries are not quoted the way US salaries are. The standard figure is Cost to Company, or CTC. It is the full annual cost of employing somebody, bundled into one number: base salary, allowances, bonus, and the employer side statutory contributions.

It is the closest Indian equivalent to a fully loaded cost, and it is the figure that appears on the offer letter. When an Indian candidate says they want 18 lakhs, they mean 18 lakhs CTC, not base salary.

This matters for pricing because almost every EOR in India quotes as a percentage on top of CTC. If you are comparing against a US style quote of base salary plus a flat monthly fee, you are not comparing like with like.

What sits inside CTC

Component Notes
Basic salary Usually 40 to 50 percent of the total
House rent allowance and other allowances Structured for tax efficiency
Employer Provident Fund contribution Statutory, calculated on basic salary
Employee State Insurance Applies below the salary threshold
Gratuity accrual Accrues from day one, payable per the Payment of Gratuity Act
Bonus Statutory bonus where applicable, plus any agreed variable

How our pricing works

One percentage on top of each person CTC. That single markup covers everything below. There is no platform fee, seat fee, setup fee, offboarding fee or management fee stacked on top of it.

Included in the markup What that means
Statutory employment Your people are employed by our own Indian entity, not an undisclosed local partner
Payroll and filings PF, ESI, gratuity, professional tax and TDS, applied state by state
Contracts and onboarding Drafted under Indian labour law, documentation collected and verified
Benefits administration Health coverage, statutory leave and bonuses
Recruitment Sourcing, screening and shortlisting against your requirements
Replacement If someone needs replacing, we source and onboard the replacement at our cost
Performance management support Optional, run on your managers inputs
Tier 1 technical support First line hardware, connectivity and access issues, in Indian hours

Billed in arrears, with no deposit

You are invoiced monthly, in USD, for work already done. We do not hold a month of payroll on account before anyone starts, which is standard practice at most platforms and ties up real cash.

Billed separately, only if you use it

Short term overflow capacity is charged hourly, and only when you ask for it. Nothing else is billed outside the markup.

What other providers charge extra for

This is where quotes diverge. Two providers can show a similar headline rate and land very far apart once a year of real activity has gone through.

Line item Typical EOR platform 97 Tech Center
Deposit or payroll float One month of payroll, held None
Recruitment Not offered, or a separate placement fee Included
Replacing someone Your cost, billed as new recruitment Our cost
Onboarding or setup Often a one off fee per hire Included
Offboarding Commonly a separate charge Included
Laptop procurement and shipping Extra, or not offered Included
IT and hardware support Extra, or not offered Included
Background screening Per check Included
FX margin Often buried in the conversion rate Billed in USD

How to compare two EOR quotes properly

Ask every provider the same five questions and the real cost difference usually appears quickly.

1. Who actually employs the person?

Many platforms subcontract to an in country partner you never signed with. Ask for the name of the legal employing entity in India and check it against the contract.

2. Is the quote on CTC or on base salary?

A percentage on base salary and a percentage on CTC are very different numbers. Get both quotes restated on the same basis.

3. What is the all in monthly figure per person?

Not the markup. The number that will appear on the invoice, including statutory costs. That is the only figure worth comparing.

4. What happens if someone leaves in month three?

Ask who pays for the replacement, and whether notice period salary is billed to you. This is where unplanned cost usually lands.

5. What is the deposit and the exit terms?

A held month of payroll is real working capital. A long notice period or a fixed term tie in is a real cost too.

Common questions

Why will nobody publish a rate?

Because the right rate genuinely moves with headcount, seniority and how much recruitment is involved. A single published percentage would be wrong for most buyers. What we will do is send you the all in monthly figure per person within one business day, without a call, so you can compare it against anything else on your desk.

Is an EOR cheaper than opening our own entity?

Below roughly fifteen to twenty people, almost always yes, once you account for incorporation, a local director, accounting, payroll software, statutory filings and the management time involved. Above that it starts to depend on your plans. We will tell you honestly when you have reached the point where your own entity makes more sense.

What currency will we be invoiced in?

USD, monthly, in arrears.

Are there costs we should expect outside the invoice?

Equipment, if you want us to buy and ship laptops rather than shipping your own. Overflow hours, if you use them. Nothing else.

Get a costed proposal

Send us the roles and the compensation band you have in mind. You will get back the all in monthly figure per person within one business day. No obligation, and no call required to get the number.

See how our EOR service works or email [email protected]