EOR Pricing in India 2026: What It Costs, What’s Hidden, What’s Fair

Employer of Record pricing in India runs from USD 99 to USD 699 per employee per month depending on who you ask — and the published fee is rarely the whole story. This guide covers the full market: how EOR fees are structured, what the fee should include, the extras some providers add after you sign, and the statutory employment costs no provider can waive.

TMS’s own price is on this page too: from USD 300 per employee per month, all-inclusive. We publish it because pricing you have to “book a demo” to see isn’t pricing — it’s a sales funnel.

The India EOR market at a glance

At the low end of the India-focused range, check what’s excluded — a USD 99 headline often grows once setup fees, deposits and FX margins land on the invoice. At the global-platform end, you’re paying a premium for countries you’re not hiring in. (Full decision framework: Local India EOR vs Global EOR Platform →)

The two fee models — flat fee vs. percentage of salary

Flat fee per employee. One fixed monthly amount per employee, regardless of salary. Predictable, scales cleanly, and the provider has no incentive to inflate compensation. This is how TMS charges.

Percentage of salary (typically 8–15%). The fee rises with every increment and bonus. A ₹40 LPA engineer can cost you 3–4x the EOR fee of a ₹12 LPA hire — for identical work on the provider’s side. Percentage pricing quietly penalises you for hiring senior people.

Our position: employing one person in India involves roughly the same compliance work whether they earn ₹6 lakh or ₹60 lakh. The fee should reflect the work, not the salary.

One honest caveat that applies to every provider, including us: genuinely complex engagements — expat hires with visa sponsorship, unusual structures, multi-entity arrangements — cost more than the base rate, and larger teams earn preferential rates. Any provider who says otherwise is averaging your simple hires against someone else’s complex ones.

What a fair EOR fee should include

Use this as your checklist when comparing quotes. Every item below is inside TMS’s USD 300/month — nothing is an add-on.

• ✓ Employment contracts & HR letters — Labour-Code-compliant, drafted by specialist HR & labour law firms; your IP, confidentiality and non-compete clauses included
• ✓ Onboarding — fully digital, 48 hours standard, 24 hours urgent
• ✓ Monthly payroll — processing, payslips, tax (TDS) deductions and filings
• ✓ Statutory compliance — PF, ESIC, professional tax, LWF, gratuity administration, statutory registers and returns, across every state & UT
• ✓ Compliant salary structuring — maximises employee take-home, minimises your cost, within Indian law
• ✓ HRMS access — attendance, leave, expenses, tax declarations for every employee
• ✓ Employee support — human HR help in Indian time zones, not a ticket queue
• ✓ Dedicated HR pod of 5–6 specialists + a named TMS Partner accountable for your account
• ✓ Permanent Establishment (PE) risk guidance for your engagement model
• ✓ Compliant exits and full & final settlement — no exit fees
• ✓ One monthly invoice in USD, EUR or AED — FEMA, AML, RBI and GST handled on our side

If a provider’s quote excludes several of these, their “lower” fee isn’t lower.

Hidden fees to watch for (TMS charges none of these)

The gap between the advertised fee and your first invoice usually comes from one of six places. Ask every provider about each, in writing:

1. Setup / onboarding fees. One-time charges of USD 200–500 per employee are common. TMS: none.
2. Security deposits. One to three months of salary held as deposit — real cash locked up per hire. TMS: none.
3. FX mark-ups. A 2–4% spread buried in the salary conversion rate. On a ₹1,00,000/month salary that’s an invisible ₹2,000–4,000 every month, per employee. TMS: none — transparent conversion, one invoice.
4. Exit / offboarding fees. Charges to end an employment — sometimes per employee, sometimes a % of final settlement. TMS: none. Only the lawful full & final process.
5. Upfront gratuity provisioning. Some providers bill gratuity accrual (4.81% of basic) from month one — even though gratuity is generally payable only around the five-year service mark (courts have read the threshold as 4 years 240 days), and most EOR employees never cross it. That’s your money sitting with them. TMS bills gratuity only if and when it actually becomes payable.
6. “Compliance extras.” State registrations, statutory filings or register maintenance billed as line items. These are the job, not extras. TMS: included.

Worked example: what 1 employee at ₹12 LPA actually costs per month

The number most providers won’t put on a page. Illustrative structure — gross ₹12,00,000/year (~USD 12,600/yr at ₹95/USD), basic wages at 50% of gross per the Labour Codes.

Illustrative only; exact structuring varies by role and state. We’ll send a binding cost sheet for any role within one business day.

Want this for your own salary and state? Use our EOR Cost Calculator → for a full itemised quote in your currency — no email required.

Why USD 300 and not USD 99?

Fair question — India-focused providers advertise from USD 99. Here’s what the difference buys:

• A dedicated HR pod of 5–6 specialists plus a named TMS Partner on your account — whether you hire 1 person or 100. At USD 99, you get a shared inbox.
• 10+ years of EOR delivery. 450+ clients from 50+ countries. Zero statutory penalties and zero legal disputes — ever. In compliance, the record is the product.
• Every state and union territory — including industrial towns and the North East, where thinner operations can’t run payroll.
• Capabilities budget providers don’t offer: inbound expat employment with visa sponsorship, ESOP structuring for EOR employees, PE risk advisory, and a managed graduation path when you’re ready for your own entity at 50–75 heads.

And against the USD 499–699 global platforms: you get more India, more humans, and a materially lower fee — because you’re not subsidising 100 countries you’ll never hire in.

When the four Labour Codes arrived, our clients paid nothing

India’s four Labour Codes took effect on 21 November 2025 — the biggest change to Indian employment law in decades. TMS clients saw zero cost increases, zero salary restructuring and zero document reissues, because TMS structures had followed the ≥50% basic-wage principle for over a decade before it became mandatory. Pricing stability under regulatory change is part of what you’re buying.

Frequently Asked Questions

How much does an EOR cost in India in 2026?

Market rates run USD 99–300/month per employee for India-focused providers and USD 499–699 for global platforms. TMS charges from USD 300/employee/month, all-inclusive. On top of any EOR fee sit statutory employment costs — roughly 6–11% over gross salary depending on level and structure.

Is the EOR fee charged on top of the employee’s salary?

Yes. You fund the gross salary plus statutory employer contributions (PF, ESI where applicable, etc.), plus the EOR fee. Our worked example above shows the full stack for a ₹12 LPA hire.

Flat fee or percentage of salary — which is better?

Flat, in almost every case. Percentage pricing (8–15% of salary) makes senior hires disproportionately expensive and penalises raises. TMS charges a flat fee because the compliance work doesn’t scale with salary.

Are there setup fees, deposits or exit fees with TMS?

No, no and no. One monthly fee from USD 300, and gratuity is billed only if it actually becomes payable. The six hidden fees listed above — we charge none of them.

Why is TMS more expensive than USD 99 providers?

You’re paying for a dedicated 5–6 person HR pod plus a named Partner, 10+ years of zero-penalty delivery, every state & UT covered, and capabilities like expat visa sponsorship and ESOP support. If a shared inbox and metros-only coverage fit your risk appetite, a USD 99 provider may be fine.

Does pricing change for larger teams or complex hires?

Yes, in both directions: volume earns preferential rates; genuinely complex engagements (expat employment, unusual structures) cost more than base. We quote precisely after a 30-minute discovery call — binding, within one business day.

What statutory costs apply on top of gross salary?

Employer PF at 12% of basic wages, ESI at 3.25% for employees earning under ₹21,000/month gross, EPF admin/EDLI charges, state professional tax and labour welfare fund, and gratuity when payable. Basic wages must be at least 50% of pay under the Labour Codes. State-level figures vary — our quotes are state-specific.

Is there a minimum number of employees?

No. One employee is fine — many of our 450+ clients started with a single hire. Onboarding takes 24–48 hours from signed MSA. —