How Much Does Hiring Internationally Actually Cost?
A $100K gross salary is not what you pay. All-in employment cost is typically ~$112K in Singapore, ~$128K in Germany, ~$147K in France, and ~$155K in Brazil once employer contributions, benefits, FX, and hiring-model overhead are in. Country statutory burden usually dwarfs the EOR fee. Below ~15 employees per country, EOR is usually cheaper than owning an entity.
Model seat fees in the EOR cost calculator, compare provider lists on the pricing hub, and use the EOR cost guide for fee-layer math. Provider reviews that matter for cost: Deel, Remote, Multiplier.
Total Cost by Country: The Employer Contribution Gap
Employer contributions are mandatory charges on top of gross salary: social security, pension, health insurance, unemployment, workers’ compensation. The employee never sees them as income. You still pay them.
| Country | Employer Contributions (% of gross) | What’s Included | $100K Salary: Employer Cost |
|---|---|---|---|
| US | ~7.65% (FICA) + state taxes | Social Security, Medicare | ~$108K–$112K |
| UK | ~15% (Employer NIC) | National Insurance | ~$114K |
| Singapore | ~17% (CPF, capped at ~SGD 6,800/mo) | CPF (retirement, housing, health) | ~$112K–$117K |
| Australia | ~11.5% (super guarantee) | Superannuation | ~$112K |
| India | ~12% (PF + ESI, on basic) | Provident Fund, Employee State Insurance | ~$108K–$112K |
| Netherlands | ~18–22% (social premiums) | Pension, health, unemployment | ~$118K–$122K |
| Germany | ~20.7% (social insurance) | Health, pension, unemployment, nursing care | ~$121K |
| Japan | ~15–16% (social insurance) | Health, pension, employment insurance | ~$116K |
| Brazil | ~35% (INSS, FGTS, etc.) | Social security, severance fund, education tax | ~$135K |
| France | ~43–47% (charges patronales) | Health, pension, unemployment, family, transport | ~$143K–$147K |
Independent references: OECD Taxing Wages and World Bank Business Enabling Environment.
France is the outlier: nearly $150K before overhead. Brazil is second. The US and Singapore are among the cheapest for employers, which is why headquartering decisions cluster there.
Total Cost by Hiring Model
Employer contribution is fixed by country. Overhead differs by model.
Model 1: EOR
Added costs:
- Platform fee:
$400–$699/month ($4,800–$8,388/year) - FX markup: ~0.5%–2% of payroll
- Deposit: ~1–2 months gross salary (working capital, usually returned)
- Supplemental benefits markup: ~10%–20% on optional benefits
Formula: Gross salary + employer contributions + EOR fee + FX
Example, $100K engineer in Germany: $100,000 + $20,700 + $7,188 ($599/mo) + ~$639 (0.5% FX) = ~$128,527/year
Deep fee detail: EOR cost guide, Deel pricing, Remote pricing.
Model 2: Own Entity
Added costs:
- Setup: ~$15,000–$50,000 (amortize over ~3 years)
- Annual maintenance: ~$36,000–$96,000
- Local payroll: ~$150–$500/month per employee
- HR admin: ~$100–$300/month per employee (internal or outsourced)
Formula: Gross salary + employer contributions + (entity overhead ÷ headcount)
Example, $100K engineer in Germany (10 employees sharing entity costs): $100,000 + $20,700 + $5,400 ($54K/yr ÷ 10) + $3,600 (payroll $300/mo) = ~$129,700/year
At ~10 employees, entity cost per head is comparable to EOR. Below 10, EOR usually wins. Above ~15–20, entity often wins if you stay multi-year. Framework: EOR vs entity.
Model 3: Contractor
Added costs on paper: None. Real costs: ~20%–40% rate premium, misclassification exposure (often 3–5x annual “savings” if reclassified), weaker IP protection.
Example, Germany contractor equivalent: ~$85–$100/hour × 2,080 hours = ~$176,800–$208,000/year direct payments.
Contractor premiums often erase the “saved” employer contributions. See EOR vs contractor.
Peer Mini-Table: $100K Germany Role, Year-1 Signal
| Path | Year-1 all-in signal | Best when | Skip when |
|---|---|---|---|
| EOR at $599 | ~$128K–$135K operating | Under 15 seats, need speed | Legal requires your entity brand |
| Own entity (10 sharing) | ~$130K per head + setup amort. | Committed market, 15+ seats | Year-1 market test |
| Contractor | ~$177K–$208K cash | True independent work | Full-time integrated roles |
Hidden Costs That Blow Budgets
FX Conversion
- Best case: ~0.5% (Deel, Remote on major currencies)
- Typical: ~1%–1.5%
- Worst case: ~2%+ (smaller providers, exotic currencies)
On $1M payroll: ~$5,000–$20,000/year. On $5M: ~$25K–$100K. Get the markup in writing.
Deposits
Most EORs require ~1–2 months gross salary per employee. Twenty people at $7K average monthly gross: ~$140K–$280K working capital. Returned after offboarding, but it hits runway.
Termination Costs
At-will markets (US): near zero. Protected markets (Germany, France, Brazil): often ~1–6 months salary in severance, notice, and accruals. Budget a ~2–3 month termination reserve in protected markets. Country detail: termination guide.
Compliance Overhead
At 5 international employees: 3–5 hours/week. At 20: part-time job. At 50: full-time international ops role ($80K–$120K fully loaded).
Benefits Beyond Statutory
- US: Health ~$500–$1,500/month employer share; 401(k) match ~3%–6%
- UK: Enhanced pension ~5%–10%; private medical
- India: Group mediclaim; meal vouchers
- Brazil: Private health; meal vouchers
Supplemental packages often add ~5%–15% to total cost.
Country Cost Comparison: $100K Role, EOR Model
| Country | Gross Salary | Employer Contributions | EOR Fee | FX Est. | Total Annual Cost |
|---|---|---|---|---|---|
| US | $100,000 | $7,650 | $7,188 | $0 | ~$114,838 |
| UK | $100,000 | $13,800 | $7,188 | $639 | ~$121,627 |
| Singapore | $100,000 | $12,000 (est., capped) | $7,188 | $639 | ~$119,827 |
| Australia | $100,000 | $11,500 | $7,188 | $639 | ~$119,327 |
| India | $100,000 | $12,000 | $5,988–$7,188 | $639 | ~$118,627–$119,827 |
| Netherlands | $100,000 | $20,000 | $7,188 | $639 | ~$127,827 |
| Germany | $100,000 | $20,700 | $7,188 | $639 | ~$128,527 |
| Japan | $100,000 | $15,500 | $7,188 | $639 | ~$123,327 |
| Brazil | $100,000 | $35,000 | $7,188 | $639 | ~$142,827 |
| France | $100,000 | $45,000 | $7,188 | $639 | ~$152,827 |
Year-1 All-In Scenario: 10-Person Multi-Country Team
All through EOR.
| Role | Country | Gross Salary | Est. TCE (EOR) |
|---|---|---|---|
| Senior Engineer | Poland | $70,000 | ~$94,000 |
| Senior Engineer | India | $50,000 | ~$63,000 |
| Product Manager | UK | $90,000 | ~$111,000 |
| Designer | Brazil | $55,000 | ~$81,000 |
| Designer | Philippines | $35,000 | ~$45,000 |
| Sales Lead | Germany | $95,000 | ~$125,000 |
| Engineer | India | $45,000 | ~$57,000 |
| Engineer | Poland | $65,000 | ~$88,000 |
| Support Lead | Philippines | $30,000 | ~$39,000 |
| Marketing Manager | UK | $80,000 | ~$99,000 |
| Total | $615,000 | ~$802,000 |
Salary $615K. TCE ~$802K (30% overhead). EOR fees ($65K/year at ~$540–$599 blended) are ~8% of total. Employer contributions are the bigger slice. Add benefits and contingency: realistic budget ~$850K–$870K. Platform fee shopping matters less than country mix.
How to Build an International Hiring Budget
- Define role and market salary. A “senior engineer” at $100K is competitive in Poland, thin in the UK, rich in India.
- Add employer contributions. Largest non-salary cost.
- Add hiring-model overhead. EOR fee or entity cost ÷ headcount.
- Add FX. ~0.5%–2% if currencies differ.
- Add supplemental benefits.
- Add ~5% contingency. Rate changes, FX spikes, one-offs.
- Add termination reserve. ~2–3 months’ salary in protected markets.
Germany $100K through EOR, budgeted: ~$128K base + ~$5K supplemental + ~$6.4K contingency + ~$17K termination reserve = ~$156K. That is ~56% above headline salary. Finance teams budgeting 1.2× gross in Germany will miss.
Who Should Skip This Cost Model (or This Hire Path)
Geography is the product. Sales, BD, and government affairs need the right market, not the cheapest TCE country.
First 2–3 hires in a new market. Quality beats optimization. Cheap candidates who define the market poorly cost more later.
Under 5 international employees. Formal multi-model breakeven modeling is premature. Pick a path, hire, revisit with real invoices.
Gross-salary-only comparisons. Ignoring employer contributions ranks markets wrong and pushes hiring toward “cheap salary, expensive burden” countries.
Sources
Related Decision Pages
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Average salary and minimum wage by country : 2026 salary benchmarks and statutory minimums for 25 countries
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EOR Pricing 2026 - Provider list-price comparison
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EOR cost calculator - Seat fees plus payroll assumptions
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EOR Cost Guide - Hidden fees and negotiation
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Cheapest EOR Services - Budget providers by risk-adjusted value
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EOR vs. Setting Up Your Own Entity - Breakeven analysis
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EOR vs. Independent Contractor - Cost including risk
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5 Ways to Hire Internationally - All models
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