Deel vs Remote vs Oyster: Calculate Fully Loaded EOR Costs for Startups

EOR Cost Comparison for Startups: Deel vs Remote vs Oyster

Hiring your first international employee should be a milestone, not a financial puzzle. Yet for founders at SaaS or Deeptech startups, comparing Employer of Record (EOR) providers quickly becomes a battle against opaque pricing. You see a monthly fee but know the real cost to your runway is hidden in the details. This EOR pricing comparison for startups moves beyond the advertised rates of Deel, Remote, and Oyster. It provides a framework for calculating the fully loaded employment cost, helping you protect your budget from unexpected add-ons that erode cash reserves.

Understanding the Three Layers of EOR Cost: A Pricing Breakdown

Why is it so hard to get a straight answer on EOR pricing? The advertised monthly fee is only one part of the total cost. For most pre-seed to Series B startups, the reality is more pragmatic. You need to understand three distinct layers to budget accurately for your global hiring costs.

1. The Platform Fee. This is the advertised monthly management fee per employee. It is the most visible number but often the least significant part of the total expense.
2. Pass-Through Costs. These are the mandatory, non-negotiable costs of employment in a given country. This layer includes employer taxes, social security contributions, and statutory benefits. The EOR pays these on your behalf and invoices them back to you without a markup.
3. Variable and Hidden Fees. This is where budgets break. It includes foreign exchange (FX) markups, offboarding charges, benefits administration fees, and other costs that vary by provider and situation.

Comparing Platform Fees: Deel vs Remote vs Oyster Pricing

The platform fee is the starting point for any EOR pricing breakdown. On the surface, the comparison among international payroll providers seems simple. For full-time employees, the "Oyster Essentials plan starts at $499/month per employee," which is often the most cost-effective entry point for early-stage companies.

In contrast, both the "Deel EOR plan starts at $599/month per employee" and the "Remote EOR plan starts at $599/month per employee." While Oyster often leads on price, Deel is known for its rapid product development and deep integrations. Remote differentiates with its network of fully-owned legal entities, which provides stronger compliance. For startups managing cash flow in QuickBooks or Xero, the choice involves a trade-off. Some providers offer discounts for annual prepayment, which can lower the monthly average but requires a difficult upfront cash commitment when runway is paramount.

Uncovering Hidden Global Hiring Costs: FX, Offboarding, and More

The 'gotcha' fees that surprise founders almost always live in the third layer of EOR costs. A common example is the foreign exchange markup. When funding payroll in another currency, "Typical FX markups can range from 0.5% to 2% over the mid-market rate." On a £5,000 monthly salary, a 1.5% markup adds nearly $1,000 in hidden annual costs per employee.

Another significant charge is for offboarding. Terminating an employee can trigger a substantial fee. For instance, an "example offboarding fee: flat $500 or equivalent to one month's salary in some jurisdictions." This single charge can heavily impact a tight budget. It is crucial to question other potential costs like benefits administration or equity management fees and to get a written schedule of all potential charges before signing. This diligence helps avoid surprises in your financial models.

Contractor Management as an Alternative
Before committing to a full EOR solution, consider if your hire can be legitimately classified as a contractor. For roles that meet legal tests for independence, this is a simpler and more affordable route. Platforms from Deel, Remote, and Oyster offer dedicated tools for this. "International contractor management services often cost between $29-$49/month," providing a compliant way to pay and manage contractors globally without the high overhead of EOR.

Compliance and Support: Evaluating EOR Operational Models

Will an EOR actually protect you from compliance headaches? The answer depends on its operational model. Some remote employee management platforms, like Remote, emphasize owning their own legal entities in every country they service. This model typically offers more consistent support, deeper local legal expertise, and greater control over the employee experience and compliance risk. It is particularly valuable for US or UK companies hiring in jurisdictions with complex labor laws.

Other providers use a partner network, relying on third-party firms in-country. While this approach allows for rapid expansion into more markets, it can lead to variability in service quality and support responsiveness. For a biotech startup hiring a specialist in a niche market, the consistency of an owned-entity model might provide critical peace of mind. For an e-commerce company hiring support staff in a well-established market like Canada, a partner-based model may be perfectly sufficient.

The Best EOR for Startups: A Stage-by-Stage Guide

The best EOR for startups depends entirely on your company's stage and priorities. There is no single correct answer, only the right fit for your current goals.

Pre-Seed and Seed Stage

Your primary concern is runway. Predictability and the lowest possible fully loaded cost are paramount. At this stage, a provider with a lower platform fee, like Oyster, is often the most logical starting point. The focus is on getting talent onboarded efficiently without complex integrations into an HRIS you do not have yet. Your QuickBooks or Xero setup is sufficient, and you need a simple, cost-effective solution.

Series A Stage

You are beginning to scale. Your priorities shift from pure cost savings to operational efficiency and supporting a growing international team. Integrations with your core systems become more important. A platform like Deel, with its fast-growing suite of integrations and features, can help automate processes as your team expands from 10 to 50 people. This is one of the more popular SaaS EOR options.

Series B+ Stage

Risk management, compliance robustness, and handling complex compensation like equity become top priorities. The consistency and liability protection of an owned-entity model, like Remote's, becomes a significant strategic advantage. You are now mitigating downside risk as much as you are enabling growth. Having a single, accountable partner for compliance across all jurisdictions is a major benefit.

Making an Informed EOR Decision

Navigating the EOR pricing landscape does not have to be a guessing game. To make an informed decision for your cross-border payroll solutions, focus on these practical steps.

1. Model the fully loaded cost. Go beyond the platform fee and include estimates for employer taxes, statutory benefits, and all potential variable fees.
2. Demand transparency from providers. Ask for a written schedule of every potential fee, from currency exchange markups to offboarding charges, before you sign a contract.
3. Evaluate the legal structure. Distinguish between owned-entity and partner-network models and align the choice with your company's risk tolerance and geographic expansion plans.
4. Review payment logistics. Check multi-country payroll calendars to understand payment timing and ensure it aligns with your funding cycles.
5. Match your choice to your startup's stage. What works for a five-person seed-stage company is different from what a 100-person Series B company requires.

By following this framework, you can select a partner that supports your global ambitions without jeopardizing your runway.

Frequently Asked Questions

Q: What is the biggest hidden cost when using an EOR?
A: While platform fees are visible, the most significant hidden costs often come from foreign exchange (FX) markups on payroll and unexpected offboarding fees. A 1-2% FX markup can add thousands per year per employee, and termination fees can sometimes equal a full month's salary.

Q: For a startup, is an EOR cheaper than setting up a foreign legal entity?
A: Yes, in almost all cases for early-stage companies. Setting up a foreign subsidiary involves significant legal fees, accounting costs, and administrative time, often costing tens of thousands of dollars. An EOR converts a large capital expense into a predictable operational expense, preserving runway.

Q: How do I choose the right EOR for an industry like SaaS or Deeptech?
A: For a SaaS EOR, prioritize platforms with strong integrations, like Deel, to automate HR workflows as you scale. For Deeptech or Biotech, where intellectual property and compliance are critical, an EOR with its own legal entities, such as Remote, may offer greater security and risk mitigation.