Early-onboarding discount: £250 off setup on a DPNI, a DCNI, an NI-only or a tax-only scheme, if you go ahead within two weeks of your quote. see how it works →
Employer of Record pricing · Overseas employers

How much does an Employer of Record cost in the UK per employee?

An Employer of Record charges a monthly fee for each employee, on top of their salary. Four of the best-known Employer of Record platforms publish starting prices of $399 to $699 per employee per month, about £297 to £519 at HMRC’s October 2026 rate of 1.3456 dollars to the pound, with $599 (about £445) the most common. (Each figure is from the platform’s own pricing page, read 22 October 2026.) Our Employer of Record pricing comparison puts the four published prices side by side. An Employer of Record becomes the legal employer and takes on the employer's duties; we run the payroll while you stay the employer, so the fees pay for different things. Those are starting prices for the fee alone, and a quote can be higher. On top of the fee sit the salary and pension you’d pay on any route, and employer’s National Insurance, which the EOR pays as your UK employer and passes on to you.

For a hire you intend to keep, running your own UK payroll usually costs less, and you do not need a UK company to do it. A DPNI costs £157 a month. An NI-only scheme costs £157 a month for one employee, and £150 a month plus £7 per payslip for two or more. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts. Here are the honest numbers, the extras that are easy to miss, and the cases where an Employer of Record genuinely wins.

Short answer: Four of the best-known Employer of Record platforms publish starting prices of $399 to $699 per employee per month, about £297 to £519 at HMRC’s October 2026 rate, with $599 (about £445) the most common. For a hire you intend to keep, running your own UK payroll usually costs less, and you do not need a UK company to do it.

Interactive comparison

What would each route cost you?

Service fees plus employer’s National Insurance. Salary and pension are the same whichever route you choose, so they’re left out. Employer’s NI isn’t always the same: an EOR is the UK employer, so it pays 15% on earnings above £5,000 a year and passes it on, while on your own scheme it depends on where your company is based. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts.

$599 per employee per month, about £445 at HMRC’s October 2026 rate, is the most common starting price among four of the best-known Employer of Record platforms publish. Adjust to the quote you have been given.
Used only to work out employer’s National Insurance.

Our side depends on where your company is based. Based outside the EU, the EEA and Switzerland, with no UK presence: a DPNI scheme at £157/mo per scheme + £500 setup per scheme (one scheme per employee). EU, EEA or Switzerland: one NI-only scheme in your company’s name at £157/mo for one employee, or £150/mo plus £7 a payslip for two or more, + £500 setup once. UK entity, branch or place of business: a UK PAYE scheme from £225/mo plus £8 a payslip + £350 setup. The £500 setups include the early-onboarding discount (£750 otherwise), and setup is counted in year one. Employer’s NI is 15% of salary above £5,000 a year per employee at 2026/27 rates, before any Employment Allowance. Indicative only. full pricing here.

Beyond the headline

Employer of Record pricing: the costs that are easy to miss

The monthly fee is rarely the whole bill. Depending on the provider, budget for some or all of these, and ask about each one before you sign. None of them are unreasonable, but they are the difference between the quoted price and the real one.

Rates also move with the exchange rate if the platform prices in dollars, so treat any figure you are quoted as a starting point rather than a fixed cost. For the salary side of the budget, see what a UK employee really costs, which applies whichever route you take.

Ask about these up front

  • ✓ A refundable deposit, often a month or two of salary, held against liabilities.
  • ✓ Setup or onboarding fees per employee.
  • ✓ Offboarding costs and notice terms when someone leaves.
  • ✓ Currency conversion spreads if you fund in a different currency.
  • ✓ Minimum terms or annual commitments, and yearly fee increases.
  • ✓ Charges for expenses, bonuses or extra pay runs outside the standard cycle.
The honest comparison

You are not paying an Employer of Record for payroll. You are paying it to be the employer.

That is the real difference, and it is worth being clear about because it is what the fee actually buys. An Employer of Record legally employs your person in the UK: the contracts, the liability and the statutory duties all sit with the platform. Running your own payroll keeps you as the direct employer, with a specialist running the mechanics.

You do not need a UK company to do that. With no UK entity, the route for most employers outside the EU, the EEA and Switzerland is a DPNI scheme, set up in the employee's name, which we run for you at a fixed £157 a month per scheme plus a one-off HMRC setup. If your company is based in the EU, the EEA or Switzerland, employer’s National Insurance is usually due as well, and HMRC’s route is then an NI-only scheme, which is registered in the employer’s name rather than the employee’s. One exception: if the employee works for a UK business, such as a UK client, that business may have to run PAYE and pay employer’s NI itself. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts. For one to ten UK staff you intend to keep, the maths rarely favours the Employer of Record for long. The premium pays for a flexibility most teams never use.

Worked example

Two UK employees, twelve months

 Employer of RecordOwn payroll (DPNI), run by us
Service fees, year one~£445 × 2 × 12 = ~£10,680(£157×12 + £750 setup) × 2 schemes = ~£5,270
Who employs your peopleThe platformYou, direct relationship, your contracts
Time to startDaysHMRC scheme setup first (DPNI four to eight weeks on our own estimate; employees can usually start sooner. timeline)
Salary, employer NI, pensionSalary and pension are the same either way. Employer’s National Insurance isn’t: the EOR pays it and passes it on (about £3,750 a year per employee on a £30,000 salary), on a DPNI with no UK presence there’s usually none, and an EU, EEA or Swiss employer on an NI-only scheme usually pays it itself. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts

Difference in service fees in year one: roughly £5,400, and more every year after, as the setup fee does not repeat. For an employer outside the EU, the EEA and Switzerland on a DPNI, where employer’s NI is usually not due, the EOR’s recharged NI widens the gap further.

For a single employee: an Employer of Record at about £445 a month is ~£5,340 a year. Your own DPNI payroll is ~£2,600 in year one and about £1,900 a year after that.

All three routes

Employer of Record vs DPNI vs your own UK company

 DPNI (Onshore)Employer of RecordOwn UK entity
Typical monthly cost (1 employee)from £157from ~£297 to ~£519 (published starting prices)varies
Set-up cost£500 to £750 one-offusually noneEntity setup costs, and months
Need a UK company?NoNoYes
You stay the employerYesNo, the platform isYes
Best fora single long-term UK hiremulti-hire, benefits, a year or lessa real UK operation

Figures are indicative and for guidance only, not a quote. No VAT is added to Onshore's fees; the price you see is the total. Your exact fixed fee is confirmed before any work begins.

Straight answer

When an Employer of Record is still the right call

We would rather tell you than sell you the wrong thing. There are real situations where an Employer of Record earns its fee, and if yours is one of them we will say so.

Plenty of companies also start on an Employer of Record and migrate to their own scheme once the hire has settled and the urgency has passed. We handle that switch too, and it is often the cheapest sequence: fast when you need fast, lean once you do not.

An Employer of Record genuinely wins when

  • ✓ You need someone employed this week and cannot wait for any scheme setup.
  • ✓ You want zero UK employer obligations, with another party holding the contracts and liability.
  • ✓ You are hiring across many countries at once and want one vendor for all of them.
  • ✓ You want benefits and HR admin completely off your plate.
  • ✓ The hire is short-term or exploratory, a year or less, and you may exit the UK quickly.

None of those apply? You are probably overpaying.

Common questions

Employer of Record cost: common questions

How much does an Employer of Record cost per employee per month in the UK?

Published starting prices vary by provider. Four of the best-known Employer of Record platforms publish starting prices of $399 to $699 per employee per month, about £297 to £519 at HMRC's October 2026 rate, with $599 (about £445) the most common (each platform's own pricing page, read 22 October 2026). A starting price is the lowest fee, and a quote can be higher. Salary, pension and employer's National Insurance come on top.

What does running your own UK payroll cost instead?

A DPNI costs £157 a month. Each employee has their own DPNI, so two employees means two schemes. Setup is £750 per scheme, or £500 per scheme if you go ahead within two weeks of your quote. When someone works in the UK for an employer based in the EU and UK National Insurance is due, it is due on both sides, the employee's and the employer's, so the scheme is an NI-only scheme in the employer's name and not a DPNI or DCNI. An NI-only scheme costs £157 a month for one employee, and £150 a month plus £7 per payslip for two or more. Its setup is £750 once, however many employees it covers, or £500 if you go ahead within two weeks of your quote. No VAT is added. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts.

What is the true cost of an Employer of Record?

The monthly fee, plus employer's National Insurance, plus any extras in the contract. The EOR is the UK employer, so it pays employer's National Insurance and passes it on to you. For most employees, UK employer's National Insurance is 15% of whatever they earn above £5,000 a year. On a £30,000 salary that is about £3,750 a year. On your own payroll, whether it is due depends on where your company is based. An employer based in the EU, Gibraltar, the Isle of Man, Switzerland, Norway, Iceland or Liechtenstein can owe it as well, when the employee works in the UK and UK National Insurance is due. Depending on the EOR provider, also ask about a deposit, setup and offboarding fees, currency conversion spreads and minimum terms.

Do I need a UK company to stop using an Employer of Record?

No. HMRC's DPNI guidance includes employees of an overseas employer that has no UK address it pays wages from. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts.

Is an Employer of Record worth it for one UK employee?

It depends on whether you want someone else to be the legal employer. An Employer of Record becomes the UK employer and takes on that role for you, which can make sense if you would rather not be the employer at all. If you are happy to stay the employer and only need the UK payroll run correctly, the direct route costs from £157 a month, against about £445 a month for an Employer of Record's starting price, plus a one-off setup fee.

What is the cheapest way to employ someone in the UK without a UK company?

There are two routes that avoid both a UK company and an Employer of Record. A company with no UK presence doesn't have to run UK PAYE, but it can choose to run it in its own name, from £225 a month plus £8 per payslip. Or an HMRC direct scheme collects the employee's tax and National Insurance, from £157 a month, against about £445 a month for an Employer of Record's starting price. We will ask HMRC for the scheme that fits your facts, and they may suggest a different one once they have the full facts.

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