Service Model Comparison
Staff augmentation vs EOR: cost comparison for remote hiring
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Staff augmentation and Employer of Record (EOR) are different models for hiring international developers. Here's how costs compare:
EOR (Employer of Record)
•You hire the developer as a full employee
•EOR handles legal employment in their country
•Costs:
•Developer salary: $5,000-8,000/mo
•EOR platform fee: $500-700/mo
•Employer taxes & benefits: +50-100% of salary
•Total: $8,000-16,000+/mo
Staff Augmentation
•Developer is contractor under agency umbrella
•Agency handles everything
•Costs:
•All-inclusive monthly rate: $6,500-9,000/mo
•No additional taxes or fees
•Total: $6,500-9,000/mo
Cost comparison (senior developer):
| Component | EOR | Staff Aug |
|---|---|---|
| Base salary | $6,000 | Included |
| Platform fee | $600 | Included |
| Employer taxes | $3,000-6,000 | Included |
| Benefits | $500-1,000 | Included |
| Monthly total | $10,000-13,600 | $7,500-9,000 |
When to use each:
•EOR: Need true employment (equity, specific benefits)
•Staff aug: Want simpler, lower-cost arrangement
Note: EOR costs vary significantly by country—Argentina and Brazil have highest employer taxes (~100% and ~50% respectively).
BEON.tech uses a contractor model that avoids EOR overhead while still providing benefits and stability to developers.
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