What to Know About EOR Pricing Before You Start
- Two main models exist: fixed monthly fee per employee, or a percentage of salary/cost-to-company
- DNA EOR (your main SA competitor) charges 5–8% of gross payroll, or $125–$199 USD fixed fee
- Global platforms (Deel, Remote) charge $599 USD per employee per month — fixed
- Percentage models scale with salary increases; fixed fees don't
- The "headline fee" rarely tells the full story — what is included matters as much as the rate
- Key EOR SA uses a percentage model, discussed on a first call — get a written quote within 24 hours
Pricing is one of the first questions companies ask when evaluating an Employer of Record in South Africa — and one of the hardest to compare accurately. Different providers use different models, include different services, and quote in different currencies. A provider charging a low headline rate may exclude CCMA representation, benefits management, or recruitment support that another provider includes. The comparison is rarely apples to apples.
This guide explains how EOR pricing works in South Africa, the two main models and their trade-offs, what Key EOR SA charges and why we discuss it personally rather than publish a single number, and what you should ask every provider before signing.
The Two Main EOR Pricing Models
Model 1
Fixed Monthly Fee Per Employee
A set amount charged per employee per month, regardless of salary level. Popular with global SaaS platforms.
- Examples: Deel and Remote both charge $599 USD/month (~£470). DNA EOR offers $125–$199 USD/month on their fixed option
- Best for: Companies with high-salary employees (the fixed fee becomes a small % of salary at senior levels)
- Watch out for: At lower SA salary levels, a fixed $199–$599 USD/month can represent a very high percentage of total employment cost, making it poor value
- Predictability: High — you know exactly what you pay regardless of salary movement
- Gives raises without penalty: Yes — giving your employee a salary increase doesn't increase the EOR fee
Model 2
Percentage of Salary / Cost-to-Company
A fee calculated as a percentage of the employee's gross salary or total cost-to-company. Used by most SA specialist providers.
- Industry range: 5–25% globally. SA-specialist providers typically operate in the 5–15% range
- DNA EOR publicly charges: 5–8% of gross payroll (varying by headcount and industry)
- Best for: Companies with lower to mid-range SA salaries where a fixed dollar/pound fee would be disproportionate
- Watch out for: Fees increase automatically when you give salary raises or pay bonuses — build this into your long-term cost model
- Transparency requirement: Always confirm whether the percentage applies to base salary, total cost-to-company (CTC), or gross including bonuses
The key question most companies forget to ask: "What is your percentage calculated on?" Base salary, gross CTC, or total package including bonuses and benefits can produce very different numbers from the same headline percentage. Always ask for a worked example with your actual proposed salary before committing.
What the Industry Charges in 2026
| Provider | Pricing Model | Typical Fee | Includes Recruitment? |
|---|
| Deel |
Fixed fee |
$599 USD/month (~£470) |
No — separate |
| Remote |
Fixed fee |
$599 USD/month (~£470) |
No — separate |
| DNA EOR |
% of payroll or fixed |
5–8% of gross payroll, or $125–$199 USD fixed |
Separate service |
| West Coast Personnel |
% of salary (quoted) |
Not publicly disclosed |
Yes — own recruitment arm |
| Veridian Global |
Monthly fee (quoted) |
Not publicly disclosed |
Yes — integrated |
| Key EOR SA |
% of cost-to-company |
Discussed on first call — written quote within 24hrs |
Yes — amortised over 12 months |
How Key EOR SA Pricing Works
We use a percentage-based model, calculated on the employee's total cost-to-company. We discuss the exact percentage on a first call rather than publishing it, for a straightforward reason: the right number depends on your specific situation — the salary level, your team size, the role complexity, and whether you need our recruitment support alongside the EOR service.
Posting a single percentage without this context is misleading and, frankly, not how we like to do business. What we commit to is: a written quote within one business day of a first call, with a full worked example showing exactly what you pay monthly.
What we can tell you about our model:
- It is a percentage of the employee's total cost-to-company — transparent and directly tied to the value of the hire
- There are no setup fees, no exit penalties, and no surprise line items
- For teams of multiple employees, volume rates apply
- The percentage is the same whether the employee is junior or senior — we do not penalise you for hiring well
The Recruitment Fee — Our Most Differentiated Feature
Traditional recruitment in South Africa works like this: you find the right candidate through an agency, you pay a one-off recruitment fee of 8–15% of annual salary on or before the employee's start date — whether the hire succeeds long-term or not. For a senior SA professional earning R600,000 per year, that is a R48,000–R90,000 upfront charge before you know if the hire will work out.
Key EOR SA does it differently.
How Our Amortised Recruitment Fee Works
If we source your candidate through Key Recruitment Group's 50+ year talent network, the recruitment fee is spread across the first 12 months of employment — not charged upfront. You pay it monthly as part of your invoice, only for as long as the employee is working with you.
£0
Upfront recruitment fee on start date
12
Monthly payments spread across year one
0
Exit penalties or ongoing recruitment charges from year two
Why does this matter? Three reasons:
- No capital at risk on day one. You are not writing a large cheque before you know the hire will succeed. Your investment is spread and tied to employment continuity.
- Aligned incentives. Our recruitment fee depends on the hire succeeding and staying. Traditional agencies get paid regardless of retention — we only earn if you both get long-term value from the relationship.
- Better cash flow. For mid-market companies managing monthly budgets, a predictable monthly cost is easier to manage than a large one-off charge in month one.
If you bring your own candidate, there is no recruitment fee at all. You provide the candidate's details and we onboard them as their employer. The monthly invoice in this case is simply the management fee plus statutory contributions — nothing else.
The True All-In Cost: What You Actually Pay
Any EOR's "management fee" is only one part of your total monthly invoice. Here is the complete picture of what a monthly invoice from Key EOR SA looks like:
| Invoice Line Item | What It Is | Who Sets It |
|---|
| Employee salary | Agreed gross monthly salary in ZAR | You and the employee |
| UIF employer contribution | 1% of salary — statutory | SA law (fixed) |
| SDL contribution | 1% of salary — statutory | SA law (fixed) |
| COIDA contribution | Industry-based employer levy | SA law (variable by sector) |
| Key EOR SA management fee | % of cost-to-company | Key EOR SA (discussed on call) |
| Recruitment amortisation (yr 1 only, if applicable) | Monthly share of recruitment fee | Key EOR SA |
No other line items. No FX markup. No admin fees. No termination charges billed to you (termination costs are managed within the employment structure as required by SA law).
What You Should Ask Every EOR Provider
Before signing with any EOR in South Africa — including us — get written answers to these questions:
- Is your fee a fixed amount or a percentage? If a percentage, of what exactly? (Base salary vs gross CTC vs total package including benefits makes a meaningful difference)
- What does the fee include and exclude? Specifically: does it include CCMA representation? Benefits administration? Recruitment support?
- Are there setup fees, security deposits, or exit penalties? Some providers charge $200–$500 per employee onboarding. Others require a security deposit of 1–3 months' salary.
- How does the fee change when we give salary increases? On a percentage model this is particularly important — model out year 2 and year 3 costs, not just year 1.
- Is there a VAT implication? EOR services for foreign-employed staff in SA typically qualify as "exported services" and are VAT-exempt — but confirm this explicitly.
- Who manages CCMA matters and at what cost? This is where the real cost difference between providers can emerge. If CCMA representation is excluded from the fee, ask what the hourly rate or per-matter charge is.
Does Key EOR SA charge VAT?
EOR services provided to foreign companies for employees working in South Africa typically qualify as "exported services" under SA VAT legislation, making them VAT-exempt. This is significant — a 15% VAT charge on top of your management fee would be a material additional cost. We confirm VAT treatment explicitly in your quote.
Is the percentage model more expensive than a fixed fee for our situation?
It depends on the salary level. For lower to mid-range SA salaries, a percentage model is typically more cost-effective than the $399–$599 USD fixed fees charged by global platforms. At senior executive salary levels, a fixed fee may become proportionally cheaper. We will show you the comparison for your specific roles and salary levels on a first call — the answer for your situation is more useful than a general rule.
What happens to the recruitment amortisation if an employee leaves in year one?
If an employee we recruited leaves before the 12-month amortisation period completes, the remaining balance is reviewed. We do not simply continue charging for a service that is no longer being delivered. The specific terms are set out in your agreement — ask us to walk you through them on a call.
Can you give us a written quote before we commit to a call?
Yes, if you provide the role, seniority level, and proposed salary via email, we will send a written indicative quote within one business day. A call then allows us to confirm the details and answer any questions. Email info@keyeorsa.com with the subject line "Pricing Quote".
Get a written quote within 24 hours
Tell us your role, seniority level, and approximate salary. We will send you a full worked example of your monthly invoice — every line item, in your preferred currency — within one business day. No commitment, no sales pressure.
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