Planning tool ยท Parallel to the labor cost calculator

EOR vs Entity Calculator

Keep the employment cost the same, then compare two ways to hire: an Employer of Record, or your own local company. This is the overhead questionโ€”not the statutory labor-cost question.

Your scenario

Set the hire and the overhead

Employment cost uses the same 81-market statutory file as the labor cost calculator. Change the EOR fee or entity costs if you have better numbers.


EOR path

Monthly EOR fee

Editable market benchmark, not a Farlinko price. Paste your quote if you have one. Default starts from a typical published public-market fee of 599 USD.


Own-entity path

Setup and local administration

Incorporation, legal, banking, and licensing. Directional only.

Accounting, company secretarial, local payroll ops. Not employment cost.

Comparison

Which path costs less in year one?

Employment cost is the same on both paths. The difference is overhead.

EOR path

Year-one total

-

Own entity

Year-one total

-

Employment cost / year -
Year-2 entity run-rate -
Year-one overhead gap -
Breakeven headcount -

How to read this

  • Salary, employer contributions, and statutory extra pay do not change with the hiring vehicle.
  • EOR overhead scales per employee. Entity setup is mostly fixed, then you still pay local admin every month.
  • Speed, liability, and exit flexibility are not in the numbersโ€”use the subsidiary guide for those.
FAQ

Entity comparison, without mixing it into labor cost

Why separate?Why isnโ€™t this on the labor cost page?
Labor cost answers โ€œwhat does the employee cost under local law?โ€ Entity comparison answers โ€œshould we employ through an EOR or incorporate?โ€ Mixing them made the salary input hard to find and looked like Farlinko was burying a service fee inside statutory cost.
FeesCan I put our actual EOR quote in?
Yes. Replace the benchmark fee with the monthly amount you were quoted. That keeps commercial pricing flexible and avoids publishing a Farlinko rate inside a public planning tool.
SetupWhat is inside one-time entity setup and monthly admin?
Setup is the directional cost to incorporate, open banking, and get licensed. Monthly admin is the ongoing cost of accounting, company-secretarial work, and running local payroll operationsโ€”even before you hire. Neither item is a statutory employment tax.