Contractor vs employee calculator
Compare the cost of engaging someone as a contractor versus an employee through an EOR, with the country's misclassification notes.
| Option | Estimated annual cost | What you get |
|---|---|---|
| Contractor | $69,588 | Cheapest on paper. No statutory benefits; reclassification risk in India if the relationship looks like employment. |
| Employee via EOR | $70,188 – $73,188 | Local contract, statutory benefits and payroll compliance handled by the EOR. |
India contractor risk: Contractors and freelancers are very common (consultancy agreements, invoicing under GST). Misclassification risk is moderate: Indian courts look at control and integration, and the labour codes tighten contract labour rules. Cross-border contractors can create permanent establishment or tax risks for the foreign company if directed from abroad. Not legal advice.
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Not professional advice. Rates, rules and prices change often. Figures here are researched estimates from the sources listed; anything marked “unverified” needs checking with the provider or a local adviser before you rely on it.