EOR vs Direct Hiring in India: Which Fits Your Team?
Three real paths to legally employing a software engineer in India — Employer of Record, contractor, or your own entity — compared honestly, with real cost ranges.
Finding a great India-based engineer is only half the problem. The other half is how you legally employ them, and that choice changes your cost, your timeline, and your risk. This page lays out the three common paths without pushing any of them, because Switchly doesn't sell any of the three. It sells sourcing: getting the right candidate in front of you, fast and free.
Three paths, compared
| Employer of Record | Contractor agreement | Your own entity | |
|---|---|---|---|
| Setup time | Days to 2 weeks | Days, a signed agreement | 2–6 months typically |
| Upfront cost | None beyond monthly fee | None | Legal, registration and compliance setup costs |
| Monthly cost | $400–699/mo base, +15–35% FX and statutory load | Agreed rate only, no platform fee | Payroll + compliance overhead, scales with headcount |
| Statutory benefits (PF, gratuity) | Handled by the EOR | Not applicable — contractor, not employee | You administer directly |
| Misclassification risk | Low — EOR is the legal employer | Depends on your home country's worker-classification rules | Low, if run correctly |
| Best for | 1–20 hires, want it handled for you | A single hire or a trial engagement | 20+ hires, long-term India presence |
Figures are directional industry ranges checked 2 Oct 2026, not quotes. Get current pricing from your EOR provider and employment-law guidance from your own counsel before deciding.
Where Switchly fits
None of these three paths includes sourcing: finding the actual engineer who fits your role. That's the gap Switchly fills, for free, regardless of which employment path you pick afterward. Post your role, get applicants ranked by AI against your job description, and move to whichever of the three paths above fits your hiring volume once you've found your candidate.
Want the full cost picture first? Run your own numbers on the India hiring cost calculator.
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Post a Role FreeFrequently asked questions
What is an Employer of Record (EOR) and how does it work for hiring in India?
An EOR is a third-party company that's the legal employer of your India-based team member on paper — it runs payroll, handles statutory contributions like provident fund and gratuity, and manages local compliance — while the person works day-to-day under your direction. You pay the EOR a base monthly fee per employee (major providers list roughly $400–699/month for India), plus FX markup and the statutory employer costs it's covering, which commonly add another 15–35% on top.
Can I just hire an India-based engineer as a contractor instead?
Yes, and many companies do, especially for a single hire or a trial engagement. It avoids EOR fees and is fast to set up, but it comes with worker-classification risk in some jurisdictions if the relationship looks like employment in practice (fixed hours, sole income source, ongoing exclusive work) rather than a genuine independent contractor arrangement. That risk sits with your home country's labor law, not India's, so it's worth a quick check with counsel before scaling past one or two contractors this way.
When does it make sense to set up our own entity in India instead of using an EOR?
Usually once you're hiring in double digits and plan to stay for years. An entity removes the per-employee EOR fee and gives you full control, but setup typically takes months and brings ongoing compliance overhead (payroll, tax filings, labor law) that someone has to own. Below roughly 20 hires, most companies find the EOR fee cheaper than building that function in-house.
Does Switchly offer EOR or payroll services?
No. Switchly is a sourcing and AI-ranking platform for finding and screening candidates. None of the three paths above — EOR, contractor, or entity — is something Switchly provides or is affiliated with. Pick the path that fits your hiring volume and timeline, then use Switchly to find the actual person.
Which EOR providers are commonly used for hiring in India?
Deel, Remote, and Multiplier are among the most commonly cited providers for India EOR services, with base pricing that's varied over time and by contract terms — check current pricing directly with each provider rather than relying on a cached number, since EOR pricing changes and often includes negotiated volume discounts.