EOR costs in Africa break into two parts: what you pay the EOR (their fee) and what you pay for employment (salary plus employer-side statutory costs). Both show up on your invoice; only the first is “EOR fee.” The rest is pass-through. If you ignore the second, you underbudget.

EOR fee structures. Most providers charge one of: (1) a percentage of gross payroll per employee (e.g. 4–10% in Africa), or (2) a fixed fee per employee per month (e.g. $300–800 depending on country and provider). A few use a hybrid or a minimum monthly fee. Percentages are applied to base salary (and sometimes guaranteed allowances), not to one-off bonuses. Check whether the percentage is on gross salary only or on gross plus employer statutory — that can shift the number by a few points. For a R50,000/month hire in South Africa, 6% is R3,000; for a $1,500/month hire in Nigeria, $400 flat is about 22%. Flat fees often make more sense for lower salaries; percentage for higher.

Employer statutory costs (pass-through). The EOR doesn’t keep this; they pay it to the state or funds. You still need to budget for it. Examples: South Africa — UIF 1% employer (capped), pension if offered (e.g. 9–13% of basic), COIDA, and often medical aid. Nigeria — Pension 8% employer, plus NSITF and other small levies. Kenya — NSSF (tiered), NHIF employer share. Egypt — Social insurance at roughly 18.75% employer. These add 10–25% on top of base salary in many markets. Get a cost-to-company quote from the EOR that includes employer contributions so you’re comparing apples to apples.

What’s often missing from the sticker price. (1) Currency and FX — You may pay the EOR in USD or EUR; they pay staff in local currency. Check if FX is included or marked up. (2) Benefits — If you add private health, life, or pension above the legal minimum, that’s extra. (3) Offboarding — Some EORs charge a termination or handover fee. (4) Minimums — Some have a minimum monthly fee regardless of headcount. (5) Setup or onboarding fee — One-time per employee or per country; ask.

Rough ranges by market (total employer cost, excluding EOR fee). South Africa: employer statutory often 12–18% of base (UIF, typical pension, COIDA). Nigeria: pension 8% plus other small levies. Kenya: NSSF + NHIF can land in the 10–15% range. Egypt: social insurance alone is ~19% employer. These are illustrative; exact numbers depend on salary level and benefits. Always get a formal quote.

How to compare providers. Ask for one number: total monthly cost to you (EOR fee + gross salary + employer statutory + any mandatory benefits) for a given role and country. Then compare that across two or three EORs. The cheapest EOR fee can be offset by higher pass-through if they mark up statutory or FX. Prefer clarity: a single, all-in monthly price per employee makes budgeting and comparison straightforward.

Bottom line: EOR cost = EOR fee (percentage or flat) + salary + employer statutory contributions. Get quotes in total cost-to-company and watch for FX, benefits, and minimums so you know what you’ll actually pay.