Cost Breakdown: How Much Does It Really Cost to Hire Developers in India via EOR?

Hiring remote developers from India can bring immense value, but understanding the true cost structure is crucial for budgeting and strategic decision-making.

In this blog, we’ll walk you through the actual costs involved in hiring developers in India through an Employer of Record (EOR), and how Yugasa’s transparent pricing model helps you save more than most global competitors.

Why You Need Cost Clarity When Hiring in India

Many companies assume hiring in India is “cheap,” but without a clear understanding of legal obligations and hidden charges, you may end up:

• Overpaying global EOR providers
  

• Missing statutory deductions
  

• Facing compliance risks
  

• Being unclear on developer salary vs service fees

That’s why cost transparency and compliance are vital, and that’s what Yugasa ensures.

EOR Cost Components: Explained

When hiring via an Indian EOR like Yugasa, your total cost is split into three main components:

1. Developer Salary (Direct Negotiation)

You negotiate salary directly with the selected developer. This avoids platform markups and ensures you're paying market-appropriate compensation.

Example:

• Mid-level React Developer in India: ₹1,20,000/month (~$1,450)
  

This is your base talent cost, completely transparent and controlled by you.

2. Yugasa’s EOR Service Fee

This covers:

• Legal employment under Indian labor laws
  

• Offer letter generation
  

• Statutory compliance (PF, ESI, TDS)
  

• Payroll processing
  

• Background verification
  

• Monthly payslips and HR operations
  

Flat Pricing: $499/month per employee
No extra costs for sourcing, job portal access, or coordination

Compare this to Deel or Remote:

3. Statutory Employer Contributions

Handled entirely by Yugasa within your monthly fee:

• PF (Provident Fund) – ~12% of basic salary
  

• ESI (Employee State Insurance) – ~4.75% for employees earning < ₹21,000
  

• Professional Tax / Labor Welfare Fund (state dependent)
  

• TDS (Tax Deducted at Source) filings
  
  

You don’t need a separate legal team or consultants; we manage all statutory filings and documentation.

Sample Monthly Cost Calculation

Here’s a cost snapshot for hiring a mid-level full-time developer via Yugasa:

Compare this to setting up your own entity or using a global EOR, and you save over 30–40% annually.

What’s Included in Yugasa’s EOR Fee?

• Legally binding Indian employment contract
  

• Payroll and payslips
  

• TDS, PF, ESI compliance
  

• Salary disbursement
  

• Background checks
  

• Seamless employee exit process
  

• IP protection through Indian clauses
  

• Offer letter generation
  

• Localized onboarding and support
  
  

All this at $499/month, with no hidden charges.

One-Time Costs You Avoid with Yugasa

Without EOR, you’d need:

• Company registration in India.
  

• Tax accounts (PAN, TAN, PF, GST)
  

• Legal & compliance consultancy
  

• Local HR/payroll team
  

• Office rental or co-working (optional)
  

This can easily cost $15,000–$20,000+ annually, before hiring a single employee.

Yugasa eliminates these costs and offers “hire-first, pay-later” convenience.

EOR vs Freelancers vs Entity Setup

Cost Optimization Tips

1. Negotiate salary in INR, not USD, to avoid currency markup inflation.
   

2. Bundle multiple hires to scale cost-effectively.
   

3. Use Yugasa add-ons like IT provisioning and office setup to avoid third-party costs.
   

4. Retain talent long-term to maximize ROI on onboarding.
   
   

Final Thoughts: Know Where Every Dollar Goes

Hiring in India isn’t just cost-effective, it’s smart. But only if done right.

With Yugasa:

• You negotiate and control salary
  

• You avoid legal and compliance headaches
  

• You pay a fixed fee of $499/month with no surprises
  

• You get a full employment infrastructure without entity setup
  
  

Want to Know the Exact Cost for Your Team?

Let’s calculate it together. Book a Free Consultation with our EOR specialists and start hiring in India with confidence.