When building an international hiring budget, focusing only on nominal gross salary leads to significant budget overruns. Depending on the engagement model, the total employer cost for the exact same gross compensation varies dramatically. This guide calculates the realistic Total Cost of Ownership (TCO) per senior engineer across Direct Contractor vs EOR models.
Direct Contractors cost "Base Salary + ~1% FX fee", while EOR costs "Base Salary + Statutory Benefits (18-32%) + EOR Fee ($400-$599/mo)", resulting in roughly 1.3x to 1.4x of gross salary.
For ¥300,000 base pay, monthly cost is ~¥303,000. Zero SaaS seat overhead, solely Wise FX transfer fees.
For ¥300,000 base pay, monthly cost is ~¥420,000 - ¥450,000. Statutory insurance, 13th month pay, and EOR seat fees apply.
EOR platforms require 1-2 months of total payroll (~¥500k-¥1.0M/hire) as a refundable statutory deposit on onboarding.
5 Components of Monthly Overseas Hiring Cost
1. Base Gross Salary
Agreed monthly compensation. In direct contracts this is paid as a consulting invoice; in EOR it forms statutory gross payroll.
2. Statutory Employer Contributions
Mandatory social security, health insurance, and labor funds (PH ~10-12%, VN 21.5%, IN ~12%). Applicable only under EOR.
3. Mandatory Bonuses / Accruals
Philippines 13th Month Pay (8.3% monthly accrual), Vietnam Tet bonus expectations, and Indian statutory gratuity reserves.
4. EOR Platform Fee
Fixed SaaS fee charged by Deel ($599/mo), Remote ($599/mo), or Multiplier ($400/mo) per employee per month.
5. Remittance & FX Spread
Hidden conversion markups. Wise charges 0.4-0.6%, whereas legacy SWIFT bank wires cost ¥4,000+ plus 1-3% FX spread.
Senior Engineer TCO Comparison (PHP, VND, INR in JPY Equivalent)
| Destination & Model | Base Salary | Statutory Social & 13th Month | Platform / Admin Fee | Monthly TCO (JPY Equivalent) |
|---|---|---|---|---|
| 🇵🇭 Philippines: Direct Contractor | ¥300,000 | ¥0 (Contractor responsible) | ¥0 - ¥7,500 ($49 tool) | ¥302,000 - ¥309,500 |
| 🇵🇭 Philippines: EOR Employment | ¥300,000 | ¥58,000 (SSS + 13th Month) | ¥89,850 ($599 EOR fee) | ¥447,850 (+49%) |
| 🇻🇳 Vietnam: Direct Contractor | ¥280,000 | ¥0 | ¥0 - ¥7,500 | ¥282,000 - ¥289,500 |
| 🇻🇳 Vietnam: EOR Employment | ¥280,000 | ¥60,200 (21.5% Social + Tet) | ¥89,850 ($599 EOR fee) | ¥430,050 (+53%) |
| 🇮🇳 India: Direct Contractor | ¥350,000 | ¥0 | ¥0 - ¥7,500 | ¥352,500 - ¥360,000 |
| 🇮🇳 India: EOR Employment | ¥350,000 | ¥59,500 (EPF 12% + Gratuity) | ¥89,850 ($599 EOR fee) | ¥499,350 (+42%) |
Based on senior software developer benchmarks (5-8 yrs experience). JPY conversions based on 1 USD = 150 JPY.
Next Steps: Choose Your Engagement Model
Advance to Next Decision Stage
Proceed to the next stage in your cross-border hiring roadmap with validated data.
- Philippines: SSS, PhilHealth, Pag-IBIG statutory employer rates, Presidential Decree No. 851 (13th Month Pay)
- Vietnam: Statutory social, health, and unemployment insurance (21.5% total employer contribution) and Trade Union dues (2%)
- India: Employees Provident Fund (EPF 12%), Payment of Gratuity Act 1972, and 2025 Labor Codes
- EOR published fee structures (Deel, Remote from $599/mo; Multiplier from $400/mo)
- Indicative rates: 1 USD ≈ 150 JPY, 1 PHP ≈ 2.65 JPY, 1,000 VND ≈ 6.1 JPY, 1 INR ≈ 1.82 JPY
Last verified: 2026-10-08. Labor regulations and FX rates are subject to change. Consult qualified professionals before executing agreements.