What it costs to pay contractors abroad: seat plans against percentage fees
How we earn: we get a fee when a provider marked * takes on a client we introduced, so we have an interest in this table. Every price links to the provider's own page with the date we checked it.
Two ways providers charge
A seat plan charges a fixed amount for each contractor each month, whatever you pay them. A percentage plan takes a share of each payout, so it costs little on small payments and grows with them. Lists that put a monthly price next to a percentage are hard to read, so the table below converts every plan to the same team and the same month.
What one team pays in a month
Percentage plans show a range because the rate depends on volume and on the payout. The payroll platform we work with shows 3% or 39 EUR1 on its payroll page, says in its FAQ that the fee starts at 4% or 39 EUR1 for each task, and describes a dynamic 3% to 10%2 in its pricing article. We show the whole range and suggest asking for a written quote.
List prices for 10 contractors at $2,000 a month each, before FX and bank fees. The plans differ in who signs with the contractor.
| Provider | Product | Monthly cost | Who signs | List price | Checked |
|---|---|---|---|---|---|
| Remote | Contractor Management | $290 | You | from $29 per contractor a month | 2026-11-04 |
| Deel | Hire contractors | $490 | You | from $49 per contractor a month | 2026-11-09 |
| Remote | Contractor of Record | $3,250 | Provider | from $325 per contractor a month | 2026-11-04 |
| Deel | Contractor of Record | $3,250 | Provider | from $325 per contractor a month | 2026-11-09 |
| Mellow | Contractor of Record | $700 - $1,100 | Provider | 3.5-5.5% of payout volume | 2026-11-04 |
| Contractor of record we work with * | Contractor of Record | $600 - $1,100 | Provider | 3-5.5% all-inclusive, falls as volume grows | 2026-11-09 |
| Payroll platform we work with * | Payroll, percentage | $600 - $2,000 | Provider | dynamic 3-10%, starting at 3% | 2026-11-09 |
| Payroll platform we work with * | Payroll, flat fee | $420 | Provider | $42 / €39 per payout, one payout a month assumed | 2026-11-09 |
Where the two models cross
At the lowest published percentage, a percentage fee costs the same as the contractor plan from Deel when each contractor earns about $1,633 a month. Below that the percentage plan is cheaper, above it the seat plan is.
Against a contractor-of-record seat plan, the crossing is about $10,833 a month per contractor, so a percentage contractor-of-record plan is the cheaper one for anyone paid less than that.
Who signs the contract
On plans marked You, you stay the contracting party, and the platform handles contracts, invoices and payments. On plans marked Provider, the provider signs with the contractor and you sign with the provider. If you need the provider to be the contracting party, compare only those rows.
In a country that has tightened its rules, as Kazakhstan did, ask how the provider's contracts handle the local rule. We do not assume that a contractor-of-record contract removes the risk.
What list prices leave out
We have not measured the costs below, so get a written quote for your own route before you compare totals.
- the margin on currency conversion
- bank and payout fees on the contractor's side
- minimum monthly amounts
- prices that depend on the country you pay from and to
- VAT or local taxes added to the fee
How to choose
- A few contractors on high rates: start with seat plans.
- Many contractors on small or irregular amounts: start with percentage plans.
- You need someone else to be the contracting party: compare only the rows marked Provider.
- A route with payment trouble: ask each provider to confirm that route in writing, with the total the contractor receives.
FAQ
Why are contractor-of-record plans so much dearer per seat?
They are a different service: the provider becomes the contracting party. Compare them only with each other.
Do these prices include currency conversion?
No. They are list prices before currency margin and bank fees, which we have not measured.
Sources
- Payroll platform we work with: its payroll page, checked 4 November 2026
- Payroll platform we work with: its pricing article of 4 February 2026, checked 9 November 2026
* We earn a fee when this provider takes on a client we introduced.