Why does the hiring model matter more than the salary?
Two offers with identical headline numbers can differ by thousands once you account for who pays social contributions, who covers unpaid time off, and who carries the cost of a bad month. The hiring model decides all of that before you negotiate a single figure.
It also decides how fast a company can hire you at all. If a company only hires people it can put on its own payroll, it can only hire in the countries where it has an entity. That constraint is the single biggest source of "remote" jobs that quietly mean "remote in one country".
How do contractor, EOR, and direct hire compare?
The three models sit on a spectrum from maximum flexibility to maximum protection. Neither end is universally better — it depends on whether you value take-home rate or stability.
| B2B contractor | Employer of Record | Direct hire | |
|---|---|---|---|
| Who pays you | You invoice the company | The EOR partner runs local payroll | The company's own payroll |
| Taxes | You file and pay yourself | Withheld at source for you | Withheld at source for you |
| Paid leave | Unpaid unless negotiated | Statutory minimum in your country | Statutory plus company policy |
| Benefits | You buy your own | Local health plan and pension | Full company benefits |
| Notice period | Often 14–30 days either way | Local employment law applies | Local employment law applies |
| Rate premium | Expect 20–35% above salary | Roughly at salary level | At salary level |
| Where it works | Almost anywhere | ~100+ countries the EOR covers | Only where an entity exists |
What does being an independent contractor really involve?
You are running a small business whose only client happens to be your employer. In most countries that means registering as a sole trader or a small company, issuing a numbered invoice each month, and setting aside your own tax and social contributions.
The upside is control and a higher gross rate. The downside is that unpaid sick days, gaps between contracts, and your own equipment come out of your pocket.
- Register the right legal form locally before your first invoice — retroactive registration is expensive.
- Set aside tax monthly instead of annually; quarterly prepayments catch people out in their first year.
- Keep the contract's intellectual property, notice, and termination clauses; they are your only protection.
- Build a buffer of three months of expenses, because contractor income stops the moment the contract does.
When is an Employer of Record the better deal?
An EOR is a company that already has a legal entity in your country and employs you on your actual employer's behalf. Your payslip says Deel, Remote, or Oyster; your work and manager are at the company that hired you.
This is the model to prefer if you want statutory paid leave, parental leave, local pension contributions, and protection against abrupt termination. It typically costs the employer several hundred dollars a month per person, which is why some startups push contractor agreements instead.
What should you ask before accepting an offer?
Do this before you discuss numbers. The answers change what a fair number even is.
- Will I be a contractor, an EOR employee, or on your own payroll?
- Which currency is the contract denominated in, and who absorbs exchange rate movement?
- How much paid time off do I get, and is it contractual or informal?
- What is the notice period on each side?
- Who pays for equipment, home office, coworking, and internet?
- If I move country, does the arrangement still work?
Frequently asked questions
+Is an independent contractor role worse than being an employee?
Not automatically. Contractors usually earn a higher gross rate and can work from more countries, but they fund their own leave, insurance, and pension, and have far weaker protection against termination. If you compare offers, add 20–35% to an employee salary to reach an equivalent contractor rate.
+How do I invoice a US company as an international contractor?
Register as a sole trader or company locally, then send a monthly invoice with your legal name and address, your registration or tax number, the service period, the amount, and your bank details. Most US companies will also ask you to complete a Form W-8BEN (individuals) or W-8BEN-E (companies) to confirm you are not a US taxpayer, so no US withholding applies.
+Does an Employer of Record mean I work for Deel or Remote?
Legally you are employed by the EOR in your own country, and practically you work for the company that hired you. The EOR handles your contract, payroll, taxes, and statutory benefits; your day-to-day role, manager, and team are unchanged.
+Why do so many remote jobs require a specific country?
Because the company only has a legal entity, payroll, and benefits provider in that country, and hiring outside it requires either a contractor agreement or an EOR. Companies unwilling to use either restrict the role — which is the difference between remote and really remote.
+Can I be a contractor for one company for years?
Yes, and many borderless workers are. Just be aware that long, exclusive, full-time contractor relationships are the pattern tax authorities scrutinise most closely for misclassification, so keep your own registration, invoices, and records in order.