Employer Liability Cost (ELC) is a separate, clearly labelled line item on your EOR invoices. It covers the employer liability insurance, compliance support, and policy administration that Deel maintains as your legal employer in each country.
What does ELC cover?
ELC covers the full cost of employer liability insurance, related compliance support and policy administration that Deel maintains as your legal employer. This means Deel handles everything required to protect your team and stay compliant with local employment law.
- Policy administration: job classification, carrier reporting, certificate issuance, broker management,
- Annual renewal negotiations and regulatory filings,
- Claims management and government/carrier audit support,
- Insurance premiums: employer liability and workplace injury cover per country.
Because Deel is the legal employer in each country, this insurance can only be held by Deel. Your organisation has no legal entity in the worker's country and cannot purchase this cover independently.
Why is ELC appearing now and not before?
Previously, the employer liability costs were either inside the G2N, or absorbed entirely by Deel. As we've standardised our global EOR pricing model, we're now applying a consistent, transparent approach across all countries.
Making these costs a visible line item means you can see exactly what you're paying for.
Why do rates differ by country?
Two reasons:
- 1. Risk profiles vary. The cost of insurance in the US is structurally different from costs in Brazil or the Philippines. Local regulation, claims history, and market conditions all affect the rate.
- 2. Negotiated pricing, not retail. Rates reflect what Deel has negotiated with our insurance partners globally. Because we operate at scale across 100+ countries, we're able to secure pricing that a single employer couldn't access independently. You're getting the benefit of Deel's purchasing power.
Can I opt out of ELC?
No. ELC is mandatory for all EOR clients in all countries. Deel cannot act as the legal employer without holding the required policies, and the cost of those policies is what ELC reflects. There is no opt-out.
Does ELC apply to all EOR contract types?
Yes. ELC applies to all active EOR contracts regardless of type (annual, fixed-term, or indefinite) or pay frequency.
When does ELC start?
ELC applies from the June 24, 2026 billing cycle onward. It is a recurring monthly charge calculated on each payroll run. New contracts created from June 24 include ELC at the point of contract creation, which means you'll see it clearly before you sign.
Where does ELC appear on my invoice?
ELC appears as a separate line item labelled Employer Liability Cost on your EOR invoice under Employment Costs, calculated per employee based on gross salary for that billing cycle.
What if I have questions about my invoice?
If you think there's an error on your invoice or have questions about how ELC applies to your account, reach out to your customer success manager or contact our support team.
Need help? Contact your Deel account manager or customer success manager.