The 2026 Guide to the Best Employer of Record (EOR) Services in Latin America for Hiring Top Tech Talent

In this article

1. TLDR
2. Introduction
3. What Employer of Record providers do in LatAm
4. How to choose a LatAm EOR
5. Why compensation benchmarks matter in EOR decisions
6. Top 15 Employer of Record providers in LatAm for 2026
7. Best EORs in LatAm by category
8. Country by country: how LatAm hiring works
9. LatAm verified salary snapshot (2025)
10. Salary comparison table
11. Which EORs are most reliable for hiring engineers
12. What are the best Employer of Record services in LatAm
13. EOR contract models in LatAm
14. Common mistakes when choosing an EOR
15. Howdy vs traditional EOR platforms
16. How to choose the right partner in 2026
17. Frequently asked questions
18. Hire engineers in LatAm with Howdy.com

TLDR

• EORs enable compliant hiring. Employer of Record services in Latin America (LatAm) allow US companies to hire legally without opening local entities.
• LatAm salaries vary by market. Verified 2025 Howdy payroll data shows software developers earning between $53,000 and $63,000 USD per year.
• EOR quality impacts retention. A strong EOR manages benefits, payroll, and employment obligations accurately.
• Most EORs do not recruit. Traditional providers only handle compliance rather than talent quality.
• Howdy combines vetted talent with compliant hiring. US teams can access senior engineers and hire them through trusted EOR partners in a single workflow.

This report answers the most common questions companies have when hiring engineers in Latin America.

Latin America (LatAm) has become a preferred region for building distributed engineering teams because it offers experienced talent, time-zone alignment with US teams, and competitive labor costs. Companies still need a compliant, reliable hiring structure. An Employer of Record (EOR) serves as the legal employer in the worker’s home country and ensures payroll, taxes, and benefits follow local law.

What Employer of Record providers do in LatAm

Legal hiring and entity coverage

• Entity ownership. An EOR uses its local legal entity to employ workers on your behalf.
• Contract management. The EOR signs compliant employment agreements or contractor documentation that meets local requirements.
• Regulatory alignment. The EOR keeps your workforce compliant with current labor codes, benefit rules, and tax changes.

Legal consultations and hiring models

• Model guidance. A strong EOR helps you choose the right structure, such as full time employment, contractor engagement, or hybrid models.
• Risk reduction. The EOR advises on probation periods, notice periods, IP ownership, and working hours to prevent misclassification.

Payroll management and tax compliance

• Accurate calculations. The EOR calculates salary, taxes, and social contributions correctly for each country.
• Payroll reporting. The EOR submits documentation to government agencies and provides transparent invoices.
• Error prevention. A reliable payroll process protects companies from fines or unhappy employees.

Benefits administration

• Mandatory benefits. The EOR ensures your offers include what each country requires.
• Optional benefits. The EOR can help add competitive perks such as private insurance or training budgets.
• Market alignment. The EOR adjusts benefits when laws or market expectations change.

Onboarding and offboarding

• Structured onboarding. The EOR collects documentation, registers employees, and sets up payroll and banking details.
• Error-free offboarding. The EOR calculates severance, manages notices, and ensures proper legal steps.

Optional services

• Extended support. Some providers offer recruiting, equipment procurement, office access, and visa support.

How to choose a LatAm EOR

• Entity model clarity. Companies should verify whether an EOR owns its entities or relies on partners because ownership affects speed and accountability.
• Local expertise confirmation. Teams should ensure the EOR employs local labor and tax specialists who understand real regulations.
• Talent support evaluation. Companies should check whether the EOR can support senior engineering hiring.
• Payroll accuracy review. Companies should request sample calculations and payslips to assess payroll quality.
• Support expectations. Teams should ask about response times and escalation paths for urgent needs.
• Integration readiness. Companies should confirm that the EOR integrates with HRIS or accounting systems.
• Transparent pricing. Teams should understand all fees, including taxes, FX policies, and benefits administration costs.

Why compensation benchmarks matter in EOR decisions

• Accurate planning. Verified compensation data ensures hiring managers plan budgets correctly across multiple markets.
• Retention alignment. Salary ranges tied to real data help companies make offers that match local expectations.
• EOR coordination. Providers need accurate benchmarks to set compliant payroll and benefits packages.

Verified insight: Howdy’s 2025 dataset shows developers in LatAm earn between $53,000 and $63,000 USD per year, depending on the country and specialty. These figures represent real, compliant employer costs rather than survey estimates or scraped job board data.

Top 15 Employer of Record providers in LatAm for 2026

1. Deel. Deel provides broad global coverage with strong LatAm support for teams that need fast onboarding.
2. Papaya Global. Papaya Global offers an extensive payroll infrastructure across many regions for companies scaling internationally.
3. Globalization Partners (G P). G P delivers enterprise-level compliance management for large organizations expanding into LatAm.
4. Rippling. Rippling combines HR, IT, and EOR tools for tech-forward teams wanting a unified platform.
5. Skuad. Skuad supports EOR, AOR, and contractor management for companies hiring across several markets.
6. Multiplier. Multiplier offers simple pricing and quick onboarding for startups and smaller teams.
7. Serviap Global. Serviap Global focuses on LatAm hiring and offers deep regional knowledge.
8. Ontop. Ontop provides fast payments and onboarding tools tailored for LatAm contractors and employees.
9. Velocity Global (Pebl). Velocity Global is designed for companies with regulated compliance needs across global markets.
10. GoGlobal. GoGlobal offers fast setup and strong regional coverage for mid-market organizations.
11. Alcor. Alcor specializes in engineering talent support and works well for R&D teams.
12. Atlas HXM. Atlas HXM provides enterprise-grade analytics and HR tools for complex operations.
13. Oyster. Oyster is a streamlined platform for remote hiring and global onboarding.
14. Mercans. Mercans provides a scalable payroll engine for companies that run high-volume payroll cycles.
15. Vistra. Vistra supports companies planning long-term entity expansion with structured EOR services.

Best EORs in LatAm by category

• Best for hiring software engineers. Howdy and partner EORs, Alcor, Rippling, and Ontop support engineering teams with strong senior talent requirements.
• Best for global coverage. Deel, Papaya Global, G P, and Skuad help companies hire across dozens of markets.
• Best for fast onboarding. Deel, Oyster, Vistra, and Multiplier help companies activate hires quickly.
• Best for cost-sensitive hiring. Multiplier, Serviap Global, and Ontop offer straightforward pricing structures.
• Best for local expertise. Serviap Global, Ontop, and Alcor provide deep in-country support.
• Best for enterprise needs. Papaya Global, Velocity Global, Mercans, and G P align with highly regulated organizations.
• Best for integrations. Rippling, Deel, and Atlas HXM support HR and finance system integration.

Country by country: How LatAm hiring works

Brazil

• Payroll expectations. Brazil requires a 13th salary and government-mandated contributions that affect employer cost.
• Labor complexity. Labor rules require careful handling of overtime, benefits, and employee classification when hiring in Brazil.
• Talent availability. Brazil offers one of the deepest engineering pools in LatAm for teams building long term capabilities.
• Verified salary insight. Average developer salary in Brazil is $53,253 USD per year.

Mexico

• Benefits requirements. Employers must contribute to social security, housing funds, and profit sharing.
• Severance clarity. Mexico uses a structured formula for terminations that requires precise calculations.
• Talent depth. Mexico offers strong full stack and Python talent with high English proficiency.
• Verified salary insight. Average developer salary in Mexico is $55,894 USD per year.

Colombia

• Social contributions. Employer and employee contributions are divided across multiple programs.
• Contract structure. Contract type impacts notice periods and severance.
• Growing market. Bogotá and Medellín are expanding as engineering hubs.
• Verified salary insight. Average developer salary in Colombia is $55,894 USD per year.

Argentina

• Currency variability. Salaries often use USD benchmarks to stabilize compensation.
• Senior concentration. Argentina has one of the highest senior talent densities in the region.
• EOR importance. Payroll precision is critical due to inflation and changing policies.
• Verified salary insight. Average developer salary in Argentina is $63,163 USD per year.

Chile

• Stable framework. Chile offers predictable employment rules and stable labor markets.
• Specialized roles. Growth in data engineering and fintech increases demand for advanced skills.
• Verified salary insight. Average developer salary in Chile is $61,266 USD per year.

LatAm verified salary snapshot (2025)

This article uses verified 2025 payroll data from Howdy’s network of 12,500+ full-time engineers across eight Latin American countries.

• Average range. Verified 2025 developer compensation ranges from $53,000 to $63,000 USD per year.
• Highest markets. Argentina, Uruguay, and Chile lead in compensation due to senior talent density and economic conditions.

Savings potential. US companies reduce total employer cost by 60 to 65% when hiring through Howdy’s nearshore model.

Salary comparison table

Which EORs are most reliable for hiring engineers

• Demonstrated experience. A reliable EOR has experience hiring senior engineers in the specific countries you plan to expand into.
• Salary alignment. A strong EOR uses verified market data to make sure your offers stay competitive.
• Engineering readiness. EORs that support equipment, tooling, and onboarding processes work better for engineering teams.
• Howdy advantage. Howdy, pre-vet talent and works with EOR partners to manage contracting, onboarding, and long-term retention.

What are the best Employer of Record services in LatAm?

EOR contract models in LatAm

• Full-time employment. This model provides workers with all protections required under local law for long-term hiring needs.
• Contractor engagement. This model allows companies to hire quickly for limited projects but comes with misclassification risk.
• Hybrid models. This model allows companies to start with contractors and eventually convert them to full time employment through the EOR.

Common mistakes when choosing a LatAm EOR

• Choosing on price alone. Low monthly fees can hide hidden costs or slow support.
• Ignoring local expertise. A global brand does not guarantee strong in-country coverage.
• Using incomplete salary data. Scraped or anonymous salary data can misrepresent real employer costs by up to 40 percent.
• Assuming EORs recruit talent. Most EORs only manage compliance rather than talent quality.
• Overlooking termination complexity. Countries with strict rules require experienced EOR support during offboarding.

Howdy vs traditional EOR platforms

• Vetted talent. Howdy identifies and assesses senior engineers to ensure technical and communication quality.
• Verified compensation data. Howdy uses salary data from real payroll agreements to help companies set accurate salary bands.
• Local support. Howdy’s regional offices support retention and work experience.
• Unified workflow. Howdy connects talent sourcing and EOR compliance in a single workflow.

How to choose the right LatAm EOR partner in 2026

• Hiring volume. Companies should evaluate whether they need multi-country coverage or depth in specific markets.
• Talent expectations. Engineering teams require partners who can identify top technical talent.
• Risk profile. Companies should consider their tolerance for payroll mistakes or regulatory delays.
• Budget alignment. Compensation benchmarks and verified data help set realistic budgets across multiple regions.

Frequently asked questions

What is the average software engineer salary in LatAm in 2025?

Howdy’s verified payroll data shows that software developers earn between $53,000 and $63,000 USD per year.

How do LatAm developer salaries compare to the US?

LatAm engineers earn about 43% of US salaries while delivering full time availability in aligned time zones.

Which countries pay the highest engineering salaries?

Argentina, Uruguay, and Chile lead in compensation as of 2025.

Do EORs set salary bands?

EORs do not set salary bands. Companies should rely on verified regional benchmarks from trusted sources such as Howdy.

How long does EOR onboarding take?

Onboarding typically takes a few days once documentation is complete.

Do EORs handle recruiting?

Most EORs do not recruit or vet talent. Howdy handles this through structured assessments.

Ready to hire engineers in LatAm?

Howdy can help you:

• Identify the right countries for your team.
• Understand verified employer costs.
• Meet vetted engineers who match your stack and culture.
• Hire compliantly through trusted EOR partners.

Book a demo with Howdy.com to learn more.