Staff leasing: what it means onshore and offshore

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

Staff leasing is an arrangement where a provider legally employs full-time workers and assigns them to your business, while you direct their daily work; offshore staff leasing is the same model with the workers in a lower-cost country such as the Philippines or India. In the US, the onshore version is called employee leasing, and Florida requires an employee leasing company license (Fla. Stat. 468.531).

Staff leasing is a model in which a provider employs workers, pays their wages and statutory costs, and leases them full time to a client that directs their work.

On this page
  1. How offshore staff leasing works
  2. A cost benchmark: one hire in the Philippines
  3. Staff leasing vs EOR vs employee leasing vs temp agency
  4. Risks to ask about

How offshore staff leasing works

The provider recruits, hires and pays the workers through its own local company, covers statutory contributions and mandatory bonuses, and often supplies an office seat, computer and internet. You interview, choose and manage the people. You pay one monthly invoice per seat. Unlike a call center or other outsourcing deal, you are buying people's time, not a finished output; see BPO for that model.

If a staff leasing firm quotes a price per seat, ask for the invoice split into salary, statutory costs, seat and margin, so you can compare it line by line.

A cost benchmark: one hire in the Philippines

Here is the same hire through an employer of record, which uses the same legal setup without the office:

  • Salary: USD 40,000 a year.
  • Employer contributions plus the mandatory 13th month pay: 11.3%, or $4,520 (our Philippines data).
  • EOR fee: $99 a month (Native Teams, whose help center says EUR 99) to $699 (Oyster), or $1,188 to $8,388 a year, in published list prices checked October 16 and 18, 2026.
  • All-in: $45,708 to $52,908 a year.

A staff leasing quote that includes an office seat and equipment should be compared against that range. Country rules are on our Philippines EOR page and our India EOR page, and the international employee cost calculator runs other countries.

Staff leasing vs EOR vs employee leasing vs temp agency

How staff leasing compares with similar models
ModelWho employsWho directs the workTypical use
Offshore staff leasingProvider in the worker's countryYouFull-time remote teams, often in the provider's office
Employer of recordEOR in the worker's countryYouOne or more hires abroad, working from home
US employee leasing (PEO)Shared: PEO and you (co-employment)YouYour existing US staff, for payroll, benefits and HR
Temp or staffing agencyAgencyYou, for a limited assignmentShort-term or seasonal workers

Sources: Florida Statutes 468.531 for employee leasing licensing; vendor pricing pages for EOR. Checked October 2026.

More on the neighbors: employee leasing, temp agency and PEO vs EOR.

Risks to ask about

If leased staff abroad sign contracts or close sales in your company's name, your business can create a taxable presence in that country; see permanent establishment. Ask who owns work product and client data, and what notice and severance apply if you end a seat. In the Philippines, the 13th month pay is due by December 24 each year, so expect a December invoice spike if it is billed as paid rather than monthly.

Frequently asked questions

What is offshore staff leasing?
Offshore staff leasing is hiring full-time workers in another country through a provider that legally employs them, pays salary and statutory costs, and often supplies office space and equipment, while you manage their daily work. The Philippines and India are two common locations.
What does staff leasing mean?
Staff leasing means a provider is the legal employer of workers who work full time for your business under your direction. In the US the same idea is called employee leasing and is usually delivered by a PEO; Florida licenses these firms as employee leasing companies.
Is staff leasing the same as an employer of record?
They are close. Both make the provider the legal employer in the worker's country. A staff leasing offer may bundle an office seat and equipment into a per-seat price; employer of record services list a monthly fee per employee, $99 to $699 among the providers we track (checked October 16 and 18, 2026).
How much does offshore staff leasing cost?
Providers usually quote per seat. As a benchmark, a USD 40,000 hire in the Philippines through an employer of record costs $45,708 to $52,908 a year all-in, including 11.3% employer costs and a $99 to $699 monthly fee. Office and equipment would add to that.
Sources (9)
  1. Florida Legislature: Florida Statutes 468.531 (2026), employee leasing companies (checked Oct 16, 2026)
  2. Philippine Department of Labor and Employment: 13th month pay due before December 24 (checked Oct 16, 2026)
  3. Social Security System (Philippines): SSS contribution table (checked Oct 16, 2026)
  4. Playroll: Pricing (checked Oct 16, 2026)
  5. Pebl: EOR pricing (checked Oct 16, 2026)
  6. Oyster: Pricing (checked Oct 16, 2026)
  7. Payoneer Workforce Management (Skuad): Pricing (checked Oct 16, 2026)
  8. Native Teams: Pricing (checked Oct 18, 2026)
  9. Native Teams: Pricing plans, features, benefits and how they work (help center) (checked Oct 18, 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.