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Hiring employees in the United States (2026)

Here's what you need to know before you hire in United States: what it really costs an employer, the employment laws that shape the contract, and how an Employer of Record lets you hire compliantly without opening a local entity. Every figure below is sourced and dated.

7.7%Employer cost on top
$1,257Minimum wage / mo
0 daysMinimum paid annual leave
Days, not monthsTime to hire via EOR
Robbin Schuchmann
Written by:
Co-Founder at EOR Overview
Last updated: October 20, 2026

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United States at a glance

The statutory facts that drive a hire in United States. Each row shows where the figure comes from and how current it is, so you can trust the number and check it yourself.

Pay & working time

Minimum wageper month$1,257CurrentEurostat · 2026
Average wageper year86,977AgingOECD · 2025
Statutory work week40 hours/weekCurrentNational government · 2026
Payroll cyclebiweeklyCurrentResearch desk · 2026
13th-month salarynoneCurrentNational government · 2026

Employer cost & tax

Employer social securityof gross salary7.7%CurrentManual / editor · 2026
Employee social securitywithheld from pay7.7%CurrentManual / editor · 2026
Tax and mandatory contributions wedgeOECD, taxes plus non-tax compulsory payments such as mandatory private pension and health contributions30%AgingOECD · 2025
Corporate tax rate21%CurrentPwC Worldwide Tax Summaries · 2026

Termination

Notice period0 weeksCurrentNational government · 2026
Severance pay0 weeksCurrentNational government · 2026
Employment protectionOECD EPL, scale 0–60.8AgingOECD · 2025

Leave & time off

Paid annual leave (minimum, once eligible)0 daysCurrentNational government · 2026
Public holidays11 daysCurrentNational government · 2026
Maternity leave12 weeksCurrentNational government · 2026
Paternity leave0 weeksCurrentManual / editor · 2026
Parental leave12 weeksCurrentNational government · 2026

Labour market

Retirement age67CurrentNational government · 2026
Unemployment rate4.3%CurrentOECD · 2026
GDP per capita$90,027AgingWorld Bank Open Data · 2025
Union density9.9%DatedOECD/AIAS ICTWSS · 2024
Collective bargaining coverage11.1%DatedOECD/AIAS ICTWSS · 2024

Rows marked Research desk were filled by our research desk from primary sources where no institutional dataset publishes the figure; each carries the date it was checked and is re-verified on its refresh cycle.

What it costs to hire in United States

Salary is only part of the bill. On top of gross pay you owe employer social security and statutory contributions. Here's what an example salary of $87,000 a year actually costs you as the employer.

Gross annual salary$87,000
Employer contributions≈ 7.7% of gross+ $6,656
Total employment cost$93,656
Your EOR handles the filings

Illustrative, based on the employer social-security rate above. An EOR adds its own service fee on top of this total and runs the income-tax withholding and statutory filings, which are withheld from the employee's pay, not paid by you.

Employer contributions
Social security7.7%
Employee contributions
Social security7.7%

Employment-law essentials

The rules an EOR enforces in your contracts, and the ones most likely to trip you up if you tried to hire in United States on your own.

Working time
Statutory work week40 hours/week
Pay & 13th salary
Minimum wage$1,257
Payroll cyclebiweekly
13th-month salarynone
Leave
Paid annual leave (minimum, once eligible)0 days
Public holidays11 days
Maternity leave12 weeks
Paternity leave0 weeks
Termination
Notice period0 weeks
Severance pay0 weeks

Statutory minimums shown. Collective agreements or contracts can be more generous; an EOR applies whichever is correct for the role.

What changed in United States

Checked against official sources on .

No rule changes recorded since we began logging them.

EOR vs. opening your own entity in United States

Use an EOR when…
You're hiring one to a handful of people in United States.
You want someone working in weeks, not months.
You'd rather not own local payroll, tax and compliance.
You're testing the market before committing.
Open your own entity when…
You're scaling to a large local team long-term.
Per-employee EOR fees outweigh the cost of an entity.
You need full control of local employment and IP.

Choosing an EOR for United States

Providers with strong United States coverage onboard faster and carry less risk. A shortlist to start from:

Compare all EOR providers in United States

Best employer of record in the United States: ranked providers

Local players in United States

EOR and global-employment providers headquartered in United States:

Common questions about hiring in United States

Common questions about hiring in United States through an EOR.

Do I need a legal entity to hire someone in United States? +
No. An Employer of Record (EOR) already has a legal entity in United States and employs the person on your behalf, so you can hire compliantly without opening your own entity. You manage the day-to-day work; the EOR handles the local contract, payroll, taxes and statutory benefits.
How much does it cost to employ someone in United States? +
On top of gross salary, employers in United States contribute roughly 7.7% in social security and statutory costs. An EOR adds its own service fee on top of that total employment cost.
What is the minimum wage in United States? +
The statutory minimum wage in United States is $1,257. Pay below this is not permitted, and an EOR will hold contracts to at least this floor.
How hard is it to terminate an employee in United States? +
Ending employment in United States generally requires a notice period of around 0 weeks and severance of about 0 weeks, subject to the reason for termination and the employee's tenure. An EOR runs the offboarding in line with local law to limit your risk.
How much paid leave do employees get in United States? +
Employees in United States are entitled to 0 days of paid annual leave, in addition to public holidays. Statutory leave is one of the entitlements your EOR administers automatically.
About the author
Robbin Schuchmann
Co-Founder at EOR Overview
Robbin is the co-founder of EOR Overview, an independent research site for Employer of Record services. He has been in the international hiring space for over a decade.
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