Full-time vs Part-time: differences in hours, pay, and benefits

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Gino Peters

Written By:

Gino Peters

Reviewed By: Belinda E.

May 17, 2026 2:43 am

Category Tag: News

The rise of remote work made international expansion much easier in recent years, but hiring abroad still comes with legal and administrative complexity, as every country has its own labour laws and payroll rules that must be followed. In addition, not many companies can open a new entity in every new market that they are expanding into. That is when the Employer of Record (EOR) solution comes in handy.

The EOR serves as the legal employer on paper, while the client company manages important activities related to the employees responsibilities and performance.

In this guide we will cover what an employer of record is, how it works in detail, how much it can cost and which business should consider an EOR solution.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third party service provider that legally employs a person on behalf of another company in the country where the employee officially resides. As an official employer the responsibilities of EOR include issuance of an employment contract, processing payroll and withholding taxes and necessary social security contributions, as well as preparation of offboarding documents or any documentation that need to be signed by the employer. In addition, EOR ensures the compliance with local labour laws and serves as a first point of contact for any legal disputes.

The client company that hired the employee through an EOR also has a list of responsibilities. As an Employer of Record does not have the visibility on operational activities behind the scenes a client company needs to provide direction and ensure proper team integration.

In simple terms, the EOR provider acts as a legal employer in the country of the employee’s residence, while the client company takes on day-to-day manager work.

Responsibility	Employer of Record (EOR)	Client Company
Employment contracts & any other official documentation
Payroll processing
Income tax & social security contributions
Compliance with local labour laws
Statutory benefits administration
Managing daily work and projects
Setting goals and performance expectations
Providing equipment and tools
Leading the employee’s team and workflow

Employer of Record solutions gain more and more popularity in the field of global expansion as they allow businesses to hire best candidates fast and easy while staying compliant with local employment regulations. More information about EOR service are available if you would like to understand more.

EOR Meaning

The term “EOR” is the abbreviation for Employer of Record.

Employer in this instance stands for the company that hires the employee and takes on duties related to it, such as onboarding and offboarding process, payment of wages and compliance with other legal requirements.

“Record” from the EOR perspective refers to official registration with government authorities. The name of the EOR provider is stated in all payslips and tax filings, and should also be listed by the employee in any documents where employer must be stated, such as mortgage or loan applications.

One might ask a question of why this legal structure exists. As it is not possible to provide an employment contract directly to a person that legally resides in another country, the business expanding abroad typically needs to establish a local entity. That involves legal registration, arrangement of local bank accounts and organisation of payroll structure, as well as compliance with local law.

EOR allows to simplify the global hiring and reduce administrative burden through their existing legal entity.

There are some other hiring models that can be confused with EOR.

EOR and PEO

Many sources online refer to EOR as “international PEO”, which may create confusion as these models have 1 important difference.

A Professional Employer Organisation (PEO) serves as a co-employer of a client company. In other words, a business must already have an established entity in the country. The hiring tasks are, therefore, shared between 2 companies, while legal liability stays only with the client company. In the EOR model all legal risks are being taken by the official employer. Read more about the difference between PEO and EOR here.

EOR and staffing agency

Staffing companies mainly provide assistance for short-term projects by providing temporary workers. If the client wishes to employ a person for a longer time, EOR approach must be chosen.

EOR and contractor model

Contractor agreements assume the involvement of independent workers rather than employees. This model is also often used for temporary, project-based assignments. It is important to remember that there is a big misclassification risk between a contractor and an employee in the company which can lead to potential legal issues. An EOR ensures that employment is legally compliant with local labour law.

How does an Employer of Record work?

While it may sound complicated at first, a process behind the employer of record model is relatively straightforward.

The operating company selects a candidate

The client company recruits the employee they want to hire in another country

The EOR becomes the legal employer & local employment contract is issued

The Employer of Record uses its local legal entity to prepare and issue an employment contract that complies with labour law of the country where the employee is based. Depending on case-by- case situation, the work visa might need to be secured beforehand. Our company provides immigration services, more details can be found here.

Payroll and taxes are managed

The EOR takes on recurring responsibilities related to a payroll and ensures correct processing of income tax, social security contributions etc

Benefits are administered

Paid leave, sick leave, pension contributions and any other statutory benefits are being managed by the EOR.

Ongoing compliance and HR support

It is the responsibility of the EOR to monitor changes in local labour law and ensure ongoing compliance.

Example:

Imagine a UK-based tech company found a perfect candidate in Germany for a position of a software developer.

Instead of going through the administrative burden of opening a legal entity in Germany, the company chooses to work with an Employer of Record. The EOR hires the developer under a German employment contract and manages payroll and taxes. At the same time the UK company welcomes the new employee in the team and manages the daily work of a developer.

What services does an Employer of Record provide?

The Employer of Record does more than just providing an employment contract to the employee. Typically a wide range of HR and compliance services is included in the EOR offer. For example, read about the services included in our EOR package here.

Employment and HR administration

Locally compliant employment contracts and support with other documents requested by authorities
Employee onboarding
Employee record management. For example, control over PTO

Payroll and tax management

Regular payroll processing
Tax withholding and reporting of social security contributions with authorities
Payslip generation and creation of annual wage tax certificates

Benefits administration

Management of statutory benefits
Pension contributions (where required)
Support with benefits such as maternity leave allowance, sick leave allowance etc

Compliance and risk management

Insuring compliance with local labour law
Management of onboarding and offboarding processes
Representation in difficult legal and court cases

Additional services:

Some EOR providers ( such as ThisWorks EOR Services) provide additional services such as:

Work permit and dependent visa support
Background checks
Relocation support
Value added services: support with housing, company car, banking, etc ( depending on the country).

This vast list of services allows businesses to manage international teams, while staying compliant and avoiding complex local employment administration.

Benefits of using an EOR service

There are multiple advantages the businesses can get from working with an Employer of Record provider.

Faster global hiring

Setting up a new entity can take up to several months. With an EOR the hiring process can take several days.

Reduced compliance risk

A trustworthy EOR provider ensures the compliance with all local regulations. As the labour law varies greatly between countries, having a knowledgeable party to rely on can make a big difference.

Lower expansion costs

Establishment of a new entity is not only a time-consuming process, but also costly. With EOR services these costs can be avoided.

Access to global talent

The location of a remote candidate is not a problem if the company uses Employer of Record services. In other words, the best candidate for specific business purposes can be chosen.

Scalable hiring model

EOR services are ideal for organisations that want to scale international hiring quickly. They are particularly useful in the following situations:

Remote-first teams and organisations
Companies testing new markets abroad
Startups expanding internationally

How to choose the right Employer of Record

Choosing between several EOR providers is important, as it influences not only compliance, but also employee experience for new hires and how your company is perceived on the job market.

Here are some important things to keep in mind when deciding on your EOR partner:

Geographic coverage

Make sure that EOR provider can cover the country where you want to expand globally. Read about our EOR coverage here.

Pricing transparency

Check that EOR provider does not have any hidden costs and the pricing is clearly outlined in your MSA.

Compliance expertise

A strong EOR provider should have a team of experienced local HR specialists who understands all in and outs of a national labour law.

In-house vs partner model

Some EOR providers rely on their third-party partners, while others manage employment directly through their own local entities.

Customer support

It is important to find a EOR partner that helps with any questions or concerns in a quick and professional manner. That can be crucial when dealing with employee offboarding or any legal disputes.

Warning signs

Understanding the importance of choosing a right party, your company should be cautious of providers that lack local expertise and cannot give clear answers to your labour law questions. In addition, companies with slow response times can prove to be unreliable in critical situations. Furthermore, providers with complex pricing models with many hidden fees can create a lack of cost transparency and result in unforeseen expenses.

By selecting a provider with strong expertise in local labour law and reliable support from dedicated teams, your company can ensure a smooth international growth. Learn why companies choose ThisWorks as their EOR partner.

How much does an employer of record cost

The vast coverage of services the employer of record provides makes many businesses ask how much an EOR costs.

Pricing models vary greatly on the provider and the country of coverage, but most EORs use one or more of the following structures.

Flat monthly fee per employee.

The EOR provider charges a fixed monthly fee for each employee they have on the payroll from the client.

Percentage of salary

While not being a popular approach, some EOR providers charge a percentage of the employee’s salary, typically ranging between 5%-15%.

Setup fees

Some providers charge onboarding or offboarding fee for each employee.

The fee that the business needs to pay to an EOR provider also depend on the location of a service. Local labour law complexity of some countries can influence the fee. In addition, some countries have specific statutory benefits and payroll administration requirements. Furthermore, employee headcount in the specific location can influence the fee.

EOR vs setting up a legal entity

To establish a new entity the organisations needs to go through legal and tax registration. In addition, accounting support and ongoing compliance costs such as the fees for local labour lawyers can make setting up a legal entity significantly more expensive.

An EOR allows companies to expand globally without these upfront investments.

EOR vs hiring contractors

Some businesses decide to hire international workers as contractors. However, this approach can often lead to a misclassification risk, which can cause legal and tax liabilities.

A professional EOR provider ensures that the new starters are compliantly onboarded under local employment regulations.

EOR FAQs

Is an EOR the same as a PEO?

No. PEO model assumes co-employment and requires the business to already have established local entity, while EOR employs new talents through its own entity only.

Can an EOR hire contractors?

While some EOR providers can support hiring contractors, it is important to remember that main function of EOR is the employment of full-time workers legally in a country. A risk of misclassification between EOR and contractor should be also considered carefully.

Is an employer of record legal?

Yes, when established and structured properly, Employer of Record entities are legal and widely used for international expansion by many companies.

When should you use an EOR?

The most common reason for using EOR include:

Hiring employees located in another countries remotely
Testing new markets before establishing an entity
Expanding internationally

Can you switch from EOR to your own entity?

Yes. Many companies initially hire through an EOR for the ease and speed of expansion and later transition employees to own legal entities upon their establishment. It is important to remember that some countries require specific procedure to be followed in such a scenario.

Get in touch with ThisWorks

Expanding your team globally does not need to be long and administratively complex.

With the use of Employer of Record the businesses can have access to the best talent from around the world while ensuring full compliance with local labour laws.

ThisWorks can support your global expansion with our compliant Employer of Record services.

Contact our team to find our how we can help your international team glow fast and compliantly!

Full-time vs Part-time: differences in hours, pay, and benefits

The Bureau of Labor Statistics states that more than half of the employees in the United States work full-time, with the remaining employees working part-time. In regard to the Germany’s Federal Statistical Office, 70-75% of the employees in the EU work full-time. Approximately 20-25% works part-time. However, there are major differences between countries.

The Netherlands for example has the highest rate of part-time workers, with over 40%, particularly women. In addition, Belgium, Germany, and Austria also have a higher part-time rate which is above the EU average.

These two types of employment have different characteristics regarding many factors defining employee status, such as working hours, wages, entitlements, and stability.

Usually, full-time employment means having a job for 35 to 40 hours per week with more excellent stability and higher wages and full-time employee benefits, including health insurance and retirement programs. On the other hand, part-time work is a job that is less than 30 hours a week, and even though it is flexible, the coverage is less in terms of allowance, insurance, and surety.

Knowledge of these differences is essential because it provides the employee with all the necessary information to decide which option fits best into their career progression, personal life, and financial situation. This blog will dive into the details, comparing full-time employee benefits vs part-time hours, wages, and overall work-life balance. In this article, we discuss the strengths and weaknesses of both options to guide the reader in making the right decision.

Defining full-time vs part-time hours

In most industries today, if a person is a full-time employee, they should work 35 to 40 hours a week. These standards typically guarantee a steady income, an option to receive benefits and higher job security. However, full-time work differs depending on whether the employer or industry provides employment opportunities. For instance, some companies define full-time work as 30 hours a week to qualify for benefits.

In contrast, part-time employment is used when the individual spends less than 30 hours serving their employer. As much as they are favorable due to flexibility, most part-time jobs pay lower salary, minimum or no benefits and less job security than full-time jobs.

This also means that the full-time vs part-time hours may differ from country to industry and industry to industry. For instance, in the European Union, the working week may be at most 48 hours in full-time jobs, while in the United States of America, overtime starts after 40 hours of work. Knowing and differentiating between the FTW (full-time work) and PTW (part-time work) is essential, especially when analyzing potential positions.

Difference in wages full-time and part-time

The difference in wages full-time and part-time is another factor; full-time attracts more wage scales than part-time. Employees who work in a company are expected to complete a full working day and are paid a full wage or salary, while those working for a limited working day are paid per working hour. This implies that wages paid to part-time working individuals vary with the working schedule of part-time workers, which is usually one week out of the year and, therefore, has comparatively lower earning certainty than full-time workers receive.

Based on data from the U.S Bureau of Labor Statistics, full-time employees will have opportunities that are 60% higher on average than those for part-time employees. This type of employment also has an additional option to earn a higher wage in the form of premiums, increased wages for working overtime, and sales incentives that could substantially increase the number of earnings. According to Eurostat data, 17% of all employed individuals worked part-time across the EU, mostly women.

Even full-time employee benefits can also affect bonuses. It states that full-time workers are sometimes paid for extra work beyond 40 hours a week, but part-time workers may not be, even though they work additional hours. For instance, employees in the retail or hospitality sector work shorter hours, but the part-time staff is prone to open shifts during the peak time in those sectors. Still, they are not legally entitled to any minimum extra pay for their overtime hours if not for the exact terms agreed earlier.

Ultimately, the disparity between full-time and part-time employment is substantial, while both allow full-timers to be guaranteed a stable income and other monetary incentives. When deciding what is better: Whether the employees are employed on a full-time or part-time basis, the employee should consider the type and amount of income required, the benefits when available and the long-term goals for the position.

Benefits: What full-time employees receive vs part-time employees

The visible contrast between full-time and part-time employment is the opportunity to receive full-time employee benefits. Employees with full-time tenures receive benefits ranging from medical, insurance, and retirement, among others, to pro-rated time off (PTO) and sick leaves. These elements are helpful in overall remunerational provisions and can yield relatively large financial safeties and mere wages.

Health Insurance

In most organizations, these employees receive full company benefits, including company-provided health insurance for their medical, dental, and vision needs. While full-time employees enjoy these perks, those working part-time can sometimes be provided the same. The ACA (Affordable Care Act) mandates that employers only offer health benefits to employees who work at least 30 hours a week. This means many employees serving part-time with their companies need to be covered. However, some companies offer half-bare health insurance for part-time employees.

Retirement plans

Employed workers are usually given a 401(k) or pension associated with employer funding or matching. These plans provide for the future income for the worker while the employer can always add a lot of money to the worker’s savings. Many employers do not grant these retirement benefits to part-time employees, and those provide only certain defined benefits to part-time employees after specific years of service.

Paid time off (PTO) and sick leave

A company’s standard package for full-time workers includes paid vacations, sick days, and holidays. This feature of PTO is a huge bonus, especially giving time off without compromising an individual’s pay. This is quite true for part-time employees because often they are not provided with such paid benefits. Sometimes, you may receive part of your vacation days or absences due to sickness in proportion to your working hours, though it is rare.

While full-time employee benefits are more extensive, some part-time positions offer perks like flexible hours, discounted company products, or access to training and development programs. These perks make working part-time even more appealing to those who want a job that will not interfere with their other commitments. At the same time, the absence of concentrated employment makes part-time jobs less guaranteed in terms of compensation for existing benefits, including medical and pension.

Flexibility and work-life balance: full-time vs part-time

Part-time jobs for flexibility are a great option. Many part-time employees can agree with their employers about their schedules or to work less than others, meaning they can set decent balance between work and family. Flexible learning is preferred by students, parents, or anyone who has other responsibilities aside from working.

While addressing work-life balance, employees working full time will find it more difficult than their part-time counterparts because they spend so much time at work, and their roles are likely to be much more demanding. Permanent positions can lead to an occupation that demands a lot of time and thus less time for the personal or family business. According to the American Psychological Association APA, fifty percent of all full-time employees experience stress from work and family conflict.

However, within the framework of a fuller workload means more significant earnings and protection from the notion of ‘lack of regular work,’ even if it is genuinely at the cost of making time for oneself. The growing demand for part-time jobs for flexibility reflects many workers’ desire to prioritize personal well-being while maintaining a source of income.

Job security: full-time vs part-time

Regular employees typically receive more job security because they have reported for an extended period, and they are bound by contracts and protected by labor laws covering such deliveries as severance wages and unemployment insurance. Full-time positions also offer better visibility for career growth, so organizations are expected to provide that. Conversely, part-time work benefits are less secure since numerous jobs are casual or contractual. Employees of such status need more job stability and can easily find themselves dismissed or having their working hours cut. They also generally lack the same full-time employee rights as permanent workers, hence their vulnerability. However, there could be a flip from a contractual position of a part-time employee to a permanent position depending on their value and intentions in case of available chances in the company.

Tax implications: full-time vs part-time work

The circumstances vary in terms of full-time versus part-time due to the distinction in the income levels. Employees who work full-time are paid better and are likely to fall in the higher brackets regarding income taxes and social security.

For instance, part-time employees who earn relatively less should be ensured to pay fewer taxes as most are in lower tax bands. However, they may also have fewer deductions for benefits such as that for retirement savings. For both statuses, taxes depend on the overall income achieved during the year, including bonuses and overtime salary. People working part-time and doing other jobs must consider combining incomes to affect taxes.

There is a need to understand the differences in tax responsibilities accompanying these positions when managing money.

Full-time vs. Part-time in Different Countries: Germany, Spain, Netherlands, and the US

Different countries have unique approaches to full-time and part-time employment:

Germany: Full-time work is 35–40 hours/week. Part-time workers (20+ hours) receive benefits like health insurance and paid leave.
Spain: Full-time is 40 hours/week, with strict overtime rules. Part-time workers get proportional benefits but often face job insecurity.
Netherlands: Known for flexible part-time work (below 36 hours). Part-time employees enjoy the same benefits as full-timers.
United States: Full-time is typically 35–40 hours/week. Part-time employees (under 30 hours) may not receive benefits, which vary by employer.

Conclusion

In conclusion, full-time jobs are associated with more stable and higher earnings, wider opportunities to get benefits, and better protection against dismissal. Still, part-time work benefits combine a job with other essential activities. They work 35-40 hours per week, receive fixed wages, and enjoy prescribed medical care, pension and sick leaves, and other privileges. Meanwhile, flexible workers usually work 29 hours or less per week, are paid hourly and have limited employee benefits but can have a much more relaxed schedule.

In conclusion, the choice of full-time vs part-time employment is relative to the career aspiration, personal requirements, and financial expectations. Full-time employment suits clients looking for career growth and job security. At the same time, part-time positions are considered perfect for clients who need freedom in their schedule or an additional job. Consider your interests and close your eyes to decide which option best suits your needs.

FAQs

What is the main difference between full-time and part-time work?

Full-time work involves 35-40 hours per week, while part-time jobs generally require fewer than 30 hours.

How many hours define full-time vs part-time employment?

Part-time is often defined as any less than 35-40 hours per week, and the exact cut-off can be firm or country-dependent. For this analysis, employed workers were defined as those whose jobs were reduced to less than 30 hours a week.

What are the pros and cons of working full-time?

On the other hand, full-time employees have a stable source of income, and they can access additional benefits such as health insurance and retirement plans, as well as better protection against job dismissal. However, the disadvantages are far fewer flexibility options and more working hours, which can result in employee burnout. While workers may work part-time, they might sometimes miss out on the perks and the stability of a full-time employee. Find here top 12 advantages of full-time employment from indeed.

Are part-time workers eligible for health benefits?

Yes, but this is determined by the employer’s policy or regulation and local laws. Moreover, contract employment is often considered payment, and they cannot receive health insurance, retirement pension, or the rest. However, some employers provide some benefits for reduced-hours workers, especially those whose working hours are almost equal to those of a full-time employee.

How do wages differ between full-time and part-time roles?

There is a common worldwide practice to pay full-time employees a fixed amount of money monthly or annually so they have a stable income. In contrast, part-time employees, as a rule, are paid by the hour, and their wages constantly change depending on the amount or number of hours worked. Sometimes, full-time positions in the organization contain extra incentives and extra hours for pay, whereas part-time positions may not.

Can part-time workers transition to full-time roles?

Indeed, it is true that many part-time employees get a chance to move full-time if this shows interest and adds value to the employer. Whether full-time positions are available may vary according to companies since some companies opt to promote their employees to a higher post whenever an opportunity arises.

Do full-time and part-time jobs offer different job security?

Yes, full-time jobs provide better job security since they are more likely to be signed on contracts legally. Employees may also report more job insecurity if they work part-time because their jobs might be seasonal or temporary.

What are the tax implications for full-time vs part-time employees?

Full-time employees usually fall into higher tax brackets due to their higher income, resulting in more income taxes and social security contributions. Part-time employees, on the other hand, often fall into lower tax brackets, which can reduce their overall tax burden. If you have questions regarding the tax rates, feel free to contact our EOR experts here.

Is it possible to maintain a work-life balance with a full-time job?

Holding a full-time job means more extended hours and increased responsibilities; however, having a healthy work-life balance is achievable. It goes down to the fact that most part-time jobs offer more flexibility since one can combine them with other duties. Check out our latest blogs Remote Well-being: How To Take Care Of Remote Employees’ Mental Health