Dane Cobain
By Dane Cobain

Verified review

10

Countries

$758

From /month

2001

Founded

2.4 of 5

Rating
Overview: Parakar at a Glance

Overview: Parakar at a Glance

Founded in 2003, Parakar is one of Europeโ€™s most established regional Employer of Record providers, offering deep local expertise in some of the continentโ€™s most complex labor markets. Unlike global-first EORs such as Deel or Remote, Parakar operates as a regional specialist, focusing primarily on Germany, the Netherlands, Spain, Portugal, Ireland and Poland. This tight regional focus gives them a level of accuracy and country-specific knowledge that many global EORs struggle to match.

Parakar also plays an important role behind the scenes in the wider EOR ecosystem. For years, they have acted as an implementation partner for several global EOR platforms, including Papaya Global and, in the early days, Deel before they built their owned-entity network. This long-standing operational experience has earned them a reputation for reliability and strong compliance execution.

parakar homepage design contact form to start hiring abroad

However, Parakar is not a SaaS-EOR platform. Their tools and workflows are considered more old-fashioned, with less automation and slower onboarding compared to the big tech-driven EORs. Their services also tend to be more expensive, particularly in markets where they have dominant expertise. Still, for companies hiring in Germany or the Netherlands, Parakar remains a trusted partner and we can confirm this based on positive personal experience with their hands-on support and legal accuracy.

Our Personal Experience with Parakar

Our Personal Experience with Parakar

Parakar is a strong regional Employer of Record partner with deep expertise in Western Europe, especially in the Netherlands and Germany, where they have operated for more than 20 years. Their biggest strength is local knowledge. Their teams speak the German or Dutch, understand the nuances of payroll and employment law, and offer hands-on support that many global EOR serivces providers simply cannot match. They are not just a tech platform, but a physical office full of people that are there to help. Because Parakar serves as the implementation partner for several major global EORs (including Papaya Global and earlier Deel), they have proven reliability and a long-standing operational footprint.

However, Parakar is not a technology-led provider. They do not offer a tech platform that is nowadays industry standard. They rely on Expensify for expenses and lack automation or dashboard features that many modern companies expect. This makes them less suitable for teams looking for a software-first experience, HRIS integrations, or streamlined global workflows.

Pricing is very disappointing. Prices are not transparent and very high. They use percentage-based fees, charge several additional service fees (setup, offboarding, out-of-cycle payroll, minimum contract periods), and have various country-specific add-ons that can make budgeting unpredictable.

Where Parakar excels is in high-touch, human-driven support, especially for complex employment, local compliance, tax matters, and region-specific cases across Europe. Companies that value personal communication, local expertise, and traditional service delivery will appreciate Parakarโ€™s approach. Meanwhile, businesses looking for fast onboarding, broad coverage, advanced software, or fully transparent pricing structures may find better alignment with global-first providers like Deel, Remote, or Oyster.

Overall impression of Parakar

Overall, Parakar is a strong choice for organizations expanding into Germany, the Netherlands, or other core EU markets and who prefer a knowledgeable partner over a tech platform. Their service quality is high, but the experience is more traditional and manual than modern EOR alternatives.

Parakar Country Coverage: Owned Entities vs Partner Network

Parakar Country Coverage: Owned Entities vs Partner Network

As a regional EOR, Parakar does not operate hundreds of countries but rather focuses on several European countries only. With its headquarters in Breada, the Netherlands it has direct, in-country teams in the following countries:

  • ๐Ÿ‡ณ๐Ÿ‡ฑ Netherlands via Parakar Netherlands B.V. (KvK 62083686)
  • ๐Ÿ‡ฉ๐Ÿ‡ช Germany #1 via Parakar Germany GmbH (HRB 50670B90185); AรœG licensed
  • ๐Ÿ‡ฉ๐Ÿ‡ช Germany #2 via Parakar Services GmbH (HRB 50670B92256); not AรœG licensed
  • ๐Ÿ‡ช๐Ÿ‡ธ Spain via Parakar Spain S.L. (CIF B67476630)
  • ๐Ÿ‡ง๐Ÿ‡ช Belgium via Parakar Group (BE0783902332)
  • ๐Ÿ‡ต๐Ÿ‡น Portugal via their Parakar Group B.V. entity from the Netherlands (registered as foreign employer, not a Portuguese subsidiary)
  • ๐Ÿ‡ฎ๐Ÿ‡ช Ireland via Parakar Ireland Limited (CRN 556329)
  • ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom via Parakar UK Limited (Company Number 14329418)
  • ๐Ÿ‡ต๐Ÿ‡ฑ Poland via Parakar SP Z.O.O. (NIP: 5213927769)
  • ๐Ÿ‡ซ๐Ÿ‡ท France via Parakar Services France (SIRET 85211198800030)
  • ๐Ÿ‡ฎ๐Ÿ‡น Italy via Parakar Italy SRL (P.IVA IT12670630966)

Parakar does not use partner entities for these countries, these are fully owned operations, which improves:

  • Local compliance accuracy
  • Response times
  • Immigration handling
  • Termination risk mitigation
How Parakar Is Scoring: Our Data-Driven Analysis

How Parakar Is Scoring: Our Data-Driven Analysis

Our extensive review, we evaluate this Employer of Record (EOR) provider across multiple criteria including pricing transparency, global coverage, local expertise, compliance standards, technology, and customer support. Each category is scored to give you a clear, data-driven view of how the provider performs compared to others in the market.
Overall EOR Score
Poor

Parakar is a Europe-focused employer-of-record with 20+ years of experience and deep on-the-ground knowledge in Germany, the Netherlands, Ireland, Spain, France, Belgium, Poland, Italy, Portugal and the UK.

They are known in the industry as a trusted implementation partner for many global EOR platforms (formerly for Deel, still for Papaya, and others).

Their strengths lie in local expertise and hands-on HR support, though they lack the modern software, global scale, and automation found in large international EORs.

However, pricing is comparably high, service-heavy, percentage-based, and less transparent compared to tech-first competitors.

2.4 /5.0

๐Ÿ—บ๏ธ Global Coverage & Services
Limited

โœ“ Strong coverage across multiple European countries

โœ“ Deep understanding of local labor law and payroll in core EU markets

โœ— No meaningful coverage outside Europe

โœ— Not suitable for global or multi continent hiring strategies

3.0 /5.0

๐Ÿ’ฐ Pricing & Transparency
Poor

โœ— High setup fee (US$750) and high monthly EOR fee (US$750 per employee)

โœ— Percentage-based pricing with multiple variable fees

โœ— Additional charges for variable pay, off-cycle payroll, FX (8%), onboarding, offboarding, and country-specific extras

โœ— High risk of unpredictable monthly invoices and budgeting complexity

1.0 /5.0

๐Ÿ“ Payment & Contract Terms
Limited

โœ“ Predictable, traditional European service contracts

โœ— Mandatory 6-month minimum commitment

โœ— 3-month commercial notice period

โœ— Rigid timelines and limited flexibility for fast-scaling or short-term hiring

3.0 /5.0

๐Ÿ’ฌ Customer Experience & Support
Good

โœ“ Strong human-led support model with local HR teams

โœ“ Deep expertise in German and Dutch employment law

โœ“ Capable handling of complex payroll, visa processes, and statutory requirements

โœ— Support limited to EU time zones

โœ— Not designed for high-volume or self-serve workflows

4.0 /5.0

๐Ÿ’ป Platform & Integrations
Poor

โœ— No proprietary software platform

โœ— No HRIS, payroll dashboard, or automation

โœ— No integrations with HR, finance, or ATS systems

โœ— Processes rely on email, manual workflows, and third-party tools

1.0 /5.0

Parakar’s Contract Terms

Parakar’s Contract Terms

Parakarโ€™s service agreements are simpler and more human-centric than large EOR SaaS providers, but still include standard protections. We’ve reviewed the agreement and have summarised the key terms below:

  • Liability Cap:ย limited to 12 months of fees (standard in EOR industry)
  • Payments: invoices paid monthly; customer must pre-fund payroll
  • Deposits: required in some jurisdictions (especially Germany & NL)
  • Termination: 30-day notice for service termination; employee terminations follow local law
  • Taxes & fees: all employment-related costs must be reimbursed by the client
  • IP ownership: fully assigned to the client via localized IP clauses

Parakar is known for being more flexible with contract customization compared to larger providers.

Pros and Cons of Parakar

Pros and Cons of Parakar

Parakar has more than 20 years of experience in European employment law and payroll, making them one of the strongest regional specialists in the EU. Their teams are made up of local HR professionals who speak the native language and understand country-specific processes in detail. This is especially valuable in markets like Germany and the Netherlands, where regulations are complex and compliance-heavy.

Unlike SaaS-first EOR platforms, Parakar delivers highly personalized support through dedicated HR specialists rather than automated workflows. Companies receive direct, hands-on guidance through onboarding, payroll, statutory filings, and sensitive HR matters. This makes Parakar ideal for businesses that prefer human support over digital automation.

Parakar is exceptionally strong in relocation, visa sponsorship, and immigration support. Their labor hire license in Australia-equivalent EU countries (e.g., recognized sponsorship status in NL & DE) allows faster processing for skilled workers. This expertise makes them a go-to partner for companies moving talent across Europe.

Parakar has historically been a backend provider for major global platforms, including Papaya Global and, in the early days, Deel. This means their processes meet high enterprise-level requirements and have been battle-tested by thousands of hires through partner networks. For clients, this translates into predictable quality and well-established operational standards.

Founded in 2001, Parakar is one of the longest-standing EOR providers in Europe. Their longevity, experience, and regional focus give companies a reliable partner for compliant long-term employment arrangements.

Parakar is a European specialist, not a global EOR provider. They directly support around 10 core European countries and use partner networks for the rest of Europe. Companies looking for global hiring at scale (Asia, LATAM, Africa) will need an additional provider.

Parakar does not publish pricing and when we requested their pricing we were surprised by all their additional fees and high markups. Especially, their currency conversion rates and payroll processing fees are not competitive.

Unlike modern EOR platforms, Parakar relies heavily on manual processes, email communication, and internal tools rather than offering a unified HR dashboard. There is no self-service portal for automations, integrations, or global visibility. This results in slower workflows and higher dependency on the service team. They use a third party tool for expenses but leave management is also done purely manual.

Parakarโ€™s operations are primarily based in Europe. For companies outside European time zones (US, APAC), response times can be slower. This becomes especially noticeable in time-sensitive HR or payroll scenarios requiring immediate attention.

Because Parakar is service-led, not tech-driven, it can handle complex individual cases well but is less suited for hiring dozens of employees quickly. Companies with rapid scaling needs may find operations slower compared to automation-heavy providers like Deel or Remote.

Who Parakar Is Best For

This visual highlights where this provider performs best across common buyer dimensions, based on Employsomeโ€™s independent, data-driven analysis. It reflects typical real-world usage patterns rather than marketing positioning.

Customer Type
Indicates which type of companies this provider typically serves best, based on contract flexibility, support model, and typical customer profiles.
Startup/SMB
Mid-market/Enterprise

Best Fit

Price Sensitivity
Shows whether the provider is better suited for budget-conscious teams or companies willing to pay a premium for added features, coverage, or support.
Budget Conscious
Premium Spend

Best Fit

Tech vs Service
Shows whether the provider is better suited for budget-conscious teams or companies willing to pay a premium for added features, coverage, or support.
Tech-First
Service-Led

Best Fit

Speed vs Compliance
Compares a tech-first, self-serve platform experience with a more service-led model that relies on human support and manual processes.
Speed
Compliance Strictness

Best Fit

Complexity Handling
Reflects how well the provider handles complex employment scenarios such as senior hires, variable compensation, terminations, or multi-country setups.
Simple Cases
Complex Cases

Best Fit

Regional Strenght
Indicates whether the provider operates as a global generalist across many countries or has deeper expertise and infrastructure in specific regions.
Global Generalist
Regional Expert

Best Fit

Hiring Team Size
Shows the typical team size this provider is best suited for, based on pricing structure, operational scalability, and account management model.
Small Team (<10)
Large Team (>50)

Best Fit

Compare Parakar with Others

Compare Parakar with Others

RemoFirst
RemoFirst

4.0 / 5.0

Agility EOR
Agility EOR

3.9 / 5.0

ThisWorks
ThisWorks

4.4 / 5.0

Native Teams
Native Teams

4.0 / 5.0

Final Verdict: Our Recommendation on Parakar

Final Verdict: Our Recommendation on Parakar

Parakar is a service-heavy, Europe-focused EOR that prioritizes local compliance and hands-on HR support over technology, speed, or scalability. Its strength lies in deep knowledge of European employment law and the ability to manage complex, compliance-sensitive hiring scenarios. However, this comes at a cost: limited software capabilities, rigid contract terms, and comparatively low pricing transparency place Parakar behind more modern EOR platforms.

Based on our analysis, Parakar is not a strong general-purpose EOR and is poorly suited for startups, fast-scaling teams, or companies hiring across multiple regions. It may work for organizations with a narrow European focus that explicitly prefer manual, human-led processes and are comfortable with higher fees and longer commitments. For most companies, especially those seeking automation, flexibility, or global reach, there are stronger and more cost-effective EOR alternatives available.


Author photo

Written by

Dane Cobain

Dane Cobain is a Copywriter at Employsome and an accomplished author whose work spans fiction, non-fiction, and professional writing. Over the past decade, he has built a strong track record creating straightforward content for the HR, payroll, and corporate sectors. Dane brings a storytellerโ€™s eye to the evolving world of global employment, with a particular focus on Employer of Record and PEO models. His articles explore industry trends and dedicated Best Of Guides when managing an international workforce.

Our content is created for informational purposes only and is not intended to provide any legal, tax, accounting, or financial advice. Please obtain separate advice from industry-specific professionals who may better understand your businessโ€™ needs. Read our Editorial Guidelines for further information on how our content is created.