Per-employee pricing (PEPM)

What is Per-employee pricing (PEPM)?

Per-employee-per-month (PEPM) pricing charges for HR software by headcount, so the bill rises every time you hire and add-on modules are often charged on top.

PEPM is the most common HR-software model. It is predictable per person but couples your HR cost to growth: the same tool costs more next year simply because you hired.

Watch for seat minimums - some vendors bill a minimum number of seats, so a small team pays for capacity it does not use.

Related terms

• Flat-rate HR pricing

See also

• HREvio vs PeopleForce
• HREvio vs Factorial