Every nearshore staffing site, including this one, leads with savings. And it's true: hiring in Latin America is often 50–70% less than a comparable U.S. salary. That's real, and it's a big part of why companies reach out to us.
But there's a second number that almost nobody talks about: how much of that savings actually reaches the person doing the work.
This article is about that number, and why we built UpHiire around it.
The professional behind the savings
When a U.S. company hires remote talent in Latin America, the conversation is usually about the company: the cost, the time zone, the English level. The professional on the other side rarely gets a voice.
Here's what that side often looks like:
They don't know what the client pays. In many arrangements, the professional never sees the rate their work is billed at, so they can't know if their pay is fair.
They carry real risk. Late payments, terms that change after the start date, or commissions that shrink without notice are more common than they should be. Speaking up can mean losing the income.
They often work at a U.S. level. Many professionals in Latin America work U.S. hours, speak fluent English, and deliver the same results as a U.S. counterpart.
Their costs are rising too. Cost of living is going up across the region, just like everywhere else.
None of this means hiring in Latin America is unfair. It means the way it's structured matters.
How staffing pricing usually works
Many staffing arrangements use a markup: the client pays a bill rate, the professional receives a pay rate, and the difference goes to the agency. For contract staffing, markups commonly range from about 25% to 75% or more of the worker's pay.
A markup isn't automatically a bad thing. It often covers real costs like payroll taxes, benefits, compliance and recruiting. The problem appears in two situations:
When it's invisible. If neither the client nor the professional can see how the rate is split, there's no way to know if the pay is fair.
When it's tied to the salary. If the agency earns a percentage of the professional's pay, there's an incentive to keep the professional's share low and the client's rate high.
What we do instead
We chose a model where the incentives point in the right direction:
A flat placement fee, agreed upfront. Our fee doesn't grow with the professional's salary, so we have no reason to push their pay down.
The rate is between you and the professional. The salary is agreed directly, and it's shown separately from our fee. Nothing is hidden in between.
Full transparency, from the first submittal. Every candidate comes with their resume, a video introduction, and their salary expectation upfront — no guessing, no back-and-forth to find out who you're actually talking to.
A fair-rate commitment. We don't accept or offer rates that squeeze the candidate just to win the deal.
Optional payment support. If you'd like us to handle recurring payments and contractor management, it's available as an optional service, quoted separately.
What fair pay should look like for professionals
If you're a professional in Latin America working with a U.S. company, through us or anyone else, here's what you should expect:
These apply to any remote work arrangement, whoever handles your contract and payments.
A rate that reflects your experience, not just your location.
Clear terms in writing before you start: rate, hours, payment schedule and responsibilities.
On-time payments, every time.
Transparency about how your rate is set.
The ability to raise concerns without putting your income at risk.
These aren't extras. They're the basics of a professional relationship.
Why this matters for companies too
If you're hiring, you might reasonably ask: why should I care what the professional earns, as long as I'm getting a good rate?
Because it affects the person you're working with. According to Payscale's 2025 Fair Pay Impact Report, employees who believe they're paid unfairly are 45% more likely to look for a new job, and employees at organizations with high pay transparency are 59% less likely to leave.
In practice, that looks like this:
A professional who feels fairly paid stays longer, so you avoid a second recruiting process and a second onboarding.
They stay engaged and take ownership of their work.
They build knowledge about your business that you don't lose every few months.
The real cost of underpaying isn't on the invoice. It shows up later, as turnover. We broke down what that costs in how much a bad hire really costs.
The bottom line
Hiring in Latin America is often 50–70% less than a comparable U.S. salary, and that's a real advantage.
The question isn't only how much you save, but how much reaches the professional.
Transparent, fair pay keeps great people longer, and that's what makes the savings last.
A better deal for businesses. A better deal for talent. That's the only model we believe in.
If you want the practical side, here's how to set a fair salary for a remote professional in Latin America.
Frequently asked questions
Is it fair to pay LATAM professionals less than U.S. salaries?
Salaries reflect local markets and cost of living, so differences are normal. What matters is that pay reflects the professional's experience and the value they deliver, and that it's competitive in their market, not the lowest rate they'll accept.
What is a staffing markup?
It's the difference between what the client pays and what the professional receives, usually expressed as a percentage of the professional's pay. It often covers costs like taxes, benefits and recruiting.
How does UpHiire make money?
Through a flat placement fee agreed upfront, which doesn't depend on the professional's salary. Payment support and contractor management are optional and quoted separately.
Why does fair pay matter for the company hiring?
Professionals who feel fairly paid are less likely to leave. Research from Payscale shows employees who feel underpaid are 45% more likely to look for a new job.
Hiring and want to do it the right way? Book a free 30-min call, or see our flat-fee pricing and our mission.
Sources: Payscale, 2025 Fair Pay Impact Report; WorkGenius and Upwork, staffing markup benchmarks (2026); KORE1, IT staffing agency pricing guide (2026).
