Costs for a Data Protection Officer

Costs of an external data protection officer – what are the typical rates?

An external DPO can be hired for as little as 175 euros per month, depending on the company's specific consulting needs.

In contrast, an internal DPO incurs recurring training costs of several thousand euros per course, and the necessary reference materials also add up to a similar amount. When a company calculates the costs carefully, an external data protection officer is usually the better choice, especially since you can rely on their specialized data protection expertise at all times.

Don't be fooled by the seemingly cheaper option of appointing an employee as your data protection officer. Calculate the costs precisely to see if an external DPO isn't the far better choice for your company – in every respect.

Costs for an internal DPO

Companies have the choice of appointing an employee as a data protection officer or hiring an external DPO.

At first glance, an internal officer seems to be the more cost-effective choice because they are already on the payroll and therefore appear to incur hardly any additional costs. This impression is misleading.

Internal data protection officers often do not possess the full range of required expertise in data protection law when they start their role. In this case, significant costs arise from the necessary initial and ongoing training. A single course or seminar is not enough; knowledge of data protection law must be kept constantly up to date. Furthermore, it is often necessary to provide the internal DPO with specialized data protection literature.

An internal data protection officer can become very expensive if the company is unable to terminate the employment relationship due to special protection against dismissal, even in cases of poor performance or other issues related to their work or data protection duties.

Liability is another area where an internal DPO can become costly for a company, as many questions regarding the liability of an employee-DPO remain unresolved. If one assumes they are only liable to the same extent as a regular employee, the company’s ability to hold them accountable for errors in data protection is extremely limited.

Costs for an external DPO

At first glance, appointing an external DPO involves some additional costs for the company. The external DPO works on the basis of a separate service contract that specifies their remuneration. In return, the company gains access to a fully trained data protection professional who is responsible for keeping their own knowledge up to date. Furthermore, these contracts can be customized and structured into specific projects or service packages.

For routine tasks, monthly flat rates are common for external DPOs and are often quite affordable. When you also consider that external data protection officers do not enjoy special protection against dismissal and are contractually liable for their work to a significant extent, the cost-benefit analysis often favors an external DPO.

External Data Protection Officer & Data Protection Software from €175/month

Not sure which data protection solution is right for you? We are happy to advise you!

Proliance will address your individual requirements and questions in a non-binding consultation. Whether it's our Proliance 360 data protection software or providing an external data protection officer, we will find the right solution for your company's data protection management.