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How are fees and charges calculated on invoices?

How are fees and charges calculated on invoices?

Understanding the fees and charges on your invoices is essential for accurate financial management. Below, we explain two common types of charges and how they are calculated.

Recruitment Service Fee Calculation

The Recruitment Service Fee is determined as a percentage of the candidate’s gross annual salary. Specifically, it is calculated as 8% of the gross annual salary. Once the fee is calculated, it is converted from the local currency (e.g., PHP) to USD using the exchange rate applicable on the date the invoice was issued. This ensures that the fee reflects the most accurate and current exchange rate.

Mandatory Benefit Administration Fees

In some cases, invoices may include charges related to mandatory employee benefits. For example, in France, employees are required to enroll in Santé (health insurance) and Prévoyance (provident insurance). An administration fee is applied to cover the management of these benefits. This fee is billed from the start of the employee’s engagement, as the benefits are mandatory from day one. If an employee is awaiting a French Social Security number, pre-affiliation is completed retroactively to the employment start date, and the administration fee still applies from the start date. By understanding these calculations, you can better interpret your invoices and ensure compliance with applicable regulations.


Related Topics

  • How to verify charges on your invoice

  • Understanding exchange rates on invoices

  • Mandatory employee benefits and their impact on billing

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