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.
Benefits Admin Fee (BAF)
The Benefits Admin Fee (BAF) is a recurring administrative charge applied to clients with employees enrolled in private health insurance plans managed by Remote People. This fee supports the ongoing management and improvement of employee benefits programs, ensuring high-quality service and operational efficiency.
Purpose of the Benefits Admin Fee
The BAF funds several critical activities related to benefits administration, including:
Insurance Management: Streamlining processes and tools for efficient insurance administration.
Market Research: Conducting studies to better understand and address client needs.
Insurer Coordination: Managing relationships with insurance providers to ensure robust coverage and service quality.
Premium Negotiations: Strengthening efforts to minimize overall costs for clients.
Fee Structure and Regional Variations
The BAF is calculated on a per-employee, per-month basis and varies by region to reflect local operational costs:
USD 15 per employee per month: Applicable to employees in South and Southeast Asia.
USD 30 per employee per month: Applicable to employees in LATAM, Africa, Central/Eastern/Northern Asia, North America, Europe, Middle East, and ANZ.
Legal and Contractual Obligations
In some regions, such as France, the BAF also covers mandatory supplementary insurance required by local laws, such as the SYNTEC collective bargaining agreement. This includes:
Supplementary health insurance (e.g., "Complémentaire – Santé").
Life/disability coverage (e.g., "Complémentaire – Incap. Inval. Décès"). These fees are applied consistently across clients to ensure compliance with local regulations and to support the administration of legally required benefits.