What’s included in my first invoice?

Your first invoice will summarize the following components:

Payroll
Service Fee
Attendance Adjustments
Reimbursables

Some notes to remember:

Estimates are subject to change depending on updates to the exchange rate during the time that the invoice is generated.
Manpower costs will include:

1. Pro-rated manpower costs for the month of + the pre-invoiced manpower cost for the following month
2. Computation for Percentage Worked will be active days / total calendar days from start date and assumed 100% attendance for the following month
3. Manpower costs will be inclusive of service fees, base salaries + cost of benefits, and computation for the 13th-month pay

Refer to the Invoice Components for additional information on your invoice components and government-mandated benefits.

Table 1

Payroll	Base salary of the staff
Percentage worked	This refers to the number of days worked by the staff / 31 days. This would vary depending on the number of days an employee is expected to work in a month. This would change in case the employee is on maternity leave, prolonged leave, or for new hires with a start date that will not fill in the entire month's coverage.
	Staff Start Date:
	Pre-invoicing
	Employee start date: June 16
	Invoice send-out date: First week of July
	Invoice month: July
	Percentage worked: 150% (50% for the month of June and assumed 100% attendance for the month of July)
	Staff End Date:
	Pre-invoicing
	Employee end date: June 16
	Invoice send-out date: First week of July
	Invoice month: July
	Percentage worked: -50% since the client has already paid the full fee in the previous invoice and employee only completed half. Thus, 50% will be returned to the client.
Benefits & Insurance	All employer share of the benefits provided to the staff (government-mandated and company-initiated)
Services Fee	The agreed services fee based on the MSA/SOW plus indexation or currency fluctuation adjustments for tenured client
Service Fee Category	Indicates whether the workstation deployed is dedicated or being shared with another employee
Attendance Adjustment	The adjustment on the staff’s payroll based on their attendance for the cut-off covered by the invoice.
	This includes the salary deduction for the following:
	• Tardiness
	• Unpaid absences
	Or the payment for the following:
	• Overtime – Regular OT
	• Holiday Premium
	• Night Differential (for those who work between 10PM and 6AM PHT)
	Note: Employees who had been with the company for six (6) months or more are entitled to Paid Time Off so there will be no deductions on their pay in case of absences.
Attendance Cut-off and Adjustments	MicroSourcing follows an attendance cut-off for the payroll and is also applied to the invoice. Below is a sample implementation of the cut-off:
	Pre-invoice
	Invoice month: June
	Actual attendance from April 1-30
	Based on April 30 and May 15 actual payout
Reimbursables	Expenses made that are not part of the Payroll, Attendance Adjustment and Services Fee. This could be equipment upgrades, additional bonus, incentives, commissions, allowance, etc.
Termination Bond	A termination bond is a security deposit applied to any costs associated with the termination of a staff member. It is 8.5% of the total monthly base salary of each staff member.

Table 2: Government-Mandated Benefits

Government - Mandated Benefit	Definition	Computation	Example (Monthly Salary: PHP35,000)
13th Month Pay	Additional pay that is equivalent to 1/12 of the employee’s salary. It must be released on or before December 24 of each calendar year or upon employee’s separation from the company	1/12 of the employee's salary	PHP 35,000/ 12 = PHP 2,916.67
SSS	Provides employees with loan facilities and maternity, health, retirement, and disability benefits	We refer to the SSS contribution table for the range of compensation and its corresponding contribution amount. We can share this with you upon request.	PHP 1,630.00
Philhealth	Insurance that provides financial support for healthcare services	The monthly Philhealth contribution rate is 3% of the monthly basic salary. The amount is shared equally by the employer and the employee	PHP 525.00
HDMF	National savings program that seeks to provide affordable housing financing for employees	The maximum monthly salary used for Pag-Ibig contribution computation is PHP 5,000. The employer pays for the 2% of PHP 5,000.	PHP 100.00