Why does my EOR Pre-funding invoice change month to month?

Your EOR Payroll Pre-funding invoice may vary from month to month. This is normal. Pre-funding is an estimate based on projected payroll and can change due to FX rates, approved expenses, incentives, 13th/14th salaries, holiday bonuses, employee status updates, and cost calculation adjustments.

This article explains the most common reasons your invoice amount may increase or decrease.

1. FX rate variation (most common reason)

Employee salaries and contributions are calculated in the employee's local currency.

Your invoice, however, is issued in your billing currency, which can differ from the employee's salary currency.

Each month:

• Remote calculates payroll in the employee's currency
• The total is converted into your billing currency using the current Remote FX rate

Because FX rates fluctuate monthly:

• The employee's salary does not change
• The pre-funding invoiced amount may change

This is expected behavior.

2. Incentives and expenses added before invoice generation

If incentives or expenses are added and approved before the Pre-funding invoice is generated, they will be included in the invoice.

If they are added after invoice issuance, they will appear on the Reconciliation invoice instead.

3. Employee start, termination, or leave timing

Pre-funding invoices are generated on the 1st working day of the month and are based on the employee's status at that time.

Pre-funding can be prorated, but only if the relevant updates are made before invoice generation.

When pre-funding will be prorated:

• An employee's start or termination date is updated before the 1st working day of the month
• Unpaid or parental leave is added and approved before the 1st working day

In these cases, the invoice will reflect only the active days for that month.

When pre-funding will not be prorated:

• Start or termination dates are updated after the 1st working day
• Leave is added or approved after invoice generation

In these situations, the invoice will reflect the full month's cost, and any necessary adjustments will be handled in the Reconciliation invoice issued after month-end.

4. Cost Calculator updates

Pre-funding invoice base salary and contributions are generated using Remote's Cost Calculator.

The Cost Calculator is continuously updated to reflect:

• Statutory contribution changes
• Country-specific payroll updates
• Compliance adjustments

If contribution rates change or legal updates occur, your Pre-funding estimate may vary accordingly.

5. Salary changes (pay increases or adjustments)

If an employee has received a salary increase, this will be reflected in the Pre-funding invoice for the month in which the new salary is active.

This may cause the invoice amount to appear higher than in previous months.

For example:

• If a salary increase becomes effective before the Pre-funding invoice is generated (on the 1st working day of the month), the new salary will be used to calculate the estimated payroll.
• If the salary change is effective mid-month and recorded before invoice generation, the updated salary may impact the estimate.

Because employer contributions and statutory costs are calculated based on gross salary, a salary increase will also increase related contribution amounts.

If you notice a higher Pre-funding amount for a specific employee, please check whether a salary update was applied before the invoice was issued.

6. 13th/14th salaries and holiday bonuses (from June 1, 2026)

From June 1, 2026, your Pre-funding invoice may include estimated amounts for statutory or contractual 13th/14th salaries and holiday bonuses, when these are processed through Remote.

This means you may see higher Pre-funding amounts in months when these payments are due, compared to months when only regular payroll runs. This is expected behavior.

When these amounts are included:

• The 13th/14th salary or holiday bonus is due within the invoiced payroll period
• The amounts are known or can be estimated at the time the Pre-funding invoice is generated

When these amounts may not be included:

• Local rules or contractual terms require payment outside the usual monthly payroll cycle
• Changes are made close to the cut-off date, after the Pre-funding invoice has already been generated
• The final actual cost differs from the original estimate

In these cases, any missing or adjusted amounts will appear on a subsequent Pre-funding or Reconciliation invoice.

You can compare your Pre-funding invoice to the final payroll reports and invoices for the same period to understand which items were estimated and which were actually paid.

Summary

If your Pre-funding invoice changed, it is usually due to:

• ✔ FX variation
• ✔ Added incentives or expenses
• ✔ Employee status timing
• ✔ Contribution updates
• ✔ Calculator adjustments
• ✔ 13th/14th salaries or holiday bonuses (from June 2026)

If you're unsure, review the invoice breakdown or download the CSV to compare line-by-line changes.