Beginning with the January 2025 service period, a monthly accrual charge will be applied to clients' Settlement Invoices and Payroll Funding Invoices.
In certain countries, local regulations mandate that talents receive statutory payments on an annual basis. As this payment creates a liability toward the talent, WorkMotion includes a monthly accrual in the Settlement Invoice to pre-fund the eventual payout. This article explains how WorkMotion manages similar statutory payments.
Each accrual represents one-12th of the total annual payment. Most importantly, this charge does not increase Talent costs. It is designed to gradually collect monthly funds to cover future mandatory statutory payments that must be paid out to their Talents.
In which countries will this accrual be implemented?
This monthly accrual is applied to all Talents in the countries for the items mentioned below as of January 2025.
Country | Item | Accrual Logic | Pay-out Month |
Austria | 13th month payment accrual | 1 months salary / 12 (Jan to Dec) | June |
Austria | 14th month payment accrual | 1 months salary / 12 (Jan to Dec) | December |
Denmark | Holiday Bonus accrual | 1% of salary monthly (Sept to Aug) | 75% in May and 25% in August |
Italy | Month 13 accrual | (Monthly Salary / 173) 8.33% 2080 (estimated full time hours) | December |
Italy | Month 14 accrual | (Monthly Salary / 173) 8.33% 2080 (estimated full time hours) | June |
Netherlands | Holiday Allowance accrual | 8% of salary per month (June to May) | May |
Mexico | Christmas Bonus accrual | (Monthly Salary / 30 * 15) / 12 (Jan to Dec) | December |
As of September 2025 it has also been decided to impelement the below accruals:
Country | Item | Accrual Logic | Pay-out Month |
Greece | Christmas Bonus | qualifying earnings salary + (qualifying earnings salary * 0.04166) / 12 qualifying earnings salary = Salary, fixed taxable allowances Accrued Jan to December | December |
Greece | Easter Bonus | qualifying earnings salary / 25 * 12.5 + qualifying earnings salary / 25 12.5 0.04166 qualifying earnings salary = Salary, fixed taxable allowances Accrued May to April | April |
Greece | Vacation Bonus | qualifying earnings salary = Salary, fixed taxable allowances / 25 * 12.5 qualifying earnings salary = Salary, fixed taxable allowances Accrual: August to July | July |
Denmark | Great Prayer Day | 0.45% of salary monthly (Sept to Aug) | 75% in May and 25% in August |
France (France 1 only) | Holiday Bonus | Monthly Salary inc taxable allowances 10% 10% Accrued June to May | June |
How will this look on the Settlement Invoice?
Each Settlement Invoice will include a monthly accrual charge, which covers a portion of the eventual payment. The month the payment is due, the amount accrued year to date will be fully reversed, and the actual payout will be invoiced.
For the month the payment is due, here is a representation of the invoice breakdown in the appendix:
13th month accrual: 500 EUR
13th month accrual reversal: -5500 EUR
13-month payment (actual): 5550 EUR
Total difference to pay: 50 EUR
Will there be other countries implemented in the future?
While we will not be implementing monthly accrual for all Statutory Payments as of January 2025, the payroll team will be looking to roll out the below countries & items during the year 2026.
Country | Item | Status |
Mexico | Vacation Premium | Will not be implemented due to it being a vacation day pay rate not a statutory bonus |
Italy | Ex Festiva | Will not be implemented due to it being days off |
Italy | ROL (Riduzione Orario di Lavoro) | Will not be implemented due to it being days off |
Brazil | 13th Month Bonus | ? |