A year-end compensation conversation becomes difficult when the property management company calls a payment a discretionary bonus and the team member understands it as part of their annual pay. Resolve that difference before you make an offer, set a budget or announce a replacement benefit.
“Virtual assistant” describes work, not the employment rules that apply. BetterWho uses Remote Team Member (RTM) for a long-term remote hire who is part of your core team and owns outcomes. Neither term establishes whether someone is an employee or an independent contractor, or what payments they are entitled to receive.
This guide focuses on planning, with a Philippine calculation example and an Indonesian timing comparison. It is not a worldwide entitlement table. Your payroll or employment adviser must establish which rules apply to the actual working relationship before you implement a compensation policy.
Separate three different kinds of payment
A statutory entitlement is required when the relevant law covers the worker and relationship. A contractual entitlement comes from an agreement or another binding commitment. A discretionary payment is additional compensation that the company can genuinely choose to award, subject to applicable rules and any commitments already made.
Calling all three a “bonus” causes problems. An employee may have a statutory annual payment as well as a separate performance bonus. Missing a leasing target does not, by itself, turn an earned statutory entitlement into an optional reward. Equally, writing “contractor” on an agreement does not settle worker status.
Ask your adviser to review where the person works, who employs or contracts with them, how the relationship operates, and what existing documents promise. A recruiting company and an Employer of Record perform different functions; confirm who handles payroll calculations and who supplies the funds.
Annual payments do not follow one international calendar
The distinctions below were checked on 20 October 2026. They illustrate why a single December payment policy is inadequate.
| Jurisdiction and payment | Coverage and calculation to verify | Timing |
|---|---|---|
| Philippines: statutory 13th-month pay | DOLE guidance covers eligible private-sector rank-and-file employees who worked at least one month during the calendar year. The minimum is one-twelfth of total basic salary earned during that year. | No later than 24 December. |
| Indonesia: religious-holiday allowance, or THR | The 2026 ministry circular covers qualifying workers with at least one continuous month of service; the general calculation is one month of wages after at least 12 months, with proportional treatment below 12 months. Applicable wage definitions and circumstances need local review. | No later than seven days before the relevant religious holiday. It is not a general December bonus. |
Sources: Philippine DOLE coverage guidance and Indonesia’s 2026 THR circular.
Do not apply either row to a worker in another country. Also avoid deciding eligibility from the job title alone: “maintenance coordinator” does not answer every question about legal status or applicable pay treatment.
Calculate from the correct pay base
For the Philippine example, the starting point is total basic salary actually earned in the calendar year, divided by 12. The DOLE statutory benefits handbook explains the calculation and treatment of different pay components. A payroll reviewer should confirm the basic-pay definition, including whether company practices or agreements affect it.
Here is an illustrative calculation in Philippine pesos, assuming the amounts shown are all qualifying basic salary:
| Work pattern | Total basic salary earned | Divide by 12 | Illustrative 13th-month amount |
|---|---|---|---|
| Twelve months at ₱30,000 | ₱360,000 | ₱360,000 ÷ 12 | ₱30,000 |
| Six months at ₱30,000 | ₱180,000 | ₱180,000 ÷ 12 | ₱15,000 |
| Six months at ₱30,000, then six at ₱33,000 | ₱378,000 | ₱378,000 ÷ 12 | ₱31,500 |
The third row shows why paying “one month of the latest salary” is not always the same calculation. Unpaid absences, variable pay, separation from employment and earlier installments may also change the amount or reconciliation required. Give payroll the earnings record instead of estimating from the number of calendar months someone has been on the team.
For budgeting, the first example suggests setting aside ₱2,500 per month for that payment alone. It does not represent the complete cost of employment. Add other applicable contributions, leave, benefits, administration and currency costs separately.
Decide what your offer actually promises
Prepare a compensation schedule with a separate line for each item:
- Base pay.
- Statutory annual payments.
- Contractual benefits.
- Performance incentives.
- Genuinely discretionary awards.
Record the currency, pay frequency, due dates, calculation method and responsible payroll contact.
A useful conversation starts with: “Here is the base pay, here are the additional payments the arrangement requires, and here is how our separate performance review works.” That gives a candidate a clearer picture than an annual headline number with unexplained deductions or exceptions.
Ask about preferences for any genuinely optional benefits. A person may value predictable monthly cash, professional development or an additional annual award differently. Those preferences can guide additional rewards. They do not authorize replacing a mandatory payment with a higher salary or allowing someone to waive a legal entitlement.
If you already made a promise in an offer, handbook, email or repeated practice, have it reviewed before changing the arrangement. A decision to stop an established payment deserves more care than introducing a new optional benefit.
Build the payment into your operating calendar
The finance lead should keep a schedule by worker and jurisdiction, including the payroll provider’s funding deadline. Fund transfers can require earlier action than the date money must reach the worker. Confirm the amount and payment instructions through your normal secure process rather than accepting a new bank account solely by email.
Before the payment date, reconcile the earnings record, confirm any prior installments, obtain the required approval and give the team member a clear payment breakdown. Keep evidence of calculation and payment with the appropriate restricted payroll records. A team leader needs confirmation that the process is complete, not unrestricted access to a colleague’s compensation file.
For existing teams, resolve uncertainty early. Ask payroll to review discrepancies between the written offer, past payments and current practice. If something may have been underpaid, get a documented correction plan instead of waiting for the next annual review.
Keep annual pay separate from raises
A salary review asks whether base pay should change because of the role, performance, market conditions or an applicable requirement. An annual entitlement has its own basis. Use the virtual assistant raise guide for the review conversation and the full hiring budget to account for the complete annual commitment.
If you are planning a remote hire, explore RTM Direct to define the role and recruitment support you need. Bring the proposed working arrangement to your country-qualified payroll adviser before finalizing compensation.
