Glossary
Billing Currency
Billing currency is the currency an Employer of Record uses to invoice the client company, often US dollars, euros or pounds, which can differ from the employee's local pay currency and makes the exchange rate and any conversion spread a direct part of what the client pays.
Reviewed by Teamed's in-house employment-law team·Last updated 28 July 2026
Also known as: invoice currency, settlement currency
What is Billing Currency?
Billing currency is the currency shown on the invoice an Employer of Record sends to its client. It is often a major currency such as US dollars, euros or pounds, chosen for the client's convenience, even though the worker is paid in the currency of the country where they work.
The gap between the billing currency and the local pay currency is where conversion happens. To pay a worker in Norwegian kroner from an invoice raised in dollars, the money has to be converted, and the rate used sets the real cost. If the provider does not lock that rate at payroll, the client also carries the risk of it moving before payment.
Because conversion sits inside the billing currency, a client should ask which rate was applied and on what date. A rate shown on the invoice can be checked against a public benchmark, which is how a buyer confirms they are not paying a hidden margin every pay cycle.
Why does billing currency matter to the client's cost?
Because the conversion between billing currency and local pay currency carries a rate, and that rate decides the true cost. A small margin on the exchange rate applies to every payment, so over a year and across a team it adds up. The billing currency is where that cost is set.
Can the billing currency differ from the employee's pay currency?
Yes, and it usually does. A client may be invoiced in dollars while the employee is paid in their home currency, such as kroner, zloty or rupees. The provider converts between the two, so the two currencies rarely match, and the conversion rate becomes part of the invoice.
How can a buyer keep control of billing-currency costs?
Ask the provider to show the exchange rate applied to each payment and the date it was set. Then compare that rate to a public benchmark, such as a central bank reference rate, for the same day. If the provider will not disclose the rate, the conversion cost cannot be checked.
Key facts
- Central bank FX benchmark
- The European Central Bank publishes euro foreign exchange reference rates on every working day at around 16:00 CET, based on a concertation between central banks at 14:15 CET, giving buyers a public rate to check billing-currency conversions against.Source: European Central Bank· verified 2026-07-28
Frequently asked questions
Which billing currency should I choose?
Choose the currency that makes your own budgeting and reconciliation simplest, usually the one your finance team already reports in. The more important question is not the currency itself but whether the exchange rate applied to each conversion is disclosed, so you can check it against the market.Does billing currency affect how much I pay?
Yes. Whenever the billing currency differs from the employee's pay currency, a conversion happens, and the rate used changes your cost. A margin added to that rate raises what you pay on every cycle, which is why the rate matters as much as the headline salary and fees.How do I check the rate applied to my invoice?
Ask the provider for the exact exchange rate used and the date it was set, then compare it to a public benchmark such as a central bank reference rate for that day. A rate close to the benchmark is fair, a rate well off it suggests a hidden margin.
Related terms
Note
Glossary
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See the true cost of a hire, itemisedLast verified 2026-07-28