diff --git a/app/Http/Controllers/Api/V1/ProjectMemberController.php b/app/Http/Controllers/Api/V1/ProjectMemberController.php
index 0701fb8b..1043b2ee 100644
--- a/app/Http/Controllers/Api/V1/ProjectMemberController.php
+++ b/app/Http/Controllers/Api/V1/ProjectMemberController.php
@@ -59,7 +59,7 @@ public function index(Organization $organization, Project $project): ProjectMemb
      *
      * @operationId createProjectMember
      */
-    public function store(Organization $organization, Project $project, ProjectMemberStoreRequest $request): JsonResource
+    public function store(Organization $organization, Project $project, ProjectMemberStoreRequest $request, BillableRateService $billableRateService): JsonResource
     {
         $this->checkPermission($organization, 'project-members:create', $project);
 
@@ -78,6 +78,10 @@ public function store(Organization $organization, Project $project, ProjectMembe
         $projectMember->project()->associate($project);
         $projectMember->save();
 
+        if ($request->getBillableRate() !== null) {
+            $billableRateService->updateTimeEntriesBillableRateForProjectMember($projectMember);
+        }
+
         return new ProjectMemberResource($projectMember);
     }
 
@@ -109,12 +113,22 @@ public function update(Organization $organization, ProjectMember $projectMember,
      *
      * @operationId deleteProjectMember
      */
-    public function destroy(Organization $organization, ProjectMember $projectMember): JsonResponse
+    public function destroy(Organization $organization, ProjectMember $projectMember, BillableRateService $billableRateService): JsonResponse
     {
         $this->checkPermission($organization, 'project-members:delete', projectMember: $projectMember);
 
+        $hadBillableRate = $projectMember->billable_rate !== null;
+        $project = $projectMember->project;
+        $member = $projectMember->member;
+
         $projectMember->delete();
 
+        if ($hadBillableRate) {
+            $billableRateService->updateTimeEntriesBillableRateForMember($member);
+            $billableRateService->updateTimeEntriesBillableRateForProject($project);
+            $billableRateService->updateTimeEntriesBillableRateForOrganization($organization);
+        }
+
         return response()
             ->json(null, 204);
     }
diff --git a/tests/Unit/Endpoint/Api/V1/ProjectMemberEndpointTest.php b/tests/Unit/Endpoint/Api/V1/ProjectMemberEndpointTest.php
index f8a4f819..6f503fcc 100644
--- a/tests/Unit/Endpoint/Api/V1/ProjectMemberEndpointTest.php
+++ b/tests/Unit/Endpoint/Api/V1/ProjectMemberEndpointTest.php
@@ -6,6 +6,7 @@
 
 use App\Http\Controllers\Api\V1\ProjectMemberController;
 use App\Models\Member;
+use App\Models\Organization;
 use App\Models\Project;
 use App\Models\ProjectMember;
 use App\Models\User;
@@ -213,16 +214,23 @@ public function test_store_endpoint_fails_if_user_is_already_member_of_project()
         ]);
     }
 
-    public function test_store_endpoint_creates_new_project_member(): void
+    public function test_store_endpoint_creates_new_project_member_and_updates_billable_rate(): void
     {
         // Arrange
         $data = $this->createUserWithPermission([
             'project-members:create',
         ]);
         $project = Project::factory()->forOrganization($data->organization)->create();
-        $projectMemberFake = ProjectMember::factory()->make();
+        $projectMemberFake = ProjectMember::factory()->make([
+            'billable_rate' => 1200,
+        ]);
         $user = User::factory()->create();
         $member = Member::factory()->forOrganization($data->organization)->forUser($user)->create();
+        $this->mock(BillableRateService::class, function (MockInterface $mock) use ($projectMemberFake): void {
+            $mock->shouldReceive('updateTimeEntriesBillableRateForProjectMember')
+                ->once()
+                ->withArgs(fn (ProjectMember $projectMemberArg) => $projectMemberArg->billable_rate === $projectMemberFake->billable_rate);
+        });
         Passport::actingAs($data->user);
 
         // Act
@@ -240,6 +248,36 @@ public function test_store_endpoint_creates_new_project_member(): void
         ]);
     }
 
+    public function test_store_endpoint_creates_new_project_member_and_does_not_update_billable_rate_if_it_is_null(): void
+    {
+        // Arrange
+        $data = $this->createUserWithPermission([
+            'project-members:create',
+        ]);
+        $project = Project::factory()->forOrganization($data->organization)->create();
+        $projectMemberFake = ProjectMember::factory()->make([
+            'billable_rate' => null,
+        ]);
+        $user = User::factory()->create();
+        $member = Member::factory()->forOrganization($data->organization)->forUser($user)->create();
+        $this->assertBillableRateServiceIsUnused();
+        Passport::actingAs($data->user);
+
+        // Act
+        $response = $this->postJson(route('api.v1.project-members.store', [$data->organization->getKey(), $project->getKey()]), [
+            'billable_rate' => $projectMemberFake->billable_rate,
+            'member_id' => $member->getKey(),
+        ]);
+
+        // Assert
+        $response->assertStatus(201);
+        $this->assertDatabaseHas(ProjectMember::class, [
+            'billable_rate' => null,
+            'member_id' => $member->getKey(),
+            'project_id' => $project->getKey(),
+        ]);
+    }
+
     public function test_update_endpoint_fails_if_project_member_is_not_part_of_organization(): void
     {
         // Arrange
@@ -384,7 +422,43 @@ public function test_destroy_endpoint_deletes_project_member(): void
             'project-members:delete',
         ]);
         $project = Project::factory()->forOrganization($data->organization)->create();
-        $projectMember = ProjectMember::factory()->forProject($project)->forMember($data->member)->create();
+        $projectMember = ProjectMember::factory()->forProject($project)->forMember($data->member)->create([
+            'billable_rate' => null,
+        ]);
+        $this->assertBillableRateServiceIsUnused();
+        Passport::actingAs($data->user);
+
+        // Act
+        $response = $this->deleteJson(route('api.v1.project-members.destroy', [$data->organization->getKey(), $projectMember->getKey()]));
+
+        // Assert
+        $response->assertStatus(204);
+        $response->assertNoContent();
+        $this->assertDatabaseMissing(ProjectMember::class, [
+            'id' => $projectMember->getKey(),
+        ]);
+    }
+
+    public function test_destroy_endpoint_updates_billable_rate_of_time_entries_if_project_member_had_billable_rate(): void
+    {
+        $data = $this->createUserWithPermission([
+            'project-members:delete',
+        ]);
+        $project = Project::factory()->forOrganization($data->organization)->create();
+        $projectMember = ProjectMember::factory()->forProject($project)->forMember($data->member)->create([
+            'billable_rate' => 1200,
+        ]);
+        $this->mock(BillableRateService::class, function (MockInterface $mock) use ($projectMember): void {
+            $mock->shouldReceive('updateTimeEntriesBillableRateForMember')
+                ->once()
+                ->withArgs(fn (Member $memberArg) => $memberArg->is($projectMember->member));
+            $mock->shouldReceive('updateTimeEntriesBillableRateForProject')
+                ->once()
+                ->withArgs(fn (Project $projectArg) => $projectArg->is($projectMember->project));
+            $mock->shouldReceive('updateTimeEntriesBillableRateForOrganization')
+                ->once()
+                ->withArgs(fn (Organization $organizationArg) => $organizationArg->is($projectMember->project->organization));
+        });
         Passport::actingAs($data->user);
 
         // Act