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"Asia" isn't one hiring market. A company that hires in Singapore, Manila, and Ho Chi Minh City in the same quarter is dealing with three different employment laws, three social security systems, three sets of termination rules, and holiday calendars that barely overlap.
This guide compares nine major Asian hiring markets: Singapore, Malaysia, the Philippines, Vietnam, Indonesia, India, China, Japan, and South Korea. It covers what changes from country to country, what to plan for when hiring foreign or local staff, and when an Employer of Record makes more sense than setting up your own entity. It is current as of October 2026.
Statutory Costs and Contributions by Country
The table shows approximate employer contributions for local employees in 2026. Most countries cap contributions at a salary ceiling, so the effective rate is lower for high earners.
| Country | Main Schemes | Approx. Employer Cost on Top of Salary | Other Mandatory Costs |
|---|---|---|---|
| Singapore | CPF, Skills Development Levy | Up to 17% CPF for citizens and PRs aged 55 and below. No CPF for foreigners on work passes | — |
| Malaysia | EPF, SOCSO, EIS | About 14% to 15% (EPF 12% to 13% + SOCSO 1.75% + EIS 0.2%). EPF for foreign employees is 2% | — |
| Philippines | SSS, PhilHealth, Pag-IBIG | About 13% to 15%, subject to caps | 13th-month pay (one month's salary a year) |
| Vietnam | Social, health, and unemployment insurance | About 21.5% for Vietnamese employees, slightly less for foreigners | 2% trade union fee |
| Indonesia | BPJS Ketenagakerjaan, BPJS Kesehatan | About 10% to 12%, subject to caps | Religious holiday allowance (THR) of one month's salary |
| India | EPF, ESI | About 13% EPF on EPF wages up to ₹25,000, plus 3.25% ESI for employees earning up to ₹21,000 | Gratuity, payable after qualifying service |
| China | Five insurances and one fund | About 30% to 40%, depending on the city | — |
| Japan | Health, pension, employment, and workers' compensation insurance | About 15% to 16% | — |
| South Korea | National pension, health, employment, and industrial accident insurance | About 10% to 11% | Severance pay of 30 days' average wages per year of service (about 8.3% a year) |
Several recent changes are worth noting:
- India raised its EPF wage ceiling from ₹15,000 to ₹25,000 in September 2026.
- Malaysia made EPF mandatory for foreign employees in October 2025.
- South Korea's pension rate rose to 9.5% in total (4.75% each for employer and employee) in 2026, and will keep rising each year.
- Vietnam raised regional minimum wages on 1 January 2026, with Region I at VND 5.31 million a month.
Termination and Severance Rules
This is where costs and risks differ most. In many Asian countries, you can't end employment at will.
| Country | What to Expect |
|---|---|
| Singapore | Notice follows the contract, or a statutory minimum based on length of service. There is no statutory severance, although retrenchment benefits are customary for longer-serving staff |
| Malaysia | Employees covered by the Employment Act and earning RM4,000 or less get termination benefits of 10, 15, or 20 days' pay per year of service. Dismissal needs just cause or a genuine redundancy |
| Philippines | Termination is only allowed for "just" or "authorised" causes, following due process. Separation pay of half a month to one month per year of service applies for authorised causes |
| Vietnam | Termination grounds and notice periods are set by law. Severance or job-loss allowance is based on length of service, excluding periods covered by unemployment insurance |
| Indonesia | Severance, long-service pay, and compensation are set by formula under the Job Creation Law regulations, depending on the reason for termination |
| India | Notice follows the contract or company standing orders. Gratuity applies after the qualifying period, and retrenchment rules apply to workmen |
| China | Statutory severance is one month's wage per year of service. Unilateral termination is only allowed on specific legal grounds, and an employee can require an open-ended contract after two consecutive fixed-term contracts |
| Japan | 30 days' notice or pay in lieu. Courts set a high bar for dismissal, which needs an objectively reasonable cause |
| South Korea | 30 days' notice and justifiable cause. Statutory severance pay applies after one year of service |
The practical lesson is to budget for how employment might end before you hire, not after. An EOR handles the process, but the statutory payments are still yours.
Work Permits and Visas
Hiring local employees is usually quick. Hiring foreign nationals takes longer and has more conditions.
| Country | What to Know |
|---|---|
| Singapore | The Employment Pass requires at least S$5,600 a month (S$6,200 in financial services), more for older applicants, and must pass the COMPASS points framework |
| Malaysia | From 1 June 2026, minimum salaries for Employment Passes processed through MDEC roughly doubled: Category I is RM20,000 or more, Category II RM10,000 to RM19,999, and Category III RM5,000 to RM9,999 |
| China | A work permit and residence permit are needed, and the employer must be a registered entity in China |
| Japan | A work visa matching the role is needed, usually after a Certificate of Eligibility is issued |
| South Korea | A work visa matching the role is needed, such as an E-7 for professional roles |
| Vietnam | A work permit is needed unless an exemption applies |
| Philippines, Indonesia, India | Work permits or employment visas are needed, with country-specific conditions on the role and salary |
Whether an EOR can sponsor a work permit depends on the country. Some authorities look closely at third-party sponsorship and expect the sponsor to be the person's genuine employer. Before relying on an EOR for a foreign hire, ask the provider whether it can sponsor that type of visa in that country.
Probation, Working Hours, and Overtime
| Country | Probation | Normal Working Hours |
|---|---|---|
| Singapore | Set by contract, commonly 3 to 6 months | Up to 44 hours a week for employees covered by Part IV of the Employment Act |
| Malaysia | Set by contract, commonly 3 to 6 months | Up to 45 hours a week |
| Philippines | Up to 6 months, after which the employee becomes regular | 8 hours a day |
| Vietnam | Up to 180 days for managers, shorter for other roles | Up to 48 hours a week |
| Indonesia | Up to 3 months, for permanent employees only | 40 hours a week |
| India | Set by contract or standing orders | Varies by state law |
| China | Up to 6 months, depending on contract length | 40 hours a week |
| Japan | Set by contract, commonly 3 to 6 months | 40 hours a week |
| South Korea | Set by contract, commonly 3 months | 40 hours a week, plus up to 12 hours of overtime |
Overtime rates, rest days, and caps also differ from country to country. A single regional policy usually breaks the law somewhere.
Time Zones, Holidays, and Culture
- Time zones: The region spans from India (UTC+5:30) to Japan and Korea (UTC+9), a gap of 3.5 hours. Southeast Asia and China sit in between, at UTC+7 or UTC+8. A daily overlap window, such as 1pm to 4pm Singapore time, works for most of the region.
- Public holidays: Lunar New Year shuts down much of China, Vietnam, Korea, Singapore, and Malaysia, with Vietnam's Tết lasting the longest. Hari Raya Aidilfitri is a major holiday in Indonesia, Malaysia, and Singapore. Diwali matters in India, Singapore, and Malaysia, and Japan has Golden Week. Track leave by country, and plan launches and deadlines around these periods.
- Culture: Expectations about hierarchy, direct feedback, and decision-making vary widely across the region. A management style that works in Singapore may not work in Tokyo or Shanghai. Brief your managers on each market.
EOR vs Setting Up an Entity
| Employer of Record | Local Entity | |
|---|---|---|
| Time to first hire | Usually days to a few weeks | Usually several weeks to several months |
| Upfront cost | Little or none | Registration, capital, legal, and bank setup costs |
| Ongoing admin | Handled by the EOR | Accounting, audits, tax filings, and local directors where required |
| Legal employer | The EOR | Your company |
| Best for | Testing markets, small teams, hiring quickly in several countries | Large, long-term teams in one country |
One important detail: in some Asian countries, EOR arrangements fall under labour dispatch rules. In South Korea, for example, dispatched work is limited to a set list of job types and a maximum duration. Vietnam limits dispatch to listed jobs for up to 12 months. China caps dispatched workers at 10% of the user entity's workforce, and Japan requires dispatch licensing. A good EOR will explain how it employs staff in each country and what limits apply.
How Slasify Helps You Hire Across Asia
Slasify's Employer of Record and global payroll services let you hire in multiple Asian countries without setting up an entity in each one.
With Slasify, you can:
- Hire employees across Asia-Pacific through one Employer of Record (EOR) provider.
- Run compliant payroll in each country, including CPF, EPF, SSS, BPJS, social insurance, and every other local scheme.
- Pay in 130+ currencies and get one consolidated invoice for the region.
- Use compliant local contracts, probation terms, and leave policies for each market.
- Get guidance on termination rules, work permits, and how EOR arrangements work in each country.
Ready to Hire in Asia?
Talk to Slasify about building your team across Asia-Pacific, with local compliance handled in every market. Book a free consultation.
FAQs
1. What is an Employer of Record in Asia? An EOR is a company that legally employs staff for you in a country where you don't have an entity. It handles contracts, payroll, tax, and statutory benefits, while you manage the employee's daily work.
2. How quickly can I hire in Asia using an EOR? Usually within days to a few weeks for local hires. Foreign hires take longer because work permits can take weeks to months.
3. Which Asian country has the highest employer costs? Among major markets, China usually has the highest employer contributions, at around 30% to 40% of salary depending on the city. Vietnam is next at about 21.5%.
4. Do I need to pay severance in Asia? In many countries, yes. Malaysia, the Philippines, Vietnam, Indonesia, China, and South Korea all have statutory severance or termination payments, depending on length of service and the reason for termination.
5. Can an EOR sponsor work visas in Asia? It depends on the country and the type of visa. Some countries look closely at third-party sponsors, so check with your EOR before making an offer to a foreign national.
6. When should I set up an entity instead of using an EOR? Usually when you have a large, long-term team in one country, often 10 to 20 employees or more, or when local rules limit how long staff can be employed through an EOR.