Malaysia
Malaysia is a high middle income country with per heads income of RM36, 937 (US$10,796). It includes 11 states in Peninsular Malaysia, three federal territories and the Borneo states of Sabah and Sarawak, and is a country of diversity with its multi-ethnic, multicultural and multilinguistic population. The land area is 330,183 square kilometres. Sabah and Sarawak have 60 per cent of the land but only 20 per cent of the population.
At the time of independence in 1957, the ethnic groups had distinct identities: the Malays were largely concentrated in the rural areas in smallholder agriculture, but they were also embodied in the government, the police and the armed forces. The Indians were largely in the plantations and the professional services of the government while the Chinese dominated trade and commerce. A small group of foreigners controlled the corporate sector, largely plantations and tin mines. When Malaysia was formed in 1963, the people of Sabah and Sarawak comprised linguistically distinct groups, who were self-sufficient in living off the land and natural resources, and mostly concentrated in rural and remote settlements.
Malaysia’s marketplace-oriented economy, supportive government policies and a large local business community that is ready to do business with international corporations have made Malaysia a highly competitive trade and export base.
Minimum Wages
The 2020 Order, which came into operation on 1 February 2020, introduced a two-tiered minimum wage based on the place of employment of an employee.
The minimum wages rates payable to an employee who works in a place of employment in any City Council or Municipal Council areas specified in the as follows-
Minimum wage rates
Monthly
Daily
Number of working days in a week
Hourly
6
5
4
RM1,200
RM46.15
RM55.38
RM69.23
RM5.77
The minimum wages rates payable to an employee who works in place of employment in any areas others than the City Council or Municipal Council areas as specified in the Schedule to the 2020 Order, the minimum wage rates are as follows –
Minimum wage rates
Monthly
Daily
Number of working days in a week
Hourly
6
5
4
RM1,100
RM42.31
RM50.77
RM63.46
RM5.29
Statutory
Employee Provident Fund (EPF) / Kumpulan Wang Simpanan Pekerja (KWSP)
Employees’ Provident Fund is a federal statutory body under the purview of the Ministry of Finance. It manages the compulsory savings plan and retirement planning for private sector workers in Malaysia.
The mandatory EPF contribution is eligible for Malaysian and Permanent Residents. Nevertheless, foreigners may choose to contribute.
Social Security organization (SOCSO) / Pertubuhan Keselamatan Sosial Perkeso)
The Social Security Organisation (SOCSO) was established as one of the government departments under the Ministry of Human Resources to administer, implement and enforce the Employees’ Social Security Act 1969 and the Employees’ Social Security (General) Regulations 1971.
SOCSO provides social security protection by social insurance including medical and cash benefits, provision of artificial aids and rehabilitation to employees to reduce the sufferings and to provide financial guarantees and protection to the family.
Employment Insurance System (EIS) / Sistem Insuran Pekerja (SIP)
The Employment Insurance System (EIS) was established on 1st January 2018 to provide income replacement for Insured Persons (IP) who have lost their jobs. IPs who apply to SOCSO will receive re-employment assistance from Employment Services Officers (ESO).
Human Resource Development Fund (HRDF) / Pembangunan Sumber Manusia Berhad (PSMB)
The Human Resources Development Levy is the mandatory levy payment imposed by the Government on specified groups of employers for the purpose of employee training and skills upgrading. Under the law, certain categories of employers are liable to pay a Human Resource Development levy for each working employee at the rate of 1.0% of the monthly wages of the employee. However, the Minister of Human Resources may, from time to time, by order published in the Gazette, reduce or increase the rate of the levy specified. The minister is also empowered to exempt fully or partially any of the employers from the payment of this levy.
Inland Revenue Board of Malaysia (IRB)
Every individual who is liable to tax is required to declare his income to IRB yearly. Non-resident individual is taxed at a different tax rate on income earned/received from Malaysia which is 26% on employment. Employer had the responsibility to withhold tax for all employees who are under employment in Malaysia on monthly basic.
Leaves
The employees are entitled to paid annual leave, which depends on the period of employment as follows: 8 days per year for employees who have worked 1-2 years, 12 days per year for those who have worked 2-5 years, 16 days per year for employees who have worked longer than 5 years.
Working Hours
The Malaysian Employment Act defines the workweek as 48 hours, with a maximum of eight working hours per day and six working days per week. There are special restrictions, considered to be protection provisions, for women in the industrial or agricultural sector.
Public Holiday
Public Holiday in Malaysia
– New Year’s Day
– Thaipusam
– Federal Territory Day
– Chinese New Year
– Nurul Al-Quran
– Labour Day
– Hari Raya Aidilfitri
– Wesak Day
– Agong’s Birthday
– Hari Raya Haji
– Awal Muharram
– National Day
– Malaysia Day
– Deepavali
– Christmas Day
Singapore
Singapore, officially the Republic of Singapore and it has been Southeast Asia’s most modern city for over a century. The city blends Chinese, Malay, Indian, Arab and English cultures and religions. Because of its sufficient and determined government, Singapore has become a flourishing country that excels in trade and tourism and is a model developing nation.
Singapore also an Asian business center that’s a model of efficiency and It’s also multicultural city and close to one quarter of its population are expatriates or foreign worker from over the world. It’s become the technology hub of Asia, Singapore is the wired country in the region.
Payroll
In accordance to the Employment Act, your employer must pay your salary at least once a month and within 7 days after the end of the salary period. There are exceptions for overtime, resignation without notice and other situations.
Minimum Wages
MOM does not prescribe minimum wages for all workers in Singapore, including Foreign Domestic workers.
Statutory
Skill Development Levy (SDL)
Under the Skill Development Levy (SDL) Act, employers are required to pay levy for every employee they hire. Employee can be permanent, part-time, casual, temporary, or foreign employees rendering their services wholly or partly in Singapore.
The SDL collected is channeled to the Skills Development Fund (SDF), which provides grant to employees who send their employees for training under the national Continuing Education Training system.
The SDL and SDF are administrated by the SkillsFuture Singapore Agency (SSG).
SDL is payable on the first $4,500 of monthly remuneration at the rate of 0.25% at minimum $2 and capped at $11.25.
Central Provident Fund (CPF)
The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from employers and employees. The CPF is a key pillar of Singapore’s social security system, and serves to meet employee’s retirement, housing and healthcare needs. The government also help to supplement the CPF savings of lower wage workers through schemes such as Workfare and top-ups to MediSave for senior citizens. The CPF contributions will go into 3 accounts (Ordinary Account, Special Account and MediSave Account).
When employees reach 55 years old, Special Account and Ordinary Account will be transferred to employee’s Retirement Account to form employee’s retirement sum.
Personal Income Tax
Income tax rates depend on an individual’s tax residency status. Employees will be treated as a tax resident for Year of Assessment if employees are a Singapore Citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or Foreigner who has stayed or worked in Singapore (excludes director of the company) for 183 days or more in the year.
Otherwise, the employees will be treated as a non-resident of Singapore for tax purposes.
Personal income tax rates for resident taxpayers are progressive. The higher income earners pay a proportionately higher tax, with current highest personal income tax rate at 22%.
Leaves
Annual leave eligibility and entitlement
If you are covered by the Employment Act and have worked for at least 3 months, you are entitled to annual leave.
Eligibility
You are entitled to paid annual leave if you have worked for your employer for at least 3 months.
You can only apply for annual leave after working for 3 months.
Entitlement
Your annual leave entitlement depends on how many years of service you have with your employer. Your year of service begins from the day you start work with your employer.
Year of Service
Day of Leave
1st
7
2nd
8
3rd
9
4th
10
5th
11
6th
12
7th
13
8th and Thereafter
14
Singapore, officially the Republic of Singapore and it has been Southeast Asia’s most modern city for over a century. The city blends Chinese, Malay, Indian, Arab and English cultures and religions. Because of its sufficient and determined government, Singapore has become a flourishing country that excels in trade and tourism and is a model developing nation.
Singapore also an Asian business center that’s a model of efficiency and It’s also multicultural city and close to one quarter of its population are expatriates or foreign worker from over the world. It’s become the technology hub of Asia, Singapore is the wired country in the region.
Payroll
In accordance to the Employment Act, your employer must pay your salary at least once a month and within 7 days after the end of the salary period. There are exceptions for overtime, resignation without notice and other situations.
Minimum Wages
MOM does not prescribe minimum wages for all workers in Singapore, including Foreign Domestic workers.
Statutory
Skill Development Levy (SDL)
Under the Skill Development Levy (SDL) Act, employers are required to pay levy for every employee they hire. Employee can be permanent, part-time, casual, temporary, or foreign employees rendering their services wholly or partly in Singapore.
The SDL collected is channeled to the Skills Development Fund (SDF), which provides grant to employees who send their employees for training under the national Continuing Education Training system.
The SDL and SDF are administrated by the SkillsFuture Singapore Agency (SSG).
SDL is payable on the first $4,500 of monthly remuneration at the rate of 0.25% at minimum $2 and capped at $11.25.
Central Provident Fund (CPF)
The Central Provident Fund (CPF) is a mandatory social security savings scheme funded by contributions from employers and employees. The CPF is a key pillar of Singapore’s social security system, and serves to meet employee’s retirement, housing and healthcare needs. The government also help to supplement the CPF savings of lower wage workers through schemes such as Workfare and top-ups to MediSave for senior citizens. The CPF contributions will go into 3 accounts (Ordinary Account, Special Account and MediSave Account).
When employees reach 55 years old, Special Account and Ordinary Account will be transferred to employee’s Retirement Account to form employee’s retirement sum.
Personal Income Tax
Income tax rates depend on an individual’s tax residency status. Employees will be treated as a tax resident for Year of Assessment if employees are a Singapore Citizen or Singapore Permanent Resident who resides in Singapore except for temporary absences; or Foreigner who has stayed or worked in Singapore (excludes director of the company) for 183 days or more in the year.
Otherwise, the employees will be treated as a non-resident of Singapore for tax purposes.
Personal income tax rates for resident taxpayers are progressive. The higher income earners pay a proportionately higher tax, with current highest personal income tax rate at 22%.
Leaves
Annual leave eligibility and entitlement
If you are covered by the Employment Act and have worked for at least 3 months, you are entitled to annual leave.
Eligibility
You are entitled to paid annual leave if you have worked for your employer for at least 3 months.
You can only apply for annual leave after working for 3 months.
Entitlement
Your annual leave entitlement depends on how many years of service you have with your employer. Your year of service begins from the day you start work with your employer.
Working Hours
Both local and foreign workers in Singapore are protected from excessive working hours under the Employment Act (EA). They should not be contractually required to work more than 8 hours in a day or 44 hours in a week. If they are required to work overtime, employees should be paid 1.5 times their hourly basic rate of pay. Even then, employees should not be required to work more than 12 hours a day or more than 72 hours of overtime a month.
Employers who require their employees to work more than 12 hours a day or more than 72 hours of overtime a month will have to apply to the Ministry for exemption. Under the Workplace Safety and Health (WSH) Act, employers must conduct proper risk assessment of the jobs. Exemption may be given when jobs are assessed by MOM to be low risk, taking into consideration factors such as safety, the company’s employment records as well as views of both workers and unions. Even when such exemptions are granted, employers should not compel employees to work overtime.
Public Holiday
– New Year’s Day
– Chinese New Year
– Good Friday
– Labour Day
– Hari Raya Puasa
– Vesak Day
– Hari Raya Haji
– National Day
– Deepavali
– Christmas Day
China
China is one of lies in the east Asia of country and is the development countries. Nowadays, the economic growth in China is rapidly becoming a leading developed nation and arguably the biggest economy in the world, the employment opportunity has increasingly and attractive array of jobs available for foreigners to do in. For those foreigners who plan work in China, has a chance to not only obtain an interesting work experience, attractive salaries, and great living conditions. While, also can say that has an opportunity that to experience a completely different culture and enjoy the benefits of to learn with the second language. Furthermore, in China most of the Chinese are very friendly, very open, nice and helpful would to help others. Although most of Chinese are speak Mandarin, but still can survive and find English-speaking locals.
Employee Benefits
The five-category social Insurance also called “social welfare” or “mandatory benefits” which consists of the Pension Insurance, Medical Insurance, Unemployment Insurance, Work-related Injury Insurance, and Maternity Insurance are mandatory for Chinese and foreigners’ employees in the system. Added to these is a mandatory Housing fund for Chinese employees in the system. However, most Foreigners in Shanghai are not required to make contributions to social security or housing fund. All the social security system and the housing fund costs will adjust by exact contribution rates vary from region to region and annual changes and reforms. The extra benefits for employees in China include of the Commercial / Supplemental Health Insurance is a private insurance and the Supplemental Housing Fund both are non-mandatory.
The Old-Age Insurance System known as Pension Insurances
The Pension Insurance is a mandatory retirement savings system under part of social insurance for local and foreigners’ employees. The aims of Pension Insurance are protected employee’s livelihood after retirement that employees can enjoy living through the pension income.
The Pension Insurances Act: is requires monthly contributes made by both the employer and employee. The employee’s contribute portion is based on their individual wage, while employers contribute a percentage of the total wages paid to their workforce. The Pension Insurance contribution rate for employer and employee is about 14% and 8% which exact contribution rates vary from region to region and annual changes and reforms. In China, the statutory retirement age is 60 years for men, and 50 years for women worker in enterprises, or women are 55 years old civil servants. The employees can receive the pension benefits when they reach the statutory retirement age, or as long as have at least 15 years of contribution.
The part of employer contribute basic insurance premiums is used to set up mutual assistance funds, and the rest goes to employee personal accounts, while the employee’s contributions are paid into the two parts, the first part is base pension is covered by the mutual assistance funds, the monthly sum amounting to 20% of the average social wage of the employees. The second part is pension personal accounts, the monthly pension in personal accounts come to 1/120 of the accumulated amount in personal accounts. Pensions in personal accounts can be inherited. Those who started working before, and retired after, the implementation of this new system is entitled to an additional pension for the transitional period.
The Medical Insurance System
The medical insurance is a first mandatory system of Urban Staff and Workers that established by the State Council Decision in 1998. The main purpose of medical insurance to ensure all the employees covered by the insurance program enjoy the better medical service at lower cost. The medical insurance provided benefits pays to employees for the general outpatient expenses, treatment of serious illness and hospitalization. The medical insurance pays employee medical costs at any designated hospitals or clinics for treatment however, for non-designated hospitals or clinics the employees have to pay advance and request reimbursement from the authorities later.
The Medical Insurance Act: is requires both the employer and employee to paid monthly the rate of wages. The maximum medical insurance contribution rate for employer and employee is 10% and 2% respectively and can be adjust depending on varies from region to region and annual changes and reforms. Employer’s ‘premiums amount is paid in the pooled funds while employee’s premiums amount is paid to the personal accounts. Once the worker has paid into the system for the requisite number of years, they are eligible for benefits without having to make additional contributions.
The Unemployment Insurance System
The unemployment Insurance is a compulsory system that to protect short term replacement of lost wages to employee who is job loss. In China, the benefit of unemployment Insurance is available to employees to apply when they become unemployed and the claim maximum 24 months. it is depending on the length of period for which one has paid the premiums.
The unemployment Insurance Act: is requires both the employer and employee paid monthly the rate of wages. The maximum insurance premiums rate for employer and employee are 8% and 2% respectively, and can adjust depending on varies from region to region and annual changes and reforms. There are three conditions to qualify for unemployment insurance benefits, the first, at least one full year of payment. The next, suspension of employment is not voluntary. And the third, the employee is unemployment has been registered and application for reemployment filed.
The unemployment Insurance provide benefit to employee during the unemployed period which consists of if employee who is ill, he or she is entitled to draw unemployment insurance money, he or she is also entitled to medical subsidies. Meanwhile, if employee who is dies, his or her family can receive funeral subsidies and his or her dependents can receive pension for the deceased. In addition, the unemployed person may receive vocational training and subsidies for job agency services when drawing the unemployment insurance money.
The Industrial Injury Insurance System known as Work related Injury
The Work-related Injury Insurance is a compulsory system that cover pay for treatment by work injuries and occupational diseases to employees. Enterprises of all types have the responsibility to protect all their work force in case of injury and workplace risks. The Work-related Injury Insurance provides coverage mainly consists of medical costs sustained during the treatment of the injury, and the injury or disability subsidies, pension for the disabled person or family of a deceased person, and injury or disability nursing charge, all of which are to be determined according to the degree of disability upon termination of the medical treatment.
The Work-related Injury Insurance Act: is only requires employer to paid the insurance premiums for all the employees working in China. The amount of insurance premiums is paid monthly at rates of between 0.5% and 2% of payroll, varies according to different trades, also may fluctuate with the situation of the individual enterprise.
The Childbirth Insurance System known as Maternity Insurance
The Maternity Insurance is one of a mandatory system that cover full of maternity-related medical costs consist of birth control, prenatal check-ups, delivery and antenatal care, as well as allowances to be paid during maternity leave. All the employees who are covered by maternity insurance can reimbursed for part of their maternity medical expenses from this insurance.
The Maternity Insurance Act: Every employer is responsibility on maternity insurance of their both female and male employees according to the regulations. The childbirth insurance premiums rate is required to paid monthly at rates of between 0.8% and 1% of payroll, varies according to different trades, also may fluctuate with the situation of the individual enterprise.
The Housing Fund or Housing Provident Fund
The Housing Fund is administered by the Ministry of Housing and Urban-Rural Development instead of the Ministry of Human Resources and Social Security. However, the Housing Fund also is a part of compulsory system for employees. All the China employees is requiring to participate in this system. The benefit of housing fund mainly is help to meet housing needs of employees, which allow employees by apply from the housing fund account for preferential rate mortgages, to cover housing repair and maintenance costs and receive rent subsidies, as well as can be used for non-housing related expenses such as urgent or serious medical treatment costs. On other hand, if unused, it is allowed employees to redeemed upon retirement. Thus, this can server as a secondary pension of employees.
The Housing Fund Act: is requires the both employer and employees pay respectively the same rates between the 5% to 12% of the monthly wages. The range of the rates is varying according from region to region and annual changes and reforms.
Commercial / Supplemental Health Insurance
The Commercial / Supplemental Health Insurance is a private insurance that offer for both the employer or employees for the extra benefits. It is a non-mandatory and an additional insurance system. The Commercial Health Insurance is considered an important supplement to the basic social health insurance schemes in the Chinese healthcare system that mainly for improve the protection level. The four main types consist of Critical illness, medical reimbursement, disability income, and long-term care insurance are offered by commercial health insurance companies in China. The China government is encouraged employees to purchase supplemental insurance for specific medical needs that a primary plan does not cover. It gives employees the ability to avoid high out-of-pocket expenses or be without coverage if unforeseen circumstances occur. Also, if employees who have commercial health insurance can access to private health clinics and organizations.
Supplemental Housing Fund
The Supplemental Housing Fund is a extra benefit that provides additional contributions to the employee’s housing fund. Also, it is a non-mandatory contribution amount. The both employer and employee also have to pay the same rate additional contribution and deposit them into the employee’s supplementary housing fund account.
Individual Income Tax (IIT)
The Individual Income Tax (IIT) in China is based on administered on a progressive tax system. The 9 categories of income in China consists of Employment income, Remuneration for labor services, Author’s remuneration, Income from royalties, Operating income, Income from interest, dividends and bonuses, Income from lease of property, Income from the transfer of property, and Incidental income.
The Individual Income Tax (IIT) Act: is divided taxpayers into PRC-domiciled and non-PRC domiciled individuals. For foreigners who working in Mainland China could fall under either group. The PRC-domiciled individuals are required taxed on the income sourced from China and offshore. And the Non-PRC domiciled individuals are mainly required taxed on the income sourced from China. The employer is requiring to done the calculation withhold the correct amount of tax before payment of the salary, to make it easier for staff. The Individual Income Tax (IIT) rates in China is from starting at 3% and ending at 45%. The personal income tax return for tax PRC-domiciled individuals consists of both foreign and Chinese nationals and non-PRC domiciled individuals are mandatory if the monthly income is over 5000RMB or more. Moreover, to further lower the tax burden, individuals can use the different types of special additional deductions or itemized deductions such as children’s education expenses, meal and laundry expenses, housing rental, and so on. And for the amount of the standard basic deduction is CNY 60,000 per annum which is CNY 5,000 for monthly tax withholding purpose. Meanwhile, the fees of Chinese social security contributions made in accordance with the Social Security Law and contributions made to the statutory Housing Fund also are deductible for IIT purpose.
Living and working in China
Working in China
For foreigner who plan to work in China. The first step is need to secure a Chinese Work Permit and, second step is he or she will need to apply for the visa. For those who intend to work in China is requires to getting a “Z” visa. Before submission of visa application those documents he or she shall prepare the relevant documents consist of the Passport, Visa Application Form, Photo, Proof of legal stay or residence status, photocopy of previous Chinese passports or previous Chinese visas, supporting Documents, and job invitation letter. Once obtain the eligibility visa, he or she can travel to China to work. However, he or she need to register to notify the local authorities of their new address with their local police station, within 24 hours of arrival. After that, he or she is required to undergo a fairly comprehensive and time-consuming medical check, for reduce infectious diseases like HIV and drug use. Next, turn the Work Permit into a bona fide permit. The last step is requiring to apply for Residency Permit by the local Public Security Bureau (PSB) at least one week before the Z visa expires.
Accommodations
China has a wide variety of accommodation to choose from, include the hotels, guesthouses, youth hostels, apartment, homestays, house share and so on options. In general, the price of the accommodation which is according to the size, location, and amenities. As an expat in China, might face certain difficulties when searching for an apartment due to cultural differences and language barriers. Thus, the quickest and easiest way for Expats moving to China can be find the accommodation by a real estate agency. most of the agencies will have English-speaking staff ready to help. For the most part, China is a safe place to visit and stay, as long as you know where you’re going and stay alert.
Transportations
With the development of the times, nowadays the transportation in China is very comprehensive. China has built a perfect transportation system in main area include of flights, trains, highways and waterways, as well as local city transportation, such as taxi, public bus, and metro. Among these, also has the high-speed rail lines, and many new subways have developed the daily lives of local people most dramatically. No matter where you want to go or what the destination is, there is convenient to you to find detailed transportation information about your destinations, as well as the surrounding areas.
Food
Chinese food is very famous in the world. There are many kinds of the delicious food in China. There consist of Beijing cuisine, Hunan or Hubei cuisine, Shanghai cuisine, Szechwan cuisine, Cantonese cuisine, Hakka cuisine, and many more. In each province has its own special style of cooking. All the recipes come from various regions and ethnic dishes. Most of the foreign travelers to China are deeply impressed by the Chinese food. However, also in China can enjoy to drink the different types of Chinese tea which include black, white, green, yellow, oolong, and dark tea. Some Chinese tea is health care tea as well as good for keep healthy. Most of the China food can easy to having by restaurant, markets, and street food. China is a place where the food is not only delicious, but the price of Chinese food per person is from 20 yuan to 150 yuan, also can be found. The price is according to the food that you order.
Languages
China is a unitary multi-national country. Although, in China has many ethnic groups. Each ethnic group also has a differing geographical environment and living conditions. However, the standard languages of China are Mandarin, known as “Putonghua”. Overall, In China, most of the Chinese are speaks Mandarin, only has several other main dialects also use in China which include Yue (Cantonese), Xiang (Hunanese), Min dialect, Gan dialect, Wu dialect, and Kejia or Hakka dialect. Other dialects spoken by the Chinese which is according to the located from and ethnic group.
Public holiday
– New Year’s Day
– Chinese New Year
– Lunar New Year
– Qingming Festival
– Labour Day
– Dragon Boat Festival
– Mid-Autumn Festival
– Golden Week
– National Day of the People’s Republic of China
Hong Kong
Hong Kong is a special administrative region of China, located to the east of the Pear River estuary on the south coast of China. It is a former British colony, but was returned to China in 1997 with separate political and economic system. Hong Kong’s proximity to China and its standing as and administrative region of the country, it benefits from advantages for cross-border business transactions. Hong Kong is one of the world’s most business-friendly cities. It became one of the most prominent financial hubs and seventh-largest trading entity.
The government of Hong Kong welcomes inward investment, providing foreign investors with attractive low levels of taxation and political stability. Investors consider Hong Kong because of its business gateway to the markets of China and has also offering excellent connections to the rest of the world, including Russia, Europe, the UK and USA. Skilled employees in Hong Kong are known for being dedicated and hard working with a strong understanding of Asian business culture. Despite the predominant language being Cantonese, English language is widely spoken in business so communication is never an issue in Hong Kong.
Payroll
Employees in Hong Kong are paid on a monthly basis and must be paid 7 days before its due date.
Minimum wages
The minimum wage in Hong Kong at HK$37.5 per hour and applies to all local workers apart from domestic helpers. The notion of raising the minimum wage is a contentious concept, as many argue that it does more harm than good.
Statutory
Mandatory Provident Fund
MPF is a compulsory saving scheme (pension fund) designed by the Hong Kong government as a major protection scheme for aged and retired residents. It is mandatory to all employees who have contract of 60 days or more, and for self-employed between 18 to 65 years of age. Foreign workers/citizen with less than 13 months of contract may be exempted if they are already covered of other countries retirement plan.
Both employee and employer must contribute at least 5% each base on employee’s income.
Monthly Relevant Income
Employee Mandatory Contribution
Employer Mandatory Contribution
Less than HK$ 7,100
0%
5.0%
HK$ 7,100 to HK$ 30,000
5%
5%
HK$ 30,000 and up
HK$ 1500 Max
HK$ 1500 Max
Taxes
Tax year in Hong Kong runs from 1 April through 31 March. Employers are required to notify the Inland Revenue Department of any employees’ employment movement within a stated time.
Net Chargeable Income (HK$)
Tax Rate
HK$ 1-50,000
2%
HK$ 50,001-100,000
6%
HK$ 100,001-150,000
10%
HKS 150,001-200,000
14%
Above HK$ 200,000
17%
Taxes
Tax year in Hong Kong runs from 1 April through 31 March. Employers are required to notify the Inland Revenue Department of any employees’ employment movement within a stated time.
Leaves
a) Annual Leave – Employee is entitled to seven days annual leave after 12 months of service under a continuous contract with the same employer. Leave is increased according to an employee’s length of service.
b) Maternity Leave- Employees are entitled for 14 weeks paid maternity leave. They are eligible to maternity leave if they have been employed under continuous contract for not less than 40 weeks immediately before the beginning of the scheduled maternity leave. Employees can use their Maternity benefits anytime between two and four weeks before the expected date of birth.
Employees who are qualified for maternity leave may receive 4/5 (80%) of the average daily wages earned in 12 month period preceding the day of the leave.
c) Paternity Leave-An employee is entitled for 5 days Paternity leave if he has been employed under continuous contract for not less than 40 weeks before the day of the paternity leave.
Employees who are qualified for paternity leave may receive 4/5 (80%) of the average daily wages earned in 12 month period preceding the day of the leave.
d) Sick Leave – Employee can accumulate paid sickness days after having been employed under continuous contract. Paid sickness days are accumulated at the rate of two paid sickness days for each completed month during the first 12 months, and four paid sickness days each completed month thereafter.
Daily rate of sickness allowance is equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the sickness days.
Working Hours
Work week in Hong Kong is Monday to Friday. There are no statutory provisions which prescribe maximum working hours.
Public Holidays
Rest Day
Employment Ordinance (EO) provide additional paid statutory (public holidays, an employee is entitled to no less than one rest day in every period of seven days.
All employees are entitled to statutory holidays. Most employers are extending entitlement to all general holidays, but there is no legal obligation to do so. There are 12 statutory holidays and five general holidays.
A) Statutory Holidays
– New Year’s Day
– Lunar New Year’s Day
– Second Day of Lunar New Year
– Fourth Day of Lunar New Year
– Ching Ming Festival
– Labor Day
– Tuen Ng Festival
– Hong Kong Special Administrative Region
– Establishment Day
– The Day following the Chinese Mid-Autumn
– Festival
– Chung Yeung Festival
– Chinese Winter Solstice Festival
– Christmas Day
B) General Holiday
– Good Friday
– Day after Good Friday
– Day after Easter Monday
– Birthday of the Buddha
– First Weekday after Christmas Day
Indonesia
Indonesia is one of the Southeast Asia’s largest and most populous countries. Its 260 million population made the country the fourth largest population in the world, but also considered as the world’s 10th largest economy in terms of purchasing power parity, and a member of the G-20. Being an emerging middle-income country, Indonesia natural resources like gold, tin, copper, gas and oil have been important to economy while major exports include timber, rubber and palm oil. It is also known for its automotive industry which make the Indonesia the 17th largest car producer in the world. Government support, economic strength and market potential in Indonesia, are the reasons why investors find Indonesia and investment target.
Aside from its good economic standing, Indonesia is considered as one of the countries everyone wants to visit. Their food is delicious, and their cultures and traditions are interesting. 20 million tourists visited Indonesia because of their famous beaches, active volcanoes and fantastic landscape. The best attraction in Indonesia is its untouched natural areas and the wildlife. But the best attraction in Indonesia are its friendly locals that some considered them as the nicest ones. Indonesian speaks more than 700 languages. Most of them speaks Indonesian. Although not everyone speaks English, there are many people who can, and will always find someone who will help.
Payroll
Wages in Indonesia may be paid weekly, bi-weekly, or monthly but should be made by the end of the month at least.
Minimum Wages
The median salary in Indonesia is 11,400,000 IDR (788 USD). This means that 50% of the Indonesian population earns more than 11,400,000 IDR, and the other 50% earns less than 11,400,000 IDR.
Statutory
Social Security (BPJS Ketenagakerjaan)
The social security aims to protect employees’ security while working in the company and when they reach the pension time. Life insurance is also part of the social security.
The calculation of the social security are as follow:
•Occupational accident/work accident insurance, which is 0.24%-1.74% of the monthly salary.
Employer pays entirely the said contribution.
•Death benefits/life insurance, which is 0.3%of the monthly salary (company pays entirely).
•Pension/old –age insurance, which is 5.7% of the monthly salary. It must be paid by both the company (3.7%) and the employee (2%). Employees can withdraw this pension/old age insurance when they reach 55 years old or at any time after the employees quit working, The employees’ involvement in this security system must be at least 5 years.
•Health Insurance is both paid by employees and employer. The maximum amount of money that should be paid by employer is 4% of the salary of IDR 4,000,000. The minimum amount that should be paid by the employer is 1% of the employees UMR/minimum regional wage.
Taxes
Tax year in Indonesia run from 1st of January to 31st December.
Taxable Income Band (IDR)
Tax Rate
IDR 1-50,000,000
5%
IDR 50,000,001-250,000,000
15%
IDR 250,000,001-500,000,000
20%
IDR 500,000,001and up
30%
13th Month Pay
Employees are paid mandatory 13th-month salary payment also known as Tanjangan Hari Raya Payment. Employees are entitled to THR if they are continuously working at the same company for 12 months. If the employee has worked less than 12 months, he is entitled to a prorated amount Payment were given to employees one week before their longest religious holiday.
Leaves
a) Annual Leave – Employees are entitled to receive 12 days annual leave after they have worked for the same employer for 12 months. It expires 6 months after the date they were supposed to take it. Both employees and employers must agree for monetary compensation for unused leaves.
b) Maternity Leave – Female employees are entitled to take 3 months fully paid maternity leave, of which 1.5 months are taken prior to the birth and 1.5 months are taken post-natal. During their maternity leave, employees will receive full salary.
Employees who miscarry are entitled to a 1.5 month rest period if recommended by a doctor.
c) Paternity Leave -An employee is entitled for 2 days leave for the birth of their child or miscarriage.
d) Parental Leave – Employees are entitled to two paid family leave under the following circumstances:
•for the marriage of the employees’ child
•for the circumcision of employees’ child
•for the Baptism of the employees’ child
•for the death of employees’ child
e) Sick Leave – Employees are entitled for paid sick leave if they can provide medical confirmation of their ill health. Employees can also have long term sick leave for 1 year provided a written recommendation by the doctor. For the first 4 months, employee is entitled to 100% of their pay. For the second four months employee’s pay is reduced to 75% and reduced to 50% for the third four months. Employees pay is reduced to 25% and may terminate an employee who has been sick for 12 months.
f) Bereavement Leave-Employees are entitled to 2 paid leave for the death of an employee’s spouse, child, child-in-law, parent or parent-in-law.
Working Hours
The required work hour in Indonesia is 40 hours per week with either 7 hours a day for 6 days a week or 8 hours a day for 5 days a week.
Employers who request for extra hours must pay 1.5 times their regular wages for the first hour and 2 times of their regular wages for any hour after that. Maximum overtime allowed is 3 hours a day or 14 hours a week.
Public Holidays
Indonesia celebrates 16 public holidays for which employees are given the day off
– New Year’s Day
– Lunar/Chinese New Year’s Day
– Isra Mi’raj
– Bali Hindu New Year
– Good Friday
– Labor Day
– Lebaran Holiday
– Ascension Day
– Hari Raya Idul Fitri
– Waisak Day
– Pancasila Day
– Eid al-Adha
– Islamic New Year
– Independence Day
– Prophet’s Birthday
– Christmas Day
Philippines
The Philippines is an archipelagic country in Southeast Asia. It is situated in western Pacific Ocean, and consists of about 7,640 islands. Emerging from the colonial past, Philippines became a stable democracy in the 20th century, transitioning from a primarily agricultural economy to one based on services and manufacturing. While agriculture remains an important commercial sector in the Philippines, Information Technology, energy, and transport infrastructure have grown in economic significance. Today, the Philippines enjoys a buoyant internal consumer market, a stable banking system, and trade connections to the rest of Asia.
The tropical climate, people and culture, and booming economy of the Philippines have made the country a popular destination for expatriates and companies in the process of expanding globally. The Philippines’ workforce is one of the most skilled in Asia with high rates of literacy and education, and English language proficiency. In 2000, the Meta Group ranked the country as one of the world’s best knowledge bases.
Payroll
Employers in the Philippines observe a range of payroll compliance regulations which include monthly withholding obligations and mandated benefits of its local and foreign employees. Salaries are usually paid bi-monthly on the 15th and the 30th of every month.
Minimum Wages
Minimum Wages in Philippines is expected to reach 537.00 PHP/day by the end of 2021, according to Trading Economics global macro models and analysts expectations.
13th Month Pay
Employers must provide 1/12 of the total basic salary earned by a rank and file employee within a calendar year. It is paid. It should be paid not later than December 24 of each year.
Statutory
Social Security System (SSS)
SSS is a privatized social insurance program established to protect members and their families against the hazards of disability, sickness, maternity, old age and other contingencies resulting in loss of income or financial burden. The contribution rate is equivalent to 13% of worker’s monthly salary credit which is shared by employer at 8.5% and employee at 4.5%.
Philippine Health Insurance Corporation (PHIC)
The Philippine Health Insurance Corporation, popularly known as PhilHealth, is a government funded healthcare system in the Philippines. It was established to administer the National Health Insurance Program, which will prioritize the needs of the underprivileged, sick, elderly, disabled, women and children.
Monthly contribution is at 3% of the salary base which is shared by 1.5% from employee and 1.5% from employer.
Home Development Mutual Fund (PAG-IBIG)
Pag-ibig is a provident savings system providing housing loans to private and government employees and to self-employed persons who elect to join the Fund. Contribution rate is maximum of PHP 100.00 for employer and minimum of PHP 100.00 for employee. Employee share may increase at the discretion of the employee. Under Circular No. 421, Pag-ibig deduction for foreign workers are not mandatory.
Bureau of Internal Revenue (BIR)
Every employer is required to deduct and withhold taxes on employee’s compensation in accordance to the Philippine Law. Consequently, personal income tax is collected from the employee through the payroll and the employer acts as the withholding agent.
The Philippines’ new tax reform bill, known as Republic Act No. 10963, TRAIN or Tax Reform for Acceleration and Inclusion that take effect on January 1, 2018 states that local and foreign employees earning an annual salary of PHP 250,000 below will continue to be exempted from paying income tax.
Leaves
a) Service Incentive Leave (SIL) – Every employee who worked for a minimum of one year is entitled to five days leave. These days can be taken as holiday or sick leave. The unused Service Incentive Leave is commutable to its money equivalent at the end of the year.
b) Maternity Leave- Female member of Social Security System (SSS) who has paid at least 3 months contributions in the twelve-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily maternity benefit equivalent to 100% of her average daily salary. The benefit is for 105 days regardless of the type of the delivery.
c) Paternity Leave-Married male employees are eligible for 7 working days to 4 child birth including miscarriage of legitimate spouse to be availed within 60 days from delivery/miscarriage.
d) Magna Carta for Women (Special Leave) – 60 days calendar days leave. This is given to all female employees who underwent surgery caused by gynecological disorders and who have rendered at least 6 months continuous aggregate employment service for the 12 months prior to surgery.
e) Solo Parental Leave- Single parents are permitted to take additional leave of 7 working days every year.
Working Hours
The Philippine work week is 40 hours, with a standard work day of 8 hours. If employees in the Philippines must work on Sunday or paid holiday they are entitled to 1.30% of their regular wages. If employee works more than 8 hours a day the employer must pay 1.25% of the employee’s regular wages.
Managers and supervisors are excluded from the overtime pay.
Public Holidays
There are two types of holidays in the Philippines: Regular Holidays and Special Non-Working days. Regular holidays are paid days off. Special Non-Working days are non-paid holidays.
A) Regular Holidays
– New Year’s Day
– Araw ng Kagitingan
– Maundy Thursday
– Good Friday
– Labor Day
– Eid’l Fitr (Feast of Ramadhan)
– Independence Day
– Eid’l Adha (Feast of Sacrifice)
– National Heroes Day
– Bonifacio Day
– Christmas Day
– Rizal Day
B) Special Non-Working Day
– Chinese New Year
– EDSA People Power Revolution
– Black Saturday
– Ninoy Aquino Day
– All Saint’s Day
– Feast of the Immaculate Conception
South Korea
South Korea, a country in East Asia that occupies the southern portion of the Korean peninsula. South Korea’s territory is mostly mountainous, located primarily in the west and southeast, make up only 30% of the total land area. About three thousand islands, typically small and uninhabited, lie off the western and southern coasts of South Korea.
South Korea has one of the strongest economies in Eastern Asia. Most of its wealth comes from manufacturing and service industries, such as banking. It exports ships, cars, computers, and other electronic items. Its citizens enjoy one of the world’s fastest Internet connection speeds and the densest high-speed railway network.
Payroll
Employers in the South Korea observe a range of payroll compliance regulations which include monthly withholding obligations and mandated benefits of its local and foreign employees.
Salaries are usually paid monthly on the last working day of every month.
Statutory
Employment Insurance
This insurance was started in 1995, to prevent unemployment, promote employment and help develop workers’ vocational skills. Contribution by both employer and employee, covered employees below 65 of age. Foreign employee have the option to choose not to contribute.
Industrial Accident Compensation Insurance
This insurance is the social insurance to relieve employees and their family from occupational injury, disease, disabilities or death. Covered all employees including foreign employee. Among the benefits are medical care benefits, temporary disability benefits, injury-disease compensation annuity, permanent disability benefits, nursing benefits, survivors’ benefits, funeral benefits.
National Pension
This insurance is aimed at providing pension for the people in preparation of their old-age life, invalidity or death. Contribution by both employer and employee at 4.5% of employee basic monthly income. Foreign workers are excluded from the coverage of Korea’s national pension system if their home country’s law does not allow Korean nationals to be covered by its national pension scheme.
Health Insurance & Long-term Care Insurance
This insurance is aimed at preventing, diagnosing or treating people’s injury and illness. Covered all employees including foreign employee. Contribution by both employer and employee at 3.43% of employee basic monthly income.
Employee Income Tax/Resident Tax
An employee’s wage and salary income are subject to Korean income taxation. The income tax rate starts from 6% to 45%.
Tax rates for non-residents are the same as those for residents. However, foreign workers can elect to apply a 19 percent (excluding local income surtax) flat tax rate to total Korean-sourced employment income. Individuals liable for payment of income tax in Korea are levied an additional local income surtax at the rate of 10 percent of the income tax amount.
Leave
Employees that have worked at least one continuous year for the same employer are entitled to 15 days of paid annual leave. An additional vacation day is paid for each two years of service thereafter.
Working Hours
The work week is 40 hours, with a standard work day of 8 hours.
Public Holidays
– New Year’s Day
– Seotdal Geumeum
– Independence Movement Day
– March 1st Movement Day
– Children’s Day
– Buddha’s Birthday
– Memorial Day
– National Liberation Day of Korea
– Chuseok
– National Foundation Day
– Hangul Day
– Christmas Day
Taiwan
Taiwan officially the Republic of China (ROC) is one of the world’s smallest countries and richest countries in East Asia, both financially and in the quality of life. Taiwan known as the second safest country in the world and the safest in Eastern Asia in a variety of global safety indexes. And, is a country of having world-class healthcare system, lower cost of living, subtropical weather. Taiwanese are friendly, welcoming, and willing to help others. Although most of the Taiwanese do not speaks English, but most locals are as either traveler or ex-pat, you will most likely feel welcome here. As to culture aspect, Taiwan has many different ethnic groups reside on the island, Taiwan is culturally diverse. All kinds of religion, architecture, languages, lifestyles, and food thrive in harmony here.
Labor Insurance
The Labor Insurance is a program established by the government of the Republic of China in March 1950, which is the first compulsory social insurance program in Taiwan. The aim of Labor Insurance program is to protect workers’ livelihood and promote social security. The Labor Insurance is covers comprehensive the list of employee benefits which include childbirth, injury, disease, disability, old-age, death and occupational hazard medical care benefits.
The Labor Insurance Act: for employees that are above 15 full years and below 65 years of age under this program. The employer is requiring to process the employee’s labor insurance from the date on which the employee commences employment for the employees. And the Labor Insurance amount is paid made by both the employee and employer by calculated using the employee’s monthly insurance salary and insurance premium rate.
Labor Pension
The Labor Pension is a mandatory benefit National Pension program set up to provide worker with a comprehensive retirement plan. The main purpose of Labor Pension is to protect workers’ livelihood after retirement, strengthen the relations between workers and employers, and promote social and economic developments. The National Pension Program is offers payments benefits to employees which includes the Old-Age Pension benefits, Disability Pension and Survivors Pension, as well as two types of lump sum benefits including the Maternity Benefits and Funeral Benefits.
The Labor Pension Act: The Mandatory Pension Contributions is for employees that are Taiwanese citizens; foreign spouses; spouses from mainland, Hong Kong, or Macau; and permanent resident foreigners. Similarly, the employer is requiring to process the employee’s Labor Pension from the date on which the employee commences employment for the employees. The Labor Pension amount is paid made by employer. The employer is responsible report the amount based on the total monthly wage of worker in accordance with the “Table of Monthly Contributions Classification of Labor Pension.” The monthly contribution rate for employer is minimum 6 % or more.
In addition, the Voluntary Pension Contributions is for those workers who are not subject to the Labor Standards Act may make voluntary contributions and claim a pension pursuant to this Act. The Workers voluntarily contribute is maximum 6% to their pension accounts. For all insured persons who have paid the premium on a timely manner are eligible to receive the relevant pension benefits or lump sum payments when they give birth, are physically or mentally disabled, die, or have attained the age of 65.
Health Insurance
The Taiwan’s National Health Insurance (NHI) is a mandatory social insurance program for all Taiwan citizens and for foreigners legally residing in Taiwan for longer than six months. The main goals of NHI were to improve the efficiency of the Taiwanese healthcare system, and to improve social justice by increasing healthcare coverage. The NHI is a comprehensive healthcare benefit package that covers all health services which include the preventive medical services, prescription drugs, dental services, Chinese medicine, home nurse visits and many more. The NHI mainly financed by the premiums shared by the employee (30%), employers (60%) and the government (10%).
The National Health Insurance Act: is requires both the employer and employee payable premium for the month. The amount premium is paid by calculated based on the monthly income that report to the National Health Insurance Administration. The employer shall make directly withhold from the Employee’s paychecks the amount contributes toward their insurance premium and pay it on their behalf to the National Health Insurance.
Supplementary Insurance Premium of the National Health Insurance
Supplementary Premium is a Second Generation National Health Insurance Program of the National Health Insurance. Besides the National Health Insurance, the employee will be charged a 2.11% supplementary premium when he or she receiving monthly pay which is exceeds the monthly salary range such as received bonus that exceed four times the monthly salary basis.
The National Health Insurance Act: is requires the supplementary premium of national health insurance (NHI) amount contributed by employee themselves, but the employer can also pay this contribution on behalf of the employees. And all supplementary premium withholdings are collected on the month from employee payment.
Withholding Tax
Withholding tax is an amount withheld by the party making payment (taxpayer) is a resident within the territory of the Republic of China, or a profit-seeking enterprise having its fixed place of business within the territory of the Republic of China and paid to the Taiwan tax authority. However, for the wages for a part-time job and/or a salary not paid monthly, tax shall be withheld follow in accordance with “The Regulations Governing the Withholding of Tax on Wages”.
The Withholding tax Act: have two options for taxpayer to selected and applied the tax on salary is withheld in either of the following ways. Option one, for taxpayer who is porters in docks and stations and temporary workers in the construction industry, etc. The amount is requiring to paid from the total monthly withheld in accordance with the Regulations Governing the Withholding of Tax on Wages. On the other hand, for taxpayer whose wage is calculated and paid on daily basis, their wages are exempted from tax being withheld, but the tax withholder shall still file a withholding report to the tax collecting authority-in-charge in accordance with Paragraph 3 of Article 89 of the ITA. Option two, is requires taxpayer 5% of the total monthly payment is withheld.
Living and working in Taiwan
Working in Taiwan
The condition for a foreign to work in Taiwan must obtain a signed an employment contract with the company, and then by the company apply for a work permit from the Ministry of Labor before work in Taiwan. However, during the duration of employment in Taiwan must obtain a work visa and an Alien Residence Certificate is required to legally reside in Taiwan. Taiwan is welcome and allow the employment of specialized foreign workers who are able to provide specialized knowledge and skills for competitive technologies.
Accommodations
There are many types of accommodation can be found in Taiwan. The cost of Taiwan’s accommodation can select from cheap to expensive which depending on location. For Expats moving to Taiwan can to find plenty options available of accommodation by the online property portals or by the expat social media groups. For the cost of renting the accommodation in Taiwan in between the $ 350 to $ 2000 vary considerably, depending on location or area. And Taiwan is a very safe country, Expats can rest assured that home security have no issue during their time in the country. In general, the rental deposits in Taiwan will be between one to three months’ rent. Although, finding a home in Taiwan can be difficult and taking the time to find. But Taiwan made its way to the top of the list of expats which is destinations.
Transportations
Taiwan has an excellent and high-quality public transportation system in place. The public transportation system in Taiwan which comprises of the Taiwan High Speed Rail (THSR), metro, MRT, electric multiple unit or EMU, buses, and Taxis. You can travel between Taipei and Kaohsiung in just 90 minutes by the High-Speed Rail (HSR). It can be said that, Taiwan is a very easy country to navigate and offers a variety of means to get from point A to point B. Same as it is very easy for everyone to understand the public transportation system in Taiwan by both pictures and literary.
Food
Taiwan is one of the gourmands’ heaven countries in Asia. you can find the many types of Traditional Taiwanese Food in everywhere on any street in Taiwan. From southern to northern you can find all kinds of regional food, is served there. Also, other than traditional food, modern fast food, and the food from all corners of the globe such as the American, Italian, Japanese, and European foods can be found here. It can say that, the food of Taiwan gives every visitor, every one of us an indelible impression. The average meal in Taiwan is NT$433 per day, however it is depending on the food you serve.
Languages
The most widely spoken languages in Taiwan is Mandarin Chinese. Likewise, the Taiwanese Hokkien, and Hakka which have also become the major languages spoken in Taiwan nowadays. Also, for the smaller groups of indigenous tribes in Taiwan have also preserved their own languages, known as the Formosan languages. In addition, some of the elderly people can also speak some Japanese, this is because they were subjected to Japanese education before Taiwan was returned to Chinese rule in 1945 after the Japanese occupation, which lasted for half a century. However, currently the most popular foreign language in Taiwan is English.
Public Holiday in Taiwan
– New Year’s Day
– Chinese New Year’s Eve
– Lunar New Year
– Peace Memorial Day
– Qingming Festival
– Children’s Day
– Labour Day
– Dragon Boat Festival
– Mid-Autumn Festival
– National Day
Thailand
Thailand was formerly known as Siam, located at the centre of Indochinese Peninsula, with a population of almost 70 million people. Thailand is one of the great development countries, has made remarkable progress in social and economic development, fast moving from a low-income to an upper middle-income country.
Adored around the world of Thailand’s friendly, food-obsessed, historical and cultured, Thailand tempts visitors with a smile as golden as the country’s glittering temples and tropical beaches. Thai cuisine expresses fundamental aspects of Thai culture: it is generous, warm, refreshing and relaxed.
Payroll
Employers in the Thailand observe a range of payroll compliance regulations which include monthly withholding obligations and mandated benefits of its local and foreign employees.
Salaries are usually paid monthly on the last working day of every month.
Statutory
Social Security (SS)
Social Security in Thailand is a compensation fund. Social security. provides security to employees in the event of danger or sick with a disease due to work.
The employees will be protected. both in terms of being in danger or sickness, disability and death. This is because and not because of work. This includes maternity, child support, old age and unemployment. Just like any other country.
Workmen’s Compensation Fund (WCF)
Thailand’s Employment Injury Insurance is under the responsibility of the Social Security Office (SSO), Ministry of Labour. The SSO manages 2 funds, Social Security Fund and Workmen’s Compensation Fund. The Workmen’s Compensation Fund provides Employment Injury Benefits to employees in Thailand.
Provident Fund (PF)
Provident Fund is on a voluntary basis which jointly set up by employees and employer. The purpose of the fund is to encourage savings and provide benefits for employees and their families in case of deaths in the event of the employees’ retirements, disabilities, or resignation from the company.
Personal Income Tax (PIT)
Personal Income Tax (PIT) is a direct tax levied on income of a person. A person means an individual, an ordinary partnership, a non-juristic body of person and an undivided estate. In general, a person liable to PIT has to compute his tax liability, file tax return and pay tax, if any, accordingly on a calendar year basis.
Taxpayers are classified into “resident” and “non-resident”. “Resident” means any person residing in Thailand for a period or periods aggregating more than 180 days in any tax (calendar) year. A resident of Thailand is liable to pay tax on income from sources in Thailand as well as on the portion of income from foreign sources that is brought into Thailand. A non-resident is, however, subject to tax only on income from sources in Thailand.
Leave
Employees that have worked at least one continuous year for the same employer are entitled to a minimum of six days annual leave each year, but most company provide more leave entitlement.
Working Hours
The Thailand work week is 40 hours, with a standard work day of 8 hours. If employees in the Thailand must work on Sunday or paid holiday they are entitled to overtime pay.
Managers and supervisors are excluded from the overtime pay.
Public Holidays
– New Year’s Day
– Māgha Pūjā
– Chakri Memorial Day
– Songkran
– Labour Day
– Coronation of King Maha Vajiralongkorn
– Coronation Day
– Royal Ploughing Ceremony
– Vesak
– H.M Queen Suthida Bajrasudhabimalalakshana’s Birthday
– Asalha Puja
– Beginning of Vassa
– H.M. King Maha Vajiralongkorn Phra Vajiraklaochaoyuhua’s Birthday
– H.M. Queen Sirikit The Queen Mother’s Birthday
– H.M. King Bhumibol Adulyadej The Great Memorial Day
– Chulalongkorn Memorial Day
– Father’s Day
– H.M. King Bhumibol Adulyadej The Great’s BirthdayMon, 6 Dec 2021
– Constitution Day
– New Year’s Eve
Vietnam
Vietnam’s people enjoy one of the world’s sharpest growing economies over the past two decades, average 6.5% GDP growth during this time. With strong foreign direct investment (FDI) flowing into manufacturing and rising incomes creating a surging middle class, opportunities are emerging across sectors.
Vietnam’s development over the past 30 years has been remarkable. Economic and political reforms under Đổi Mới, launched in 1986, have spurred rapid economic growth, transforming what was then one of the world’s poorest nations into a lower middle-income country.
Payroll
The payroll cycle in Vietnam is monthly and is usually paid on the last working day, or as agreed in the Labor Contract.
Minimum Wages
This is despite Vietnam increasing its minimum wage rates every year. This year Vietnam increased its minimum wage by an average of 5.7 percent. The new rates came into effect in January and range from US$132 to US$190 depending on the region.
Region
Per Month
Region I
₫4,420,000
Region II
₫3,920,000
Region III
₫3,430,000
Region IV
₫3,070,000
1. Region I includes urban and suburban districts of Hanoi, Hai Phong, and Ho Chi Minh City and its neighboring provinces of Dong Nai, Binh Duong, and Ba Ria – Vung
2. Region II includes the outskirts of Hanoi and Ho Chi Minh City, as well as other large and medium-sized cities throughout Vietnam, such as Da Nang, Nha Trang, and Can Tho.
3. Region III includes smaller provincial cities and suburban districts.
4. Region IV includes all remaining areas.
Vietnam’s minimum wages are governed by the National Assembly and reflect the socio-economic development of the country, allowing workers to cover their basic needs.
Statutory
Social Security System
Vietnam have three obligator social security system: social insurance, health insurance and unemployment insurance. Employees can be Vietnam’s social security system after signing a labour contract without fixed included term or exceeding three months.
Social insurance and unemployment insurance are applicable only to locals, while health insurance must buy by Vietnamese and foreign employees who have signed a Vietnamese labour contract. Without a local labour contract health insurance cannot be buy in Vietnam.
Recently Vietnam has updated its articles on social security, start from 1st January 2018 if foreigner has a work permit or other applicable certificates from the authorities, employees will be able to join the social insurance program. The contribution is evaluated on base salary plus others monthly fixed allowance and there is no cap or maximum to the number of contributions. All employees including foreign employees who have worked in Vietnam over six months, must contribute in the social security program.
Insurance premium rate
Social Insurance – 8% (employee), 17.5% (employer)
Health Insurance – 1.5% (employee), 3% (employer)
Unemployment insurance – 1% (employee), 1% (employer)
Personal Income Tax (PIT)
Tax residents are subject to Vietnamese (PIT) on their worldwide taxable income, wherever it is paid or received. Employment income is taxable on a progressive tax rates basis.
For foreigners working in Vietnam, determining the applicability of personal income tax (PIT) involves decoding several rules. Foreign workers need to calculate their precise liability and any applicable deductions.
A tax resident is defined as someone residing in Vietnam for 183 days or more in either the calendar year or a period of 12 consecutive months from the date of arrival.
Leaves
Minimal annual leave requirements of 12 days are required by Vietnamese labor law. Employees who have worked for twelve months for an employer are entitled to twelve paid annual leave days, with pro rata entitlement for employees with less than twelve month’s service.
Working Hours
Vietnam maximum Working Hours – eight hours a day – 48 hours per week The State encourages employers to apply 40-hour workweeks.
Public Holiday
– New Year’s Day
– Tet Holiday
– Tet Eve
– Tet Nguayen Dan
– Tet Holiday
– Hung Kings Temple Festival
– Reunification Day
– Labour Day
– Labour Day (in lieu)
– National Day
– National Day Holiday