Employer of Record in South-East Asia
Establishing a distributed remote team in South-East Asia comes with challenges like hiring the right talent, managing their payroll, staying compliant with local laws, and more. These tasks are essential, but also very daunting.
With an Employer of Record (EOR) in South-East Asia, you can now have a team of your own without setting up a local legal entity. Skuad is an Employer of Record that simplifies hiring and compensation of full-time employees in a foreign country.
Key Payroll Trends and Hiring Stats in South-East Asia
South East Asia has some of the world's fastest developing economies. Most Southeast Asian nations, including Indonesia, Singapore, Vietnam, the Philippines, Thailand, and Malaysia, have had rapid economic expansion. Here is an outline of the fundamentals of payroll compliance in the region's top five countries:
The payroll reporting deadline is usually the 10th of the next month, and records of the reports must be kept for at least 5 years. It is required to utilize an in-country bank account to pay employees and tax authorities.
In Thailand, income tax rates range from 0% for the lowest-paid employee to 35% for those making a lot of money. Employees in Thailand are required to get pay slips for each pay period, and payroll records must be kept for a minimum of seven years.
Businesses in the Philippines must follow the different payroll rules established by the Department of Labor and Employment (DOLE) and the Bureau of Inland Revenue (BIR). According to the legislation, all employers in the Philippines are required to deduct a withholding tax from their employees' pay each month.
When setting staff compensation, it is critical for firms operating in Vietnam to be aware of the minimum wage rates. Furthermore, companies are required to collect income taxes from both domestic and international employees, and employee tax declarations must be made no later than the 20th of the following month.
According to the country's rules, it is mandatory to present each employee with a pay stub on time. This must include employment information such as the basic salary amount, payment date, deductions, and net monthly compensation.
All employers are expected to keep a record of their employees' employment and salaries for at least two years. Furthermore, firms can only allow employees 72 hours of extra labor every month.
- Southeast Asia is home to 35% of the world's unicorns, with digital hubs in countries like India, Malaysia, Singapore, the Philippines, Thailand, and Vietnam.
- As a result, technology roles in artificial intelligence, machine learning, cyber security, analytics, and other emerging technologies make for a significant portion of hiring in these countries.
- PwC aims to invest up to 1,600 crores in IT positions by 2021, while EY plans to recruit 9000 computer workers in India.
How does an employer of record (EOR) work?
Skuad is an Employer of record in South-East Asia, which serves as a Global HR Platform. It helps organizations by taking charge of their HR and legal responsibilities, so they can employ the best talent in South-East Asia. Skuad manages the hiring and onboarding of employees, handles employer liabilities, provides ongoing legal and HR support, and much more.
Skuad provides Employer of Record services in the following South-East Asian countries:
Talk to our People Ops experts to discuss your requirements and see how Skuad can help. Book a demo today!