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Asia Payroll
Published:
September 30, 2026
Last updated:
For more than 30 years, Thailand calculated social security contributions on a wage ceiling of THB 15,000. On 1 January 2026, that ceiling moved to THB 17,500. A few months earlier, Malaysia made EPF contributions compulsory for foreign employees for the first time.
On their own, these are relatively small changes; but in the bigger picture, both mean a payroll configured on last year's rules is non-compliant from its first run.
That is what sets the first payroll in a new APAC market apart from every run after it. It is the point where statutory obligations turn into real money and dated filings:
An error made in the first month will repeat each month until someone finds it, usually with late-payment penalties attached.
Every market in APAC set their own contribution rates, caps, bonus rules and deadlines. Here are the five payroll compliance requirements that matter most before the first run, broken down market by market.
Registrations are the first item on any statutory compliance checklist. Payroll cannot be run compliantly until each statutory body recognises you as an employer. Lead times vary by agency, so registrations are best started when the offer is signed.
Every market in this list has two sides to configure:
Several markets cap the salary base for both, so the effective rate falls as salary rises.
Figures are indicative and rounded as of 2026.
Accruing these from the first run keeps a year-end or holiday liability from arriving as a surprise.
When wages must be paid
Late payment penalties apply on top of the contribution itself.
Foreign staff can fall under different rules from local staff in the same payroll:
Each market adds its own registrations, caps, deadlines and bonus schedules. Payroll compliance across six markets usually means building six calendars, not one. AYP runs payroll through its own entities in each of these six markets, with local in-house teams managing registrations, statutory deductions, contributions and filings in each one.
To see how these rules apply to your expansion plan, [book a call with an AYP specialist].
A payroll compliance checklist for a new market should confirm five things: employer registrations with tax and social security bodies, statutory deductions and employer contributions (including caps), mandatory bonus accruals, pay and remittance deadlines, and the rules for foreign employees. The requirements differ in each market.
Statutory deductions are amounts the law requires an employer to take from an employee's pay, usually social security contributions and income tax. In APAC, both the rates and the salary caps differ by market. Hong Kong, for example, deducts MPF but not monthly income tax.
Requirements vary by market. Most include employer registration with tax and social security bodies, statutory deductions and employer contributions within set caps, income tax withholding, mandatory bonuses where applicable, and monthly remittance deadlines. A statutory compliance checklist for each market is the most reliable way to track them.
Only in some markets. It is mandatory in the Philippines for rank-and-file employees. Indonesia requires THR, a religious holiday allowance. Thailand, Malaysia, Vietnam and Hong Kong have no statutory 13th-month requirement, though contracts can create one.
It depends on the market. Indicative employer costs are roughly 5% (capped) in Thailand and Hong Kong, around 10-12% in Indonesia, around 12-14% in the Philippines, around 15% in Malaysia, and around 23.5% in Vietnam.
Yes. From 1 January 2026, the wage ceiling rose from THB 15,000 to THB 17,500. That raised the maximum monthly contribution from THB 750 to THB 875 for both employer and employee.
Yes. Since October 2025 wages, foreign employees (excluding domestic workers) contribute 2%, and employers contribute a matching 2%.
No. Salaries tax is assessed on the employee. Employers report new hires, departures and annual remuneration to the IRD.
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