Expanding your team into Asia without establishing a local entity requires deep understanding of each country’s labor laws, statutory contributions, and administrative processes. That’s where an Employer of Record (EOR) can transform complexity into simplicity—allowing you to hire compliantly and swiftly.
Use this comprehensive checklist to evaluate EOR partners, avoid common mistakes, and discover a trustworthy Asia-wide solution.
1. Local Compliance Expertise (e.g. EPF, SOCSO, BPJS, SSO)
Each country in Asia enforces mandatory labor contributions:
- Malaysia: Employers must pay EPF (Employees Provident Fund) contributions (typically 12%–13%) and SOCSO (Social Security Organisation) contributions (~1.75% employer, 0.5% employee) (ASEAN Briefing).
- Indonesia: BPJS schemes include BPJS Kesehatan (health insurance) and BPJS Ketenagakerjaan covering pension, accident, and unemployment protection. Rates range from 4% employer for health, 3.7% employer + 2% employee for old-age, and others per official regulation (Talent Port)
- Thailand: Employers and employees contribute 5% of wages (capped at THB 750/month) to social security; the government adds supplementary funding. Contributions must be submitted by the 15th of the following month.
✅ Ask potential EOR providers:
- Are employment contracts compliant with local labor laws?
- Do they make contributions on time and issue accurate payslips?
- Do they automatically update compliance when regulations change?
2. Regional Coverage for Asia Expansion
Your provider should support multiple Asian markets—like Malaysia, Indonesia, Thailand, Vietnam, Taiwan, Hong Kong, and the Philippines—on one unified platform. This avoids vendor fragmentation and simplifies billing, reporting, and support.
✅ Ask:
- Which countries are covered?
- Is there consolidated reporting or cross-market HR visibility?
3. Onboarding Speed & Digital Efficiency
Speed matters. The best EOR providers enable new hires within days—not weeks—using digital workflows and pre-approved local contract templates.
✅ Ask:
- What is your average onboarding time per country?
- Are offers, contracts, and bank setup handled digitally?
4. Payroll, Benefits & Ongoing Support
Look for providers offering full-service payroll, benefits compliance, and HR support:
- Handle monthly payroll in local currency
- Manage statutory contributions and optional employee benefits (e.g. healthcare)
- Support leave accrual, bonuses, and termination-related tasks
- Address employee queries or compliance audits
✅ Ask:
- What is your payroll SLA?
- Do you support audit requests and employee dispute handling?
5. HR Setup Requirements
EOR providers typically need:
- Signed offer letter or job scope
- Employee passport/ID and proof of eligibility
- Local bank account details
- If applicable, work permit or visa documentation
✅ Ask:
- Do you assist with the visa/work permit process for foreign hires?
6. Platform & Reporting Transparency
Transparency is critical:
- A dashboard that tracks contract status, payroll, invoices, and headcount
- Ability to export HR data if needed
- Local support aligned with your time zone
✅ Ask:
- Do you provide a self-service portal for real-time visibility?
- What are your support response times?
Common Pitfalls to Avoid
- Misclassifying contractors as employees: Risks legal penalties and compliance failure.
- Using regional vendors without in-country presence: May lead to outdated or incorrect legal interpretations.
- Treating vendor switching as seamless: Contracts, payroll history, and benefits may need manual transfer.
- Under-specifying SLAs: Ensure payroll corrections and disputes are resolved within defined timelines.
Frequently Asked Questions
1. Is hiring via an EOR legal in Asia?
Yes—registered EOR providers act as the legal employer, compliant under local labor and social security laws.
2. Can I switch EOR providers if growth plan changes?
Generally yes, but check whether employment records, benefits contributions, or local tax ID history can be transferred seamlessly.
3. How much notice do I need before hiring?
Allow 3–5 business days for setup if documentation is ready. Some countries may require additional steps like permits.
Why AYP Has Become a Trusted Choice
Once your checklist is in hand, choosing a partner who matches and elevates expectations is easy. One such provider, AYP, fits the bill for many HR leaders expanding in Asia:
- Compliance-first: In-country HR/legal experts monitor EPF, SOCSO, BPJS, SSO requirements and updates.
- Fast onboarding: Hire within 3–5 business days using digital templates and workflows.
- Pan-Asia reach: Cover Malaysia, Indonesia, Thailand, Singapore, Vietnam, Taiwan, Hong Kong and more—all through a unified platform.
- Technology-driven: Access contracts, payroll, reports, and employee data in one dashboard.
- Local support: Regional teams onboard staff, ensure compliance, and support disputes or audits.
If you're looking for the best EOR provider for Malaysia or expanding into multiple Asian countries, AYP delivers compliant, reliable, and scalable hiring solutions—without setting up a legal entity.
Final Thoughts
This expanded checklist equips you to evaluate EOR vendors effectively and confidently. Careful comparison based on compliance, speed, support, and transparency ensures you partner with a provider fit for strategic growth.
When you’re ready to hire across Asia reliably and without entity setup, AYP can help you execute quickly and compliantly. Speak to our hiring experts and find out how.
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