Employee Income Tax

The tax rates for residents are progressive, starting at 0% for monthly salaries up to 1.5 million KHR (approximately US$361) and increasing through several brackets to 20% for salaries exceeding 12.5 million KHR (around US$3,739). Fringe benefits are also taxed at a flat rate of 20%. 

Income Tax

The income tax rates are as follows:

• 0% – From 0 to 1.500.000 KHR 
• 10% – From 1.500.000 KHR to 2.000.000 KHR (capped at 75.000 KHR)
• 15% – From 2.000.000 KHR to 8.500.000 KHR (capped at 175.000 KHR)
• 20% – From 8.500.000 KHR to 12.500.000 KHR (capped at 600.000 KHR)
• 25% – Over 12.500.000 KHR (capped at 1.225.000 KHR)

Visa

Employers are required to first obtain approval from the MLVT by demonstrating that no qualified Cambodian candidate is available for the position. Employment of foreigners is subject to a quota limiting foreign workers to 10% of the total workforce, divided into 3% for office staff, 6% for skilled labor, and 1% for unskilled labor. To employ foreigners beyond this quota, companies must seek special authorization from the MLVT.

Visa types

Cambodia offers several types of work visas and permits for foreign nationals seeking employment in the country. Here are some of the main types.

Types of Work Visas:

• EB visa –  applies to those employed, starting a business, freelancing, or staying in the country for over one month. It also covers spouses and children of EB visa holders.
• EP visa – issued to foreign nationals who have entered Cambodia on an E-class visa and are seeking employment or planning to start a business after their initial 30-day stay. This visa allows a stay extension of up to three months, during which the holder must secure a job; otherwise, they must leave the country.
• EG visa – issued to foreigners looking for work in Cambodia with durations of one, three, or six months without specific employment conditions.
• ET visa – a technical visa extension for those employed in specific trades or industries, intended for skilled technicians and workers in designated sectors.

Compliance documents

To sponsor employees for Cambodia work visas and permits, companies must submit the following documents/ information:

• Certificate of incorporation bearing the company stamp
• Registered business address
• Tax patent with company stamp
• A list of all international and local employees to verify the ratio does not fall below 9:1
• Approval from the Ministry of Commerce (MOC)
• The company’s articles of incorporation

Employees must provide the following details/ documents:

• Full name, gender, date of birth, and height
• Copies of their ID cards and passports
• Copy of their E visa
• Current residential address
• Full names of their mother and father
• Educational background
• Three recent photographs
• Health certificate
• Job position and role within the company
• The year they first obtained their E visa

Background check

In Cambodia, visa-related background checks consist mainly of verifying criminal records and confirming the applicant’s identity to ensure compliance with legal and security standards. The official Police Clearance Certificate, issued by the Ministry of Justice, is the primary document confirming whether an individual has a criminal record in Cambodia. The aforesaid certificate is commonly required for visa applications, employment, and immigration purposes. Applicants must submit personal information such as their full name, date of birth, any previous names, and proof of residence through a letter from the local commune (Sangkat) office, along with a completed application form and identification documents like a passport bio page. The process mandates the applicant’s consent and adherence to Cambodian data privacy laws.

Private health insurance

Private health insurance in Cambodia is designed to cover healthcare costs not fully covered by the National Social Security Fund (NSSF).

Team APAC providers

We offers multiple health insurance options, allowing customers to choose between International Health Insurance, providing worldwide coverage on a pay-and-claim basis, or a Local Health Insurance, which offers a cashless access to treatment within the provider’s network. We offer the flexibility to cover either the employee only (single option) or the employee and their dependents (family option), tailored to meet the specific needs of your team.

• SafetyWing
• Allianz

Mandatory benefits

Cambodian labor law mandates several key employee benefits, including paid annual leave, public holidays, maternity leave, and paid sick leave 

Both employers and employees must contribute to the NSSF, which covers occupational risks, healthcare, and pensions, ensuring comprehensive statutory protections for workers in Cambodia.

Mandatory benefits in Cambodia

Statutory employee benefits mandated by Cambodian law are:

• Paid Annual Leave
• Public Holidays
• Maternity Leave
• Paternity Leave
• Sick Leave
• Minimum Wage
• Seniority Indemnity – Upon termination, employees receive seniority indemnity calculated based on their length of service, replacing the former severance pay system.
• National Social Security Fund (NSSF) Contributions

Annual leave

Cambodian employees accrue 1.5 days of paid vacation for each month of employment with a company, up to a maximum of 18 days per year. Additionally, for every three years of continuous service, they receive an extra day of leave per year.

Sick leave

Employees can take paid sick leave up to six days per month for a maximum of six months, contingent on a medical certificate. Payment during sick leave may involve contributions from both the employer and the NSSF.

Parental leave

Currently, there is no law requiring employers to provide parental leave.

Maternity leave

Female employees qualify for 90 days of maternity leave paid at 50% of their normal salary. Under the National Social Security Fund (NSSF), a portion of this salary is reimbursed if eligibility requirements are met.

Paternity leave

While not universally required by labor law, some employers or collective agreements provide one day of paid paternity leave. Male employees may also use annual leave for paternity purposes.

Compassionate leave

Cambodia does provide for certain types of compassionate leave. Employees are entitled to seven days of unpaid bereavement leave in the event of the death of an immediate family member (father, mother, spouse, or child).

Family & domestic violence leave

Currently, Cambodia’s Law on the Prevention of Domestic Violence and the Protection of Victims (2005) does not explicitly provide for family and domestic violence leave as a workplace entitlement.

Termination process

The termination process mandates written notice or pay in lieu of notice, a fair investigation for misconduct cases, and issuance of employment certificates upon termination. Employers are also required to notify the Ministry of Labor and Vocational Training within 15 days of the employee’s departure.

Termination reasons

Termination can occur for various reasons such as redundancy, misconduct, poor performance, or force majeure, each requiring proper documentation and adherence to due process to avoid disputes.

Notice period

Employers must provide notice periods based on the employee’s length of service: 7 days for less than 6 months, 15 days for 6 months to 2 years, and 1 month for over 2 years, unless termination is due to serious misconduct, which permits immediate dismissal without notice.

Severance Pay

Compensation obligations differ depending on the contract type. For fixed-duration contracts terminated without valid cause, employers must pay unpaid wages, unused leave, severance of at least 5% of wages during the contract, and damages equivalent to wages for the remaining contract period. For unspecified-duration contracts, compensation includes unpaid wages, unused leave, notice pay if notice is not given, seniority indemnity, and damages equal to seniority payments received.

In cases of serious misconduct, compensation is limited to unpaid wages and unused leave only.

Probation period

In Cambodia, the length of the probationary period depends on the type of employee. For regular employees, the probationary period can last up to three months. Specialized or skilled employees typically have a probationary period of up to two or three months. For non-specialized or unskilled employees, the probationary period is generally shorter, lasting up to one month.

Probation Period days

• Regular employee – up to 3 months probation period
• Specialized/ skilled employee – up to 2-3 months probation period
• Non-specialized/ unskilled employee – up to 1 month probation period

Employee Income Tax

Personal income tax in Indonesia is progressive, with rates ranging from 5% to 35% depending on income levels. Residents are generally taxed on their worldwide income, whereas non-residents are subject to a flat withholding tax of 20% on income sourced within Indonesia. 

Income Tax

• 5% – Up to IDR 50 million 
• 15% – From 1DR 60 million to IDR 250 million
• 25% – From 1DR 250 million to IDR 500 million
• 30% – From 1DR 500 million to IDR 5 billion
• 35% – Above IDR 5 billion

Visa

Foreign employees need to obtain a valid work visa (VITAS C312) and a Limited Stay Permit (ITAS) to work legally in Indonesia. Essential documents include a passport valid for at least 18 months, educational certificates, proof of work experience, insurance, and employer sponsorship papers.

Employers are responsible for paying a monthly foreign worker utilization fee (around US$100 per month) and must register both foreign and local employees in Indonesia’s social security system (BPJS). Some roles, such as board members with share ownership or diplomatic officials, are exempt from work permit ratification.

Additionally, foreign workers must be paired with Indonesian employees to facilitate knowledge transfer, and employment contracts typically align with visa validity, often ranging from 6 to 12 months with possible extensions.

Visa types

Indonesia offers two types of work visas for foreign nationals seeking employment in the country, these are:

• Izin Tinggal Terbatas (ITAS): ITAS is a limited-stay permit that can be granted to foreign employees by the Indonesia Directorate General of Immigration through a local immigration office. To obtain an ITAS, applicants must first secure a Visa Izin Tinggal Terbatas (VITAS), which serves as an Indonesian limited-stay visa.
• Kartu Izin Tinggal Tetap (KITAP): KITAP is a permanent-stay permit available to international workers who have continuously held an ITAS for a minimum of three years.

Compliance documents

Employee provides the following documents:

• A copy of their passport, which must be valid for a minimum of 18 months
• Proof of health insurance
• Passport photos in color
• A copy of the employee’s highest degree of education, which must be stamped and signed by the employer
• A copy of the applicant’s CV, which should also be stamped and signed
• A work certificate that shows the applicant has at least 5 years of relevant experience

Employer provides the documents listed below:

•   A completed visa application form
• A business license
• Their NPWP number for tax identification
• A business license issued by the Indonesia Investment Coordinating Board (BKPM)
• A copy of the sponsor’s ID card (KTP)
• A copy of a local employee’s KTP
• Mandatory Manpower (Wajib Lapor) report
• Business Identification Number (NIB)
• Certain documents within the application must have the letterhead of the company and a company stamp
• Certificate of Company Domicile (SKDP)
• The company’s deed establishment, authorized by the Ministry of Law and Human Rights

Background check

In Indonesia, obtaining a work visa for foreign employees involves a mandatory background check, with emphasis on criminal records. Employers are required to submit a Foreign Worker Employment Plan (RPTKA) to the Ministry of Manpower and Transmigration and upload the foreign worker’s personal information into the TKA Online system. Once approved, a background check is performed, which includes verifying criminal records through the Surat Keterangan Catatan Kepolisian (SKCK)—a police clearance certificate issued by the Indonesian National Police that confirms the individual is not currently under any criminal investigation in their local jurisdiction. The SKCK is valid for six months. Except for the final issuance of the ITAS, the entire procedure can be completed online, making the verification and approval process for foreign employment in Indonesia more efficient.

Private health insurance

Private health insurance in Indonesia is designed to supplement BPJS coverage, offering access to a wider range of healthcare providers and faster services.

Team APAC providers

We offers multiple health insurance options, allowing customers to choose between International Health Insurance, providing worldwide coverage on a pay-and-claim basis, or a Local Health Insurance, which offers a cashless access to treatment within the provider’s network. We offer the flexibility to cover either the employee only (single option) or the employee and their dependents (family option), tailored to meet the specific needs of your team.

• SafetyWing
• Allianz

Mandatory benefits

Mandated benefits in Indonesia are social security programs, which include health insurance and employment-related protections, annual leave, sick leave, maternity and paternity leave.

Mandatory benefits in Indonesia

• Social Insurance Programs (including Health Insurance and Employment-related Protections)
• Annual Leave
• Sick Leave
• Maternity Leave
• Paternity Leave

Annual leave

An employee is entitled to 12 days of annual leave with full pay after completing 12 months of continuous service. 

Sick leave

Employers are required to compensate employees absent from work due to illness provided the employee submits medical certification. For the first four months, compensation must be at 100 percent of wages; for the second four, 75 percent; the third four, 50 percent; and subsequent months, 25 percent. After 12 months’ absence due to illness, the employer can dismiss the employee.

Parental leave

Currently, there is no law requiring employers to provide parental leave.

Maternity leave

Employees are entitled to three months of paid maternity leave after childbirth, fully funded by the employer. If health complications arise for the mother or child, an additional three months of leave may be granted with a doctor’s certificate. 

During the leave period, employees receive 100% of their salary for the first four months and 75% of their salary for the fifth and sixth months, if extended.

Paternity leave

A male employee is entitled to two days’ employer-paid leave following the birth of a child or his wife’s miscarriage.

Compassionate leave

Compassionate leave or bereavement leave of two days in the event of the death of a first-or second-degree relative, or one day for the death of a household member.

Family & domestic violence leave

Currently, there is no law requiring leave in relation to domestic violence. Parents, however, may request two days of paid leave for their children’s religious ceremonies such as circumcision or baptism. 

In addition, marriage leave is given to allow employees three days off for their own marriage rites or two days if attending their child’s wedding. Adoptive parents receive the same leave benefits as natural parents, including three months of paid leave for adoptive mothers and two days of paid leave for adoptive fathers.

Termination process

Employers are obligated to adhere to a defined procedural process that involves issuing written notice and engaging in bipartite negotiations with the employee or labor union, and, if necessary, proceeding to mediation or litigation before the Industrial Relations Court. Unilateral termination without court approval is prohibited.

Termination reasons

Termination must be justified by lawful reasons, which may include employee-related causes such as breaches of employment contracts after warnings, extended absenteeism, misconduct, retirement, or criminal convictions, as well as company-related reasons like insolvency, mergers, restructuring, or bankruptcy.

Notice period

In Indonesia, there is no legally stipulated minimum notice period for termination. Generally, when an employer terminates an employee during the probation period, a notice of 7 days is customary. For termination outside the probation period, the minimum notice period typically observed is 30 days. Similarly, when an employee decides to resign, they are generally expected to provide a minimum notice period of 30 days.

Severance Pay

Severance and other termination benefits are mandated based on the employee’s tenure and the grounds for dismissal.

Length of employment and corresponding severance pay:

• Less than 1 year: 1 month wage
• Between 1 to 2 years: 2 months wage
• Between 2 to 3 years: 3 months wage
• Between 3 to 4 years: 4 months wage
• Between 4 to 5 years: 5 months wage
• Between 5 to 6 years: 6 months wage
• Between 6 to 7 years: 7 months wage
• Between 7 to 8 years: 8 months wage • Above 8 years: 9 months wage

Probation period

In Indonesia, probation periods last for a maximum of three months for indefinite contracts.

Probation Period days

• 3 months maximum probation period

Employee Income Tax

Thailand employs a progressive personal income tax system for residents, with rates in 2025 ranging from 0% to 35% based on taxable income brackets. Income up to THB 150,000 is exempt from tax. Beyond this threshold, tax rates increase progressively: 5% on income between THB 150,001 and 300,000; 10% on THB 300,001 to 500,000; 15% on THB 500,001 to 750,000; 20% on THB 750,001 to 1,000,000; 25% on THB 1,000,001 to 2,000,000; 30% on THB 2,000,001 to 4,000,000; and 35% on income exceeding THB 4,000,000.

Income Tax

• 5% – between THB 150,001 and 300,000
• 10% – between THB 300,001 and 500,000
• 15% – between THB 500,001 and 750,000
• 20% – between THB 750,001 and 1,000,000  
• 25% – between THB 1,000,001 and 2,000,000  
• 30% – between THB 2,000,001 and 4,000,000
• 35% – income exceeding THB 4,000,000

Visa

The Non-Immigrant “B” visa permits entry and residence for employment purposes, while the work permit, issued by the Ministry of Labour, authorizes the individual to work in a specific role for a designated employer. To qualify, applicants must hold the appropriate visa, have sponsorship from an employer, and be employed in an occupation allowed for foreigners. Employers are required to submit company registration documents, tax payment proof, and an employment contract as part of the application. The work permit application typically takes about one week to process and is generally valid for one year, with annual renewal necessary.

Certain exceptions and expedited procedures apply to BOI-promoted companies and highly skilled professionals. Non-compliance with these rules can lead to fines or interruptions in employment.

Visa types

Thailand offers several types of work visas and permits for foreign nationals seeking employment in the country. Here are some of the main types.

Non-Immigrant Work Visas:

• Non-Immigrant B Visa (Business Visa) 
• Non-Immigrant B-A Visa (Business Approved Visa) 
• Non-Immigrant IB Visa (Investment and Business Visa) 
• Non-Immigrant M Visa (Media Visa) 
• Non-Immigrant EX Visa (Specialist/Expert Visa) 
• Non-Immigrant RS Visa – for scientific research, training, or teaching in Thai research institutes.
• Non-Immigrant F Visa – for foreigners performing official duties with government agencies, embassies, or international organizations
• Non-Immigrant O Visa – generally for family visits 

Smart Visas:

• Smart T (Talent) – for experts with a job contract and minimum salary requirements.
• Smart I (Investor)  
• Smart E (Executive) – for senior executives with experience and a high salary.
• Smart S (Startup) – for startup founders or shareholders with financial and role requirements.

Long-Term Resident (LTR) Visa:

• Designed for highly skilled professionals, remote workers, retirees, and wealthy individuals meeting specific criteria, offering longer validity (up to 10 years) and benefits.

Compliance documents

 The employee must provide:

•   Valid passport
•   Recent passport-sized photographs
•   Certificate of health
•   Proof of relevant work experience and educational qualifications
•   Licenses or certificates related to the job, if applicable
•   Medical certificate and address in Thailand

The employer must provide:

•   Company registration documents
•   Tax records including VAT and withholding tax certificates
•   Social security documentation
•   List of shareholders
•   Employment contract specifying position and salary
•   Office map and company objectives

Background check

In Thailand, visa-related background checks are mainly carried out by the Thai Immigration Office and the Royal Thai Police, particularly for visa categories like the Thai Elite Visa. Applicants are required to submit comprehensive personal details, including their full name, passport information, home address, and visa history. The background check evaluates criminal records both domestically and internationally, previous visa statuses, any overstays, bankruptcies, and records of removal or blacklisting. This process generally takes between 4 to 6 weeks and serves as due diligence to confirm that applicants have no serious criminal convictions or immigration violations. Employers and agencies may request criminal background checks for employment or visa purposes, but these require the applicant’s consent and must comply with Thai privacy and labor laws. Working illegally without the proper permits is a criminal offense in Thailand, punishable by fines, imprisonment, and deportation.

Private health insurance

Private health insurance is commonly provided and widely used in Thailand, especially among foreign workers, and those who prefer faster and higher-quality medical care.

Team APAC providers

We offers multiple health insurance options, allowing customers to choose between International Health Insurance, providing worldwide coverage on a pay-and-claim basis, or a Local Health Insurance, which offers a cashless access to treatment within the provider’s network. We offer the flexibility to cover either the employee only (single option) or the employee and their dependents (family option), tailored to meet the specific needs of your team.

• SafetyWing
• Allianz

Mandatory benefits

Statutory benefits include social insurance, health insurance, unemployment insurance, and paid leaves.

Mandatory benefits in Philippines

• Social Security Fund Contributions (which cover Sickness and medical treatment, Maternity benefits, Disability benefits, Death and life coverage, Child allowance/support, Old age pension/retirement benefits, Unemployment benefits)
• Workmen’s Compensation 
• Paid Leaves (i.e. annual leave, sick leave, maternity leave, and personal business leave)

Annual leave

Employees who have completed one continuous year of service are entitled to a minimum of six days of paid annual leave, which the employer must schedule in advance without needing the employee’s consent (Section 30 LPA). Unused annual leave can be carried over to subsequent years, and employers are prohibited from refusing this or deducting entitlements; employees have up to two years to claim wages for unused leave. 

Employers may grant additional vacation time in subsequent years. Employers may grant vacation on a pro rata basis to employees who have not completed a full year of service.

Sick leave

Sick leave in Thailand is unlimited in duration, but payment is limited to 30 days per year. For absences of three or more consecutive days, a medical certificate from a qualified physician is required.

Parental leave

There is no law requiring employers to provide parental leave.

Maternity leave

Maternity leave is granted for up to 98 days per pregnancy, with pay provided during this period.

Paternity leave

There is no provision for mandatory paternity leave for private-sector employees.

Compassionate leave

Currently, there is no law requiring compassionate  leave. 

Family & domestic violence leave

Currently, Thailand does not provide a formal family and domestic violence leave entitlement for employees.

Other leaves

Employees are entitled to leave for personal reasons, military service, sterilization, and training.

Military leave is allowed for up to 60 days annually with pay.

Termination process

Employers must also fulfill procedural duties, including issuing dismissal notices, settling all owed wages, severance, unused leave, and notifying authorities like the Social Security Office. 

When an employee is terminated, the employer must pay within three days all accrued wages, overtime, holiday pay, holiday overtime pay, and compensation for vacation time accrued prior to the year of termination but not yet taken.

Termination reasons

Employers can terminate contracts based on just cause, such as gross misconduct, criminal offenses, or serious breaches of company rules.

Notice period

Employers are required to give a minimum of 30 days’ written notice or provide payment in lieu of notice when terminating an employee without cause. 

If an employer decides to terminate employees as a result of business restructuring due to automation or changes in machinery or technology, the Labor Inspection Office and affected workers must be given at least 60 days’ notice. If the employer fails to provide 60 days’ notice, terminated employees are entitled to 60 days’ pay in lieu of notice in addition to their regular severance.

Severance Pay

If not terminated for cause, the employee also is entitled to payment on a pro rata basis for vacation earned in the year of termination and to severance pay in an amount determined by the employee’s length of service as follows:

• 120 days of continuous service to one year: 30 days’ wages,
• one to three years: 90 days’ wages,
• three to six years: 180 days’ wages,
• six to 10 years: 240 days’ wages,
• 10 years or more: 300 days’ wages, and
• 20 years or more: 400 days’ wages.

An employer is not required to pay severance, make a pro rata payment for vacation accrued during the year of termination or give advance notice if an employee is terminated for cause.

Probationary employees, within the first 119 days, may be dismissed without severance if there is valid cause. 

Fixed-term contracts conclude automatically without severance unless improperly extended, which then converts the contract to a regular employment agreement.

Probation period

In Thailand, the probationary period for employees, whether Thai nationals or expatriates, is typically determined by the employer and agreed upon with the employee, with a maximum duration of 119 days (around four months). This limit is practical because if employment extends beyond 119 days, the employer becomes legally obligated to pay severance under Section 118(1) of the Labour Protection Act. The probation period serves as a trial phase for employers to evaluate the employee’s performance and suitability, while employees can assess their fit within the company.

Probation Period days

• 119 days maximum probation period (if agreed upon by employer and employee)

Employee Income Tax

Employee income taxation in the country is regulated by a progressive individual income tax (IIT) system that applies to both residents and foreigners earning income within the country. Employment income, which is comprised of wages, salaries, bonuses, stock options, and allowances, is classified as “comprehensive income” and taxed annually at progressive rates ranging from 3% to 45%. The tax brackets begin at 3% for annual taxable income up to CNY 36,000 and increase progressively to 45% for income exceeding CNY 960,000. Employers must accurately calculate and withhold the IIT from employees’ salaries prior to payment.

Income Tax

•  3% – 0 – 36,000 CNY
• 10% – 36,000.01 – 144,000 CNY
• 20% – 144,000.01 – 300,000 CNY
• 25% – 300,000.01 – 420,000 CNY
• 30% – 420,000.01 – 660,000 CNY
• 35% – 660,000.01 – 960,000 CNY
• 45% – Over 960,000.00 CNY

Visa

The visa regulations for employment in China primarily revolve around the Z Visa, which is the standard work visa for foreign nationals intending to work long-term in the country. After arriving in China on a Z Visa, foreign workers must convert it into a residence permit within 30 days to legally reside and work in the country.

Visa types

• Z Visa – main visa for foreigner workers
• R Visa (Professional Talent Visa) – for highly-skilled professionals
• M Visa (Business Visa) – for foreigners invited to China for short-term business trips
• S1 and S2 Visas (Family Visas) – for family members of foreign workers

Background check

Visa-related background checks in China mainly aim to confirm that foreign applicants, particularly those applying for work visas, have no criminal record. A criminal background check, also called a police clearance certificate or certificate of no criminal record, is a mandatory document for China work visa applications. This certificate must be obtained from the applicant’s current country of residence and any other country where they have lived for more than six months within the last five years. It must be recently issued (usually within six months before the visa application) and authenticated by the issuing authority. China has recently tightened its regulations, requiring applicants to have a completely clean criminal record for visa approval. Thus, any criminal history, regardless of its nature, now leads to visa denial.

Private health insurance

Private health insurance in China helps cover high out-of-pocket costs, offers access to higher quality care, and reduces waiting times compared to public hospitals.

Team APAC providers

• SafetyWing
• Allianz

Mandatory benefits

The statutory benefits system in China is mainly regulated by the State Social Insurance System, which mandates five types of social insurance: basic pension insurance, basic medical insurance, unemployment insurance, work-related injury insurance, and maternity insurance. Both employers and employees contribute to these insurances based on the employee’s salary, with contribution rates and benefit levels differing across municipalities. The pension scheme offers retirement benefits through a combination of a base pension, individual account pension, and transitional pension, with the standard retirement age currently at 60 for men and 55 for women, though this is gradually increasing. Medical insurance covers treatment, rehabilitation, and allowances during illness or injury. Work-related injury insurance provides compensation for medical costs, disability, and death benefits including funeral and dependent support. Unemployment insurance offers financial aid during periods of joblessness, while maternity insurance grants paid leave and related support. Additionally, both parties contribute to a housing provident fund to assist with housing needs. These benefits are managed by local governments under the supervision of the Ministry of Human Resources and Social Security, aiming to protect workers from social risks such as aging, sickness, unemployment, and workplace injuries. 

Mandatory benefits in China

• Basic pension insurance
• Basic medical insurance
• Unemployment insurance
• Work-related injury insurance
• Maternity insurance

Annual leave

Employees do not qualify for paid leave until they have completed their first year of employment. After finishing their first year but before reaching ten years of service, employees are entitled to five days of paid leave each year. Those who have served for at least ten years receive ten days of paid leave annually, which increases to a maximum of fifteen days for employees with twenty or more years of service.

Sick leave

Employees are entitled to sick leave of between three months and 24 months depending on total years of work experience and tenure with the current employer. An employee on sick leave is entitled to compensation, the amount of which varies by location but is generally no lower than 80 percent of the minimum monthly salary announced by the local government.

Parental leave

Parental leave in China is not mandated by a unified national policy; instead, it is regulated at the provincial level, with each province setting its own rules regarding duration and conditions. Duration varies by province and ranges from 5 to 15 days, with some provinces offering as few as 5 days (e.g., Beijing and Shanghai) and others up to 30 days (e.g., Shaanxi). Parental leave is generally paid at 100% of the employee’s salary in most provinces.

Paternity leave

Working fathers are eligible for seven to 30 days of paternity leave depending on locality. In Beijing, up to 15 days of paternity leave at full pay can be taken by the male spouse of a female employee who is over 24 years of age at the date of the child’s birth. Shanghai provides 10 days of paternity leave.

In Beijing, fathers may take more leave days if their spouses reduce their leave by the same amount and both employers agree. Shanghai and Beijing provinces offer parental leave, which entitles eligible parents to five days of paid leave each year until the child reaches 3 years of age.

Maternity leave

Under national law, female employees who are pregnant are entitled to 98 days of maternity leave, but local laws provide additional conditions and leaves depending on situations surrounding childbirth and pregnancy.

Bereavement leave

Bereavement leave typically allows up to 3 days of paid leave for immediate family members.

Family & domestic violence leave

There is no legal entitlement to family and domestic leave.

Long service leave

Long service leave, as a specific type of leave granted for extended service, is not explicitly mandated in China under that term. Instead, China’s labor law provides for statutory annual leave based on the employee’s total length of service across all employers, which functions similarly by rewarding longer tenure with increased paid leave days.

Marriage leave

Marriage leave usually lasts at least 3 days, with some provinces granting extended leave up to 30 days.

Termination process

Employers are required to document and provide evidence for the reason behind a termination, issue formal written notice to the employee, and notify the labor union if one exists prior to the termination. In cases of mass layoffs involving more than 20 employees or 10% of the workforce, additional steps must be taken, such as informing labor authorities and unions. Furthermore, all final payments, including wages, unused leave, and severance, must be promptly settled.

Termination reasons

Grounds for employer-initiated termination include serious misconduct or fault warranting immediate dismissal without notice or compensation, such as failure to meet probationary employment conditions, repeated violations of company rules (like unexcused lateness), gross negligence or corrupt practices causing significant harm to the employer, holding another job that severely impacts performance without termination, obtaining the employment contract through deception or coercion, conviction of a crime, or fraudulent or coerced contract signing.

Notice period

Employees are entitled to 30 days’ advance notice of termination or one month’s wages in lieu of notice plus severance pay unless termination is for a serious violation of company work rules or similar circumstances. Labor unions must be notified by employers of any proposed unilateral termination and may demand that an employer correct an action that violates government law or the terms of a labor contract.

Severance Pay

Severance pay is calculated as one month’s salary for each full year of service, plus an additional half month’s salary for any partial year worked that is less than six months, or a full month’s salary for a partial year of six months or more. For employees whose salary exceeds three times the local monthly average wage, severance calculations are capped at three times that average salary and a maximum of 12 months of seniority. Additionally, employees who are terminated by mutual agreement or whose fixed-term contracts expire without renewal are also eligible to receive severance pay.

Note that severance pay is determined by the duration of employment with a single employer and may vary according to the specific province or region.

In Shanghai, the amount of severance pay depends on both the reason for termination and the employee’s length of service.

Probation period

Based on Chinese labor law, the length of the probationary period depends on the duration of the employment contract: for contracts less than three months, probation is not allowed; for contracts between three months and one year, the probation period can be up to one month; for contracts between one and three years, it can last up to two months; and for contracts longer than three years or indefinite contracts, the probation period can be up to six months.

Probation Period days

• No probation period (for contracts lasting for less than 3 months)
• Up to 1 month probation period (for contracts lasting for 3 up to 12 months)
• Up to 2 months probation period (for contracts lasting for 1 to 3 years)
• Up to 6 months probation period (for contracts lasting for more than 3 years or indefinite contracts)

Employee Income Tax

The tax rates are progressive, ranging from 5% to 40%, depending on taxable income, which is calculated by subtracting standard, special, and personal exemptions.

Income Tax

• 5% 0 TWD – 590,000 TWD
• 12% 590,001 TWD – 1,330,000 TWD
• 20% 1,330,001 TWD – 2,660,000 TWD
• 30% 2,660,001 TWD – 4,980,000 TWD
• 40% 4,980,001 TWD and over

Visa

Taiwan offers several types of work visas, including the Standard Work Visa, Employment Gold Card, Entrepreneur Visa, and Working Holiday Visa, each catering to different professional needs. To obtain a work visa, foreign nationals must secure a work permit from their employer, which is typically granted to professionals in specific industries such as engineering, healthcare, and academic research. Applicants must also have a valid job offer, a bachelor’s degree or equivalent experience, and at least five years of relevant work experience. The Employment Gold Card simplifies the process for high-level professionals by combining work permit, resident visa, and reentry permit into one document.

Once the work visa is granted, the individual must apply for an Alien Resident Certificate (ARC) within 15 days to legally reside in Taiwan for more than 180 days. The entire process is regulated by Taiwan’s Ministry of Interior and the National Immigration Agency.

Visa types

• Working Holiday Visa
• Resident Visa

Background check

In Taiwan, background checks are a critical component of the work visa application process, particularly for obtaining an Alien Resident Certificate (ARC). Applicants are typically required to provide a nationwide criminal record certificate from their home country, such as an FBI clearance for U.S. citizens, which must be issued within the last year and include records from the past five years. This document must often be accompanied by a Chinese translation and verified by the relevant authorities, such as the ROC’s overseas missions or the Ministry of Foreign Affairs. Additionally, employers in Taiwan must adhere to strict data protection laws, including the 2023 Personal Data Protection Act, which mandates obtaining explicit consent from candidates before conducting any background checks.

Private health insurance

Employers offer private medical insurance coverage to provide additional benefits and flexibility in healthcare choices.

Team APAC providers

• SafetyWings
• Henner
• IMG/ ALC Global

Mandatory benefits

Key statutory benefits include Labor Insurance (LI) and Employment Insurance (EI), which cover a range of protections including retirement benefits, unemployment support, and medical coverage. 

Mandatory benefits in Taiwan

• Labor Insurance (LI)
• Employment Insurance (EI)

Annual leave

Employees who have worked for the same employer for at least a year are entitled to paid annual leave based on their years of service, starting with three days’ leave for those with at least six months but less than one year of service, increasing to seven days after 12 months, 10 days after two years, 14 days after three years, and 15 days after five years, with an additional day of leave granted for each year of service over 10 years, up to a maximum of 30 days’ leave. In the event of an emergency, an employer may suspend a worker’s planned leave but must compensate the employee with double their regular wages for work during that period and ensure the leave is granted once the emergency has concluded.

Sick leave

Regular sick leave may not exceed 30 days in one year. If the employee is hospitalized, he or she is entitled to unpaid sick leave of up to one year in any two years. The employee is paid half his or her regular salary during the 30 days’ leave, either from the government’s labor insurance fund alone or in part from the fund and in part by the employer. If the employer does not pay for sick leave, payment from the government’s labor insurance fund begins on the fourth day of sickness.

Parental leave

Parents can apply for up to two years of unpaid parental leave before their child reaches the age of three, provided they have worked for at least six months and their spouse is also employed. During this leave, they may receive a parental leave allowance of 80% of their insured salary for up to six months.

Paternity leave

An employee whose spouse is in labor is entitled to seven days off as paternity leave.

Maternity leave

Eight weeks’ maternity leave is mandatory for full and part-time employees. A woman who has been employed for more than six months is paid her regular wage during maternity leave. If she has been employed less than six months, she is paid at half her regular wage. In addition, a maternity grant equal to one month’s earnings is paid following the birth of the child.

Pregnant employees must be granted five days of leave for pregnancy check-ups, during which regular wages must be paid. An employee with a child under the age of 1 is entitled to two 30-minute rest periods with pay to breast-feed her baby. Employees with children under the age of 3 and with more than one year of service may take unpaid parental leave for up to two years.

Bereavement leave

Employees are entitled to 8 days of paid leave for the death of a parent, spouse, or child. For the death of grandparents, siblings, or parents-in-law, employees are entitled to 3 days of paid leave

Family & domestic violence leave

In Taiwan, there is no specific mandatory leave provision explicitly designated for family or domestic violence under the current labor laws. However, employees may utilize other types of leave, such as sick leave or compassionate leave, to address situations arising from domestic violence. 

Termination process

In Taiwan, the termination process is strictly regulated by the Labour Standards Act (LSA), which outlines specific grounds for both voluntary and involuntary termination. Employers can terminate employees only under statutory conditions specified in Article 11 (layoff with notice and severance pay) or Article 12 (dismissal without notice or pay) of the LSA. Employers must provide prior notice for layoffs, calculate and pay severance based on years of service, and document the termination process thoroughly to avoid disputes. 

Termination reasons

Valid reasons for layoff include business suspension, operating losses, force majeure, workforce reduction due to business changes, or unsatisfactory job performance. For dismissal, grounds include misconduct, fraud, or serious breaches of employment terms.

Notice period

The minimum notice period starts at 0 days and increases based on the duration of employment, with no notice required for continuous employment of less than 3 months, 10 days for at least 3 months but less than 1 year, 20 days for at least 1 year but less than 3 years, and 30 days for employment of 3 years or more.

Severance Pay

Employees who started working prior to the implementation of the 2005 Labor Standards Act are eligible for a severance payment equal to one month’s salary for each year of uninterrupted service. Those who began their jobs after the Act came into effect are entitled to a severance package amounting to half a month’s pay for every year of continuous work.

Probation period

The length of the probation period can be agreed upon by the employer and the individual employee. A 3-6 months trial period is commonly used.

Probation Period days

• 90 days Minimum probation period
• 120 days Maximum probation period

Employee Income Tax

Resident individuals are taxed on a progressive scale ranging from 0% to 24%, with personal reliefs and deductions available to reduce taxable income. Non-resident individuals face a flat tax rate of 24% on most income types, except for employment income, which is taxed at either a flat 15% or the progressive resident rates, whichever is higher.

Income Tax

• 0% 0 SGD – 20,000 SGD
• 2% 20,001 SGD – 30,000 SGD
• 3.5% 30,001 SGD – 40,000 SGD
• 7% 40,001 SGD – 80,000 SGD
• 11.5% 80,001 SGD – 120,000 SGD
• 15% 120,001 SGD – 160,000 SGD
• 18% 160,001 SGD – 200,000 SGD
• 19% 200,001 SGD – 240,000 SGD
• 19.5% 240,001 SGD – 280,000 SGD
• 20% 280,001 SGD – 320,000 SGD
• 22% 320,001 SGD and over

Visa

As of January 2025, new EP applicants in non-financial sectors must earn at least S$5,600 per month, while those in financial sectors require a minimum of S$6,200.

These salary requirements increase with age. Additionally, applicants must possess acceptable qualifications, such as a good university degree, and meet the Complementarity Assessment Framework (COMPASS) criteria, which evaluates factors like salary, education, and support for local employment. Employers or appointed agents must apply for the EP on behalf of the applicant.

Other passes, like the S Pass, are available for semi-skilled workers with lower salary thresholds and specific educational requirements.

Visa types

Singapore offers several types of work visas and permits for foreign nationals seeking employment in the country. Here are some of the main types:

Types of Work Visas

• Passes for professionals: Employment Pass, EntrePass, Personalized Employment Pass,
• Overseas Networks & Expertise Pass (ONE Pass).
• Passes for skilled and semi-skilled workers (S Pass and other work permits)
• Short-term visit passes (STVP)

Compliance documents types

• hold a valid passport
• be at least 18 years of age
• be qualified for the role (with supporting documents from accredited institutions)
• only work within the scope of their role.

Background check

In Singapore, visa-related background checks are not explicitly detailed as a standalone process but are integral to ensuring compliance with immigration regulations. Employers often conduct background checks to verify a candidate’s qualifications and history, which may include verifying the right to work in Singapore.

For foreign workers, obtaining a work pass requires employment verification proof from an accredited background screening provider, as mandated by the Ministry of Manpower.

While the focus is more on general background checks, such as criminal records and employment history, ensuring that foreign employees have valid work passes is crucial to avoid legal issues.

Visa requirements themselves are more about pre-entry permissions rather than background checks, but employers must ensure that all foreign employees comply with immigration laws to avoid penalties.

Private health insurance

Private health insurance in Singapore is designed to cover healthcare costs not fully covered by Social Security Organization (SOCSO), which is a compulsory program for work-related accidents and diseases. It provides additional benefits and flexibility in healthcare choices.

Team APAC providers

• SafetyWings
• Henner
• IMG/ ALC Global

Mandatory benefits

Statutory benefits include contributions to the Central Provident Fund (CPF), compensation insurance, maternity and paternity leave, and annual leave.

Mandatory benefits in Singapore

• Central Provident Fund (CPF),
• Compensation insurance
• Maternity leave
• Paternity Leave
• Annual Leave

Annual leave

Employees who have worked for an employer for at least three months are entitled to seven days’ paid annual leave and accrue one additional day for each subsequent year of service after the first up to a maximum 14 days of paid annual leave.

An employee who has completed at least three months of service in a given calendar year is entitled to leave in proportion to the number of months of service completed in that year.

An employee forfeits annual leave if absent from work without the employer’s permission or without a reasonable excuse for more than 20 percent of the working days in the months or year in which the entitlement to leave accrues.

The employer must allow the employee to take leave within 12 months of its accrual. Any leave not taken within 12 months of accrual is forfeited.

Sick leave

Following an examination at the employer’s expense by a medical practitioner of the employer’s choosing, an employee with at least six months’ service is entitled to paid sick leave up to 14 days per year if no hospitalization is required. If hospitalization is required, sick leave is limited to the lesser of 60 days or 14 days plus the number of days the employee was hospitalized.

An employee with at least three months’ service but less than six months’ is entitled to sick leave proportionate to the time worked.

An employee whose sick leave has not been certified by a medical practitioner or who has failed to notify the employer within 48 hours of beginning sick leave is deemed to be away from work without permission and without a reasonable excuse.

Parental leave

There is no parental leave currently required by law.

Maternity leave

Female employees are entitled to 16 weeks of paid maternity leave if they have worked for their employer for at least three months and the child is—or will be—a Singapore citizen.

The first eight weeks of leave are paid by the employer; the remaining eight weeks are paid by the government. The paid benefit is capped at S$10,000 per month.

A woman qualifies for only 12 weeks’ leave if she has worked for her employer less than three continuous months or if her child is not a Singaporean citizen. She will receive eight weeks’ pay from her employer if she has fewer than two living children of her own at the time of delivery. The remaining four weeks are unpaid.

Paretnity leave

Fathers are entitled to a paternity leave of two weeks in Singapore. In order to meet the requirements of government-paid paternity leave, the child must be a

Singapore citizen and the father must have been legally married to the mother between the conception and birth of the child.

Paternity leave is applicable even when the child is adopted, as long as the child is a Singapore citizen. Managers earning more than SGD 4,500 per month are covered by specific terms of the employment contract.

Family & domestic violence leave

Currently, there is no law requiring domestic violence leave.

Termination process

The termination process involves several key steps and considerations. Either the employer or employee can initiate termination by providing written notice, as stipulated in the employment contract or the Employment Act. Employers can terminate contracts without cause by giving notice or paying in lieu of notice, while summary dismissal for misconduct can occur without notice.

Termination letters are mandatory for formalizing the process. In cases of retrenchment, employers must comply with statutory requirements, including notifying the Ministry of Manpower and providing support services. Employees who feel wrongfully dismissed can file claims with the Tripartite Alliance for Dispute Management within one month of their last day of work. 

Termination reasons

Valid reasons for dismissal include misconduct, poor performance, and redundancy.

Notice period

In Singapore, the statutory notice period varies based on the length of employment. For employees with less than 26 weeks of service, a one-day notice is required.

Those employed for 26 weeks or more but less than two years must provide one week’s notice. Employees with two to five years of service need to give two weeks’ notice, while those with five years or more of employment must provide four weeks’ notice.

Severance Pay

In Singapore, there is no obligation to pay severance.

Probation period

In Singapore, probation periods are not mandatory, but common practice is from three to six months.

Probation Period days

• 90 days Minimum probation period
• 180 days Maximum probation period

Employee Income Tax

Employee income tax rates are standardised Australia-wide. Taxable income for individuals is taxed at progressive rates, ranging from 0 to 45%, in addition to a 2% Medicare levy. Depending on your income and whether you have private health insurance, you might also have to pay the Medicare levy surcharge.

Income Tax

• 0% 0 AUD – 18,200 AUD
• 16% 18,201 AUD – 45,000 AUD
• 30% 45,001 AUD – 130,000 AUD
• 37% 135,001 AUD – 190,000 AUD
• 45% 190,001 AUD and over

Visa

Here are the main groups eligible to work in Australia:

• Australian Citizens: They have an unrestricted right to work in Australia.
• Australian Permanent Residents: They also have the right to work without restrictions.
• New Zealand Citizens: Those holding a Special Category (subclass 444) visa can work freely in Australia. However, to become permanent residents, they must meet additional criteria, such as living in Australia for at least five years and meeting health and character requirements.
• Visa Holders – IIndividuals holding a valid Australian visa that includes work entitlements are also eligible to work. However, the specific work rights depend on the type of visa held

Visa types

• Temporary Skill Shortage (TSS)
• Working Holiday Subclass 417 & 462 Visa
• Training Visa Subclass 407 Visa
• Short Stay Specialist Subclass 400 Visa
• Sponsorship Licenses

Background check

Visa applications often require various types of background checks to ensure the applicant meets the necessary legal and security standards. Among these, police checks are mandatory for most visa categories, such as work visas and permanent residency.

These checks are designed to identify any criminal history that could pose a risk. For instance, individuals who have lived in Australia for 12 months or more within the past decade must undergo an Australian Federal Police (AFP) check, which examines Commonwealth police records for federal convictions.

Additionally, a National Police Check might be required for applicants who have recently moved to Australia or are applying for specific visa types. This involves a search of the national criminal record database in the applicant’s home country.

Another critical component is the character assessment, which relies on police checks to evaluate whether an applicant satisfies the character requirements outlined by Australian immigration laws. 

Compliance documents types

• Proof of employment eligibility
• Fair Work Information Statement
• Tax file number declaration
• Passport / ID
• Bank Statement
• Superannuation (super) standard choice form

Private health insurance

Private health insurance in Australia is designed to cover healthcare costs not fully covered by Medicare, the country’s public healthcare system. It provides additional benefits and flexibility in healthcare choices

Team APAC providers

• SafetyWings
• Henner
• IMG/ ALC Global

Mandatory benefits

Medicare is Australia’s universal public health insurance system, which provides eligible individuals with access to free or low-cost medical services. Workers Compensation Insurance, on the other hand, is meant to cover employees who are injured or become ill due to their work.

This insurance provides financial support for medical treatment, rehabilitation, and lost wages while the employee is unable to work. As regards retirement, the Age Pension is a government-funded retirement income support for eligible Australians who have reached the qualifying age.

Last, the Superannuation Guarantee (SG) is a compulsory pension scheme where employers must contribute a percentage of an employee’s earnings to a superannuation fund.  The Superannuation Guarantee is designed to help employees save for retirement.

Mandatory benefits in Australia

• Public Health Insurance (Medicare)
• Workers Compensation Insurance
• Age Pension
• Superannuation Guarantee Fund

Annual leave

Full-time employees are entitled to four weeks of paid annual leave. There is no qualifying period that must be met to be eligible for annual leave. Leave accrues progressively during the year and can be accumulated from year to year. Employees are paid their base rate of pay when taking annual leave and may receive pay in lieu of taking vacation for any annual leave over four weeks. 

Some companies provide 25 to 30 days of vacation per year as an additional benefit. Employees who have worked for the same employer for a number of years may be entitled to paid long-service leave. Casual employees do not receive paid annual leave.

Personal/Carer’s leave

Full-time and part-time employees receive 10 days of paid sick leave per year. Casual employees are not entitled to paid sick leave.

Parental leave

Employees are entitled to 12 months of unpaid parental leave, with the option to request an additional 12 months. Eligible employees may receive up to 20 weeks of paid parental leave at the national minimum wage.

Maternity leave

There is no specific statutory requirement for maternity leave, but The Paid Parental Leave Amendment 2022 amends the Fair Work Act 2009 to add two weeks’ father and partner pay to provide a single 20-weeks of paid parental leave, to be shared between each parent. Beginning July 1, 2023, parents will be able to receive a maximum of 18 weeks’ parental leave pay each, and a maximum of 20 weeks’ parental leave pay between them.

Family & domestic violence leave

All employees covered by the national industrial relations system, including full-time, part-time, and casual are entitled to Family and Domestic Violence Leave of 10 days per year. It is a leave designed to support employees experiencing family and domestic violence. This leave allows them to take time off work without losing income or their job, enabling them to address the impacts of violence safely. This leave does not accrue and resets annually on the employee’s work anniversary.

Some states offer additional entitlements. In South Australia, state and local government employees can access up to 15 days of paid leave annually.

Termination process

Terminations in Australia are complex and do not allow for at-will employment outside of the probation period. Employers must have just cause to terminate an employee. Compliant terminations can occur in several ways.

They can be voluntary, initiated by the employee, or by mutual agreement between the employer and employee. Employers can also unilaterally terminate employment during the probation period, based on objective grounds, or for disciplinary reasons.
Additionally, terminations can occur due to performance issues if an employee is deemed unsuitable for the job. Lastly, employment can end naturally with the expiration of a contract.

Termination reasons

In Australia, the grounds for terminating an employment contract are primarily governed by the Fair Work Act 2009. There are several valid reasons for termination. One of these is capacity, which involves situations where an employee lacks the ability to perform their job duties.

Another reason is performance, where employers can dismiss employees for unsatisfactory performance, but only after providing them with warnings and opportunities for improvement.

Misconduct is also a valid ground for termination, encompassing both serious and lesser forms. Serious misconduct, such as theft or assault, can lead to immediate termination without notice. In contrast, lesser misconduct requires a more formal disciplinary process. Lastly, redundancy is a valid reason for termination if a job is no longer needed due to operational changes, technological advancements, or business restructuring.

Notice period

The minimum notice period for employees is one week, with the duration increasing based on the length of employment. For those employed for less than a year, the notice period remains at one week. Employees who have been with the company for between one and three years are entitled to two weeks’ notice.

This increases to three weeks for those employed between three and five years. Once an employee reaches five years of service, they are entitled to four weeks’ notice. Additionally, there is a special provision for employees over 45 years old who have worked for the same employer for at least two years; they receive an extra week of notice.

Severance Pay

Severance pay is determined by the number of years an employee has worked at the company. Employees who have been with the company for less than a year are not eligible for severance pay. Those who have worked between one and two years receive four weeks of severance pay.

The amount increases to six weeks for employees with two to three years of service, and seven weeks for those with three to four years. Employees with four to five years of service receive eight weeks, while those with five to six years receive ten weeks.

The severance pay continues to increase: six to seven years of service yields eleven weeks, seven to eight years yields thirteen weeks, and eight to nine years yields fourteen weeks. Finally, employees who have been with the company for more than ten years are entitled to sixteen weeks of severance pay.

Probation period

In Australia, a probationary period is a common practice used by employers to assess new employees’ suitability for a role. This period is not mandatory but is often included in employment contracts to provide both parties with an opportunity to evaluate their compatibility.

Probation Period days

• 90 days Minimum probation period
• 180 days Maximum probation period

Employee Income Tax

The tax rates are progressive, ranging from 5% to 45%, depending on taxable income, which is calculated by subtracting various deductions and exemptions from total income.

Income Tax

• 5% 0 JPY – 1.95 million JPY
• 10% 1.95 million JPY – 3.3 million JPY
• 20% 3.3 million JPY – 6.95 million JPY
• 23% 6.95 million JPY – 9 million JPY
• 33% 9 million JPY – 18 million JPY
• 40% 18 million JPY – 40 million JPY
• 45% 40 million JPY and over

Visa

Japan offers various work visa types tailored to different professional roles and qualifications. There are specific work visas for various occupations, including options for artists, instructors, journalists, professors, skilled laborers, and more.

The type of permit an employee applies for will determine how long they can remain in Japan. Typically, the length ranges from 3 months to 5 years. 

Visa types

Japan recently introduced specific skills visas, including:

• Specified Skilled Worker Visa SSW-2: intended to fill employment gaps in certain labor sectors. 
• Specified Skills Visa 1-SSV1: applicable only to industries, such as shipbuilding, agriculture, nursing care, among others and requires Japanese language tests and technical exams. 
• Specified Skills Visa 2-SSV2: may be renewed indefinitely; includes privilege to bring family members to Japan.

Compliance requirements

• Job offer from a Japan-based company
• Passport
• Visa application form
• Photograph

Background check

In Japan, background checks for work visa applicants are conducted with strict adherence to privacy laws and ethical practices. Employers must obtain explicit written consent from candidates before initiating any checks, as mandated by the Act on the Protection of Personal Information (APPI). The process typically involves verifying identity, educational qualifications, employment history, and criminal records, with additional checks like professional licenses or financial stability depending on the industry.

Private health insurance

Employers offer private medical insurance coverage to provide additional benefits beyond the coverage of the public healthcare system.

Team APAC providers

• SafetyWings
• Henner
• IMG/ ALC Global

Mandatory benefits

Mandatory benefits include health insurance, retirement pensions, disability pensions, workers’ compensation, unemployment insurance, and paid leaves, all of which are governed by national labor laws.

Mandatory benefits in Japan

• Health Insurance 
• Pension Insurance 
• Unemployment insurance 
• Long Term Care insurance
• Workers Compensation Insurance

Annual leave

Employees become eligible for paid vacation after completing six months of service, with the number of vacation days increasing based on their tenure: starting at 10 days after six months, 11 days at 1.5 years, 12 days at 2.5 years, 14 days at 3.5 years, 16 days at 4.5 years, 18 days at 5.5 years, and capping at 20 days after 6.5 years or higher.

Sick leave

Unlike some countries, Japan does not have a statutory sick leave policy.

Parental leave

An employee, male or female, is entitled to up to one year of child care leave after maternity leave ends (see Child care leave below). Both parents have the flexibility to determine how to allocate the time off, which totals 8 weeks following paternity and maternity leave. Either parent is eligible to take this parental leave.

During the first 180 days, social security covers 67% of the salary, and this decreases to 50% for the remaining period. Additionally, the parental leave can be extended for up to 2 years, with compensation set at 50% of the salary throughout the extension.

Maternity leave

Female employees are entitled to take maternity leave for up to six weeks preceding the expected date of birth, up to 14 weeks if expected to give birth to more than one child.

After childbirth, the mother is required to take eight weeks’ leave. The employee will receive 2/3 of the salary during this period, and the labor insurance office will be responsible for this pay.

New mothers are entitled to two 30-minute nursing breaks daily for up to 12 months following childbirth.

Paternity leave

​​There is no statutory requirement for paternity leave in Japan.

Family & domestic violence leave

There is no statutory requirement for family and domestic violence  leave in Japan.

Termination process

In Japan, the termination of employment is strictly regulated and requires objectively reasonable grounds. Employers must justify dismissals. For indefinite-term contracts, termination due to redundancy is considered a last resort, requiring employers to demonstrate efforts to avoid dismissal through measures like reducing compensation or soliciting voluntary retirement.

Fixed-term contracts can only be terminated before expiration for “unavoidable reasons,” which are interpreted narrowly. If downsizing will result in termination of at least 30 employees from a single workplace within a month, the employer must prepare a termination plan listing the employees to be laid off and detailing any efforts the employer will make to help them find reemployment.

Termination reasons

In Japan, valid reasons include inability to work due to injury, illness, or poor performance; breach of responsibilities such as misconduct or failure to fulfill duties; and economic reasons like redundancy.

Notice period

Generally, an employer must give an employee at least 30 days’ notice of termination or pay the employee 30 days’ wages in lieu of notice. No notice is required if the employee is being terminated for cause or the employee is still on probation.

Severance Pay

In Japan, there are no legal obligations for employers to provide severance payments. However, employees are entitled to their regular salary during the notice period.

Probation period

Probation periods in Japan may last from one to twelve  months.

Probation Period days

• 30 days Minimum probation period
• 360 days Maximum probation period

Employee Income Tax

The individual income tax ranges from 2% to 17%. Income tax is calculated according to progressive rates. Multiple additional factors may impact overall rates such as the household status and the number of children.

Income Tax

Net Chargeable Income Tax Rate

• 2% 0 HK$– 50,000 HK$
• 10% 100,001 HK$– 150,000 HK$
• 14% 150,001 HK$– 200,000 HK$
• 17% 200,001 HK$ and over

Visa

Various work visas allow individuals to work in Hong Kong under specific conditions.

• General Employment Policy (GEP) Visa – Job offer from a Hong Kong employer, relevant qualifications, and a remuneration package matching market standards.
• Admission Scheme for Mainland Talents and Professionals (ASMTP) – Job offer and expertise not readily available locally.
• Quality Migrant Admission Scheme (QMAS) – Meet specific prerequisites, such as language proficiency and academic qualifications.
• Technology Talent Admission Scheme (TechTAS) – Quota application by the company, job offer in a specific position.
• Top Talent Pass Scheme (TTPS) – Graduates from top global universities or high-income earners with notable achievements.

Background check

Hong Kong has expanded its criminal record check requirements for various visa schemes. As of March 2023, applicants for several talent admission schemes, including the general work visa, tech industry visa, and the admission scheme for mainland Chinese professionals, must declare any prior criminal convictions.

However, it is important to note that while criminal background checks are permissible, employers must be careful not to discriminate against candidates based on spent convictions.

Additionally, employers are required to comply with Hong Kong’s data privacy regulations and obtain explicit consent from candidates before conducting any background checks. 

Private health insurance

Employers offer private medical insurance coverage or a monthly medical allowance to offset the long wait times for care at all public institutions in the country.

Team APAC providers

• SafetyWings
• Henner
• IMG/ ALC Global

Mandatory benefits

Key statutory benefits include paid annual leave, sick leave, maternity and paternity leave, and contributions to the Mandatory Provident Fund (MPF) for retirement savings.

Employees are entitled to public healthcare access without deductions from their income. Vacation entitlements start at seven days annually after one year of service, increasing progressively to 14 days after nine years.

Mandatory benefits in Hong Kong

• Public Healthcare Access
• Mandatory Provident Fund (MPF)

Annual leave

An employee’s entitlement to paid annual leave increases progressively with their length of service. Initially, they receive 7 days of paid leave for the first two years. This increases to 8 days after three years, 9 days after four years, 10 days after five years, 11 days after six years, 12 days after seven years, and 13 days after eight years. Once an employee has completed nine or more years of service, they are entitled to a maximum of 14 days of paid annual leave.

Sick leave

Entitlement to sick leave is accrued at the rate of 2 paid days for each month of service during the first year of employment and at the rate of 4 paid sickness days for each month thereafter, up to a maximum of 120 paid sickness days. For the first four days, there is no pay, as this period is considered a qualifying phase. Once this period is completed, employees receive 80% of their base salary for the remainder of their sick leave, up to 120 days, with the employer serving as the payer.

Maternity leave

Maternity leave in Hong Kong involves several key components. Eligible pregnant employees, who have worked continuously for at least 40 weeks (not necessarily 12 consecutive months), are entitled to 14 weeks of paid maternity leave.

Typically, this leave starts two to four weeks before the expected birth date, with at least two weeks taken before childbirth. During this period, employees receive 80% of their average daily wages over the past 12 months, which is the responsibility of the employer to pay. 

Parental leave

In Hong Kong, parental leave is not mandatory. However, employees may be entitled to maternity leave and paternity leave.

Paternity leave

​​Employees who have worked for 40 consecutive weeks are entitled to 5 days of paid paternity leave. The leave can be divided however the employee sees fit. 

The employee will receive 80% of their average monthly salary from the last 12 months and the employer will be responsible for this pay.

Family & domestic violence leave

The Employee will be entitled to up to 10 days’ paid “family and domestic violence” leave in a 12 month period.

Termination process

In Hong Kong, the termination process for employment contracts can occur with or without notice. Termination with notice does not require specific reasons and typically follows the notice period outlined in the employment contract, which must be at least seven days for continuous contracts and one month for certain renewable contracts. Termination without notice, known as summary dismissal, requires serious grounds or infractions.

Both employers and employees can terminate contracts by providing notice or paying wages in lieu of notice. Employers must also adhere to statutory timelines for making terminal payments, such as severance and wages in lieu of notice.

Termination reasons

In Hong Kong, summary dismissal allows an employer to terminate an employee without notice or payment in lieu of notice under specific conditions outlined in the Employment Ordinance and common law. These include willful disobedience of lawful and reasonable orders, misconduct, fraud or dishonesty, or habitual neglect of duties. Additionally, dismissal may be justified on any other common law grounds that permit termination without notice. However, participating in a strike is not a valid reason for summary dismissal under the Employment Ordinance. Employers must exercise caution and ensure strong evidence supports such actions, as summary dismissal is a serious disciplinary measure reserved for exceptional cases of severe misconduct.

Notice period

The minimum notice period is 7 days for employees with more than a month of service and those still in their probation period. However, once the probation period ends, the notice period increases to 30 days. The notice period generally increases with the length of employment.

Severance Pay

In Hong Kong, employees who are terminated due to redundancy are entitled to severance pay if they have completed at least two years of continuous service. The severance payment is calculated as two-thirds of the employee’s monthly wage, or two-thirds of HK$22,500, whichever is less, for each year of service. The total statutory severance payment is capped at HK$390,000.

Probation period

Probation periods in Hong Kong may last from one to three months and should be clearly defined in the employment contract.

Probation Period days

• 30 days Minimum probation period
• 90 days Maximum probation period

Employee Income Tax

Individuals are taxed based on their resident status and the source of their income, with different tax slabs for various income ranges. In 2021, a new tax regime was introduced as the default option, offering lower tax rates but limiting exemptions and deductions, while the old regime remains optional for those who prefer to retain access to tax benefits like deductions under Section 80C, HRA, and others.
Individuals can choose between two tax regimes: the old regime and the new regime.

Income Tax

• 0% 0 INR – 300,000 INR
• 5% 300,001 INR – 700,000 INR
• 10% 700,001 INR – 1,000,000 INR
• 15% 1,000,001 INR – 1,200,000 INR
• 20% 1,200,001 INR – 1,500,000 INR
• 30% 1,500,001 INR and over

Old Tax Regime

• 0% 0 INR – 250,000 INR
• 5% 250,001 INR – 500,000 INR
• 20% 500,001 INR – 1,000,000 INR
• 30% 1,000,001 INR and over

Visa

There are specific requirements for issuing visas and work permits to international team members. The main type of visa is simply called an employment visa. Employment visas are only available to employees of organizations registered in India. As a result, employees cannot begin the process of obtaining a permit until they have an employment contract. In addition, your company must have a legal entity registered in India, or partner with an employer of record, to process the visa.

Visa types

• Employment Visa (E Visa)
• Business Visa (B Visa)
• Project Visa
• Entry Visa (X Visa)
• Intern Visa
• Research Visa

Compliance documents types

• Valid passport containing 2 or more blank pages
• 2 passport-sized color photographs (5×5 centimeters)
• A copy of the passport’s first pages
• An employment contract, written in English and containing the duration and employment conditions
• A copy of the company’s registration certificate
• A visa application form
• An extra work visa application form
• Tax liability details
• A resume in English
• Copies of diplomas and any supporting documents related to professional competencies, such as a CV or letters of recommendation
• Undergo facial biometrics and fingerprints

Background check

In India, work visa-related background checks typically involve verifying the candidate’s identity, employment history, educational qualifications, and criminal record to ensure compliance with legal and immigration requirements. Employers must obtain written consent from the candidate before initiating these checks, which may include validating government-issued IDs like Aadhaar or passport, confirming past employment details, and ensuring educational credentials are authentic. Criminal record checks are often conducted through local police or online databases, especially for roles requiring security clearance. These checks help employers align with the Information Technology Act, 2000, and the Personal Data Protection Bill, 2019, ensuring responsible handling of personal data and adherence to privacy laws.

Private health insurance

Private health insurance in India is designed to cover healthcare costs not fully covered by the country’s public healthcare system. It provides additional benefits and flexibility in healthcare choices.

Team APAC providers

• SafetyWings
• Henner
• IMG/ ALC Global

Mandatory benefits

Statutory benefits include the Employees’ Provident Fund (EPF) for retirement savings, Employees’ State Insurance (ESI) for healthcare, gratuity after five years of service, paid maternity leave of 26 weeks, and various leave entitlements such as sick, casual, and earned leave.

Mandatory benefits in India

• Employees’ Provident Fund (EPF)
• Employees’ State Insurance (ESI)
• Paid leaves (maternity, sick, and casual)

Annual leave

Full-time workers in India are entitled to 15 days of holiday leave per year.

Sick leave

Casual (personal) and sick leave is generally governed by the state-specific Shops and Establishments Act. Not all states separately define casual and sick leave, and the number of days of such leave to which employees are entitled varies from seven to 12 depending on the state in which the workplace is located.

Parental leave

There is no legal entitlement to parental leave.

Maternity leave

Employers with 10 or more employees must provide 26 weeks’ paid leave during an employee’s first two pregnancies and 12 weeks’ paid leave for adoptive and surrogacy-commissioning mothers. Female employees who have worked for a given employer for at least 80 days in the 12 months immediately preceding the date of expected delivery are eligible for the benefits, provided they give the employer written notice seven weeks before the expected date of delivery. The 26-week leave entitlement applies only to the first and second pregnancy. For the third child and after, only 12 weeks are available. Adoptive mothers are entitled to paid leave only if the adopted child is less than three months old.

Paternity leave

There is no legal entitlement to paternity leave.

Family & domestic violence leave

There is no legal entitlement to family and domestic leave.

Termination process

In India, employment terminations cannot be executed “at will” and must adhere to legal compliance. Employers must follow fair procedures, including disciplinary processes for misconduct. Legal compliance is essential to avoid disputes, and in cases of mass layoffs, government approval may be necessary.

Termination reasons

Termination can occur due to performance issues, misconduct, redundancy, or breach of contract or layoff. 

Notice period

A notice period of 30 to 90 days is standard, depending on the employee’s role and industry, and severance pay is often required, especially in cases of redundancy or termination without cause.

Severance Pay

Employees with at least one year of service are entitled to a severance payment equal to 15 days’ wages for each completed year of service.

Employees who have completed five years of service and work for an employer with 10 or more employees also are entitled to a gratuity payment. Gratuity payments are equal to 15 days’ wages multiplied by the number of years of service (with part of a year in excess of six months counted as one year).

Probation period

Probation periods are not mandatory and there is no statutory requirement for employers to provide probation period. The common probation period for India in the Employment Agreement is 3 to 6 months with the option to extend an additional 3 months at the employer’s discretion.

Probation Period days

• 90-180 days Minimum probation period
• 270 days Maximum probation period, subject to employer’s discretion