FreelanXCountryAUAustraliaJPJapanKRSouth KoreaSGSingaporeHKHong Kong SARINIndiaMYMalaysia
Asia-Pacific · 12 countries
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Country guideAsia-PacificVerified Oct 2026
AU
Hiring in Australia: the 2026 guide
Employment is governed nationally by the Fair Work Act 2009, the National Employment Standards (NES) and modern awards. Payroll tax, workers compensation, long service leave and some public holidays are set by each state or territory and differ; NSW is the representative case where stated.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Canberra · AUDLanguage
EnglishMinimum wage
A$26.44 per hour, A$1,004.90 per week (from 1 Jul 2026, +4.75%)Employer contributions
Superannuation 12% of ordinary time earnings, plus state payroll tax and workers compensationStatutory paid leave
4 weeks paid annual leave (20 days on a 5-day week), plus 10 days personal/carer leavePublic holidays
About 8 to 10 public holidays, set partly by each stateEmployer notice
1 to 4 weeks by tenure (1 more week if over 45 with 2+ years), unless the award or contract gives moreFreelanX EOR onboarding
3–20 daysCountry guideAsia-PacificVerified Oct 2026
JP
Hiring in Japan: the 2026 guide
Japan has one national employment law framework (Labor Standards Act, Labor Contract Act) with strict dismissal case law and a four-part social insurance system. This guide covers 2026 employer costs, working time, leave, dismissal and contractor risk.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Tokyo · JPYLanguage
JapaneseMinimum wage
National weighted average ¥1,177 per hour for FY2026 (prefecture rates ¥1,085 to ¥1,280; Tokyo ¥1,280 from 1 Oct 2026; other prefectures from 1 Oct to 2 Dec 2026)Employer contributions
About 15% to 16% of gross pay below the pension cap (about ¥7.8M a year); lower share above it. Tokyo, Kyokai Kenpo health planStatutory paid leave
10 days after 6 months of service, rising to 20 days from 6.5 years; 5 days must be taken each year once entitled to 10 or morePublic holidays
16 national holidays plus 2 substitute or bridging holidays in 2026 (18 days); employers are not legally required to give them as days offEmployer notice
Dismissal: 30 days' notice or pay in lieu of notice, regardless of tenure; the dismissal must also be objectively reasonable (Art. 16 LCA)FreelanX EOR onboarding
3–20 daysCountry guideAsia-PacificVerified Oct 2026
KR
Hiring in South Korea: the 2026 guide
National rules under the Labor Standards Act (LSA) apply across Korea, with no regional variation. This guide covers hiring through an EOR, 2026 pay and insurance rates, working time, dismissal, contractor risk and visas.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Seoul · KRWLanguage
KoreanMinimum wage
₩10,320 per hour from 1 Jan 2026 (about ₩2,156,880 per month at 209 hours)Employer contributions
About 11.4% of gross pay for the four insurances, plus about 8.3% severance accrualStatutory paid leave
15 days after year 1 (80% attendance), plus 1 day per 2 years after year 3, up to 25 daysPublic holidays
About 16 weekday public holidays in 2026, including substitute daysEmployer notice
30 days written notice or 30 days' average wage in lieu (after 3 months of service)FreelanX EOR onboarding
3–20 daysCountry guideAsia-PacificVerified Oct 2026
SG
Hiring in Singapore: the 2026 guide
Singapore has a light-touch, contract-led employment regime under the Employment Act 1968, with CPF for citizens and PRs only. This guide covers employer duties, costs, work passes (EP, S Pass, Tech.Pass, ONE Pass) and contractor risk.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Singapore · SGDLanguage
EnglishMinimum wage
No national minimum wage (Progressive Wage Model applies to some sectors only)Employer contributions
17% CPF for citizens/PRs (age 55 and below) plus 0.25% SDL; no CPF for EP/S Pass holdersStatutory paid leave
7 days in year 1, rising 1 day a year to 14 days (about 1.4 to 2.8 weeks)Public holidays
11 public holidays; Sunday holidays moved to Monday (3 in 2026)Employer notice
As per contract; if silent, 1 day to 4 weeks by length of serviceFreelanX EOR onboarding
3–20 daysCountry guideAsia-PacificVerified Oct 2026
HK
Hiring in Hong Kong SAR: the 2026 guide
Hong Kong has its own common-law employment regime under the Employment Ordinance (Cap. 57), the Mandatory Provident Fund (MPF) system and a statutory minimum wage. Rules are light on hours and bonuses but strict on records, MPF and insurance.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Hong Kong · HKDLanguage
English and Chinese (Cantonese)Minimum wage
HK$43.1 per hour from 1 May 2026 (HK$42.1 from 1 May 2025)Employer contributions
MPF 5% of relevant income, max HK$1,500 per month, plus compensation insurance (about 0.2% to 1%)Statutory paid leave
7 days after 1 year, rising by 1 day a year to 14 days (statutory minimum)Public holidays
15 statutory holidays in 2026 (17 general holidays offered by most employers)Employer notice
Free to agree; default 1 month after probation, 7 days in probation after month 1FreelanX EOR onboarding
3–20 daysCountry guideAsia-PacificVerified Oct 2026
IN
Hiring in India: the 2026 guide
Covers employing staff in India under the four Labour Codes (in force since 21 Nov 2025) and engaging contractors. Labour is a concurrent subject: states differ on minimum wage, professional tax, holidays and Shops Acts.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
New Delhi · INRLanguage
English and Hindi (plus state languages)Minimum wage
Set by state and skill; no single national figure. Central floor wage not yet notified per skill (2026)Employer contributions
About 13% to 14% of basic wages (EPF/EPS/EDLI/admin), plus gratuity accrual of about 4.8% of basicStatutory paid leave
Typically 12 to 30 days by state (1 day per 20 days worked under the Code); set by state lawPublic holidays
3 national days (26 Jan, 15 Aug, 2 Oct) plus state lists, usually 8 to 15 daysEmployer notice
Set by contract, standing orders or state Shops Act; commonly 1 to 3 monthsFreelanX EOR onboarding
3–20 daysCountry guideAsia-PacificVerified Oct 2026
MY
Hiring in Malaysia: the 2026 guide
Guide to employing staff in Peninsular Malaysia under the Employment Act 1955 (as amended 2022) and engaging contractors. Sabah and Sarawak have their own labour ordinances; rules differ there and are not covered row by row.
14 min read Verified Oct 2026 General information, not legal advice
Capital · Currency
Kuala Lumpur · MYRLanguage
Malay (English widely used in business)Minimum wage
RM 1,700 per month for all employers since 1 Aug 2025 (RM 1,700 from 1 Feb 2025 for 5+ staff). No change in force for 2026; a review is under wayEmployer contributions
About 15 to 16% of gross pay (EPF 12 to 13%, SOCSO 1.75%, EIS 0.2%, HRD Corp 1% where it applies)Statutory paid leave
8 / 12 / 16 days by service (under 2 / 2 to 5 / over 5 years)Public holidays
11 paid gazetted public holidays (5 fixed by law, 6 chosen by employer); state dates varyEmployer notice
4 weeks under 2 years of service (6 weeks for 2 to 5 years, 8 weeks over 5), if the contract is silentFreelanX EOR onboarding
3–20 daysHire in Australia, start to finish
FreelanX EOR is the legal employer in Australia. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Australia employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Awards apply on top of the NES
Most employees are covered by a modern award that sets minimum pay, penalty rates, allowances and hours. The contract cannot go below the award or NES.
Super is 12% and now due at payday
The Super Guarantee is 12% of ordinary time earnings. From 1 Jul 2026 it must reach the employee's fund within 7 business days of each payday.
Payroll tax depends on the state
Rates and thresholds differ by state. In NSW the rate is 5.45% on group wages above A$1.2m a year (2026-27).
Contractor tests were rewritten
Since 26 Aug 2024, s15AA looks at the real working relationship, not just the written contract. Sham contracting carries civil penalties.
Dismissal protection after 6 months
Employees earning under A$190,100 (or award covered) can claim unfair dismissal after 6 months (12 months at small businesses under 15 staff).
Visa sponsorship is needed for foreign hires
Most non-residents need a visa with a work right. Employer sponsorship is mainly via the Skills in Demand visa (subclass 482).
Five mistakes to avoid
The ones we see most often when a team hires in Australia for the first time.
Ignoring the modern award
Paying a flat salary below the award rate plus penalties, overtime and loadings creates underpayment liability. Salary clauses must cover all award entitlements (annualised wage rules apply).
Fair Work Act 2009 ss 45, 139, 168ATreating staff as contractors
Reclassification brings back pay of leave, super, and penalties. The test is the whole relationship, and a signed contractor agreement does not decide it.
Fair Work Act 2009 s 15AA, s 357Paying super late
From 1 Jul 2026 each late or missing payment can trigger the Super Guarantee Charge, which includes interest and an administration fee and is not tax deductible.
Superannuation Guarantee (Administration) Act 1992Dismissing without a valid reason or process
A dismissal must be fair: valid reason, notice of the reason, and a chance to respond. Claims must be lodged within 21 days of dismissal.
Fair Work Act 2009 ss 385, 387, 394Rolling fixed-term contracts
Fixed-term contracts above 2 years, or with extensions that go past 2 years, are restricted unless an exception applies (for example, earnings above the high income threshold).
Fair Work Act 2009 s 333EContract rules that matter
Form of contractA written contract is not mandatory but is strongly advised. The employer must give the Fair Work Information Statement before or at start, and a Casual Employment Information Statement to casuals.Fair Work Act 2009 ss 124, 125A
ProbationThere is no statutory probation period. The minimum employment period for unfair dismissal is 6 months (12 for small business), and employers often set a probation of up to 6 months in the contract.Fair Work Act 2009 s 383
Fixed-term contractsLimited to 2 years including extensions or renewals for the same role, with exceptions (for example high-income employees, training, funded projects, seasonal work).Fair Work Act 2009 s 333E-333F
Casual employmentCasuals are defined by no firm advance commitment to ongoing work and get a 25% loading. Eligible casuals can choose to convert to permanent after 6 months (12 months at small business).Fair Work Act 2009 ss 15A, 66AA-66M
Non-competeRestraint clauses are enforceable only if reasonable under common law. The government plans to ban non-competes for employees earning at or below the high income threshold; a draft bill was released for consultation in 2026 but had not passed at time of writing.Common law; Treasury announcement 2025
Modern awards and agreements122 modern awards set minimum terms by industry or occupation. Enterprise agreements approved by the Fair Work Commission can replace an award if employees are better off overall.Fair Work Act 2009 Pts 2-3, 2-4
Right to disconnectEmployees may refuse to monitor or respond to contact outside working hours unless refusal is unreasonable. It applies to small business employers (under 15 staff) from 26 Aug 2025.Fair Work Act 2009 s 333M
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (AUD)
Employer share of statutory contributions
A$9,600
12.0% of gross salary
Estimated total employer cost
A$92,000 – A$96,800
Gross salary + contributions + other employer costs (A$2,400 to A$7,200)
Superannuation Guarantee
12% of ordinary time earnings, capped at the 2026-27 maximum contribution base of A$270,830 a year. Employer pays into the employee's fund.
A$9,600Employer share of statutory contributions
A$12,000
12.0% of gross salary
Estimated total employer cost
A$115,000 – A$121,000
Gross salary + contributions + other employer costs (A$3,000 to A$9,000)
Superannuation Guarantee
12% of ordinary time earnings, capped at the 2026-27 maximum contribution base of A$270,830 a year. Employer pays into the employee's fund.
A$12,000Employer share of statutory contributions
A$15,600
12.0% of gross salary
Estimated total employer cost
A$149,500 – A$157,300
Gross salary + contributions + other employer costs (A$3,900 to A$11,700)
Superannuation Guarantee
12% of ordinary time earnings, capped at the 2026-27 maximum contribution base of A$270,830 a year. Employer pays into the employee's fund.
A$15,600Employer share of statutory contributions
A$19,200
12.0% of gross salary
Estimated total employer cost
A$184,000 – A$193,600
Gross salary + contributions + other employer costs (A$4,800 to A$14,400)
Superannuation Guarantee
12% of ordinary time earnings, capped at the 2026-27 maximum contribution base of A$270,830 a year. Employer pays into the employee's fund.
A$19,200Employer share of statutory contributions
A$24,000
12.0% of gross salary
Estimated total employer cost
A$230,000 – A$242,000
Gross salary + contributions + other employer costs (A$6,000 to A$18,000)
Superannuation Guarantee
12% of ordinary time earnings, capped at the 2026-27 maximum contribution base of A$270,830 a year. Employer pays into the employee's fund.
A$24,000Payroll tax (NSW 5.45% above A$1.2m group wages, other states about 4.75% to 6.85%), workers compensation (about 0.5% to 3%+ by industry and state) and long service leave accrual (about 1.5% to 2%).
Pay and contribution rules
National minimum wageA$26.44 per hour (A$1,004.90 per 38-hour week) from 1 Jul 2026, up 4.75%. 2025-26 was A$24.95 per hour. Award rates rose by the same 4.75%. Casual minimum A$33.05 per hour.Fair Work Commission Annual Wage Review 2025-26
Award wages and penalty ratesAwards set classification rates, overtime, penalty rates for nights, weekends and public holidays, and allowances. Annual leave loading of 17.5% applies under many awards.Fair Work Act 2009 Pt 2-3; award terms
High income thresholdA$190,100 from 1 Jul 2026 (A$183,100 in 2025-26). Above it, an award need not apply (if guaranteed earnings) and unfair dismissal cover generally ends. Compensation cap is A$95,050.Fair Work Regulations 2009 reg 2.13; s 382, s 392
Superannuation guarantee12% of ordinary time earnings, up to a maximum contribution base of A$270,830 a year in 2026-27 (A$250,000 in 2025-26). Payday super: paid within 7 business days of payday from 1 Jul 2026.SG(A) Act 1992 s 19; Treasury Laws Amendment (Payday Superannuation) Act 2025
Income tax withholding (PAYG)Employer withholds income tax each pay using ATO schedules and reports through Single Touch Payroll. Employees also pay the 2% Medicare levy via the tax return. No 13th month salary.Taxation Administration Act 1953 Sch 1
Bonuses and profit sharingNo mandatory bonus, 13th month or profit-sharing. Bonuses are due only if the contract or award provides. Unpaid contractual bonuses can be recovered as underpayment.Fair Work Act 2009 s 323
Payslips and pay cyclePay at least monthly. Payslips are due within 1 working day of payment and must show gross, net, tax, super and hours for hourly staff. Wage theft is a criminal offence from 1 Jan 2025.Fair Work Act 2009 ss 323-324, 536; Fair Work Regs reg 3.46
Working time
Maximum weekly hoursOrdinary hours are 38 per week for full-time staff. Additional hours may be required only if reasonable, considering health, family needs, pay for the extra hours and notice given.Fair Work Act 2009 s 62
OvertimeSet by the award, not by the Act. Typically 150% for the first 2 hours and 200% after, with higher rates on Sundays and public holidays. Many professionals on salary get an annualised wage instead.Modern awards; Fair Work Act 2009 s 139, 168A
Breaks and restSet by awards, commonly a 30 minute meal break after 5 hours and 10 hours rest between shifts. The NES has no general rest or break rule.Modern awards
Night, Sunday and public holiday workAwards set loadings. An employee may refuse to work on a public holiday if the request is not reasonable, or their refusal is reasonable, and is paid base rate for the day if it normally falls on a working day.Fair Work Act 2009 ss 114-116
Time recordingEmployers must keep time and wage records for 7 years, including hours worked for staff paid by the hour or with overtime. Records must be accessible to inspectors.Fair Work Act 2009 s 535; Fair Work Regs reg 3.31-3.44
Flexible workingAfter 12 months of service, employees (including those with caring duties, disability, aged 55+ or experiencing family violence) can request flexible work. Refusal needs reasonable business grounds.Fair Work Act 2009 s 65, 65A
Leave and absences
Annual leave4 weeks per year (5 weeks for shiftworkers under some awards), accruing progressively and paid at base rate. Many awards add a 17.5% loading. Untaken leave is paid out on termination.Fair Work Act 2009 ss 87-90
Personal/carer's leave10 days per year, accruing progressively and carrying over. Covers sickness and caring. Evidence may be required. Casuals get 2 days unpaid carer's leave per occasion instead.Fair Work Act 2009 ss 95-107
Parental leaveUp to 12 months unpaid leave per parent after 12 months of service, with a right to request 12 more. Government Parental Leave Pay is 26 weeks from 1 Jul 2026 (24 weeks before), paid at the minimum wage rate.Fair Work Act 2009 Div 5; Paid Parental Leave Act 2010
Family and domestic violence leave10 days of paid leave a year, available in full at the start of each year, for all employees including casuals (small business from 1 Aug 2023).Fair Work Act 2009 s 106A-106B
Long service leaveState law. NSW: 2 months after 10 years. Vic: pro rata after 7 years. Qld, WA and Tas: about 8.67 weeks after 10 years. SA: 13 weeks after 10 years. Terms differ; check the state Act.LSL Act 1955 (NSW); LSL Act 2018 (Vic); state Acts
Statutory minimum paid leave, in weeks
How Australia compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's DayMon 26 JanNational
Australia DayMon 2 Mar
Labour DayWA
Mon 9 Mar
Labour Day / Canberra Day / Eight Hours DayVic (Labour Day), ACT (Canberra Day), Tas (Eight Hours Day)
Fri 3 AprNational
Good FridaySat 4 AprNational
Easter Saturdayexcept Tas and WA
Sun 5 Apr
Easter SundayNSW, Vic, ACT, Qld, SA, NT, WA
Mon 6 AprNational
Easter MondaySat 25 AprNational
Anzac Day (Saturday)(substitute Monday 27 April in WA)
Mon 4 May
Labour DayQld, NT (May Day)
Mon 8 JunNational
King's Birthdayexcept WA and Qld
Mon 5 Oct
Labour Day / King's BirthdayNSW, ACT, SA (Labour Day); Qld (King's Birthday)
Fri 25 DecNational
Christmas DaySat 26 DecNational
Boxing Day (Saturday); SA calls it Proclamation Day
Mon 28 Dec
Boxing Day (substitute)Most states and territories (substitute for Saturday 26 Dec)
Public holidays are set by each state and territory, so the list varies by where the employee works. Anzac Day, Easter Saturday and Boxing Day fall on weekends in 2026, with substitutes in some states. WA King's Birthday, Melbourne Cup (Vic) and local show days are not listed; check the state.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
Under 1 year1 week
1 to under 3 years2 weeks
3 to under 5 years3 weeks
5 years or more4 weeks
Over 45 and 2+ years, under 3 years2 weeks plus 1 extra week
Over 45 and 3 to under 5 years3 weeks plus 1 extra week
Over 45 and 5+ years4 weeks plus 1 extra week
These are the NES minimum employer notice periods. A contract or award can give more, and employees usually must give the same notice unless the contract says otherwise. Employer may pay in lieu of notice. Summary dismissal is allowed only for serious misconduct. Small differences apply to casuals (no notice) and fixed-term staff.
Rules for ending an employment
Form and procedureWritten notice is advised and the reason must be put to the employee with a chance to respond before dismissal for conduct or performance. Small businesses can follow the Small Business Fair Dismissal Code.Fair Work Act 2009 ss 387, 388, 117
Unfair dismissalAvailable after 6 months (12 months at small business under 15 staff) to those under the high income threshold (A$190,100) or covered by an award or agreement. Apply within 21 days. Compensation cap is the lower of 26 weeks pay and A$95,050.Fair Work Act 2009 ss 382-394, 392
Redundancy pay (NES scale)Employees with 1 year of service: 4 weeks pay, 2 years 6, 3 years 7, 4 years 8, 5 years 10, 6 years 11, 7 years 13, 8 years 14, 9 years 16, 10+ years 12 weeks. Small business under 15 staff is exempt.Fair Work Act 2009 ss 119-121
Genuine redundancyA redundancy is genuine only if the job is no longer needed and the employer met award consultation duties. Redeployment within the employer's group should be considered where reasonable.Fair Work Act 2009 s 389
Protected reasons and general protectionsDismissal for protected attributes, union activity, pregnancy, workplace rights or leave is unlawful with no minimum service. Claims within 21 days. The employer carries the burden of proof on reason.Fair Work Act 2009 ss 340, 351, 361
Collective dismissalDismissing 15 or more employees for economic or operational reasons requires notice to Services Australia and consultation with unions or employees. Enterprise agreements and awards may add steps.Fair Work Act 2009 s 530; award consultation clauses
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Fair Work Act 2009 s 15AA (from 26 Aug 2024): totality of the relationship, terms and conduct considered. Earlier cases: CFMEU v Personnel Contracting [2022] HCA 1 and ZG Operations v Jamsek [2022] HCA 2 (apply to pre-26 Aug 2024 arrangements). Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Assess the real relationship
Review how the work is done in practice against the factors in s 15AA, not only the contract wording. Document each factor.
2Use the free ATO and Fair Work tools
The ATO employee/contractor decision tool and Fair Work Ombudsman guidance give an indication. The ATO can issue private rulings on tax treatment.
3Request an FWC services-contract review where relevant
Contractors earning under the contractor high income threshold can apply to the Fair Work Commission about unfair terms in a services contract.
4On audit, expect a look-back
The Fair Work Ombudsman, ATO or state revenue office can review past payments, assess back-pay of entitlements and super, and apply penalties for sham arrangements.
There is no binding advance ruling on status. Seek local legal advice for high-risk arrangements.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
6 years
Underpayment and civil penalty claims can reach back 6 years from the date of the contravention.
Fair Work Act 2009 s 544
Back-pay
Reclassified staff can claim award wages, penalty rates, annual and personal leave, long service leave and unpaid super for the whole period.
Fair Work Act 2009 Pt 4-1; SG(A) Act 1992 s 12
Civil penalties
Sham contracting and misrepresenting employment status attract civil penalties per contravention. Higher maximums apply to companies. Directors can be accessorily liable.
Fair Work Act 2009 ss 357-359, 550
Employee-like workers
Digital platform workers who are not employees may fall under minimum standards orders and unfair deactivation rules from the FWC (from 26 Aug 2024). Applies to platform-based work only.
Fair Work Act 2009 Pt 3A-1, 3A-2
Contractor registration, tax and payroll tax
ABN, GST and PAYGContractors need an Australian Business Number to avoid 47% withholding by the payer. GST registration is required above A$75,000 turnover. Contractors pay their own tax and super.Taxation Administration Act 1953 Sch 1 s 12-190; GST Act 1999
Payroll tax on contractorsState payroll tax can apply to payments to contractors under the relevant contract rules, even where the worker is not an employee. Rules differ by state; the NSW rate is 5.45% above A$1.2m.Payroll Tax Act 2007 (NSW) Pt 3 Div 7
Super for contract labourA contract mainly for the worker's labour can count as employment for super purposes, so super of 12% may be due even for a genuine contractor.SG(A) Act 1992 s 12(3)
Work with independents in Australia, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
A$79,499
Core Skills Income ThresholdMinimum salary for a Core Skills stream 482 nomination from 1 Jul 2026 (A$76,515 in 2025-26). Occupation must be on the Core Skills Occupation List.
A$146,717
Specialist Skills Income ThresholdMinimum salary for the Specialist Skills stream from 1 Jul 2026 (A$141,210 in 2025-26). Faster processing, mainly for senior and professional roles.
Work permits in practice
Who needs a visaAll non-citizens need a visa with work rights. New Zealand citizens get a Special Category visa (subclass 444) on arrival. There is no EU free movement.Migration Act 1958 s 42
Skills in Demand visa (subclass 482)Employer-sponsored temporary visa, introduced 7 Dec 2024. Three streams: Specialist Skills, Core Skills, and Labour Agreement. Up to 4 years, with a pathway to permanent residence.Migration Regulations 1994 Sch 2 subclass 482
Salary and market rateThe sponsor must pay the higher of the income threshold (CSIT/SSIT, indexed each 1 July) and the annual market salary rate, and show the role is genuine and meets work experience rules (usually 1 year).Migration Regs 1994 reg 2.72; Migration (Skills in Demand) instrument
Sponsor and nominationThe business first needs Standard Business Sponsor approval, then a nomination, and pays the Skilling Australians Fund levy (about A$1,200 a year for turnover under A$10m, A$1,800 above). Fees are indexed.Migration (Skilling Australians Fund) Charges Act 2018
Employer Nomination Scheme (subclass 186)Permanent employer-sponsored visa. The Temporary Residence Transition stream needs 2 years with the sponsor on a 482. Same CSIT and SSIT salary tests apply from 1 Jul 2026.Migration Regs 1994 Sch 2 subclass 186
Global Talent (subclass 858, National Innovation Visa)Invitation-only permanent visa for people with an internationally recognised record of exceptional achievement. Must be able to earn at least the high income threshold (A$190,100 from 1 Jul 2026) and have a nominator.Migration Regs 1994 Sch 2 subclass 858; Ministerial Direction 112
Family and work rights482 holders can bring a spouse and dependants, who get work and study rights. Holders can change employers by lodging a new nomination, with a limited period to find another sponsor.Migration Regs 1994 Sch 2 subclass 482
Processing and feesProcessing varies by stream and priority; the Specialist Skills stream is usually faster. Government fees are indexed on 1 July. Always check the Home Affairs fee estimator for current amounts.Department of Home Affairs
Salary thresholds and fees are indexed each 1 July, so confirm amounts at lodgement. The EOR route does not remove visa obligations; a foreign worker normally needs a visa linked to the Australian employer.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
National minimum wage 1 Jul 2026FWC Annual Wage Review 2025-26 (4.75%); law firm and payroll summaries
Superannuation guarantee 12% and 2026-27 max baseSG(A) Act; ATO; law firm summary A$270,830
Payday super from 1 Jul 2026Treasury Laws Amendment (Payday Superannuation) Act 2025; law firm summary
Notice periods (s 117)Fair Work Act 2009 s 117; Fair Work Ombudsman
Redundancy pay scaleFair Work Act 2009 s 119
High income threshold and compensation capLaw firm summary A$190,100 / A$95,050; Fair Work Regs
CSIT and SSIT from 1 Jul 2026Migration law firm notes (A$79,499 / A$146,717)
Payroll tax NSW and other statesRevenue NSW; payroll data tables (NSW 5.45%, A$1.2m)
Employee vs contractor (s 15AA)Fair Work Act 2009 s 15AA; Fair Work Ombudsman
Employee-like worker regimeFair Work Act 2009 Pts 3A-1 to 3A-2
Non-compete ban from 2027Treasury announcement; law firm commentary says bill not yet passed
Long service leave by stateState Acts; summaries only
Public holidays 2026 by stateState gazettes and government calendars; some substitute days unverified
Global Talent (NIV) and SAF levy amountsLaw firm guides (21 May 2026); fees as of 2025
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- A planned ban on non-compete clauses for employees earning below the high income threshold is due to start in 2027, once the legislation is passed. Existing restraint clauses stay subject to the common-law reasonableness test until then.
- Skills in Demand salary floors are indexed each 1 July: from 1 July 2026 the Core Skills Income Threshold is A$79,499 and the Specialist Skills Income Threshold A$146,717. Check the Department of Home Affairs for current thresholds and visa fees.
- Public holidays, including substitute days when a holiday falls on a weekend, are set by each state and territory. Check the state where the employee works.
- Long service leave and workers compensation are run by each state and territory, so entitlements and premiums differ by location and industry.
Changelog
Oct 2026Guide rebuilt for Australia with 2026 figures and sources.Australia
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Japan, start to finish
FreelanX EOR is the legal employer in Japan. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Japan employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Dismissal is hard
Art. 16 of the Labor Contract Act voids a dismissal that lacks objectively reasonable grounds or is not socially acceptable. Courts apply this strictly.
Overtime needs a Saburoku
No overtime beyond 8 hours a day or 40 a week is lawful without a written Article 36 agreement filed with the labour standards office.
Social insurance is mandatory
Health, pension, employment and accident insurance apply from day one for regular employees, including foreign nationals. Employer pays about 15% to 16% of gross.
Paid leave has a fixed table
10 days after 6 months with 80% attendance, up to 20 days. Employers must make sure at least 5 days a year are actually taken.
Work rules are required at 10
From 10 employees an employer must file written work rules (shugyo kisoku). Many pay terms, bonuses and retirement pay depend on them.
Fixed-term has a 5-year switch
After 5 years of renewed fixed-term contracts, the employee may request a permanent contract and the employer must accept (Art. 18 LCA).
Five mistakes to avoid
The ones we see most often when a team hires in Japan for the first time.
Treating dismissal as at will
Giving 30 days' notice does not make a dismissal lawful. Without reasonable grounds and a fair process, a court can declare it void and order back pay.
Art. 16 Labor Contract Act; Art. 20 Labor Standards ActUnpaid overtime and flat 'allowance' pay
A fixed overtime allowance is valid only if the contract states the hours it covers and the amount, and extra hours are paid on top. Otherwise overtime claims arise.
Art. 37 Labor Standards ActNo filed Saburoku agreement
Without a filed Article 36 agreement any overtime or legal-holiday work is a violation, even if the employee agrees. Limits are 45 hours a month and 360 a year in normal cases.
Art. 36, 119 Labor Standards ActNot ensuring 5 days of paid leave
Failure to have an employee take 5 days a year can be fined up to ¥300,000 per employee. Set the dates or keep a leave schedule.
Art. 39(7), Art. 120 Labor Standards ActContractor who works like an employee
Labelling someone a gyomu itaku contractor does not decide status. Inspectors look at control, hours and pay. A finding means back social insurance and overtime.
Labor Standards Act Art. 9; Supreme Court, 28 Nov 1996 (Yokohama Minami case)Contract rules that matter
Form of contractNo statutory form for validity, but terms must be given in writing at hiring: term, place and duties (including their scope of change since April 2024), hours, wages, resignation. Electronic delivery is allowed if the employee agrees.Art. 15 Labor Standards Act; Enforcement Regulations Art. 5
Work rulesEmployers with 10 or more workers must draw up work rules, consult a worker representative, and file them with the labour standards office. Rules bind employees if reasonable and made known.Art. 89, 90 Labor Standards Act; Art. 7 Labor Contract Act
ProbationNo statutory length or limit. Three to six months is usual. Probation is generally treated as a contract with a right of termination, so dismissal still needs reasonable grounds, though courts allow somewhat more latitude.Case law; Art. 21 Labor Standards Act (14-day exception to notice)
Fixed-term contractsMaximum 3 years (5 years for specialists, those with high pay and over-60s). Mid-term termination only for unavoidable reasons. After 5 years of renewals the employee may convert to permanent. Refusal to renew can be restricted by case law.Art. 14 Labor Standards Act; Art. 17, 18, 19 Labor Contract Act
Equal treatmentFixed-term, part-time and dispatch staff must not receive unreasonably different base pay, bonuses or allowances than comparable regular staff. Employer must explain differences on request.Art. 8, 9, 14 Act on Improvement of Employment Management for Part-Time and Fixed-Term Workers
Changing termsTerms change by agreement. Employer cannot lower pay unilaterally. Changing work rules to the employee's disadvantage must be reasonable and notified.Art. 8, 9, 10 Labor Contract Act
Non-competeNo statute. Post-employment non-competes are enforced only if limited in time, area and activity, with a legitimate interest and some compensation. Courts review them closely. Confidentiality duties are easier to enforce.Case law; Unfair Competition Prevention Act
Collective and labour-management agreementsNo sector-wide agreements bind most employers. Company unions and labour-management agreements are used for overtime (Art. 36), wage deductions (Art. 24) and flexible hours. Agreements need a majority union or majority worker representative.Art. 24, 36 Labor Standards Act
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (JPY)
Employer share of statutory contributions
¥924,000
15.4% of gross salary
Estimated total employer cost
¥6,939,000 – ¥6,960,000
Gross salary + contributions + other employer costs (¥15,000 to ¥36,000)
Health insurance (Tokyo, Kyokai Kenpo)
Total rate 9.85% from March 2026, employer pays half. Cap is grade 50, standard monthly pay ¥1,390,000, annualised. Bonuses add a separate cap of ¥5.73M a year. Company health societies differ.
¥295,500Child support levy (kodomo kosodate shienkin)
New from April 2026, collected with health insurance. Total 0.23% for Kyokai Kenpo, shared equally. Same cap base as health insurance.
¥6,900Employees' pension (kosei nenkin)
18.3% total, employer pays half. Cap is standard monthly pay ¥650,000 annualised. Bonuses add a ¥1.5M cap per payment. The pension cap is scheduled to rise from 2027.
¥549,000Child-rearing contribution (kosodate kyoshutsukin)
Employer only, 0.36% for FY2026, charged on the pension standard pay base.
¥21,600Employment insurance
FY2026 general business: total 1.35%, employer 0.85%, employee 0.5%. Applies to staff working 20+ hours a week. No salary cap.
¥51,000Employer share of statutory contributions
¥1,212,980
15.2% of gross salary
Estimated total employer cost
¥9,232,980 – ¥9,260,980
Gross salary + contributions + other employer costs (¥20,000 to ¥48,000)
Health insurance (Tokyo, Kyokai Kenpo)
Total rate 9.85% from March 2026, employer pays half. Cap is grade 50, standard monthly pay ¥1,390,000, annualised. Bonuses add a separate cap of ¥5.73M a year. Company health societies differ.
¥394,000Child support levy (kodomo kosodate shienkin)
New from April 2026, collected with health insurance. Total 0.23% for Kyokai Kenpo, shared equally. Same cap base as health insurance.
¥9,200Employees' pension (kosei nenkin)
18.3% total, employer pays half. Cap is standard monthly pay ¥650,000 annualised. Bonuses add a ¥1.5M cap per payment. The pension cap is scheduled to rise from 2027.
¥713,700Child-rearing contribution (kosodate kyoshutsukin)
Employer only, 0.36% for FY2026, charged on the pension standard pay base.
¥28,080Employment insurance
FY2026 general business: total 1.35%, employer 0.85%, employee 0.5%. Applies to staff working 20+ hours a week. No salary cap.
¥68,000Employer share of statutory contributions
¥1,330,780
13.3% of gross salary
Estimated total employer cost
¥11,355,780 – ¥11,390,780
Gross salary + contributions + other employer costs (¥25,000 to ¥60,000)
Health insurance (Tokyo, Kyokai Kenpo)
Total rate 9.85% from March 2026, employer pays half. Cap is grade 50, standard monthly pay ¥1,390,000, annualised. Bonuses add a separate cap of ¥5.73M a year. Company health societies differ.
¥492,500Child support levy (kodomo kosodate shienkin)
New from April 2026, collected with health insurance. Total 0.23% for Kyokai Kenpo, shared equally. Same cap base as health insurance.
¥11,500Employees' pension (kosei nenkin)
18.3% total, employer pays half. Cap is standard monthly pay ¥650,000 annualised. Bonuses add a ¥1.5M cap per payment. The pension cap is scheduled to rise from 2027.
¥713,700Child-rearing contribution (kosodate kyoshutsukin)
Employer only, 0.36% for FY2026, charged on the pension standard pay base.
¥28,080Employment insurance
FY2026 general business: total 1.35%, employer 0.85%, employee 0.5%. Applies to staff working 20+ hours a week. No salary cap.
¥85,000Employer share of statutory contributions
¥1,448,580
12.1% of gross salary
Estimated total employer cost
¥13,478,580 – ¥13,520,580
Gross salary + contributions + other employer costs (¥30,000 to ¥72,000)
Health insurance (Tokyo, Kyokai Kenpo)
Total rate 9.85% from March 2026, employer pays half. Cap is grade 50, standard monthly pay ¥1,390,000, annualised. Bonuses add a separate cap of ¥5.73M a year. Company health societies differ.
¥591,000Child support levy (kodomo kosodate shienkin)
New from April 2026, collected with health insurance. Total 0.23% for Kyokai Kenpo, shared equally. Same cap base as health insurance.
¥13,800Employees' pension (kosei nenkin)
18.3% total, employer pays half. Cap is standard monthly pay ¥650,000 annualised. Bonuses add a ¥1.5M cap per payment. The pension cap is scheduled to rise from 2027.
¥713,700Child-rearing contribution (kosodate kyoshutsukin)
Employer only, 0.36% for FY2026, charged on the pension standard pay base.
¥28,080Employment insurance
FY2026 general business: total 1.35%, employer 0.85%, employee 0.5%. Applies to staff working 20+ hours a week. No salary cap.
¥102,000Employer share of statutory contributions
¥1,625,280
10.8% of gross salary
Estimated total employer cost
¥16,662,780 – ¥16,715,280
Gross salary + contributions + other employer costs (¥37,500 to ¥90,000)
Health insurance (Tokyo, Kyokai Kenpo)
Total rate 9.85% from March 2026, employer pays half. Cap is grade 50, standard monthly pay ¥1,390,000, annualised. Bonuses add a separate cap of ¥5.73M a year. Company health societies differ.
¥738,750Child support levy (kodomo kosodate shienkin)
New from April 2026, collected with health insurance. Total 0.23% for Kyokai Kenpo, shared equally. Same cap base as health insurance.
¥17,250Employees' pension (kosei nenkin)
18.3% total, employer pays half. Cap is standard monthly pay ¥650,000 annualised. Bonuses add a ¥1.5M cap per payment. The pension cap is scheduled to rise from 2027.
¥713,700Child-rearing contribution (kosodate kyoshutsukin)
Employer only, 0.36% for FY2026, charged on the pension standard pay base.
¥28,080Employment insurance
FY2026 general business: total 1.35%, employer 0.85%, employee 0.5%. Applies to staff working 20+ hours a week. No salary cap.
¥127,500Workers' accident insurance, employer only, 0.25% to 8.8% by industry (office and IT work about 0.3%). Nursing care insurance adds about 0.81% for staff aged 40 to 64 (employer half of 1.62%). Employer-side commuting cost also counts in the base.
Pay and contribution rules
Minimum wageSet by prefecture each year. FY2026 weighted national average ¥1,177 per hour (up ¥56). Tokyo ¥1,280 from 1 Oct 2026. Lowest prefecture ¥1,085. Effective dates run from 1 Oct to 2 Dec 2026.Minimum Wage Act; MHLW FY2026 council reports
BonusesNo statutory bonus or 13th month. Bonuses are set by work rules or contract, often paid twice a year. If the contract fixes the amount or formula, it is a wage that must be paid. Bonuses also bear social insurance.Art. 11, 24 Labor Standards Act; work rules
Income tax withholdingEmployer withholds national income tax (progressive 5% to 45%, plus 2.1% reconstruction surtax) monthly, and collects resident tax (10%) in 12 instalments from June. Year-end adjustment is done in December.Income Tax Act; Local Tax Act
Commuting allowanceEmployer commonly pays full commuting cost, not required by statute unless in the contract. Tax-free up to ¥150,000 a month. It counts as pay for social insurance premiums.Income Tax Act Enforcement Order Art. 20-3
Wage payment principlesPay in yen, directly to the worker, in full, at least monthly on a fixed date. Deductions need a labour-management agreement, except tax and social insurance. Bank transfer needs consent.Art. 24 Labor Standards Act
Overtime premiumsOvertime beyond 8 hours a day or 40 a week: +25%. Over 60 overtime hours a month: +50% (all firms since April 2023). Night work 22:00 to 5:00: +25%. Legal holiday work: +35%.Art. 37 Labor Standards Act
Payslip and recordsA payslip must be issued with each payment. Wage ledger, attendance records and worker roster must be kept for 5 years (3 years during a transition period).Art. 108, 109, 143 Labor Standards Act; Income Tax Act Art. 231
Working time
Statutory hours8 hours a day and 40 hours a week (44 for some small shops and clinics with up to 9 staff). Hours beyond this are overtime and need an Article 36 agreement.Art. 32, 40 Labor Standards Act
36 Agreement (Saburoku)Written agreement with the majority union or worker representative, filed with the labour standards office. Normal cap: 45 hours a month and 360 a year (42 and 320 for year-based variable schemes).Art. 36 Labor Standards Act
Special clause limitsWith special circumstances: up to 720 overtime hours a year; under 100 hours a month including legal holiday work; average 80 hours over any 2 to 6 months; over 45 hours a month at most 6 times a year.Art. 36(5), (6) Labor Standards Act
Breaks and rest45 minutes' break if working over 6 hours, 60 minutes over 8 hours. At least one day off a week or 4 days in 4 weeks. No daily rest interval rule, only a recommended effort of 9 to 11 hours.Art. 34, 35 Labor Standards Act; Work Style Reform Act
Flexible schemesFlextime, monthly or yearly variable hours, and discretionary labour need a labour-management agreement. The Highly Professional System covers staff paid at least about ¥10.75M a year, with a hours cap replaced by health measures.Art. 32-2, 32-3, 32-4, 38-3, 41-2 Labor Standards Act
Penalties and recordsOvertime violations: up to 6 months' prison or ¥300,000 fine. Employers must measure hours objectively (card, log, PC) and keep records for 5 years. Managers under Art. 41 are exempt from overtime rules but not from health checks.Art. 119, 41 Labor Standards Act; Industrial Safety and Health Act Art. 66-8-3
Leave and absences
Annual paid leave10 days after 6 months and 80% attendance; then +1 day at 1.5 years, +2 at 2.5, and so on to 20 days from 6.5 years. Employer must set 5 days a year for staff with 10 or more days. Unused leave expires after 2 years.Art. 39, 115 Labor Standards Act
Sick leaveNo statutory paid sick leave. Employees on Kyokai Kenpo or a company health society get a sickness allowance of about two thirds of standard pay from the 4th day of absence, up to 1 year 6 months.Health Insurance Act Art. 99
Maternity leave6 weeks before birth (14 for multiples) and 8 weeks after. Health insurance pays about two thirds of pay. Employer does not have to pay wages for the period.Art. 65 Labor Standards Act; Health Insurance Act Art. 102
Childcare and postnatal paternity leaveChildcare leave until the child is 1 (up to 2 if no nursery place), paid from employment insurance at 67% then 50%. Postnatal paternity leave up to 4 weeks within 8 weeks of birth. Top-up rules for both parents apply from April 2025.Child Care and Family Care Leave Act; Employment Insurance Act
Family care and other leaveFamily care leave up to 93 days per family member (3 splits), paid by employment insurance at 67%. Menstrual leave must be granted on request but need not be paid. Special leave (marriage, bereavement) is by work rules.Child Care and Family Care Leave Act; Art. 68 Labor Standards Act
Statutory minimum paid leave, in weeks
How Japan compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's Day (Ganjitsu)Mon 12 JanNational
Coming of Age DayWed 11 FebNational
National Foundation DayMon 23 FebNational
Emperor's BirthdayFri 20 MarNational
Vernal Equinox DayWed 29 AprNational
Showa DaySun 3 MayNational
Constitution Memorial Day (Sunday)Mon 4 MayNational
Greenery DayTue 5 MayNational
Children's DayWed 6 MayNational
Substitute holiday for 3 MayMon 20 JulNational
Marine DayTue 11 AugNational
Mountain DayMon 21 SepNational
Respect for the Aged DayTue 22 SepNational
Citizens' holiday (between two holidays)Wed 23 SepNational
Autumnal Equinox DayMon 12 OctNational
Sports DayTue 3 NovNational
Culture DayMon 23 NovNational
Labor Thanksgiving DayThe law does not require employers to give national holidays off; days off are set by contract and work rules. Only 3 May falls on a weekend (Sunday), giving a substitute day on 6 May. Many firms also close about 29 Dec to 3 Jan and for Obon in mid-August by custom.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
First 14 days of trial employmentNo notice needed for a worker in the first 14 days of a trial period
Up to 1 year30 days' notice or pay in lieu (average wage per day)
1 to 3 years30 days; work rules may set longer
3 to 5 years30 days; same statutory minimum
5 to 10 years30 days; same statutory minimum
10 years or more30 days; same statutory minimum
Statutory notice does not rise with tenure. Pay in lieu replaces each missing day. Employee resignation: 2 weeks' notice for permanent contracts under the Civil Code; work rules often ask 1 month. Fixed-term staff cannot leave mid-term except for unavoidable reasons (after year 1 they may leave).
Rules for ending an employment
Valid groundsDismissal is void if it lacks objectively reasonable grounds and is not socially acceptable. Typical grounds: serious misconduct, lack of ability after warnings and training, medical incapacity, redundancy. Grounds should appear in the work rules.Art. 16 Labor Contract Act; Art. 89 Labor Standards Act
Redundancy testsCourts apply four factors: need to cut staff, efforts to avoid dismissal (transfers, voluntary leave), fair selection, and fair explanation and consultation. Failing any one often makes dismissal void.Case law on seiri kaiko (Tokyo District Court line of cases)
Notice and certificate30 days' notice or pay in lieu. On request the employer must issue a certificate stating the reason for dismissal. Disciplinary dismissal needs a work-rules basis and proportionality.Art. 20, 22 Labor Standards Act; Art. 15 Labor Contract Act
Protected periodsNo dismissal during leave for work injury or illness and 30 days after, or during maternity leave and 30 days after. Dismissal of a pregnant worker or within 1 year of childbirth is presumed void. Childcare leave grounds are also barred.Art. 19 Labor Standards Act; Equal Employment Opportunity Act Art. 9; Child Care Leave Act Art. 10
SeveranceNo statutory severance pay. Retirement allowances are paid under work rules and are common at larger firms. Settlements after a contested dismissal are often several months of pay.Art. 89(3-2) Labor Standards Act; practice
Mass dismissal and disputesWhere 30 or more workers at one site leave through employer-driven reasons within 30 days, notify Hello Work at least 1 month ahead. Disputes go to a labour tribunal (usually 3 hearings) or civil court.Art. 27 Act on Comprehensive Promotion of Employment Measures; Labor Tribunal Act
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Labor Standards Act Art. 9 (worker definition); Labour Standards Law Study Group report of 19 Dec 1985; Supreme Court, 28 Nov 1996 (Yokohama Minami Labour Standards Inspection Office case). Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Review the real working pattern
Compare actual practice, not the contract title, against the six factors. Keep emails, schedules and instructions as evidence of independence.
2Use a compliant written contract
Under the Freelance Act the client must state the work, fee, payment date and delivery in writing or electronically at once. Pay within 60 days of delivery.
3Ask the authorities for guidance
There is no binding ruling. The local Labor Standards Inspection Office and the Freelance Help Line give general guidance. Answers rely on the facts supplied.
4Hire as employee if control is needed
If the client needs set hours, direction or exclusivity, hire the person as an employee (directly or through an employer of record) rather than relying on a contractor label.
Status is decided on actual facts, not the contract name. Labour inspectors and courts look at all factors together. The Labour Union Act worker concept is wider, so contractors can have bargaining rights even when not employees.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
3 years
Unpaid wages and overtime premiums can be claimed for 3 years if the person is found to be an employee. Paid leave and statutory dues may also be claimed.
Art. 115, 143 Labor Standards Act
2 years
Health and pension premiums can be assessed back 2 years. The employer bears both shares as deduction from past pay is generally not allowed.
Health Insurance Act Art. 193, 167; Employees' Pension Insurance Act Art. 92
Fines
Violations of the Labor Standards Act carry criminal penalties, such as up to 6 months' prison or ¥300,000 for overtime and leave breaches. Inspectors can order corrections.
Art. 119, 120 Labor Standards Act
Orders
Breach of Freelance Act duties can lead to recommendations, orders and public naming by the Fair Trade Commission, SME Agency or MHLW. Fines apply for ignoring orders.
Act on Ensuring Proper Transactions with Specified Entrusted Business Operators (in force 1 Nov 2024)
Freelance Act and contractor taxes
Freelance Act duties (since 1 Nov 2024)Applies to clients using a freelancer with no employees. Written terms at once, payment within 60 days, and for 1 month plus contracts, no unfair fee cuts or returns. 6 month plus contracts: childcare and care accommodation, 30 days' notice of termination.Arts. 3, 4, 5 and related provisions of the Act
Harassment and recruitingClients must take measures against harassment of freelancers and must keep recruitment advertisements accurate and up to date.Freelance Act
Withholding tax and invoicesSome fee types paid to individuals (design, writing, interpreting and others) are subject to 10.21% withholding. Freelancers registered for consumption tax issue qualified invoices. National Pension and National Health Insurance apply to them instead of employer-paid cover.Income Tax Act Art. 204; qualified invoice system since Oct 2023
Work with independents in Japan, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
70 points
Highly Skilled ProfessionalPoints system for degree, experience, salary, age, Japanese ability. 70 points qualifies; 80 points allows permanent residence after 1 year, 70 after 3 years.
1 to 3 months
Certificate of EligibilityEmployer applies at the regional immigration bureau; typical processing is 1 to 3 months. The visa is then issued at a consulate in about 5 working days.
Work permits in practice
Who needs a permitAll non-Japanese nationals need a status of residence allowing work. There is no visa-free work right for EU or other nationals, apart from permanent residents, spouses of Japanese and long-term residents.Immigration Control and Refugee Recognition Act
Engineer / Specialist in Humanities / International ServicesMain status for office, IT and engineering staff. Needs a university degree or 10 years' experience (3 for translation, design, etc.), a job matching it, and pay equal to or above a Japanese national's.Immigration Control Act, Annex I-2 and criteria ministerial notice
Highly Skilled Professional (HSP)Type (i)(a), (b), (c) at 70 points; 5-year stay; spouse may work; domestic helper and parent rules; HSP(ii) with unlimited stay after 3 years. Annual pay of at least ¥3M is a base requirement.Immigration Control Act Annex I-2; Ministry of Justice HSP points table
J-Skip (special HSP)Fast route since April 2023 for those with a master's degree and annual income of ¥20M, or 10 years' experience and ¥20M (¥40M business managers). Permanent residence possible after 1 year.Ministry of Justice notices, April 2023
Certificate of Eligibility (CoE)Sponsor files company documents, contract and the candidate's CV. Standard processing 1 to 3 months. CoE is valid 3 months for entering Japan. Landing at the airport issues the residence card.Immigration Services Agency guidance
Stay periods and renewalStay periods: 3 months, 1, 3 or 5 years. Renewal is filed before expiry and needs tax and social insurance compliance. Changing employer is allowed with a notification, or a change of status for different work.Immigration Control Act Art. 20; Art. 19-16
Family and settlementSpouse and children come under a Dependent status; part-time work needs a permit (28 hours a week). Permanent residence normally needs 10 years in Japan; HSP shortens this to 1 to 3 years.Immigration Control Act; Permanent Residence Guidelines
Social insurance for foreign staffForeign employees join health and pension like Japanese staff. Pension exemption applies only under a totalization agreement. A lump-sum withdrawal on leaving Japan is possible within 2 years.Employees' Pension Insurance Act; bilateral social security agreements
Permit rules and fees changed in several recent years. Check the Immigration Services Agency pages before filing, especially for HSP point values and the 2026 fee changes.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Minimum wage FY2026MHLW council reports via law-firm summaries; Tokyo Labour Bureau release 1 Sep 2026
Employment insurance FY2026 rateMHLW leaflet via trade press (1.35% total, 0.85% employer)
Health insurance Tokyo 9.85%Kyokai Kenpo Tokyo branch table R8.10
Child support levy 0.23% (shienkin)Kyokai Kenpo table; Japan Pension Service page
Pension 18.3% and ¥650,000 capJapan Pension Service premium page
Child-rearing contribution 0.36%Japan Pension Service page (FY2026)
Workers' accident rate by industryMHLW schedule of rates (from April 2024); 0.3% for most office-type businesses
Overtime premiums and Saburoku limitsArt. 36, 37 Labor Standards Act; MHLW guidance
Paid leave table and 5-day ruleArt. 39 Labor Standards Act
Dismissal doctrine and noticeArt. 16 Labor Contract Act; Art. 20 Labor Standards Act
Public holidays 2026Cabinet Office holiday page
Fixed-term conversion after 5 yearsArt. 18 Labor Contract Act
Freelance Act obligationsMHLW leaflet (Fukui bureau) and Act text
HSP points and CoE timingMinistry of Justice and Immigration Services Agency
Misclassification tests and case1985 Labour Standards Act study group report; Supreme Court, 28 Nov 1996 (Yokohama Minami LSO / Asahi Shiko case)
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- Workers' accident insurance is paid by the employer at a rate set by industry: 0.3% for most office work, within a range of 0.25% to 8.8% (rates in force since April 2024 and reviewed every few years by the Ministry of Health, Labour and Welfare).
- Health insurance rates change each year and vary by prefecture: 9.85% in Tokyo for FY2026 under Kyokai Kenpo (company health societies set their own). Nursing care insurance (1.62%, ages 40 to 64) and the new child support levy (0.23%, from April 2026) are added on top, split 50/50 between employer and employee.
- The pension lump-sum withdrawal for departing foreign workers is capped at 5 years of contributions; a 2025 law raises this to 8 years from a date still to be set (by June 2029 at the latest). Residence permit fees rose sharply from 1 October 2026, for example up to ¥75,000 for a renewal of 5 years or more.
Changelog
Oct 2026Guide rebuilt for Japan with 2026 figures and sources.Japan
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in South Korea, start to finish
FreelanX EOR is the legal employer in South Korea. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
South Korea employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Five-employee threshold
Most LSA protections (just cause, overtime premium, leave, holiday pay) apply only at 5 or more employees. Severance and minimum wage apply to all.
40 + 12 hour week
40 hours a week standard, plus up to 12 hours of overtime by agreement, so 52 hours maximum. Overtime, night and holiday work earn a 50% premium.
Severance is mandatory
30 days of average wage per year of service after 1 year, funded through a retirement pension (DB, DC) or paid on exit.
Dismissal needs just cause
At 5+ employees, dismissal needs a valid reason and written notice of reasons and date. Unfair dismissal is challenged at the Labor Relations Commission within 3 months.
Two-year limits
Fixed-term employees become permanent after 2 years of continuous use. Agency workers can be used for 2 years, then direct hire duty arises.
Yellow Envelope Act in force
From 10 March 2026, a principal with real control over a subcontractor's workers can be required to bargain with their union.
Five mistakes to avoid
The ones we see most often when a team hires in South Korea for the first time.
Using the 2025 pension rate
The national pension rose to 9.5% in 2026 (4.75% each side). Payroll set at 4.5% employer share underpays and creates a back-payment claim.
National Pension Act; 2025 pension reform (rate +0.5 point a year to 13% by 2033)Treating a contractor as independent
Courts look at real working conditions, not the contract title. A reclassified contractor can claim severance, overtime, leave pay and unfair dismissal remedies.
Art. 2 LSA; Supreme Court case law on worker statusRolling fixed-term contracts past 2 years
Using a fixed-term employee for more than 2 years in total converts the contract to open-ended by law, with dismissal protection.
Act on the Protection of Fixed-term and Part-time Employees, Art. 4Dismissing without written reasons
Dismissal without written notice stating the reasons and date is invalid in form, even if the reason is good.
Art. 27 LSAWrong ordinary wage base
Regular, fixed allowances and bonuses form part of ordinary wage. Leaving them out understates overtime, notice pay and severance.
Art. 2 Enforcement Decree of the LSA; Art. 2 LSA (average wage)Contract rules that matter
Written termsWages, working hours, holidays and annual leave must be stated in writing and a copy given to the employee at signing. Oral contracts are valid but breach the writing duty.Art. 17 LSA
ProbationNo statutory length or limit. Three months is common. Dismissal in probation still needs a reasonable cause, with a lower standard. Notice is not required in the first 3 months.Art. 26 LSA; case law
Fixed-term contractsAllowed up to 2 years in total, with exceptions (for example age 55+, specialists, project-based work). Beyond that, the employee is treated as permanent.Fixed-term and Part-time Employees Act, Art. 4
Agency (dispatch) workersAgency work is limited to listed jobs, with a 2-year limit. After 2 years the user company must hire directly. Production work in manufacturing is mostly barred.Act on the Protection of Dispatched Workers, Arts. 5-6-2
Non-competeNo statute sets a maximum. Courts enforce it only if there is a protectable interest, reasonable period, area and scope, and compensation. Draft narrowly.Case law (reasonableness test)
Work rulesWorkplaces with 10 or more employees must file work rules with the labor office and consult employees on changes. Disadvantageous changes need majority consent.Arts. 93-94 LSA
Retirement ageMandatory retirement age cannot be set below 60. Raising it to 65 is under debate, with no law enacted.Act on Age Discrimination in Employment and Elderly Employment Promotion, Art. 19
Collective bargainingUnion and collective agreement coverage is limited to unionised workplaces, but the 2025 Yellow Envelope amendments widen who counts as an employer for bargaining with subcontractor unions.Trade Union and Labor Relations Adjustment Act (TULRAA), Arts. 2-3 as amended; in force 10 Mar 2026
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (KRW)
Employer share of statutory contributions
₩5,718,700
11.4% of gross salary
Estimated total employer cost
₩59,868,700 – ₩60,018,700
Gross salary + contributions + other employer costs (₩4,150,000 to ₩4,300,000)
National pension
Employer half of 9.5% in 2026. Monthly income ceiling is ₩6.37m to June 2026 and ₩6.59m from July 2026, so the 2026 annual cap here is a blend.
₩2,375,000Health insurance
Employer half of 7.19%. A monthly premium ceiling exists; not modelled here.
₩1,797,500Long-term care insurance
13.14% of the health premium, split 50/50. About 0.47% of pay for the employer.
₩236,200Employment insurance (unemployment)
Employer half of 1.8%.
₩450,000Employment stability and training levy
0.25% under 150 employees, 0.45% for 150-999, 0.65% for 1,000+ (priority support firms 0.25%). Shown at the lowest tier.
₩125,000Industrial accident insurance
Employer only. Average rate; actual rate depends on the industry class (about 28 classes). Office work is usually below the average.
₩735,000Employer share of statutory contributions
₩7,434,310
11.4% of gross salary
Estimated total employer cost
₩77,829,310 – ₩78,024,310
Gross salary + contributions + other employer costs (₩5,395,000 to ₩5,590,000)
National pension
Employer half of 9.5% in 2026. Monthly income ceiling is ₩6.37m to June 2026 and ₩6.59m from July 2026, so the 2026 annual cap here is a blend.
₩3,087,500Health insurance
Employer half of 7.19%. A monthly premium ceiling exists; not modelled here.
₩2,336,750Long-term care insurance
13.14% of the health premium, split 50/50. About 0.47% of pay for the employer.
₩307,060Employment insurance (unemployment)
Employer half of 1.8%.
₩585,000Employment stability and training levy
0.25% under 150 employees, 0.45% for 150-999, 0.65% for 1,000+ (priority support firms 0.25%). Shown at the lowest tier.
₩162,500Industrial accident insurance
Employer only. Average rate; actual rate depends on the industry class (about 28 classes). Office work is usually below the average.
₩955,500Employer share of statutory contributions
₩9,032,120
11.3% of gross salary
Estimated total employer cost
₩95,672,120 – ₩95,912,120
Gross salary + contributions + other employer costs (₩6,640,000 to ₩6,880,000)
National pension
Employer half of 9.5% in 2026. Monthly income ceiling is ₩6.37m to June 2026 and ₩6.59m from July 2026, so the 2026 annual cap here is a blend.
₩3,682,200Health insurance
Employer half of 7.19%. A monthly premium ceiling exists; not modelled here.
₩2,876,000Long-term care insurance
13.14% of the health premium, split 50/50. About 0.47% of pay for the employer.
₩377,920Employment insurance (unemployment)
Employer half of 1.8%.
₩720,000Employment stability and training levy
0.25% under 150 employees, 0.45% for 150-999, 0.65% for 1,000+ (priority support firms 0.25%). Shown at the lowest tier.
₩200,000Industrial accident insurance
Employer only. Average rate; actual rate depends on the industry class (about 28 classes). Office work is usually below the average.
₩1,176,000Employer share of statutory contributions
₩10,369,600
10.4% of gross salary
Estimated total employer cost
₩118,669,600 – ₩118,969,600
Gross salary + contributions + other employer costs (₩8,300,000 to ₩8,600,000)
National pension
Employer half of 9.5% in 2026. Monthly income ceiling is ₩6.37m to June 2026 and ₩6.59m from July 2026, so the 2026 annual cap here is a blend.
₩3,682,200Health insurance
Employer half of 7.19%. A monthly premium ceiling exists; not modelled here.
₩3,595,000Long-term care insurance
13.14% of the health premium, split 50/50. About 0.47% of pay for the employer.
₩472,400Employment insurance (unemployment)
Employer half of 1.8%.
₩900,000Employment stability and training levy
0.25% under 150 employees, 0.45% for 150-999, 0.65% for 1,000+ (priority support firms 0.25%). Shown at the lowest tier.
₩250,000Industrial accident insurance
Employer only. Average rate; actual rate depends on the industry class (about 28 classes). Office work is usually below the average.
₩1,470,000Employer share of statutory contributions
₩11,707,080
9.8% of gross salary
Estimated total employer cost
₩141,667,080 – ₩142,027,080
Gross salary + contributions + other employer costs (₩9,960,000 to ₩10,320,000)
National pension
Employer half of 9.5% in 2026. Monthly income ceiling is ₩6.37m to June 2026 and ₩6.59m from July 2026, so the 2026 annual cap here is a blend.
₩3,682,200Health insurance
Employer half of 7.19%. A monthly premium ceiling exists; not modelled here.
₩4,314,000Long-term care insurance
13.14% of the health premium, split 50/50. About 0.47% of pay for the employer.
₩566,880Employment insurance (unemployment)
Employer half of 1.8%.
₩1,080,000Employment stability and training levy
0.25% under 150 employees, 0.45% for 150-999, 0.65% for 1,000+ (priority support firms 0.25%). Shown at the lowest tier.
₩300,000Industrial accident insurance
Employer only. Average rate; actual rate depends on the industry class (about 28 classes). Office work is usually below the average.
₩1,764,000Severance pay accrual of 1/12 of annual pay (about 8.33%) under a DB/DC plan or a book reserve, plus the wage claim guarantee levy (about 0.06%).
Pay and contribution rules
Minimum wage 2026₩10,320 per hour, up 2.9% from ₩10,030. About ₩2,156,880 per month at 209 paid hours. Lower rate (90%) can apply in the first 3 months of a contract of 1 year or more for non-simple work.Minimum Wage Act; MOEL notice for 2026
13th monthNo statutory 13th month. Holiday and performance bonuses are by contract or work rules. Bonuses paid regularly and fixed may count as ordinary wage.Art. 2 LSA; Enforcement Decree
Mandatory profit sharingNone. Pay must be in KRW, directly, in full and at least once a month on a fixed date. Wages unpaid after 14 days from end of employment carry 20% annual late interest.Arts. 36, 43 LSA
Income tax withholdingProgressive rates from 6% to 45% on taxable income, plus 10% local income tax. Employer withholds monthly under the simplified table and settles at year-end (Jan-Feb).Income Tax Act, Art. 55
Tax-free itemsMeal allowance up to ₩200,000 per month is tax-free. Other fringe items follow tax law and the contract.Income Tax Act Enforcement Decree
PayslipEmployer must give a written statement of wage components, calculation method and deductions on each payment date. Keep a wage ledger and worker roster.Arts. 48, 41 LSA
Ordinary and average wageOvertime, notice pay and severance are based on ordinary wage and average wage. Fixed regular allowances are included. Average wage covers the last 3 months before the event.Art. 2 LSA
Working time
Standard hours8 hours a day and 40 hours a week. Hour limits apply to all employers; the overtime premium applies only at 5 or more employees.Art. 50 LSA
Overtime capUp to 12 extra hours a week by agreement, so 52 hours in total. Flexible schemes (selective hours, up to 3 months) can average hours but still respect the cap.Arts. 52-53 LSA
PremiumsOvertime, night work (22:00 to 06:00) and holiday work: 50% extra. Holiday work beyond 8 hours: 100% extra. Premiums add up when they overlap.Art. 56 LSA
BreaksAt least 30 minutes for every 4 hours worked and 1 hour for 8 hours. At least 1 paid rest day a week for those working 15+ hours a week with full attendance.Arts. 54-55 LSA
Exempt staffManagers and some supervisory or monitoring roles can be excluded from hour, break and holiday rules. Approval and facts are checked strictly. Seek local advice per role.Art. 63 LSA
4.5-day weekA 4.5-day week and reduction of actual hours is a policy goal. No statutory change to the 52-hour cap is confirmed for 2026.MOEL policy statements (not law)
Leave and absences
Annual leave15 days after 1 year with 80% attendance, plus 1 day for every 2 years after year 3, up to 25 days. In year 1: 1 day for each full month, up to 11 days. Unused leave is paid out unless a promotion procedure was followed.Arts. 60-61 LSA
Sick leaveNo statutory paid sick leave under the LSA. Work injuries are covered by industrial accident insurance. A sickness allowance scheme is in pilot form; check contract and company policy.Industrial Accident Compensation Insurance Act
Maternity leave90 days (120 days for multiple births), at least 45 days after birth. Employer pays the first 60 days at ordinary wage, employment insurance the rest. Priority support firms get all 90 days from insurance.Art. 74 LSA; Employment Insurance Act
Paternity and parental leavePaternity (spouse maternity) leave of 20 days, paid. Parental leave up to 1 year per child for each parent, paid by employment insurance subject to caps. Dismissal for taking it is barred.Equal Employment and Work-Family Reconciliation Act, Arts. 18-2, 19
Other leave1 unpaid menstrual leave day a month on request. Family care leave up to 90 days a year, unpaid. Public holidays are paid days off for 5+ employee workplaces.Art. 73 LSA; Art. 22-2 Work-Family Act; Art. 55 LSA
Statutory minimum paid leave, in weeks
How South Korea compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's DayMon 16 FebNational
Seollal holiday (day before)Tue 17 FebNational
Seollal (Lunar New Year)Wed 18 FebNational
Seollal holiday (day after)Mon 2 MarNational
Substitute holiday for Independence Movement Day (1 Mar falls on Sunday)Fri 1 MayNational
Labor Day (made a public holiday for all workers in 2026)Tue 5 MayNational
Children's DayMon 25 MayNational
Substitute holiday for Buddha's Birthday (24 May falls on Sunday)Wed 3 JunNational
Local election dayFri 17 JulNational
Constitution Day (reinstated as a public holiday)Mon 17 AugNational
Substitute holiday for Liberation Day (15 Aug falls on Saturday)Thu 24 SepNational
Chuseok holiday (day before)Fri 25 SepNational
Chuseok (Korean Thanksgiving)Sat 26 SepNational
Chuseok holiday (day after, Saturday)Mon 5 OctNational
Substitute holiday for National Foundation Day (3 Oct falls on Saturday)Fri 9 OctNational
Hangul DayFri 25 DecNational
Christmas DayMar 1, May 24, Aug 15 and Oct 3 fall on weekends, so substitute days apply. No substitute for the Chuseok Saturday. Memorial Day (6 Jun, Saturday) is not a day off. Labor Day and Constitution Day are new public holidays from 2026 and are paid days off at workplaces with 5 or more staff.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
Under 3 months of serviceNo statutory notice or pay in lieu, but dismissal still needs a valid reason at 5+ employees
3 months to 1 year30 days written notice or 30 days' average wage
1 to 2 years30 days written notice or 30 days' average wage
2 to 5 years30 days, same as above
5 to 10 years30 days, same as above
Over 10 years30 days, same as above; severance also grows with service
The 30-day rule is flat and does not rise with tenure. Pay in lieu is calculated on average wage. Employees may resign with notice per contract; under the Civil Act, an open-ended contract ends 1 month after notice. No notice is owed for fixed-term contracts that reach their end date.
Rules for ending an employment
Valid groundsDismissal needs a just cause: serious misconduct, poor performance after support, loss of a needed qualification, or business necessity. The employer bears the burden of proof. Not applicable under 5 employees.Art. 23(1) LSA; Art. 11 LSA
FormWritten notice stating the reasons and the date of dismissal is required. Without it the dismissal is invalid. Pay due wages and severance within 14 days of termination.Arts. 27, 36 LSA
Notice30 days' notice or 30 days' average wage in lieu, after 3 months of service. Exceptions: natural disaster or employee-caused serious misconduct per the decree.Art. 26 LSA
Economic dismissalNeeds urgent business need, efforts to avoid dismissals, fair selection criteria, and good-faith consultation with employee representatives at least 50 days before. Large dismissals must be reported to the labor office.Art. 24 LSA
Severance pay30 days of average wage per year of service for employees with 1 year or more and at least 15 hours a week. Paid on any exit. Retirement pension plans (DB, DC, IRP) must be funded to meet it.Employee Retirement Benefit Security Act, Arts. 4, 8
Protected periodsNo dismissal during work injury recovery, maternity leave, and 30 days after each. Dismissal related to union activity, whistleblowing or discrimination is barred.Art. 23(2) LSA; Trade Union Act, Art. 81
RemediesEmployee may petition the Regional Labor Relations Commission within 3 months. Remedy is reinstatement plus back pay, or money in lieu on the employee's request. Non-compliance can bring a levy of up to ₩20m a year.Arts. 28, 30, 33 LSA
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Art. 2 LSA and Supreme Court case law on actual subordination. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Document independence
Keep a written service contract, invoices, evidence of own tools, other clients and freedom to refuse work.
2Test the working reality
Review actual practice against the six criteria. Courts weigh facts, not labels. Pay method and tax treatment carry less weight.
3Avoid employee-style control
Do not set hours, attendance or personnel rules for contractors, and do not integrate them in the team structure.
4Audit and complaints
A contractor can file a complaint with the labor office, which may inspect and decide worker status. A court can also decide in a wage or severance claim.
There is no advance ruling by the authorities. A proposed presumption of worker status in civil disputes (burden shifts to the client) is under discussion, targeted by the government for end-2026, and is not law yet.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
3 years
Limitation period for wage and severance claims. Back pay of overtime, leave and severance can reach several years of work.
Art. 49 LSA
Severance
A reclassified person can claim 30 days of average wage per year of service, plus unpaid overtime, holiday and leave pay.
Retirement Benefit Security Act, Art. 8
Insurances
Back registration for pension, health, employment and accident insurance, with unpaid premiums and possible additional charges.
National Pension Act; National Health Insurance Act
Criminal risk
Failure to pay wages and severance is punishable by up to 3 years in prison or a ₩30m fine. Dismissal rights and reinstatement apply.
Art. 109 LSA
Self-employed status and tax
Registration and taxIndependent contractors register as business operators (or are treated as business income earners). Payers usually withhold 3.3% (3% plus 0.3% local) on freelance business income.Income Tax Act, withholding on business income
Social insuranceRegional insured for national pension and health insurance. Special-type workers and artists have access to employment and accident insurance under special rules.National Pension Act; Industrial Accident Compensation Insurance Act
Protection law statusNo dedicated freelancer protection statute is in force. A Basic Rights of Working People Act and a presumption of worker status were announced in Jan 2026 and are still pending in the National Assembly.MOEL announcement 20 Jan 2026; BKL legal update (Aug 2026)
Work with independents in South Korea, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
3x GNI
Top-Tier visaSenior talent in high-tech sectors with pay above 3 times GNI per capita can get F-2 status and permanent residence after 3 years.
E-7
Main work permitEmployer-sponsored specific activity visa. Degree or 5 years of experience, and a salary minimum fixed each year by the Ministry of Justice.
Work permits in practice
Right to workForeign nationals need a work-authorised visa. Visa-free entry does not allow work. There is no free movement for any nationality.Immigration Act
E-7 (specific activity)For listed occupations with an employer offer. Needs a related degree or about 5 years of experience. Salary floor set yearly (2026 standard applies 1 Feb to 31 Dec 2026). Initial stay typically 1 year.Immigration Act Enforcement Decree; MOJ notice of 29 Dec 2025
E-7-4 (points)Points-based route for skilled non-professional workers who have worked in Korea. Needs 200 points on a skills assessment.MOJ E-7-4 guidelines
E-1 (professor)For professors, lecturers and researchers at universities and accredited institutes, sponsored by the institution.Immigration Act Enforcement Decree, Annex 1-2
D-8 (corporate investment)For staff and managers of foreign-invested companies and for investors, including some venture routes. Thresholds for investment amount depend on the sub-category.Immigration Act Enforcement Decree, Annex 1-2
F-2-7 points visaResidence visa for long-term foreign workers scoring about 80 points on age, education, income and Korean ability. Usually reached after about 3 years of E-7 stay.MOJ points-based residence guidelines
Top-Tier visaExpanded in May 2026 to professors and researchers and to eight high-tech sectors. Needs a top-100 university degree plus global experience, and pay above 3x GNI (exempt at 4x GNI). Family included.MOJ announcement 31 May 2026 (reported by immigration law firm)
Family and processingSpouse and minor children can join on F-3 dependent visas. Processing is typically 2 to 4 weeks. Register as a foreigner within 90 days of arrival.Immigration Act, Art. 31
Salary floors for E-7 are published each year as a share of GNI per capita and by occupation group. Check the current Ministry of Justice table before making an offer. Foreign employees are generally insured in the four insurances, subject to social security treaties.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Minimum wage 2026 (₩10,320)MOEL notice; Mondaq/Crowe summaries
National pension 9.5% (4.75% each)National Pension Act reform 2025; payroll guides
Pension income ceiling (₩6.37m, ₩6.59m from July 2026)NPS notice via news and payroll firm
Health 3.595% and long-term care 13.14%NHIS 2026 rate announcement via guide
Employment insurance 0.9% plus stability levyEmployment Insurance Act decree via guide
Industrial accident average 1.47%COMWEL rate table via guide
Working hours and 52-hour capArts. 50-56 LSA; guides
Annual leave 15 to 25 daysArt. 60 LSA
Notice and dismissal rulesArts. 23-28 LSA; hiring guide
Severance 30 days per yearRetirement Benefit Security Act
Yellow Envelope Act in force 10 March 2026Law firm update (Kim & Chang); press
Public holidays 2026, Labor Day and Constitution DayPress (Korea Herald, Korea Times, JoongAng)
Worker status test and freelancer presumption billArt. 2 LSA; BKL update
Visas (E-7, E-7-4, D-8, F-2-7, Top-Tier)MOJ notices via visa guides and law firm
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- Social insurance rates change each year. The national pension rate is 9.5% in 2026 (4.75% employer), rising by 0.5 points a year to 13% in 2033; long-term care is 13.14% of the health insurance premium in 2026.
- Labor Day (1 May) and Constitution Day (17 July) became public holidays from 2026, so employers with 5 or more staff must give them as paid days off like other public holidays.
- The Yellow Envelope Act came into force on 10 March 2026. It widens who counts as an employer for bargaining with subcontractor unions and limits damage claims against strikers.
- A bill to presume worker status for freelancers and platform workers, and a Basic Rights Act for working people, were still before the National Assembly in August 2026; the government aims to pass them this year.
Changelog
Oct 2026Guide rebuilt for South Korea with 2026 figures and sources.South Korea
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Singapore, start to finish
FreelanX EOR is the legal employer in Singapore. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Singapore employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Employment Act covers almost everyone
Covers all employees under a contract of service, including managers and executives. Excludes civil servants, domestic workers and seafarers.
CPF applies to citizens and PRs only
Employer pays 17% on wages up to the ceiling for staff aged 55 and below. EP and S Pass holders do not contribute to CPF.
Written key terms are mandatory
Issue Key Employment Terms in writing within 14 days of the start date, plus itemised payslips for covered employees.
Part 4 is for lower earners
Overtime, 44-hour week and rest-day rules bind only non-workmen earning up to S$2,600 and workmen up to S$4,500 basic pay a month.
Work pass before day one
Foreigners need a valid pass (EP, S Pass, etc.) before starting. EP needs the salary floor and 40 COMPASS points, unless exempt.
Fair hiring rules are tightening
The Fair Consideration Framework applies now. The Workplace Fairness Act is expected to take effect around end 2027.
Five mistakes to avoid
The ones we see most often when a team hires in Singapore for the first time.
Treating Part 4 as universal
Many assume 44-hour week and overtime pay apply to all staff. They apply only below the salary thresholds, so senior hires follow the contract.
Employment Act 1968 Part 4; MOM hours of work pageDeducting CPF from EP holders
CPF is not due for foreigners on EP or S Pass. Contributing wrongly or not paying for a citizen/PR creates cost or penalties.
CPF Act 1953; CPF Board employer pagesSkipping Key Employment Terms
Failing to issue written KETs within 14 days is an offence. KETs must show hours, leave, pay, notice and probation terms.
Employment Act 1968 s.95AWrongful dismissal without a reason
Dismissal with notice needs no reason, but dismissal on a discriminatory ground or while on maternity leave can be challenged.
Tripartite Guidelines on Wrongful Dismissal; Child Development Co-Savings ActMisclassifying contractors
Labelling a full-time, controlled worker as self-employed risks back CPF, interest and claims for leave and notice pay.
Employment Act 1968 s.2; CPF Act 1953Contract rules that matter
Form of contractContract of service may be oral, but Key Employment Terms must be given in writing within 14 days of starting. Covered employees get itemised payslips.Employment Act 1968 s.95A
ProbationNo statutory limit. Typically 3 to 6 months, set in the contract. Notice during probation follows the contract. Leave and sick leave still accrue from month 3.MOM; Employment Act 1968
Fixed-term contractsAllowed with no statutory cap or renewal limit. Non-renewal is not dismissal, but repeat renewals may support an expectation of continued work.Employment Act 1968; MOM guidance
Notice of terms and changesKETs must be updated in writing if terms change. Employees should be informed of changes within 14 days.Employment Act 1968 s.95A
Non-competeEnforceable only if reasonable and protecting a legitimate proprietary interest (trade secrets, client connections). Wide or long covenants are often struck down.Common law restraint of trade; Man Financial v Wong Bark Chuan [2008] SGCA
Collective agreementsRare outside unionised sectors. Where a union agreement exists it can set terms above the Act. No sector-wide extension of collective agreements.Industrial Relations Act 1960
Retirement and re-employmentMinimum retirement age rose to 64 and re-employment age to 69 from 1 July 2026. Employers must offer re-employment to eligible staff.Retirement and Re-employment Act 1993 (as amended)
Salary deductionsDeductions are limited to listed cases and capped at 50% of monthly salary in a pay period, with exceptions.Employment Act 1968 ss.27-28
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (SGD)
Employer share of statutory contributions
S$10,335
17.2% of gross salary
Estimated total employer cost
S$70,335 – S$72,135
Gross salary + contributions + other employer costs (S$0 to S$1,800)
CPF (citizens and PRs, age 55 and below)
Applies to citizens and 3rd-year-plus PRs only. OW ceiling S$8,000/month (S$96,000/year); annual wage cap S$102,000. Foreigners (EP/S Pass) pay none. Lower rates in first 2 PR years.
S$10,200Skills Development Levy (SDL)
0.25% of monthly wages, min S$2, max S$11.25 a month (wages above S$4,500 not levied). Paid for all employees including foreigners.
S$135Employer share of statutory contributions
S$15,435
17.2% of gross salary
Estimated total employer cost
S$105,435 – S$108,135
Gross salary + contributions + other employer costs (S$0 to S$2,700)
CPF (citizens and PRs, age 55 and below)
Applies to citizens and 3rd-year-plus PRs only. OW ceiling S$8,000/month (S$96,000/year); annual wage cap S$102,000. Foreigners (EP/S Pass) pay none. Lower rates in first 2 PR years.
S$15,300Skills Development Levy (SDL)
0.25% of monthly wages, min S$2, max S$11.25 a month (wages above S$4,500 not levied). Paid for all employees including foreigners.
S$135Employer share of statutory contributions
S$17,475
14.6% of gross salary
Estimated total employer cost
S$137,475 – S$141,075
Gross salary + contributions + other employer costs (S$0 to S$3,600)
CPF (citizens and PRs, age 55 and below)
Applies to citizens and 3rd-year-plus PRs only. OW ceiling S$8,000/month (S$96,000/year); annual wage cap S$102,000. Foreigners (EP/S Pass) pay none. Lower rates in first 2 PR years.
S$17,340Skills Development Levy (SDL)
0.25% of monthly wages, min S$2, max S$11.25 a month (wages above S$4,500 not levied). Paid for all employees including foreigners.
S$135Employer share of statutory contributions
S$17,475
10.9% of gross salary
Estimated total employer cost
S$177,475 – S$182,275
Gross salary + contributions + other employer costs (S$0 to S$4,800)
CPF (citizens and PRs, age 55 and below)
Applies to citizens and 3rd-year-plus PRs only. OW ceiling S$8,000/month (S$96,000/year); annual wage cap S$102,000. Foreigners (EP/S Pass) pay none. Lower rates in first 2 PR years.
S$17,340Skills Development Levy (SDL)
0.25% of monthly wages, min S$2, max S$11.25 a month (wages above S$4,500 not levied). Paid for all employees including foreigners.
S$135Employer share of statutory contributions
S$17,475
8.7% of gross salary
Estimated total employer cost
S$217,475 – S$223,475
Gross salary + contributions + other employer costs (S$0 to S$6,000)
CPF (citizens and PRs, age 55 and below)
Applies to citizens and 3rd-year-plus PRs only. OW ceiling S$8,000/month (S$96,000/year); annual wage cap S$102,000. Foreigners (EP/S Pass) pay none. Lower rates in first 2 PR years.
S$17,340Skills Development Levy (SDL)
0.25% of monthly wages, min S$2, max S$11.25 a month (wages above S$4,500 not levied). Paid for all employees including foreigners.
S$135Optional: work injury insurance premium (required for manual workers), group medical cover and the FWL for S Pass/Work Permit staff. EP holders add none of these by law.
Pay and contribution rules
Minimum wageNone nationally. The Progressive Wage Model sets sector wage floors (cleaning, security, landscape, lift, waste, retail, F&B).MOM Progressive Wage Model
Payroll cyclePay at least monthly, within 7 days after the end of the salary period. Overtime pay is due within 14 days after the period.Employment Act 1968 s.20; s.38
13th month and bonusesNo statutory 13th month or profit share. An Annual Wage Supplement is common and contractual. Once promised it is enforceable.Employment Act 1968; MOM guidance
Income taxNo employer PAYE withholding. Employees self-file (resident rates 0% to 24%). Employers file IR8A by 1 March. Tax clearance applies to foreign leavers.Income Tax Act 1947; IRAS employer guide
CPF and SDL paymentCPF is due by the 14th of the next month. SDL of 0.25% is capped at S$11.25 a month and paid with CPF for all employees.CPF Act 1953; Skills Development Levy Act 1979
Foreign Worker LevyLevy applies to Work Permit and S Pass holders, not EP holders. Rates vary by sector, skill tier and quota.Employment of Foreign Manpower Act 1990
PayslipsItemised payslips are required for employees covered by the Act. They must list pay, deductions and overtime, and be given within 3 working days of payment.Employment Act 1968 s.26; Employment (Itemised Pay Slips) Regulations
Working time
Normal hoursPart 4 employees: up to 44 hours a week (9 hours a day on 5-day weeks, 8 on longer weeks). Averaging is allowed. Others follow the contract.Employment Act 1968 s.38; MOM hours of work page
OvertimePaid at 1.5x basic hourly rate for Part 4 non-workmen up to S$2,600 and workmen up to S$4,500 basic pay. Maximum 72 overtime hours a month.Employment Act 1968 s.38(8), s.38(5)
Daily limit and breaksGenerally no more than 12 hours a day. No more than 6 consecutive hours without a break. Meal break at least 45 minutes for long shifts.Employment Act 1968 s.38; MOM
Rest dayOne unpaid rest day a week, midnight to midnight, and no more than 12 days between rest days. Rest day work is paid at higher rates.Employment Act 1968 s.36
Night and Sunday workNo general ban or statutory premium for night or Sunday work for most staff. Women night-work limits were removed. Terms are contractual.Employment Act 1968; MOM
Time recordingNo general duty to log hours, but employers need records to prove overtime compliance for Part 4 staff and to keep 2 years of employment records.Employment Act 1968 s.95; Employment Regulations
Leave and absences
Annual leaveAfter 3 months: 7 days in year 1, plus 1 day each year up to 14 days from year 8. Pro-rated for part years. Contracts may be more generous.Employment Act 1968 s.43; MOM annual leave page
Sick leaveAfter 3 months, pro-rated; from 6 months 14 days paid outpatient and 60 days paid hospitalisation (inclusive of outpatient). Needs a medical certificate.Employment Act 1968 s.89; MOM sick leave page
Maternity16 weeks Government-Paid Maternity Leave if the child is a citizen and the mother has 3 months' service. Fewer weeks may apply otherwise.Child Development Co-Savings Act 2001
Paternity and shared parental2 weeks paternity leave. Shared Parental Leave of 10 weeks from 1 April 2026 (6 from 2025), government-paid. Child must be a citizen; parents must be married.Child Development Co-Savings Act 2001; MSF announcements
Childcare and other leaveChildcare leave of 6 days a year (child under 7) and 2 days extended (7 to 12) for citizen children. National Service leave and unpaid infant care leave also apply.Child Development Co-Savings Act 2001; Parental Leave rules
Statutory minimum paid leave, in weeks
How Singapore compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
New Year's DayTue 17 FebNational
Chinese New Year (Day 1)Wed 18 FebNational
Chinese New Year (Day 2)Sat 21 MarNational
Hari Raya Puasa(Saturday, no in-lieu day)
Fri 3 AprNational
Good FridayFri 1 MayNational
Labour DayWed 27 MayNational
Hari Raya HajiSun 31 MayNational
Vesak Day(Sunday)
Mon 1 Jun
Vesak Day in lieuMonday, if rest day falls on 31 May
Sun 9 AugNational
National Day(Sunday)
Mon 10 Aug
National Day in lieuMonday, if rest day falls on 9 August
Sun 8 NovNational
Deepavali(Sunday)
Mon 9 Nov
Deepavali in lieuMonday, if rest day falls on 8 November
Fri 25 DecNational
Christmas Day11 gazetted holidays. Where one falls on a Sunday (rest day), the next Monday is a public holiday. Hari Raya Puasa falls on a Saturday in 2026 and gets no in-lieu day. Dates for Muslim, Hindu and Buddhist holidays can move after announcement.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
ProbationAs per contract (often 1 week to 1 month)
Under 26 weeks1 day if contract is silent
26 weeks to under 2 years1 week if contract is silent
2 to under 5 years2 weeks if contract is silent
5 years or more4 weeks if contract is silent
Typical contract (professionals)1 to 3 months by agreement
The statutory ladder applies only if the contract has no notice term. Notice must be mutual, in writing and may be replaced by salary in lieu. Either side may end without notice for misconduct or by paying salary in lieu.
Rules for ending an employment
FormNotice or salary in lieu is enough. No reason is required for dismissal with notice, but a reason is needed if the employee asks for it for a wrongful-dismissal claim.Employment Act 1968 s.10; Tripartite Guidelines on Wrongful Dismissal
Valid groundsDismissal for misconduct needs due inquiry before dismissal. Dismissal with notice is lawful but must not be on discriminatory or retaliatory grounds.Employment Act 1968 s.14; Tripartite Guidelines on Wrongful Dismissal
Wrongful dismissal claimsClaims go to TADM mediation, then the Employment Claims Tribunal. File within 1 month of the last day. Tribunal cap is S$20,000, or S$30,000 if union-assisted.Employment Claims Act 2016
Retrenchment benefitNot statutory. For staff with 2 or more years' service the norm is 2 weeks to 1 month of salary per year of service, set by contract or industry practice.Tripartite Advisory on Managing Excess Manpower and Responsible Retrenchment
Retrenchment notificationEmployers with 10 or more employees must notify MOM within 5 working days after informing any retrenched employee.Employment Act 1968 s.45A; Employment (Retrenchment Benefits) Regs
Special protectionsNo dismissal of an employee on maternity leave, and employees dismissed because of pregnancy can claim. Retirement age is 64, re-employment to 69 from July 2026.Child Development Co-Savings Act 2001; Retirement and Re-employment Act 1993
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Common law multi-factor test (control, integration, economic reality); Employment Act 1968 s.2 'contract of service'. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Document the arrangement
Use a written services agreement stating scope, deliverables, fees and freedom to work for others.
2Test the facts, not the label
Review daily practice against the criteria. MOM and courts look at how the work is done, not the contract title.
3Check platform worker rules
If work is allocated through an online platform, the Platform Workers Act may apply even without employee status.
4Seek a ruling if in doubt
Ask MOM or CPF Board for guidance, or take legal advice before engaging a long-term, single-client contractor.
Singapore has no formal pre-ruling scheme for status. Disputes are decided by MOM, CPF Board or the tribunal on the facts. Foreign individuals need a valid pass to work for a local client as independents (EP/S Pass sponsor or the ONE Pass).
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
CPF + interest
Back CPF with late interest (typically 1.5% a month) and possible fines for citizen or PR workers reclassified as employees.
CPF Act 1953 s.7
Employment Act claims
Reclassified workers can claim annual leave, sick leave, notice pay and unpaid salary at the Employment Claims Tribunal.
Employment Claims Act 2016
6 years
General limitation period for contract claims is 6 years. Statutory claims have shorter windows, so check each claim type.
Limitation Act 1959 s.6
Pass breach
Using a foreigner without a valid work pass is an offence with fines, imprisonment and a bar on hiring foreigners.
Employment of Foreign Manpower Act 1990 s.5
Self-employed persons and platform workers
Self-employed contributionsSelf-employed persons (SEPs) pay MediSave if net trade income exceeds S$6,000 a year. No employer CPF is due. SEPs file their own tax.CPF Act 1953; CPF Board SEP guide
Platform Workers ActIn force 1 January 2025. Platform operators must give work injury compensation, CPF contributions (rising in stages) and allow worker representation. Workers stay non-employees.Platform Workers Act 2024; MOM
Tripartite standardThe Tripartite Standard on Contracting with Self-Employed Persons gives voluntary good-practice terms for engaging SEPs. Not binding by law.Tripartite Standards (TAFEP/NTUC/SNEF)
Work with independents in Singapore, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
S$5,600
EP minimum salaryFixed monthly salary for new EP applicants at age 23, rising with age. Financial services S$6,200. Rises to S$6,000 for new applications from 1 Jan 2027.
S$3,300
S Pass minimum salaryFixed monthly salary at age 23, rising with age. Financial services S$3,800. S$3,600 for new applications from 1 Jan 2027.
Work permits in practice
Employment Pass (EP)For managers, executives and specialists. Must meet the age-scaled salary floor and pass COMPASS (40 points), unless exempt. Foreigners hold no CPF duty.MOM Employment Pass eligibility
COMPASSScoring on salary, qualifications, diversity, local support, plus skills and economic priority bonuses. Exempt if salary is at least S$22,500 a month or for intra-company transferees.MOM COMPASS framework
Fair Consideration FrameworkEmployers with 10 or more staff must advertise on MyCareersFuture for at least 14 days before applying for an EP or S Pass.MOM FCF; Tripartite Guidelines on Fair Employment Practices
S PassMid-skilled technicians. Salary floor and points system apply. Quota (share of workforce) and monthly levy apply. Not for roles where an EP fits.MOM S Pass eligibility
Tech.PassFor established tech founders and leaders. Needs a fixed monthly salary of at least S$22,500 in the last year. Allows work for several companies. A ONE Pass (AI and Tech) track is due to replace it from January 2027.EDB Tech.Pass
ONE PassOverseas Networks and Expertise Pass for top talent, reported S$30,000 fixed monthly salary, valid 5 years. Holder may work for several employers or run a business.MOM ONE Pass
Dependant's PassEP and S Pass holders earning at least S$6,000 fixed monthly can apply for spouse and children passes.MOM Dependant's Pass
Processing and settlementEP applications typically take about 3 weeks. PR is a separate ICA route, not automatic. Foreign staff leaving need tax clearance (IR21).MOM; ICA; IRAS
Pass rules change often. The EP floor is S$5,600 now (S$6,200 in financial services) and rises to S$6,000 (S$6,600) for new applications from 1 January 2027. Check MOM before filing.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Employment Act coverage and Part 4 thresholdsMOM hours of work page; Employment Act 1968
CPF employer rate 17% (age 55 and below)CPF Board employer page
OW ceiling S$8,000 and annual S$102,000CPF Board (calculators)
SDL 0.25%, min S$2, max S$11.25CPF Board SDL page
Annual leave 7 to 14 daysMOM annual leave entitlement page
Sick leave 14/60 daysMOM sick leave entitlement page
Public holidays 2026MOM public holidays page
Shared Parental Leave 10 weeks April 2026MSF
Maternity 16 weeks and paternity 2 weeksMOM; Child Development Co-Savings Act
Retirement age 64 / re-employment 69MOM Committee of Supply 2026; HSF note
Notice defaults 1 day to 4 weeksEmployment Act 1968 s.10
Retrenchment benefit norm and notificationTripartite Advisory; MOM retrenchment page
EP and S Pass salary floorsMOM EP and S Pass eligibility pages
Workplace Fairness Act commencementHSF Kramer note; Singapore Law Watch
Platform Workers Act in force 1 Jan 2025MOM platform workers page; Rajah & Tann
Tech.Pass and ONE Pass thresholdsMinistry of Manpower (MOM)
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- CPF ceilings changed on 1 January 2026: the monthly Ordinary Wage ceiling rose to S$8,000, while the annual salary ceiling stays at S$102,000.
- A ONE Pass (AI and Tech) track replaces the Tech.Pass from January 2027. It needs at least S$30,000 a month over the past 12 months, including a fixed monthly salary of at least S$22,500.
- The Workplace Fairness Act is expected to take effect at the end of 2027. Employers with fewer than 25 employees will be exempt at first.
- The Employment Pass minimum salary is S$5,600 a month (S$6,200 in financial services). It rises to S$6,000 (S$6,600) for new applications from 1 January 2027 and for renewals from 1 January 2028.
Changelog
Oct 2026Guide rebuilt for Singapore with 2026 figures and sources.Singapore
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Hong Kong SAR, start to finish
FreelanX EOR is the legal employer in Hong Kong SAR. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Hong Kong SAR employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Continuous contract (4/18)
Most rights need 'continuous contract' status: employed 4 weeks or more, working 18 hours or more in each week (or 68 hours in 4 weeks).
MPF from day one
Employer must enrol staff within 60 days and pay 5% from day one of employment. Employee share starts after the first 30 days of employment.
Compensation insurance
Every employer must hold employees' compensation insurance for all employees, full time or part time. No cover is a criminal offence.
No 13th month by law
A 13th month or year-end bonus is custom. If the contract promises it, it becomes wages and is due pro rata when employment ends.
Offsetting abolished
From 1 May 2025 employer MPF cannot offset severance or long service pay for service after that date. Old service is grandfathered.
Tax is employee paid
Salaries tax is paid by the employee on assessment. The employer files IR56 forms and does not withhold tax, except on final payments to leavers.
Five mistakes to avoid
The ones we see most often when a team hires in Hong Kong SAR for the first time.
Treating bonus as optional
A guaranteed 13th month or 'year-end payment' in the contract is wages. Not paying it, or not paying it pro rata on exit, is a wage claim.
Employment Ordinance Cap. 57, definitions of wages and s.25Skipping MPF for new hires or low earners
Employer MPF is due from day one, also below the minimum relevant income (employee share exempt). Missing enrolment within 60 days is an offence.
Mandatory Provident Fund Schemes Ordinance Cap. 485No compensation insurance for part timers or interns
Cover must include every employee, part time and casual included. Check the policy headcount and wage roll yearly.
Employees' Compensation Ordinance Cap. 282, s.40Using old offsetting rules
Applying the pre-2025 offset to all service overpays or underpays. Calculate the pre-transition and post-transition portions separately.
Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022Summary dismissal without clear grounds
Dismissal without notice is lawful only for listed grounds such as wilful disobedience or fraud. Otherwise notice or pay in lieu, and possible remedies, are due.
Employment Ordinance s.9, s.32AContract rules that matter
Form of contractWritten contract is not mandatory under the Ordinance, but is strongly advised. Terms may be oral, written or implied. Written terms in English or Chinese are the norm.Employment Ordinance Cap. 57
ProbationNo statutory length; usually 1 to 3 months, up to 6. During probation: no notice in month 1, 7 days notice after month 1 unless the contract sets otherwise.Employment Ordinance s.6, s.7
Fixed termAllowed without stated reason. Non-renewal can trigger severance or long service pay if the employee has 24 months continuous service (5 years for long service pay).Employment Ordinance Part VA, Part VB
Statement of reasons / certificateOn request the employer must give a certificate of employment within 7 days. Keep wage and employment records for at least 12 months after employment ends.Employment Ordinance Cap. 57 (record keeping); Labour Dept guide
Non-competeEnforceable only if reasonable in scope, time and area and protecting a legitimate interest (common law restraint of trade). Garden leave is common for senior roles.Common law, restraint of trade doctrine
Collective agreementsNo sector-wide collective agreements. Unions exist but bargaining is voluntary. The Ordinance sets only a floor and is not displaced by contract.Employment Ordinance s.70; Trade Unions Ordinance
Anti-discriminationSeparate ordinances cover sex, disability, family status and race. They apply to hiring, pay and dismissal and allow claims at the Equal Opportunities Commission.Sex Discrimination Ord. Cap. 480; Disability Discrimination Ord. Cap. 487; Family Status Discrimination Ord. Cap. 527; Race Discrimination Ord. Cap. 602
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (HKD)
Employer share of statutory contributions
HK$18,000
5.0% of gross salary
Estimated total employer cost
HK$378,720 – HK$381,600
Gross salary + contributions + other employer costs (HK$720 to HK$3,600)
MPF (employer mandatory)
5% of relevant income (monthly cap HK$30,000, so max HK$1,500 per month or HK$18,000 per year). Employee pays the same. Floor HK$7,100 is employee-only; employer still pays below it. 2026 levels unchanged, review under way.
HK$18,000Employer share of statutory contributions
HK$18,000
3.3% of gross salary
Estimated total employer cost
HK$559,080 – HK$563,400
Gross salary + contributions + other employer costs (HK$1,080 to HK$5,400)
MPF (employer mandatory)
5% of relevant income (monthly cap HK$30,000, so max HK$1,500 per month or HK$18,000 per year). Employee pays the same. Floor HK$7,100 is employee-only; employer still pays below it. 2026 levels unchanged, review under way.
HK$18,000Employer share of statutory contributions
HK$18,000
2.5% of gross salary
Estimated total employer cost
HK$739,440 – HK$745,200
Gross salary + contributions + other employer costs (HK$1,440 to HK$7,200)
MPF (employer mandatory)
5% of relevant income (monthly cap HK$30,000, so max HK$1,500 per month or HK$18,000 per year). Employee pays the same. Floor HK$7,100 is employee-only; employer still pays below it. 2026 levels unchanged, review under way.
HK$18,000Employer share of statutory contributions
HK$18,000
1.9% of gross salary
Estimated total employer cost
HK$979,920 – HK$987,600
Gross salary + contributions + other employer costs (HK$1,920 to HK$9,600)
MPF (employer mandatory)
5% of relevant income (monthly cap HK$30,000, so max HK$1,500 per month or HK$18,000 per year). Employee pays the same. Floor HK$7,100 is employee-only; employer still pays below it. 2026 levels unchanged, review under way.
HK$18,000Employer share of statutory contributions
HK$18,000
1.5% of gross salary
Estimated total employer cost
HK$1,220,400 – HK$1,230,000
Gross salary + contributions + other employer costs (HK$2,400 to HK$12,000)
MPF (employer mandatory)
5% of relevant income (monthly cap HK$30,000, so max HK$1,500 per month or HK$18,000 per year). Employee pays the same. Floor HK$7,100 is employee-only; employer still pays below it. 2026 levels unchanged, review under way.
HK$18,000Employees' compensation insurance premium (risk rated, office roles near the low end) and small items such as medical cover. No social security payroll tax beyond MPF.
Pay and contribution rules
Statutory minimum wageHK$43.1 per hour from 1 May 2026, up from HK$42.1 (from 1 May 2025). Set to be reviewed every year under a formula adopted in 2026. Hours must be recorded if monthly pay is below HK$17,600.Minimum Wage Ordinance Cap. 608; Gov't press release 10 Feb 2026
13th month / bonusNo statutory 13th or 14th month. Usual custom is 1 month 'double pay' at Chinese New Year or year end. Once promised in the contract it is wages, due pro rata on exit.Employment Ordinance s.2 and Part IV; market practice
Income tax withholdingNo PAYE. Employee pays salaries tax on assessment. Employer files IR56E on hire, IR56B yearly and IR56F or IR56G on leaving. Final pay may be withheld for 1 month on departure.Inland Revenue Ordinance Cap. 112, s.52
Wage payment rulesWages must be paid within 7 days of the end of the wage period (maximum 1 month). Late payment carries interest and can be a criminal offence.Employment Ordinance s.23, s.25
PayslipAn itemised wage statement (period, amount, deductions) must be given at each payment, in writing, in English or Chinese. Deductions are limited to those the law lists.Employment Ordinance s.25, s.32
Mandatory bonuses / profit sharingNone required by law. Annual leave pay, holiday pay and sickness allowance use average daily wages of the last 12 months, which include guaranteed bonus and commission.Employment Ordinance s.2, s.41
Payroll cycleMonthly is standard. Mid-month and month-end splits are rare. Pay by bank transfer is normal and MPF contributions must reach the trustee within 10 days after the month end.MPFO Cap. 485; market practice
Working time
Working hoursNo statutory maximum weekly hours and no statutory overtime premium. Hours and overtime pay are set by contract. A standard working hours law was studied in 2023 but not enacted.Employment Ordinance Cap. 57; Standard Working Hours Committee report 2023
Rest dayAt least 1 rest day (24 hours) in every 7 days. Rest days are unpaid unless the contract says so. Employers may arrange a substitute rest day.Employment Ordinance Part IV, s.17
Meal breaksNo statutory minimum. Meal breaks of 1 hour or more are normally unpaid and not counted as working time. Short breaks taken at the desk are usually treated as work.Employment Ordinance; Labour Dept guidance
OvertimePaid only if the contract or policy says so. Common forms are time off in lieu or a set rate. Overtime pay promised in the contract is wages and counts for leave and severance.Employment Ordinance s.2; contract terms
Night and Sunday workNo general premium or ban for adults. Special rules limit work by young persons (under 18) at night and in industry.Employment of Young Persons (Industry) Regulations Cap. 57B
Time recordingHours must be recorded for staff earning below HK$17,600 a month (to show minimum wage compliance). Keep wage and employment records for at least 12 months after employment ends.Minimum Wage Ordinance Cap. 608; Employment Ordinance Cap. 57
Leave and absences
Annual leaveAfter 12 months' continuous service: 7 days, plus 1 day for each extra year, up to 14 days from year 9. Pro rata pay on leaving after 3 months. Leave pay is average daily wages.Employment Ordinance Part VIII, s.41AA to 41AD
Sick leavePaid sick days build up at 2 per month in the first year, then 4 per month, up to 120 days. Sickness allowance is 4/5 of average daily wages. Needs 4 consecutive days and a medical certificate.Employment Ordinance Part VII, s.33
Maternity leave14 weeks, paid at 4/5 of average daily wages for those with 40 weeks continuous service before notice. Dismissal of a pregnant employee is barred from confirmation of pregnancy to end of leave.Employment Ordinance Part III, s.12 and s.15
Paternity leave5 days, paid at 4/5 of average daily wages, for employees with a continuous contract who notify as required. May be taken in whole or separate days within 14 weeks of birth.Employment Ordinance Part IIIA
Statutory holiday pay15 statutory holidays in 2026, paid at average daily wages after 3 months' continuous service. Employer may give a substitute day if work is needed. General holidays are customary.Employment Ordinance Part VII, s.39
Statutory minimum paid leave, in weeks
How Hong Kong SAR compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 JanNational
First day of January(statutory)
Tue 17 FebNational
Lunar New Year's Day(statutory)
Wed 18 FebNational
Second day of Lunar New Year(statutory)
Thu 19 FebNational
Third day of Lunar New Year(statutory)
Fri 3 Apr
Good FridayGeneral holiday only (not statutory until 2028)
Sat 4 Apr
Day following Good FridayGeneral holiday only (not statutory until 2030)
Mon 6 AprNational
Day following Ching Ming Festival (Ching Ming is Sun 5 Apr)(statutory)
Tue 7 AprNational
Day following Easter Monday(statutory)
Fri 1 MayNational
Labour Day(statutory)
Mon 25 MayNational
Day following the Birthday of the Buddha (Sun 24 May)(statutory)
Fri 19 JunNational
Tuen Ng Festival(statutory)
Wed 1 JulNational
HKSAR Establishment Day(statutory)
Sat 26 SepNational
Day following the Mid-Autumn Festival(statutory)
Thu 1 OctNational
National Day(statutory)
Mon 19 OctNational
Day following Chung Yeung Festival (Sun 18 Oct)(statutory)
Fri 25 DecNational
Christmas Day (or Winter Solstice 22 Dec, employer's choice)(statutory)
Sat 26 DecNational
First weekday after Christmas Day(statutory)
Statutory holidays are phasing from 12 to 17 days by 2030: 15 in 2026 (Good Friday joins in 2028, the day after in 2030). Those two days are general holidays today. Sep 26 and Dec 26 fall on Saturdays in 2026.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
Probation, month 1No notice needed during the first month
Probation, after month 17 days
After probation, under 2 years1 month, or as agreed in the contract
2 to 5 years1 month, or as agreed
5 to 10 years1 month, or as agreed (long service pay may fall due)
Over 10 years1 month, or as agreed. Senior staff often 3 months by contract
The Ordinance sets no tenure ladder: after probation the parties agree any period, but not less than 7 days, and 1 month applies if the contract is silent. Notice can be written or oral. Pay in lieu equals wages for the notice period. Employee notice mirrors employer notice.
Rules for ending an employment
Form and procedureNotice or pay in lieu is enough; no court approval. Employer must give valid reasons for dismissal when protected: conduct, capability, redundancy, legal bar or other substantial reason.Employment Ordinance s.6, s.7, s.32K
Termination without noticeAllowed for wilful disobedience, misconduct, fraud or dishonesty, or habitual neglect of duty. Employee also may leave without notice for listed employer breaches.Employment Ordinance s.9, s.10
Severance paymentOn redundancy after 24 months' continuous service. 2/3 x last month's wages (wages capped at HK$22,500) x years of service. Combined cap HK$390,000.Employment Ordinance Part VA, s.31G to 31I
Long service paymentFor 5 or more years' service on dismissal (not misconduct or redundancy), end of fixed term, or resignation at 65+ or from ill-health. Same formula and HK$390,000 cap as severance.Employment Ordinance Part VB, s.31R to 31V
Offsetting abolition (1 May 2025)From 1 May 2025 employer MPF no longer offsets payments for new service. Pre-transition service uses wages just before 1 May 2025 and may still be offset. Government subsidy exists for up to 25 years.Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022
Special protections and collective dismissalNo dismissal for pregnancy, sick leave, work injury, union activity or giving evidence. Unreasonable dismissal remedies need 24 months' service. Report 10 or more redundancies in a month to the Labour Department.Employment Ordinance s.15, s.32A, s.32N; Labour Dept guidance
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Common law multiple-factor test (Lee Ting Sang v Chung Chi-keung [1990] 2 AC 374, PC on appeal from Hong Kong); Labour Department and Inland Revenue Department guidance on employee versus contractor. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Score the relationship
Apply the Labour Department and tax tests to the real working pattern, not only the contract label. Record the facts at signing and review yearly.
2Write a contract for services
State deliverables, price, freedom to substitute, own tools and other clients. Require invoices. The label alone does not decide the status.
3Keep evidence of independence
Keep invoices, business registration, proof of other clients and proof that the person set their own hours. These matter in a Labour Tribunal or tax review.
4Ask the authorities if unsure
There is no binding Labour Department ruling. The Inland Revenue Department can be asked for an advance ruling on tax. Get legal advice for long, full time, single-client roles.
Misclassification is found in practice through a Labour Tribunal claim, a Labour Department inspection, an injury claim or an IRD audit of IR56 filings.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
6 years
Limitation period for contract and wage claims. Statutory claims can reach back to the start of the relationship in practice.
Limitation Ordinance Cap. 347, s.4
HK$100,000
Typical maximum fine, with possible imprisonment, for no employees' compensation insurance. The employer also carries the full injury claim.
Employees' Compensation Ordinance Cap. 282, s.40
MPF + surcharge
Unpaid MPF back to the start, with a surcharge and possible prosecution. The MPFA can recover unpaid contributions.
Mandatory Provident Fund Schemes Ordinance Cap. 485, s.7 and s.43B
Leave and severance
A reclassified worker may claim annual leave, holiday pay, sickness allowance and severance or long service pay, plus unpaid wages and interest.
Employment Ordinance Cap. 57
Self-employed persons: MPF, tax and registration
MPF for self-employedSelf-employed persons must join an MPF scheme and contribute 5% of relevant income (same minimum and maximum levels). The client has no MPF duty for a true contractor.Mandatory Provident Fund Schemes Ordinance Cap. 485
Profits taxA true contractor pays profits tax on assessed profit (unincorporated rate up to 15%, 7.5% on first HK$2m) and files an annual profits tax return. The client has no withholding duty.Inland Revenue Ordinance Cap. 112, Part IV
Business registrationEvery person carrying on a business in Hong Kong must register under the Business Registration Ordinance and keep the certificate displayed.Business Registration Ordinance Cap. 310
Work with independents in Hong Kong SAR, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
No quota
General Employment Policy (GEP)Sponsored by an employer for a professional job. No quota or fixed salary floor. Pay must be at market level.
HK$2.5m
Top Talent Pass SchemeClass A needs annual income of HK$2.5 million or more. Classes B and C cover graduates of top 100 universities. No job offer needed.
Work permits in practice
Who needs a visaNon-permanent residents need a work visa or admission scheme status. Chinese mainland talent usually use the Admission Scheme for Mainland Talents and Professionals (ASMTP), similar to GEP.Immigration Department, Hong Kong
General Employment PolicyApplicant needs a confirmed job offer, relevant degree or skills, and pay at market level for the post. Employer sponsors. Assessment usually takes about 4 weeks.Immigration Department, GEP guidebook
Top Talent Pass SchemeClass A: income HK$2.5m or more in the last year. Class B: top 100 university degree plus 3 years' work in last 5. Class C: top 100 degree in last 5 years, under 3 years' work, annual quota 10,000.Immigration Department, Top Talent Pass Scheme
Quality Migrant Admission SchemePoints tested scheme for skilled talent with no job offer needed. Annual quota 4,000. Holders can settle after 7 years of ordinary residence.Immigration Department, QMAS
Initial stay and renewalGEP and ASMTP: initial stay about 2 years, then extensions of 3 years. TTPS: 2 years initially. Holders can change employer after notifying the Immigration Department.Immigration Department
FamilySpouse and unmarried dependent children under 18 can apply as dependants. Dependants may work. Hong Kong-born children of residents have right of abode.Immigration Department, Dependant visa
Permanent residenceAfter 7 years of continuous ordinary residence a foreign national can apply for permanent resident status with right of abode.Immigration Ordinance Cap. 115, Schedule 1
Employer dutiesEmployer must not employ without permission, keep copies of ID or visa, and report changes. Employing illegal workers is a criminal offence.Immigration Ordinance Cap. 115, s.17I
Hong Kong permanent residents and persons with unconditional stay can work freely. All figures should be checked on the Immigration Department site before filing.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Minimum wage HK$43.1 from 1 May 2026Government press release 10 Feb 2026
MPF 5% employer, levels HK$7,100 / HK$30,000MPFA press release March 2026, MPFO Cap. 485
MPF level review (proposed HK$10,500 / HK$40,000)Press reports, not adopted as of Oct 2026 check
Continuous contract 4/18Employment Ordinance s.2 and Schedule
Annual leave 7 to 14 daysEmployment Ordinance Part VIII
Statutory holidays 2026 (15) and general holidays (17)Labour Department, 2026 list
Sick leave and sickness allowanceEmployment Ordinance Part VII
Maternity 14 weeks, paternity 5 daysEmployment Ordinance Parts III, IIIA
Severance / long service formula and HK$390,000 capEmployment Ordinance Parts VA, VB
Offsetting abolition details and subsidy2022 Amendment Ordinance, Labour Dept FAQ
Notice periodsEmployment Ordinance s.6, s.7
Employment vs contractor testsLee Ting Sang v Chung Chi-keung; Labour Dept
Visa schemes (GEP, TTPS, QMAS)Immigration Department
Penalties and statutory section numbersCap. 282, Cap. 485, Cap. 57
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- MPF relevant income levels (HK$7,100 minimum, HK$30,000 maximum) are under review. A 2026 proposal would raise them to HK$10,500 and HK$40,000, but it has not been adopted.
- Statutory holidays are increasing step by step: 15 in 2026 with Easter Monday added, then Good Friday in 2028 and the day after Good Friday in 2030.
- The statutory minimum wage rose to HK$43.1 an hour on 1 May 2026 and is now reviewed every year, with new rates normally taking effect on 1 May.
Changelog
Oct 2026Guide rebuilt for Hong Kong SAR with 2026 figures and sources.Hong Kong SAR
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in India, start to finish
FreelanX EOR is the legal employer in India. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
India employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Four Labour Codes apply
Wages, Industrial Relations, Social Security and OSH Codes took effect on 21 Nov 2025 and replace 29 older laws. Final central rules were notified in May 2026.
States still matter
Many state rules were still in draft in 2026. Where a state rule is missing, older state rules often still apply. Check the state of work.
50% wage rule
Allowances excluded from 'wages' are capped at 50% of total pay. Basic plus DA must be at least 50%, which raises PF, gratuity and bonus bases.
Social security is split
EPF and ESIC are separate schemes with separate ceilings (INR 15,000 and INR 21,000 per month). Most professionals fall under EPF only.
Written appointment letter
Every worker needs a written appointment letter with wages and terms. Fixed-term staff get the same benefits as permanent staff, pro rata.
Foreign hires need a visa
Foreign nationals need an Employment visa (E visa), generally with a salary above USD 25,000 a year, and registration with the FRRO.
Five mistakes to avoid
The ones we see most often when a team hires in India for the first time.
Ignoring the 50% wages rule
Salary structures with a low basic and large allowances now understate PF, gratuity and bonus bases and risk back-payment.
Code on Wages, 2019, s.2(y)Using one state's rules everywhere
Professional tax, minimum wage, holidays, leave and Shops Act rules differ by state. A Bengaluru template is wrong for Mumbai or Delhi.
Concurrent list; state Shops and Establishments ActsTreating a long-term contractor as a vendor
Courts apply a control and integration test. Fixed hours, tools and supervision can lead to employee claims for PF, gratuity and bonus.
Supreme Court control test line of cases (see criteria_src)Skipping PF on full basic or missing registration
EPF is mandatory at 20 or more employees and can be applied to actual basic. Late deposits attract interest and damages.
EPF & MP Act 1952 / Code on Social Security 2020, Ch. IIITerminating without process
Retrenchment needs notice, compensation and, in larger sites, government permission. Notice pay or compensation errors are the most common claim.
Industrial Relations Code 2020, Ch. IX and XContract rules that matter
Form of contractWritten appointment letter required for all workers. The OSH Code rules set a format. Salary, designation, wage period and benefits must be stated.OSH Code 2020; OSHWC Rules 2026 (format)
ProbationNot set by the Codes. Typically 3 to 6 months by contract or standing orders; shorter notice during probation is common.Contract practice and standing orders
Fixed-term employmentAllowed in all sectors under the IR Code. Same wages and benefits as permanent staff, pro-rata. Gratuity after 1 year of service. No notice or retrenchment pay at natural expiry.IR Code 2020 s.2(o) and s.2(yb); SS Code 2020 s.53
Notice of termsStanding orders or an appointment letter must state hours, pay days and holidays. Display in Hindi, English and local language for sites with 300+ workers.IR Code 2020 Ch. IV; final central rules 2026
Non-competePost-employment non-competes are void as restraint of trade. In-term exclusivity, confidentiality and non-solicit during employment are usually enforceable.Indian Contract Act 1872 s.27
Standing ordersIndustrial establishments with 300 or more workers must have certified standing orders (threshold was 100). Smaller sites follow model orders only if stated.IR Code 2020 s.28
Shops and Establishments ActsState laws cover offices: registration, hours, weekly off, leave and holidays. Rules and thresholds vary by state. Some states are moving to OSH Code rules.State Shops and Establishments Acts
Collective agreementsRare in services and tech. Recognised unions and negotiating bodies exist under the IR Code. Most professional staff are on individual contracts.IR Code 2020 Ch. III
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (INR)
Employer share of statutory contributions
₹59,400
4.0% of gross salary
Estimated total employer cost
₹1,566,900 – ₹1,589,400
Gross salary + contributions + other employer costs (₹7,500 to ₹30,000)
EPS (pension), 8.33%
Part of employer's 12% PF. Calculated on wages up to INR 15,000 a month, so annual cap INR 180,000. Ceiling still INR 15,000 as of May 2026 notification.
₹14,994EPF (employer balance), 3.67%
Shown on the INR 15,000 ceiling. Many employers contribute 12% on full basic instead. Optional above the ceiling by mutual choice, so costs can be higher.
₹6,606EDLI insurance
Employer pays 0.5% of ceiling wages, up to INR 75 per month, at the rate notified by the Central Government.
₹900EPF admin charge
0.5% of ceiling wages, minimum INR 500 per establishment per month, as notified under the EPF scheme.
₹900ESIC employer, 3.25%
3.25% only when monthly gross wages are INR 21,000 or less. Not charged on professional salaries in the presets.
₹0Gratuity accrual
Provision for 15 days per year of basic, about 4.81% of basic. Shown as 2.4% of gross, assuming basic is 50% of gross. Paid on exit, not monthly.
₹36,000Employer share of statutory contributions
₹83,400
3.3% of gross salary
Estimated total employer cost
₹2,595,900 – ₹2,633,400
Gross salary + contributions + other employer costs (₹12,500 to ₹50,000)
EPS (pension), 8.33%
Part of employer's 12% PF. Calculated on wages up to INR 15,000 a month, so annual cap INR 180,000. Ceiling still INR 15,000 as of May 2026 notification.
₹14,994EPF (employer balance), 3.67%
Shown on the INR 15,000 ceiling. Many employers contribute 12% on full basic instead. Optional above the ceiling by mutual choice, so costs can be higher.
₹6,606EDLI insurance
Employer pays 0.5% of ceiling wages, up to INR 75 per month, at the rate notified by the Central Government.
₹900EPF admin charge
0.5% of ceiling wages, minimum INR 500 per establishment per month, as notified under the EPF scheme.
₹900ESIC employer, 3.25%
3.25% only when monthly gross wages are INR 21,000 or less. Not charged on professional salaries in the presets.
₹0Gratuity accrual
Provision for 15 days per year of basic, about 4.81% of basic. Shown as 2.4% of gross, assuming basic is 50% of gross. Paid on exit, not monthly.
₹60,000Employer share of statutory contributions
₹107,400
3.1% of gross salary
Estimated total employer cost
₹3,624,900 – ₹3,677,400
Gross salary + contributions + other employer costs (₹17,500 to ₹70,000)
EPS (pension), 8.33%
Part of employer's 12% PF. Calculated on wages up to INR 15,000 a month, so annual cap INR 180,000. Ceiling still INR 15,000 as of May 2026 notification.
₹14,994EPF (employer balance), 3.67%
Shown on the INR 15,000 ceiling. Many employers contribute 12% on full basic instead. Optional above the ceiling by mutual choice, so costs can be higher.
₹6,606EDLI insurance
Employer pays 0.5% of ceiling wages, up to INR 75 per month, at the rate notified by the Central Government.
₹900EPF admin charge
0.5% of ceiling wages, minimum INR 500 per establishment per month, as notified under the EPF scheme.
₹900ESIC employer, 3.25%
3.25% only when monthly gross wages are INR 21,000 or less. Not charged on professional salaries in the presets.
₹0Gratuity accrual
Provision for 15 days per year of basic, about 4.81% of basic. Shown as 2.4% of gross, assuming basic is 50% of gross. Paid on exit, not monthly.
₹84,000Employer share of statutory contributions
₹131,400
2.9% of gross salary
Estimated total employer cost
₹4,653,900 – ₹4,721,400
Gross salary + contributions + other employer costs (₹22,500 to ₹90,000)
EPS (pension), 8.33%
Part of employer's 12% PF. Calculated on wages up to INR 15,000 a month, so annual cap INR 180,000. Ceiling still INR 15,000 as of May 2026 notification.
₹14,994EPF (employer balance), 3.67%
Shown on the INR 15,000 ceiling. Many employers contribute 12% on full basic instead. Optional above the ceiling by mutual choice, so costs can be higher.
₹6,606EDLI insurance
Employer pays 0.5% of ceiling wages, up to INR 75 per month, at the rate notified by the Central Government.
₹900EPF admin charge
0.5% of ceiling wages, minimum INR 500 per establishment per month, as notified under the EPF scheme.
₹900ESIC employer, 3.25%
3.25% only when monthly gross wages are INR 21,000 or less. Not charged on professional salaries in the presets.
₹0Gratuity accrual
Provision for 15 days per year of basic, about 4.81% of basic. Shown as 2.4% of gross, assuming basic is 50% of gross. Paid on exit, not monthly.
₹108,000Employer share of statutory contributions
₹167,400
2.8% of gross salary
Estimated total employer cost
₹6,197,400 – ₹6,287,400
Gross salary + contributions + other employer costs (₹30,000 to ₹120,000)
EPS (pension), 8.33%
Part of employer's 12% PF. Calculated on wages up to INR 15,000 a month, so annual cap INR 180,000. Ceiling still INR 15,000 as of May 2026 notification.
₹14,994EPF (employer balance), 3.67%
Shown on the INR 15,000 ceiling. Many employers contribute 12% on full basic instead. Optional above the ceiling by mutual choice, so costs can be higher.
₹6,606EDLI insurance
Employer pays 0.5% of ceiling wages, up to INR 75 per month, at the rate notified by the Central Government.
₹900EPF admin charge
0.5% of ceiling wages, minimum INR 500 per establishment per month, as notified under the EPF scheme.
₹900ESIC employer, 3.25%
3.25% only when monthly gross wages are INR 21,000 or less. Not charged on professional salaries in the presets.
₹0Gratuity accrual
Provision for 15 days per year of basic, about 4.81% of basic. Shown as 2.4% of gross, assuming basic is 50% of gross. Paid on exit, not monthly.
₹144,000Possible extras: PF on full basic instead of ceiling, state labour welfare fund (small fixed amounts), insurance, bonus provision and leave encashment accrual. Not payroll taxes.
Pay and contribution rules
Minimum wage and floor wageCode on Wages makes minimum wage universal. States set rates by zone and skill. A central floor wage method exists but per-skill limits were not notified in 2026. Rates revised each April and October.Code on Wages 2019 ss.6 and 9; central rules 2026
Definition of wagesAllowances, bonus, HRA and similar items excluded from wages are capped at 50% of total remuneration. Any excess is added back for PF, gratuity and bonus.Code on Wages 2019 s.2(y)
Statutory bonusMin 8.33% and max 20% of wages for staff earning up to INR 21,000 a month (calculated on a ceiling). Applies to units with 20+ employees. Payable within 8 months of year end.Code on Wages 2019 Ch. V (formerly Payment of Bonus Act 1965)
13th or 14th monthNo statutory 13th month. Bonus is statutory only at the thresholds above. Many employers pay variable pay, Diwali bonus or annual bonus by contract.Code on Wages 2019, Chapter IV (bonus)
Income tax withholding (TDS)Employer withholds tax under s.192 on estimated annual income and gives Form 16. New regime default. Slabs 0% to 30% plus surcharge and 4% cess.Income-tax Act (TDS on salary); Finance Act 2025/2026
Professional tax by stateState levy, usually up to INR 2,500 a year per employee (INR 200 a month, higher in some months). Not levied in Delhi, Haryana, Rajasthan and a few other states. Karnataka, Maharashtra, West Bengal, Tamil Nadu levy it.State professional tax Acts; constitutional cap Art. 276
Payslip and pay datesMonthly wages by the 7th of the next month. Payslips required. Payment by bank or digital means is standard. Deductions are limited to listed heads.Code on Wages 2019 ss.17 and 18
Payment of overtimeAt least 2 times the normal wage rate for hours over the normal day or 48-hour week.Code on Wages 2019 s.14
Working time
Daily and weekly hoursUp to 8 hours a day and 48 hours a week as the base limit. State Shops Acts may set 9 hours a day. Spread-over limit usually 12 hours.OSH Code 2020 ss.25 and 26
OvertimePaid at least 2x the normal wage rate. Quarterly overtime is capped (144 hours per quarter in the 2026 central rules). Employee consent is required.OSH Code 2020; Code on Wages s.14; central rules 2026
Rest breaksRest interval of at least 30 minutes after 5 hours of work (varies by state Shops Act).OSH Code 2020 s.25(1)(b); MoLE notification of 13 May 2026; states may set their own rules
Weekly restOne paid weekly day off. Many offices work 5 days with the second day agreed by contract.OSH Code 2020 s.25(1)(d)
Night work and womenWomen may work at night with their consent and with safety, transport and facilities set by the employer. Rules differ by state.OSH Code 2020 s.43
RecordsMuster roll, wage registers and attendance records must be kept. Digital records are accepted under the central rules.OSH Code 2020; Code on Wages s.43
Leave and absences
Annual (earned) leaveUnder the OSH Code, 1 day for every 20 days worked (about 18 days a year) is the national base. State Shops Acts often give 12 to 30 days. Carry forward is capped by state rule.OSH Code 2020 s.32; state Shops Acts
Sick leaveTypically 7 to 12 days of paid sick leave per year by state or contract. ESIC cash benefit applies only to insured staff (wages up to INR 21,000).State Shops Acts; ESI Act / SS Code
Maternity leave26 weeks for the first two children, 12 weeks from the third. Adoption and commissioning mothers get 12 weeks. Employer pays unless covered by ESIC.SS Code 2020 s.60 (Maternity Benefit Act as amended 2017)
Paternity leaveNo statutory paternity leave for private employers. Often 1 to 2 weeks by company policy.No statute; company policy
Casual and other leaveCasual leave, usually 7 to 12 days, comes from state Shops Acts or policy. Creche is required for 50 or more employees.State Shops Acts; SS Code s.67
Statutory minimum paid leave, in weeks
How India compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Mon 26 JanNational
Republic DayWed 4 Mar
HoliMost states
Sat 21 Mar
Id-ul-FitrMost states (moon dependent)
Thu 26 Mar
Ram NavamiMost states
Tue 31 Mar
Mahavir JayantiMost states
Fri 3 Apr
Good FridayMost states
Fri 1 May
Buddha PurnimaMost states (also Maharashtra Day, Labour Day in some)
Wed 27 May
Id-ul-Zuha (Bakrid)Most states (moon dependent)
Fri 26 Jun
MuharramMost states
Sat 15 AugNational
Independence DayWed 26 Aug
Milad-un-NabiMost states
Fri 4 Sep
JanmashtamiMost states
Fri 2 OctNational
Mahatma Gandhi JayantiTue 20 Oct
DussehraMost states
Sun 8 Nov
Diwali (Deepavali)Most states (falls on a Sunday)
Tue 24 Nov
Guru Nanak JayantiMost states
Fri 25 Dec
Christmas DayMost states
Only 3 days (26 Jan, 15 Aug, 2 Oct) are national holidays for all. The rest follow the central government gazetted list, which most states adopt in part; each state publishes its own list, adds local days (Pongal, Onam, Ganesh Chaturthi, Durga Puja) and may use different dates for moon-based festivals. Diwali and Independence Day fall on weekends in 2026.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
ProbationOften 15 days by contract
Under 1 year1 month typical
1 to 3 years1 month typical
3 to 5 years2 months typical
5 to 10 years3 months typical
Over 10 years3 months typical, senior roles up to 6 months
Workers in industrial establishments60 days notice of change in service conditions; 1 month notice for retrenchment or pay in lieu
No national statutory notice for office staff; it comes from the contract, standing orders or the state Shops Act. Industrial workers get 1 month retrenchment notice or pay in lieu. Employees usually give the same notice or pay in lieu.
Rules for ending an employment
Form and procedureWritten termination order with reasons is advised. For misconduct, a show-cause and inquiry follow standing orders. Natural justice applies to workers.IR Code 2020; standing orders
Valid groundsMisconduct, redundancy (retrenchment), incapacity, expiry of fixed term, or resignation. Termination without cause is generally allowed for non-workers on contract notice.IR Code 2020 s.2(zh) and Ch. IX
Severance formulaRetrenchment compensation is 15 days of average pay per completed year of service, with over 6 months counted as a year, plus a re-skilling fund of 15 days of last wages.IR Code 2020 s.70 and s.83
Government permissionLay-off, retrenchment and closure need prior government approval in establishments with 300 or more workers (threshold was 100). States can raise it.IR Code 2020 Ch. X, s.77
Special protectionsPregnant employees, workers on maternity leave, and protected union officials have additional protection. Discrimination-based dismissal is unlawful.SS Code 2020 s.60; IR Code 2020
Gratuity on exit15 days of last drawn basic per year of service after 5 years (1 year for fixed-term), paid within 30 days. Statutory cap INR 20 lakh.SS Code 2020, Chapter V (ss.53 to 58)
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Supreme Court control and integration tests, eg. Dharangadhara Chemical Works v. State of Saurashtra (1957) and Silver Jubilee Tailoring House v. Chief Inspector of Shops (1974). Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Written services agreement
State the scope, deliverables, fee, IP and independence. Avoid employee-like language (hours, leave, manager).
2Check actual practice
Courts look at conduct, not labels. Review working pattern, supervision and exclusivity.
3Invoices and tax
Contractor invoices with GST if registered and above the threshold. TDS under s.194J or 194C applies on payments.
4Escalate doubtful cases
If control or exclusivity is strong, hire as an employee. A local lawyer can review long engagements.
There is no binding ruling process. Disputes arise before Labour Courts, the EPFO or ESIC inspectors, which can assess contributions retroactively.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
Back PF
EPFO can assess contributions on a reclassified worker with interest and damages up to 100% in severe cases.
EPF & MP Act s.7A, 14B; SS Code Ch. III
Gratuity
If reclassified and 5 years served, gratuity becomes payable.
SS Code 2020 s.53
Penalties
Fines and prosecution for non-registration or non-payment under the Social Security Code.
SS Code 2020 Ch. XII (ss.133 to 138)
Tax exposure
Mis-classified payments can lead to TDS default interest and disallowance.
Income-tax Act ss.201 and 40(a)(ia)
Gig and platform workers, and contractor registration
Gig and platform workersCode on Social Security recognises gig and platform workers. Aggregators contribute 1% to 2% of turnover (capped at 5% of amounts paid to workers) to a fund. Registration on the portal is required within 45 days under the 2026 rules.SS Code 2020 ss.2(35), 2(61), 114; final central rules 2026
Contractor tax registrationIndividual contractors need a PAN. GST registration applies above INR 20 lakh turnover (INR 10 lakh in some states) for services. Foreign contractors paid from abroad: export of services rules apply.CGST Act 2017 s.22 and provisos for special category states
Contract labourUsing a labour contractor triggers licensing under the OSH Code for 50 or more contract workers. Principal employer is liable for wage and PF defaults.OSH Code 2020 Ch. XI
Work with independents in India, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
USD 25,000
Salary thresholdEmployment visa applicants must generally earn more than USD 25,000 a year, with exemptions (language teachers, cooks, NGO volunteers).
Up to 5 years
Visa validityInitial visa usually 1 year, extendable up to 5 years in India.
Work permits in practice
Main work permitEmployment visa (E visa) for skilled professionals. Not for clerical or routine jobs. Sponsor employer letter, contract and qualifications are needed.Ministry of Home Affairs visa manual
Salary thresholdAnnual salary above USD 25,000, with exemptions for some categories. Confirm current rule with the embassy.MHA visa manual; Indian embassy employment visa pages
Registration with FRROUnder the Immigration and Foreigners Act 2025 and its Rules, foreign nationals staying more than 180 days must register with the Foreigners Registration Officer (via e-FRRO) before the 180-day period ends.Immigration and Foreigners Act 2025 and Rules 2025 (amended June 2026: register before the 180-day stay expires)
FamilySpouse and children can get Entry (X) or dependent visas tied to the E visa.MHA visa manual
Business visitBusiness visa allows meetings and contracts but not employment or productive work. Do not use it to work.MHA visa manual
Employment of foreign nationals by Indian entityA local entity (or EOR) must be the sponsor. Payroll is Indian and social security may apply to international workers.Code on Social Security 2020; EPF Scheme 2026
Social security for foreign staffInternational workers are covered by EPF from day one with no wage ceiling, unless exempted by a social security agreement.EPF Scheme 2026 (carries over former para 83); High Court rulings conflict, Supreme Court yet to decide
SettlementNo direct route to permanent residence. Some seek OCI by descent or marriage.Citizenship Act 1955
Visa rules, processing and fees change; check with the Indian embassy or the e-FRRO portal before applying.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Labour Codes in force 21 Nov 2025Ministry of Labour notification; law firm alerts (KPMG, BDO)
Final central rules (May 2026)KPMG and BDO alerts dated May 2026
EPF wage ceiling INR 15,000SC order 5 Jan 2026
ESIC 3.25% and INR 21,000 ceilingESI Act / SS Code; not re-fetched
EDLI and admin charge ratesEPFO rates; not re-fetched
Gratuity (5 years, 1 year fixed-term)SS Code s.53; payroll guides
Gratuity cap INR 20 lakhPayment of Gratuity (Amendment) 2018; not reconfirmed for Code
Retrenchment compensation 15 daysIR Code 2020; law firm summaries
Thresholds 300 for standing orders and approvalIR Code 2020; payroll guide
Professional tax by stateState Acts; general knowledge
Minimum wage and floor wageBDO alert; national floor wage not yet notified (Sept 2026); state notices vary
Public holidays 2026Central government gazetted list (dfe.gov.in PDF); Eid dates moon dependent
Employment visa USD 25,000Embassy of India (employment visa)
Contractor tests (control, integration)Supreme Court case line (Dharangadhara 1957; Silver Jubilee Tailoring House 1974)
Gig worker social securitySS Code; KPMG alert 45 days registration
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- Final central rules under the four Labour Codes were notified in May 2026, but several states are still finalising their own rules. Check the rules of each state where you employ staff.
- EPF, EDLI and ESIC rates, charges and wage ceilings are set by EPFO and ESIC notifications; check their current circulars before running payroll.
- Professional tax slabs, minimum wage rates and holiday lists differ by state; check each state's current notices.
- Annual leave rules differ by type of workplace: the OSH Code covers factories and other covered establishments, while shops and offices often follow their state's Shops and Establishments Act.
Changelog
Oct 2026Guide rebuilt for India with 2026 figures and sources.India
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Malaysia, start to finish
FreelanX EOR is the legal employer in Malaysia. We issue the contract, run payroll and declarations, and you manage the work day to day.
1Request
Tell us the role, salary and start date.
2Contract
Malaysia employment contract and written terms prepared.
3Registrations
Tax, social security and insurance registrations.
4Start date
Your collaborator starts, on payroll from day one.
3–20 days in totalfor Asia-Pacific with FreelanX EOR. The exact time depends on how fast documents arrive.
Employment Act covers all employees
Since 1 Jan 2023 the RM 4,000 wage ceiling no longer limits coverage. Overtime, rest-day and termination benefit rules still target RM 4,000 or less, and manual work.
Peninsular only
The Employment Act applies in Peninsular Malaysia and Labuan. Sabah and Sarawak have their own labour ordinances (amended 2024), so check the state before using these rules.
45-hour week
Normal hours are capped at 45 per week (down from 48) and 8 per day. The cap must be reflected in the contract, even for staff who get no overtime pay.
Employer social costs
EPF 13% (12% above RM 5,000 monthly), SOCSO 1.75% and EIS 0.2% on wages up to RM 6,000, plus HRD Corp 1% for 10+ Malaysian employees in covered sectors.
Foreign employees now pay EPF
Since Oct 2025 EPF is mandatory for non-citizen employees, at 2% employer and 2% employee. Domestic workers, permanent residents and some existing members are treated differently.
Employment Pass thresholds rose
From 1 June 2026 new and renewal EP applications need RM 20,000 (Category I), RM 10,000 (II) or RM 5,000 (III) monthly, as announced by the immigration authorities.
Five mistakes to avoid
The ones we see most often when a team hires in Malaysia for the first time.
Assuming senior staff are outside the Act
Since 2023 every employee under a contract of service is covered for hours, leave, maternity and termination rules. Only overtime, rest-day pay and termination benefits keep the RM 4,000 limit.
Employment Act 1955 First Schedule, as amended by Act A1651 (2022)Using old SOCSO and EIS ceilings
The monthly wage ceiling for SOCSO and EIS rose from RM 5,000 to RM 6,000 from 1 Oct 2024. Payroll tables built before then under-contribute for higher earners.
PERKESO notice Oct 2024Skipping the foreign-employee EPF
Non-citizen employees (not permanent residents) have been under mandatory EPF since wages for Oct 2025. Missing it creates arrears and penalties on the employer.
Employees Provident Fund Act 1991, Third Schedule Part F (as reported)Dismissing without just cause and excuse
A dismissal can be challenged at the Industrial Court within 60 days. The employer must prove just cause. Misconduct dismissals without a domestic inquiry usually fail.
Industrial Relations Act 1967 s.20Treating a long-term freelancer as a contractor
Courts and PERKESO look at substance, not the label. Fixed monthly pay, set hours and integration into the team point to an employee, with back-payment exposure.
Employment Act 1955 s.2; Employees' Social Security Act 1969 s.2Contract rules that matter
Form of contractA contract of service can be oral or written, but a written contract is advised and normal. Terms cannot go below the Employment Act minimums. Foreign hires need Director General of Labour approval.Employment Act 1955 s.10 (written contract); s.60K (foreign employees)
ProbationNot set by statute. Typically 3 to 6 months, set in the contract with notice terms and evaluation method. A probationer still needs just cause and excuse for dismissal.Industrial Relations Act 1967 s.20; market practice
Fixed-term contractsAllowed with no statutory cap on length or renewals found. Repeated renewals for permanent work risk being treated as continuing employment. Check before using rolling terms.Industrial Court case law
Notice of termsSalary, hours, leave and notice terms should be in writing. The hours clause must reflect the 45-hour weekly cap for all staff, even those with no overtime pay.Employment Act 1955 s.60A as amended 2022
Flexible workingEmployees may apply in writing to change hours, days or place of work. The employer must answer in writing within 60 days and give reasons if it refuses.Employment Act 1955 s.60P
Non-competePost-employment non-competes are generally unenforceable under the Contracts Act (restraint of trade). Confidentiality and non-solicit terms are used instead. Confirm with local counsel.Contracts Act 1950 s.28
Collective agreementsWhere a recognised union exists, a collective agreement can set higher terms and wins over the contract. Most professional roles are non-unionised.Industrial Relations Act 1967
Pregnancy protectionA pregnant employee, or one with a pregnancy-related illness, cannot be terminated for that reason. Other grounds such as misconduct or redundancy remain open.Employment Act 1955 s.37 as amended 2022
Employer cost simulator
Pick a salary. Figures use the current rates and ceilings for a standard professional salary. Estimates, not a quote.
Gross yearly salary (MYR)
Employer share of statutory contributions
RM 8,970
14.9% of gross salary
Estimated total employer cost
RM 68,970 – RM 69,270
Gross salary + contributions + other employer costs (RM 0 to RM 300)
EPF (KWSP)
13% if monthly wages are RM 5,000 or less, 12% above. No ceiling. Citizens and permanent residents under 60. Non-citizen employees: 2% (since Oct 2025).
RM 7,200SOCSO (PERKESO) employment injury and invalidity
Employee under 60. Ceiling RM 6,000 monthly since Oct 2024. Table-based, so slightly under 1.75% at the cap. Age 60+ and foreign workers: 1.25% injury scheme only.
RM 1,050EIS (Employment Insurance)
Ages 18 to 60, ceiling RM 6,000 monthly. Foreign workers are not covered.
RM 120HRD Corp levy
Compulsory at 1% for 10+ Malaysian employees in covered sectors (manufacturing, services, mining). 0.5% voluntary for 5 to 9 employees. Not all roles or sectors apply.
RM 600Employer share of statutory contributions
RM 13,104
14.6% of gross salary
Estimated total employer cost
RM 103,104 – RM 103,554
Gross salary + contributions + other employer costs (RM 0 to RM 450)
EPF (KWSP)
13% if monthly wages are RM 5,000 or less, 12% above. No ceiling. Citizens and permanent residents under 60. Non-citizen employees: 2% (since Oct 2025).
RM 10,800SOCSO (PERKESO) employment injury and invalidity
Employee under 60. Ceiling RM 6,000 monthly since Oct 2024. Table-based, so slightly under 1.75% at the cap. Age 60+ and foreign workers: 1.25% injury scheme only.
RM 1,260EIS (Employment Insurance)
Ages 18 to 60, ceiling RM 6,000 monthly. Foreign workers are not covered.
RM 144HRD Corp levy
Compulsory at 1% for 10+ Malaysian employees in covered sectors (manufacturing, services, mining). 0.5% voluntary for 5 to 9 employees. Not all roles or sectors apply.
RM 900Employer share of statutory contributions
RM 17,004
14.2% of gross salary
Estimated total employer cost
RM 137,004 – RM 137,604
Gross salary + contributions + other employer costs (RM 0 to RM 600)
EPF (KWSP)
13% if monthly wages are RM 5,000 or less, 12% above. No ceiling. Citizens and permanent residents under 60. Non-citizen employees: 2% (since Oct 2025).
RM 14,400SOCSO (PERKESO) employment injury and invalidity
Employee under 60. Ceiling RM 6,000 monthly since Oct 2024. Table-based, so slightly under 1.75% at the cap. Age 60+ and foreign workers: 1.25% injury scheme only.
RM 1,260EIS (Employment Insurance)
Ages 18 to 60, ceiling RM 6,000 monthly. Foreign workers are not covered.
RM 144HRD Corp levy
Compulsory at 1% for 10+ Malaysian employees in covered sectors (manufacturing, services, mining). 0.5% voluntary for 5 to 9 employees. Not all roles or sectors apply.
RM 1,200Employer share of statutory contributions
RM 24,804
13.8% of gross salary
Estimated total employer cost
RM 204,804 – RM 205,704
Gross salary + contributions + other employer costs (RM 0 to RM 900)
EPF (KWSP)
13% if monthly wages are RM 5,000 or less, 12% above. No ceiling. Citizens and permanent residents under 60. Non-citizen employees: 2% (since Oct 2025).
RM 21,600SOCSO (PERKESO) employment injury and invalidity
Employee under 60. Ceiling RM 6,000 monthly since Oct 2024. Table-based, so slightly under 1.75% at the cap. Age 60+ and foreign workers: 1.25% injury scheme only.
RM 1,260EIS (Employment Insurance)
Ages 18 to 60, ceiling RM 6,000 monthly. Foreign workers are not covered.
RM 144HRD Corp levy
Compulsory at 1% for 10+ Malaysian employees in covered sectors (manufacturing, services, mining). 0.5% voluntary for 5 to 9 employees. Not all roles or sectors apply.
RM 1,800Employer share of statutory contributions
RM 32,604
13.6% of gross salary
Estimated total employer cost
RM 272,604 – RM 273,804
Gross salary + contributions + other employer costs (RM 0 to RM 1,200)
EPF (KWSP)
13% if monthly wages are RM 5,000 or less, 12% above. No ceiling. Citizens and permanent residents under 60. Non-citizen employees: 2% (since Oct 2025).
RM 28,800SOCSO (PERKESO) employment injury and invalidity
Employee under 60. Ceiling RM 6,000 monthly since Oct 2024. Table-based, so slightly under 1.75% at the cap. Age 60+ and foreign workers: 1.25% injury scheme only.
RM 1,260EIS (Employment Insurance)
Ages 18 to 60, ceiling RM 6,000 monthly. Foreign workers are not covered.
RM 144HRD Corp levy
Compulsory at 1% for 10+ Malaysian employees in covered sectors (manufacturing, services, mining). 0.5% voluntary for 5 to 9 employees. Not all roles or sectors apply.
RM 2,400Small allowance for items not in the table, such as group medical cover or workplace insurance. Not statutory, so budget it only if the employer offers it.
Pay and contribution rules
Minimum wageRM 1,700 per month basic pay (about RM 8.72 per hour), no exemptions since 1 Aug 2025. It applies to non-citizens too; domestic workers are outside the order. Fines up to RM 10,000 per worker.Minimum Wages Order 2024; KESUMA statement July 2025
2026 wage statusNo change in force for 2026. In Aug 2026 the government said it was reviewing RM 1,700; no new rate or date announced. Treat RM 1,700 as current and watch for an order.National Wages Consultative Council Act 2011 s.25; press Aug 2026
13th month and bonusNo statutory 13th month, 14th month or profit sharing. Bonuses are contractual or discretionary. Many employers pay one month as custom, so state it clearly in the contract.Employment Act 1955 (no provision found)
Income tax withholdingEmployers deduct monthly tax (PCB) from salary. Residents pay progressive rates up to 30%; non-residents (under 182 days) pay a flat 30%. Form EA is issued to staff by end of February.Income Tax Act 1967; LHDN guidance
Employee deductionsEmployees pay EPF 11%, SOCSO 0.5% and EIS 0.2% (SOCSO and EIS up to RM 6,000). Foreign employees pay 2% EPF; SOCSO and EIS differ for them.EPF Act 1991; ESSA 1969; EIS Act 2017
Payment timingWages must be paid within 7 days after the end of the wage period. Final pay, accrued leave and any termination benefit are due within 7 days of the last working day.Employment Act 1955 s.19; Termination and Lay-Off Benefits Regulations 1980 reg.11
Payroll filingEPF, SOCSO, EIS, PCB and HRD Corp (if registered) are paid by the 15th of the following month. Employer files Form E yearly and issues payslips each month.EPF Act 1991; ESSA 1969; EIS Act 2017; Income Tax (Deduction from Remuneration) Rules 1994
Working time
Normal hoursMaximum 45 hours per week and 8 hours per day. Work beyond that is overtime. The weekly cap was cut from 48 to 45 hours from 1 Jan 2023.Employment Act 1955 s.60A as amended 2022
Overtime payAt least 1.5x hourly pay on a normal day, 2x on a rest day, 3x on a public holiday. Applies to staff earning RM 4,000 or less and manual workers. Others are set by contract.Employment Act 1955 s.60A, First Schedule; Employment (Limitation of Overtime Work) Regulations 1980
Overtime limitOvertime is capped at 104 hours per month for covered staff.Employment (Limitation of Overtime Work) Regulations 1980
BreaksNo more than 5 consecutive hours of work without a break of at least 30 minutes.Employment Act 1955 s.60A(1)
Rest dayOne rest day per week. Work on a rest day by covered staff earns 1x to 2x daily wages (by hours worked) for normal hours, plus overtime rates for extra hours.Employment Act 1955 s.59, s.60
Public holiday workCovered staff who work a public holiday get 2 days' wages on top of holiday pay, and 3x hourly pay for overtime. A holiday that falls on a rest day moves to the next working day.Employment Act 1955 s.60D
Leave and absences
Annual leave8 days (under 2 years), 12 days (2 to under 5 years), 16 days (5 years and over). Must be taken within 12 months after each service year or it is lost. Unused leave is paid on exit.Employment Act 1955 s.60E
Sick leave14 days (under 2 years), 18 days (2 to under 5 years), 22 days (5 years and over), plus up to 60 days if hospitalised. One official page lists 16 for the middle band; 18 is used here.Employment Act 1955 s.60F
Maternity98 consecutive days, paid at ordinary rate if she worked 90 days in the 9 months before birth and has fewer than 5 surviving children. Starts up to 30 days before birth.Employment Act 1955 s.37
Paternity7 consecutive days at ordinary pay for married male employees, up to 5 births. Needs 12 months with the employer and notice 30 days before the due date or soon after birth.Employment Act 1955 s.60FA
OtherUnused-leave payout at exit uses monthly wage divided by 26 as the daily rate. Hospitalisation leave is on top of the normal sick leave.Employment Act 1955 s.60E, s.60F
Statutory minimum paid leave, in weeks
How Malaysia compares with the other markets in this guide, for a 5-day week. Each country has its own verified figure.
Singapore1.4 weeks
Hong Kong SAR1.4 weeks
Malaysia1.6 weeks
Japan2 weeks
South Korea3 weeks
India3.6 weeks
Australia4 weeks
Public holidays 2026
National days plus regional days. Hover a dot to see its name.
JFMAMJJASOND
Thu 1 Jan
New Year's DayMost states (employer may pick)
Sun 1 Feb
Federal Territory DayKuala Lumpur, Putrajaya, Labuan; replaced Mon 2 Feb (falls on Sunday)
Sun 1 Feb
ThaipusamGazetted in several states; optional elsewhere; private-sector replacement on next working day
Tue 17 FebNational
Chinese New Year (day 1)Wed 18 FebNational
Chinese New Year (day 2)Sat 7 Mar
Nuzul Al-QuranSome states only
Fri 20 Mar
Hari Raya Aidilfitri (additional holiday)Declared extra holiday
Sat 21 MarNational
Hari Raya Aidilfitri (day 1); set by moon sighting
Sun 22 MarNational
Hari Raya Aidilfitri (day 2); Sunday, replaced Mon 23 Mar
Fri 1 MayNational
Labour Day(fixed by law)
Wed 27 MayNational
Hari Raya Haji (Aidiladha); set by moon sighting
Sun 31 MayNational
Wesak Day; Sunday, replaced Tue 2 Jun
Mon 1 JunNational
Yang di-Pertuan Agong's Birthday(fixed by law)
Wed 17 JunNational
Awal MuharramTue 25 AugNational
Maulidur RasulMon 31 AugNational
National Day (Merdeka)(fixed by law)
Wed 16 SepNational
Malaysia Day(fixed by law)
Sun 8 Nov
DeepavaliMost states; Sunday, replaced Mon 9 Nov
Fri 25 DecNational
Christmas DayEmployers must give 11 paid holidays: 5 fixed by law (National Day, Agong's Birthday, Ruler's Birthday or Federal Territory Day, Labour Day, Malaysia Day) and 6 chosen and notified before the year. State holidays differ. Islamic dates depend on moon sighting.
Notice periods set by the employer
Hover a row. Bars are drawn to scale.
ProbationSet by contract; often 1 to 4 weeks. Confirm in the contract.
Under 2 years4 weeks
2 to under 5 years6 weeks
5 years and over8 weeks
Contract longer than statuteContracts commonly set 1 to 3 months; the longer term applies
Statutory minimums apply when the contract is silent; contracts may set longer notice, and either side can pay in lieu. Either side may end without notice for misconduct or breach. Employee notice follows the same ladder unless the contract says otherwise.
Rules for ending an employment
Form and noticeTermination needs notice under the contract, or the statutory minimum (4 / 6 / 8 weeks), or pay in lieu. Written notice is advised for proof.Employment Act 1955 s.12
Valid groundsDismissal needs just cause and excuse: misconduct, poor performance after fair chances, or genuine redundancy. The employer carries the burden of proof.Industrial Relations Act 1967 s.20
ProcessFor misconduct: written show-cause letter, a domestic inquiry hearing, a finding on the evidence, then a penalty. Skipping the inquiry weighs against the employer.Industrial Court practice (case law)
Termination benefitsAt least 10 days' wages per year of service (under 2 years), 15 days (2 to under 5) and 20 days (5+), after 12 months of service. Statutory scope may stop at RM 4,000 or less per month; check contract.Employment (Termination and Lay-Off Benefits) Regulations 1980 reg.3, reg.6
Employee remedyA dismissed employee files a representation within 60 days. The Industrial Court may order reinstatement or compensation in lieu. Back wages are capped at 24 months.Industrial Relations Act 1967 s.20, s.30; Second Schedule
Special rulesPregnancy cannot be the reason for dismissal. Foreign employee terminations must be reported to the Labour Department within 30 days; absconding within 14 days.Employment Act 1955 s.37; Employment Act amendments 2022
With FreelanX EOR, ending an employment is run by FreelanX EOR under local law, and the process is agreed with you before any step.
Six signals checked by the authorities
No single signal decides. Authorities and courts weigh the whole picture and look at how the work is really done, not only at the contract.
Source for the criteria: Substance-over-form test under Employment Act 1955 s.2 (contract of service v contract for services); courts and PERKESO apply control, integration and economic reality tests. Confirm with a local lawyer for a specific case.
Getting certainty on the status
How to check the status in advance, or what happens in an audit.
1Test the relationship
Score the engagement against the six criteria before signing. Note where facts and contract wording differ.
2Use a services agreement
Define deliverables, price per output, no set hours, right to substitute, own tools and freedom to take other clients.
3Check registration
Ask for SSM business registration and tax number. This supports independence but does not decide it on audit.
4Review each year
Re-test when scope, hours or exclusivity change. Move the person to a payroll contract if the role has become permanent.
There is no binding ruling or pre-approval process found for classification. PERKESO or the Labour Department decide on audit or complaint.
What a reclassification can cost
Back-payment of contributions, penalties and, in some countries, personal liability.
EPF + SOCSO
Reclassified staff trigger back contributions to EPF, SOCSO and EIS from the start of the engagement, with late charges.
EPF Act 1991; ESSA 1969 (late payment charges apply)
Leave and benefits
Accrued annual leave, sick leave rights and termination benefits (10 to 20 days per year) can be claimed after reclassification.
Employment Act 1955; Termination and Lay-Off Benefits Regulations 1980
24 months
A contractor who proves employee status can claim unfair dismissal at the Industrial Court, with back wages up to 24 months.
Industrial Relations Act 1967 s.20; Second Schedule
Director liability
Failure to pay statutory contributions can carry fines and prison for the company and its directors. Under the EPF Act, up to 3 years' jail, a RM10,000 fine, or both.
EPF Act 1991 ss.43 and 46; ESSA 1969
Who registers and pays as self-employed
TaxA genuine contractor files their own income tax with LHDN and the client does not withhold PCB. Payments to non-residents may attract withholding tax; confirm case by case.Income Tax Act 1967 s.107A (10% + 3% on services performed in Malaysia by non-residents)
Social securityGenuine self-employed persons are not covered through the client. They may register and contribute to PERKESO's Self-Employment Social Security Scheme (SKSPS) themselves.Self-Employment Social Security Act 2017
Work with independents in Malaysia, with the paperwork handled
FreelanX Contractors: from $19 per month. Contractor of record from $279.
Work permits: key figures
Where a figure is from a past year, the text says so.
RM 20,000
Employment Pass Category I (from 1 June 2026)Monthly base salary. Category II is RM 10,000 to 19,999 and Category III is RM 5,000 to 9,999. Floor was RM 10,000 / 5,000 / 3,000 before.
USD 24,000
DE Rantau Nomad PassMinimum yearly income for remote workers and freelancers. 12 months, renewable once. Programme fee RM 1,000 plus RM 500 per dependant.
Work permits in practice
Employment Pass (EP)Main work pass for foreign professionals sponsored by a Malaysian company. Three categories by monthly base salary. The employer applies; the Expatriate Services Division of immigration handles it.Immigration Dept / ESD guidelines
2026 thresholdsFrom 1 June 2026, new and renewal applications need RM 20,000+ (I), RM 10,000 to 19,999 (II), RM 5,000 to 9,999 (III). Applications filed before that date are assessed on old rules.MOHA announcement 11 Jan 2026; reported by law firms
Category III and special casesCategory III roles in global business services needing near-native language skills keep the old threshold until 1 June 2027, assessed by MDEC. Manufacturing and related services have a higher Category III floor of RM 7,000.MDEC Expats Service Centre announcement (May 2026)
MDEC and non-MDECThe Immigration Department's Expatriate Services Division announced the new thresholds on 15 January 2026 for all Employment Pass applications, not only MDEC-registered companies.MOHA announcement 11 Jan 2026; ESD announcement 15 Jan 2026
Duration and dependantsReports say maximum EP duration will be capped (up to 10 years for I and II, 5 for III) and Category III dependants allowed. Details await guidance. Do not rely on it yet.MOHA statement, Jan 2026 (reported by Malay Mail)
DE Rantau Nomad PassFor remote workers and freelancers with foreign clients, about USD 24,000 yearly income, 3 months of prior work history, valid medical insurance. Cannot work for Malaysian clients.MDEC DE Rantau programme
Foreign employee obligationsEmployers need Director General of Labour approval before hiring foreign employees. Foreign employees are covered by the minimum wage, 2% EPF and SOCSO injury cover.Employment Act 1955 as amended 2022; EPF Third Schedule Part F
EU nationalsNo free movement right. EU citizens need a work pass such as the EP to work, even when they can enter visa-free as visitors.Immigration Act 1959/63 (general rule)
Immigration rules change often. Confirm the current EP guidelines with the Expatriate Services Division before filing.
Main sources
The law or official source behind each key point, as of October 2026.
TopicSource
Employment Act coverage and 45-hour weekEmployment Act 1955 amendments; malaysia.gov.my labour law page; law firm summaries
Minimum wage RM 1,700KESUMA statement July 2025 via press; payroll guides
Minimum wage 2026 statusPress Aug 2026: review under way, no new rate
EPF rates (13%/12%)Payroll guides; EPF Third Schedule
Foreign worker EPF 2%Payroll guides (Oct 2025 start)
SOCSO 1.75% and EIS 0.2%, ceiling RM 6,000Law firm note on Oct 2024 change; payroll guides
HRD Corp levy 0.5%/1%MIDA page; payroll guide
Annual leave 8/12/16 and sick 14/18/22Payroll guide with section numbers; malaysia.gov.my (lists 16 for sick leave middle band)
Maternity 98 days, paternity 7 daysmalaysia.gov.my labour law page; payroll guide
Notice periods 4/6/8 weeksTwo payroll/HR guides
Termination benefits 10/15/20 daysJTKSM FAQ and Regulations 1980 PDF
Public holidays 2026News on gazette and holiday list; HR news on Raya
EP categories and 1 June 2026 thresholdsBaker McKenzie; People Matters; EIG Law
DE Rantau income and feesMFCCI page (fees); Altery (USD 24,000)
Industrial Relations Act dismissal and 24-month back wagesLaw and HR articles; Skrine note
General information, updated monthly. It is not legal advice: for a decision, talk to us or to your counsel.
What to watch
Rules that are changing, or that vary by region or sector.
- Statutory termination and lay-off benefits, overtime and rest-day pay rules apply only to employees earning RM 4,000 a month or less and to manual workers; others rely on their contract.
- Employment Pass rules changed in 2026, starting with higher salary thresholds from 1 June 2026. Check the Immigration Department's Expatriate Services Division guidelines on pass duration, dependants and sector rules before filing.
- Some public holidays apply only in certain states, and Hari Raya dates follow the official gazette and moon sighting. Check the holiday list for the state where the employee works.
Changelog
Oct 2026Guide rebuilt for Malaysia with 2026 figures and sources.Malaysia
Next reviewJanuary 2027, when new yearly rates are published.Planned
Hire in Australia with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributionsA$9,600
Estimated totalA$92,000–A$96,800
Statutory contributionsA$12,000
Estimated totalA$115,000–A$121,000
Statutory contributionsA$15,600
Estimated totalA$149,500–A$157,300
Statutory contributionsA$19,200
Estimated totalA$184,000–A$193,600
Statutory contributionsA$24,000
Estimated totalA$230,000–A$242,000
Gross yearly salary · estimate
A question on Australia?
We reply within 24 working hours.
Hire in Japan with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributions¥924,000
Estimated total¥6,939,000–¥6,960,000
Statutory contributions¥1,212,980
Estimated total¥9,232,980–¥9,260,980
Statutory contributions¥1,330,780
Estimated total¥11,355,780–¥11,390,780
Statutory contributions¥1,448,580
Estimated total¥13,478,580–¥13,520,580
Statutory contributions¥1,625,280
Estimated total¥16,662,780–¥16,715,280
Gross yearly salary · estimate
A question on Japan?
We reply within 24 working hours.
Hire in South Korea with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributions₩5,718,700
Estimated total₩59,868,700–₩60,018,700
Statutory contributions₩7,434,310
Estimated total₩77,829,310–₩78,024,310
Statutory contributions₩9,032,120
Estimated total₩95,672,120–₩95,912,120
Statutory contributions₩10,369,600
Estimated total₩118,669,600–₩118,969,600
Statutory contributions₩11,707,080
Estimated total₩141,667,080–₩142,027,080
Gross yearly salary · estimate
A question on South Korea?
We reply within 24 working hours.
Hire in Singapore with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributionsS$10,335
Estimated totalS$70,335–S$72,135
Statutory contributionsS$15,435
Estimated totalS$105,435–S$108,135
Statutory contributionsS$17,475
Estimated totalS$137,475–S$141,075
Statutory contributionsS$17,475
Estimated totalS$177,475–S$182,275
Statutory contributionsS$17,475
Estimated totalS$217,475–S$223,475
Gross yearly salary · estimate
A question on Singapore?
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Hire in Hong Kong SAR with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributionsHK$18,000
Estimated totalHK$378,720–HK$381,600
Statutory contributionsHK$18,000
Estimated totalHK$559,080–HK$563,400
Statutory contributionsHK$18,000
Estimated totalHK$739,440–HK$745,200
Statutory contributionsHK$18,000
Estimated totalHK$979,920–HK$987,600
Statutory contributionsHK$18,000
Estimated totalHK$1,220,400–HK$1,230,000
Gross yearly salary · estimate
A question on Hong Kong SAR?
We reply within 24 working hours.
Hire in India with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributions₹59,400
Estimated total₹1,566,900–₹1,589,400
Statutory contributions₹83,400
Estimated total₹2,595,900–₹2,633,400
Statutory contributions₹107,400
Estimated total₹3,624,900–₹3,677,400
Statutory contributions₹131,400
Estimated total₹4,653,900–₹4,721,400
Statutory contributions₹167,400
Estimated total₹6,197,400–₹6,287,400
Gross yearly salary · estimate
A question on India?
We reply within 24 working hours.
Hire in Malaysia with FreelanX EOR
From $499 per employee per month, billed yearly ($549 monthly). Onboarding in 3–20 days.
Employer cost
Statutory contributionsRM 8,970
Estimated totalRM 68,970–RM 69,270
Statutory contributionsRM 13,104
Estimated totalRM 103,104–RM 103,554
Statutory contributionsRM 17,004
Estimated totalRM 137,004–RM 137,604
Statutory contributionsRM 24,804
Estimated totalRM 204,804–RM 205,704
Statutory contributionsRM 32,604
Estimated totalRM 272,604–RM 273,804
Gross yearly salary · estimate
A question on Malaysia?
We reply within 24 working hours.