Second Talent Finds 6-Fold Gap in Asian Employer Costs as China Hits 31% and Thailand 5%
Updated
Updated · techrseries.com · Jul 22
Second Talent Finds 6-Fold Gap in Asian Employer Costs as China Hits 31% and Thailand 5%
1 articles · Updated · techrseries.com · Jul 22
Summary
Employer social contributions across nine Asian markets range from about 5% of payroll in Thailand to roughly 31% in China, according to Second Talent’s review, underscoring how sharply regional hiring costs can diverge.
The study says the gap extends beyond payroll taxes: the Philippines mandates 13th-month pay, Indonesia requires THR before Eid, while Vietnam, Malaysia, Singapore, Hong Kong and Taiwan treat year-end bonuses as customary rather than statutory.
Termination rules also vary widely, with Thailand’s tenure-based severance reaching 400 days of pay, Indonesia’s formula potentially exceeding a year of compensation, and Singapore imposing no statutory severance requirement.
For market entry, Second Talent says setting up a local entity usually takes 3 to 6 months and winding one down another 6 to 12 months, versus 5 to 10 business days for onboarding through an employer-of-record model.
The report argues a single Asia-wide employment policy is unworkable because notice periods, probation limits and termination rules remain nationally defined, shaping how companies budget and structure regional expansion.