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Wages, taxes and beyond: Deel’s 10 useful things to know when hiring across APAC

Hiring internationally can solve a skills gap quickly. But compliance – pay minimums, payroll add-ons, leave entitlements, termination rules – can be where businesses come unstuck. Here’s what the data says about hiring across Australia, Singapore and the broader region.
young woman in asia in front of bright lights
Hiring across APAC can accelerate your growth – but it has to be done right. Image: AdobeStock

International hiring has become a standard tool for fast-growing businesses. Sourcing talent across borders is rarely the hard part. The challenge often lies in navigating compliance requirements, which can differ significantly from country to country.

We’ve delved into Deel’s APAC Cross-Border Hiring Playbook (download for free here), to bring you 10 practical things to understand before you hire.

1. There is no single APAC minimum wage

Pay floors vary significantly across the region. Australia sets a national minimum wage of A$24.10 per hour (A$916 per week). South Korea’s minimum is KRW 10,030 per hour. Vietnam and Indonesia use location-based rates – Vietnam ranges from VND 3.45m to VND 4.96m per month depending on region; Jakarta’s rate sits at IDR 5,067,381 per month. Singapore has no national minimum wage, though work pass salary thresholds effectively set a floor for sponsored hires.

2. Payroll on-costs can be the biggest surprise line item

Founders often budget for base salary but underestimate employer-side contributions. In Australia, superannuation sits at 12% for 2025-26, with payroll tax varying by state and workers’ compensation on top. Singapore has no payroll tax, but employers contribute around 17% to CPF (Singapore’s mandatory social security savings scheme) for local employees. Japan carries a stack of mandatory insurance obligations that can add up quickly.

3. Standard hours look similar; overtime rules do not

An eight-hour day and 40-hour week is the common standard across Japan, China, South Korea, Vietnam and others. Overtime is where the rules start to diverge sharply. China caps overtime at three hours per day and 36 hours per month, with higher rates for weekends and public holidays. South Korea caps overtime at 12 hours per week, paid at 150% of average salary.

4. Onboarding timelines are shorter than many assume

With paperwork ready, several markets allow fast onboarding. South Korea can be as quick as two business days. Japan and Vietnam both sit at around three days. China takes longer – around seven business days – largely due to social insurance and housing fund registrations.

5. Parental leave policies vary widely

A single global leave policy will not hold across APAC. Australia provides 24 weeks of government-funded paid parental leave for eligible employees, plus up to 24 months unpaid. Singapore provides 16 weeks of paid maternity leave and four weeks’ paternity leave, with costs shared between employer and social security. Vietnam provides six months of paid maternity leave via social security. Building this into any global HR template from the start can help avoid any expensive surprises later.

6. ‘No minimum wage’ does not mean no minimums

Singapore’s lack of a national minimum wage is sometimes misread as a simple hiring environment. In practice, work pass salary thresholds set a de facto floor. An Employment Pass requires a minimum salary of S$5,000 – or S$5,500 in financial services. This means the hiring constraint shifts from “what’s the wage floor?” to “does this candidate qualify under immigration rules?”

7. Termination costs vary from light to significant

Singapore has no statutory severance requirement, with notice periods based on tenure. South Korea requires 30 days’ paid salary per year of service. China’s termination process involves multiple steps, with severance that depends on contract type and reason for exit. Everyone exits eventually, so factoring exit costs into the true cost of any hire can give you a clearer picture.

8. An Employer of Record can accelerate a compliant hire

Without a local entity, an Employer of Record (EOR) employs the worker on your behalf and manages contracts, payroll, statutory contributions and local compliance, letting you hire in a new market without waiting for entity paperwork to clear. Deel’s EOR service is built for exactly this purpose.

9. EOR is not a universal workaround

There are important regional limits to consider. Thailand may restrict EOR use to Thai citizens. In Singapore, the Ministry of Manpower has clarified that EOR services cannot apply for work passes for foreign employees working for overseas customers. In those cases, local incorporation may be the only path forward for sponsoring foreign hires.

10. Taxable presence can be triggered faster than expected

Even when hiring through an EOR, staff who are closing deals or generating local revenue can quickly establish a taxable presence. That’s why some businesses start with support, engineering or delivery roles in a new market and hold off on sales hiring until they’re ready to set up a formal entity.

The bottom line

The headline rules across APAC may look similar, but payroll add-ons, overtime, leave entitlements, termination obligations, immigration thresholds and tax exposure are where unprepared businesses can lose time and money. Getting compliance before you hire is usually cheaper than fixing it afterwards.

Expanding in APAC? Download Deel’s full APAC Cross-Border Hiring Playbook here.