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Summary: On top of salary, statutory employer costs in Asia range from under 4% to over 18%, depending on the market and the employee. In our worked examples, you'd add about 3.75% in Hong Kong for someone earning HK$40,000 a month, about 16% in Malaysia and 17.2% in Singapore for a local employee, and 18.3% in the Philippines once you include the mandatory 13th-month pay. Salaries, benefits and hiring costs come on top of that.
When you're budgeting for your first hires in a new market, salary is the number everyone focuses on. But every market in Asia adds its own layer of employer costs: retirement contributions, social security, training levies, mandatory insurance and, in some places, an extra month of pay. Those costs vary a lot, and they can shift your budget more than you might expect.
To help you plan with confidence, we've broken down what employers pay in Singapore, Hong Kong, Malaysia and the Philippines, with worked examples for each market. Every rate links to the official government source, and we've flagged the changes coming in 2027.
Key takeaways
- Hong Kong has the lightest statutory costs: employers pay 5% into MPF, capped at HK$1,500 a month.
- Singapore depends on who you hire: employer CPF of up to 17% applies to citizens and permanent residents only, while S Pass holders carry a SGD 650 monthly levy.
- Malaysia adds about 16% for local employees: EPF, SOCSO and EIS and the HRD levy. Foreign employees now contribute to EPF too, at 2%.
- The Philippines adds the most in our examples, mostly because of the mandatory 13th-month pay.
- 2027 brings higher costs in Singapore: employer CPF rises for employees aged above 55 to 65, and work pass minimum salaries go up.
What does it cost to employ someone in Asia on top of salary?
Employer costs in Asia usually fall into four layers. Knowing each one helps you build a budget that holds up once your first payroll runs.
- Statutory contributions: mandatory payments into retirement, health and social security schemes, usually a percentage of salary.
- Levies: charges tied to training funds or to employing foreign workers.
- Mandatory insurance: most commonly, cover for work-related injuries.
- Statutory bonuses: extra pay required by law, such as the Philippines' 13th-month pay.
Here's how those layers look in each market.
How much does it cost to employ someone in Singapore?
In Singapore, your costs depend heavily on who you hire. The main employer cost is the Central Provident Fund (CPF), Singapore's savings scheme for retirement, housing and healthcare. CPF applies only to citizens and permanent residents (PRs), so foreign employees on work passes carry very different costs.
What is the employer CPF contribution rate in Singapore?
For employees aged 55 and below, the employer CPF contribution is 17% of monthly wages, applied to ordinary wages up to SGD 8,000 a month. The rate steps down for older employees: 16% for those aged above 55 to 60, 12.5% for above 60 to 65, 9% for above 65 to 70, and 7.5% above 70.
On top of CPF, you'll pay a few other costs:
- Skills Development Levy (SDL): 0.25% of monthly wages for every employee, including foreign employees, with a minimum of SGD 2 and a maximum of SGD 11.25 a month.
- S Pass levy: a flat SGD 650 a month for each S Pass holder. Employment Pass holders carry no levy.
- Work injury compensation insurance: required for all manual workers, and non-manual workers earning SGD 2,600 or less a month.
The difference between these three columns is worth noting when you plan your team. A Singaporean hire on SGD 6,000 costs you about SGD 1,000 more a month than an Employment Pass holder on the same salary, though Employment Pass holders need to meet salary and eligibility requirements of their own.
How much does it cost to employ someone in Hong Kong?
Hong Kong has the lightest statutory costs of the four markets. The main one is the Mandatory Provident Fund (MPF), Hong Kong's retirement scheme. You contribute 5% of the employee's relevant income, up to a maximum of HK$1,500 a month. Because of that cap, the percentage you pay falls as salaries rise above HK$30,000.
You'll also need employees' compensation insurance for every employee, whether full-time, part-time, permanent or temporary. Premiums vary by insurer and by the type of work, so it's worth getting quotes early.
How much does it cost to employ someone in Malaysia?
Malaysia has four main employer costs for local employees. Together, they add about 16% on top of salary for someone earning RM5,000 a month.
What is the EPF employer contribution in Malaysia?
The Employees Provident Fund (EPF) is Malaysia's retirement fund. For Malaysian employees under 60, the employer EPF contribution is 13% for wages of RM5,000 or less, and 12% above RM5,000. Since October 2025, foreign employees also contribute to EPF, at 2% each for the employer and employee.
How much are SOCSO and EIS contributions?
The Social Security Organisation (SOCSO, or PERKESO) runs two schemes you'll contribute to. SOCSO covers work injuries and invalidity, with an employer share of about 1.75% of wages. The Employment Insurance System (EIS) supports employees who lose their jobs, with an employer share of 0.2%. Both apply to wages up to RM6,000 a month. PERKESO sets the exact amounts by wage band in its SOCSO contribution table and EIS contribution table.
Foreign employees are covered by SOCSO's Employment Injury Scheme rather than the full local scheme.
What is the HRD levy?
The HRD levy funds employee training through HRD Corp. It's 1% of monthly wages for employers with 10 or more Malaysian employees, and you can claim training costs back against the levy you've paid.
How much does it cost to employ someone in the Philippines?
The Philippines has three social contributions plus a mandatory 13th-month pay. Contributions are capped, so they level off for higher earners, while the 13th-month pay keeps growing with salary.
What is the SSS employer share in 2026?
The Social Security System (SSS) covers retirement, sickness, maternity and disability benefits. The total SSS contribution is 15% of the monthly salary credit, with the employer paying 10% and the employee 5%. The monthly salary credit is the salary bracket SSS uses to calculate contributions, and it's capped at PHP 35,000. That puts the maximum employer share at PHP 3,500 a month, plus an Employees' Compensation contribution of PHP 10 or PHP 30.
How much is the PhilHealth contribution in 2026?
PhilHealth, the national health insurance program, charges a premium of 5% of monthly basic salary, split equally between employer and employee. It applies to salaries from PHP 10,000 up to PHP 100,000, so the maximum employer share is PHP 2,500 a month.
How much is the Pag-IBIG contribution?
Pag-IBIG, the national housing savings fund, is 2% of monthly compensation for both employer and employee, on compensation up to PHP 10,000, so the employer share tops out at PHP 200 a month.
How is 13th-month pay computed?
Rank-and-file employees receive a 13th-month pay of at least one-twelfth of the total basic salary they earned during the calendar year, paid by 24 December. For an employee earning PHP 50,000 a month all year, that's PHP 50,000. We recommend accruing it monthly, so it's ready in your budget when December comes around.
How do employer costs compare across Asia?
Putting the worked examples side by side makes the differences easy to see. Keep in mind that each market uses a different example salary, based on typical professional pay in local currency, so compare the percentages rather than the totals.
What other costs should you budget for?
Beyond statutory costs, a few more items belong in your budget:
- Benefits: private medical insurance is a common benefit across all four markets, and it helps you compete for talent.
- Customary bonuses: even where no bonus is required by law, many employers pay one. In Singapore, it's often called the annual wage supplement (AWS), and in Hong Kong, a double pay.
- Work pass costs: application fees, and in Singapore the S Pass levy. Check the salary floors too, since they're rising in 2027.
- Setting up: either an Employer of Record (EOR) fee for each employee, or the cost of setting up and running your own entity.
- Ending employment: notice pay and, in some markets, statutory severance. See our guide to [what's different about hiring in every market] for the rules.
- HR and payroll tools: running payroll across several countries by hand gets expensive fast. Omni brings multi-country payroll, statutory contributions and employee records into one platform, with transparent pricing that starts at $3 per employee per month.
What's changing in 2027 that affects employer costs?
If you're building your 2027 budget, plan for these changes:
- Singapore CPF: from 1 January 2027, employer CPF rises by 0.5 percentage points for employees aged above 55 to 65, to 16.5% for those aged above 55 to 60 and 13% for above 60 to 65.
- Singapore work passes: the Employment Pass minimum salary rises to SGD 6,000 and the S Pass minimum to SGD 3,600 for new applications from 1 January 2027.
- Hong Kong minimum wage: now reviewed every year, with any new rate taking effect in May.
- Philippines minimum wages: set by regional wage boards on their own cycles. Metro Manila's rate rose to PHP 755 a day in September 2026.
Is it cheaper to hire through an EOR or your own entity?
For your first few hires, an Employer of Record is often the more cost-effective route. An EOR legally employs your hires on your behalf and handles payroll and compliance, so you skip the cost and time of setting up a local company. As your team grows, the fixed costs of your own entity start to make more sense, and you gain more control over payroll and benefits. Our guide to [EOR vs setting up an entity in Asia] walks through when to switch.
For market-by-market detail, including a cost calculator for each country, see our guides: [Hiring in Singapore], [Hiring in Hong Kong], [Hiring in Malaysia] and [Hiring in the Philippines].
Frequently asked questions
How much is the employer CPF contribution in Singapore?
For employees aged 55 and below, employer CPF is 17% of monthly wages, on ordinary wages up to SGD 8,000. It applies only to Singapore citizens and permanent residents, and the rate is lower for older employees.
What is the SSS employer share in the Philippines?
Employers pay 10% of the employee's monthly salary credit, which is capped at PHP 35,000. That makes the maximum employer share PHP 3,500 a month, plus PHP 10 or PHP 30 for Employees' Compensation.
How much is the PhilHealth contribution in 2026?
The PhilHealth premium is 5% of monthly basic salary, split equally between employer and employee. It applies to salaries from PHP 10,000 to PHP 100,000.
What is the EPF employer contribution rate in Malaysia?
For Malaysian employees under 60, it's 13% for wages of RM5,000 or less, and 12% above RM5,000. For foreign employees, it's 2%.
How do you compute 13th-month pay in the Philippines?
Divide the total basic salary the employee earned during the calendar year by 12. Pay it no later than 24 December.
Which Asian country has the lowest employer costs?
Of these four markets, Hong Kong has the lowest statutory employer costs, with MPF at 5%, capped at HK$1,500 a month. Total cost also depends on salary levels, benefits and how you hire.
Budget with confidence using Omni
Getting your employer costs right from the first payroll run saves you time, stress and costly corrections later. That's where we come in.
Omni is an all-in-one HRIS and multi-country payroll platform built for teams operating across Asia. We calculate statutory contributions for each market automatically, bring every employee's records into one place, and give you AI-powered insights into your people costs across countries. We support teams in 200+ countries, with pricing starting at $3 per employee per month.
Book a demo, or start your 7-day free trial and see how it works for your team.
