Links Labour Law Insider – Latest Tax, Payroll & Labour Law Updates
Welcome to Links’ Labour Law Insider, our quarterly publication. Our Q2 edition provides a detailed overview of key updates in taxation, labour law, payroll, and visa regulations, offering a clear and comprehensive summary of recent legislative changes to be aware of.
For further insights into market developments, we invite you to subscribe to our blog to stay informed on the latest HR news, or contact our team to learn more about how these changes may affect your business.
- Australia
- Workers on Compensation Leave Not Eligible for Anti-Bullying Orders
- Transitioning to Permanent Employment for Casual Employees Employed Before 26 August 2024
- Hong Kong
- Hong Kong Announces 2024/25 Tax Return Filing Deadlines
- Hong Kong Increases Compensation for Work Injuries and Occupational Diseases
- Maximum Ex Gratia Severance Payment Increased
- Hong Kong Unveils 2025 Budget with Targeted Tax Relief and New Levies
- New Application and Increased Visa Fees for Talent and Investment Schemes
- Hong Kong Expands Coverage in Talent List
- Hong Kong’s Profits Tax Return Portal Downtime
- Hong Kong Minimum Wage to Increase to HK$42.10
- Deadline for Code ‘M’ Profits Tax Returns
- India
- India Announces Three Key Changes to EDLI Scheme
- India Announces Budget 2025-2026 with Focus on Employment, Gig Workers and Tax Reforms
- India Extends Deadline for Direct Tax Vivad Se Vishwas Scheme
- De-Linking of Erroneously Linked Members IDs From UAN
- PF Transfer and EPF Member Profile Update and Their Changes
- Indonesia
- Indonesia Cuts Work Accident Insurance Contributions by 50% for Labour-Intensive Sectors
- Indonesia Issues Circular Mandating Full THR Payment Before Eid
- Japan
- Revision of the Employment Insurance Act
- Revision of Nursing Care Leave Act
- Japan to Expand Pension Coverage to More Part-Time Workers
- Revision of Childcare Leave Act
- Mainland China
- China to Gradually Raise Retirement Age from 2025
- China Launches 2025 Employment Initiatives for Disadvantaged Groups, Rural Labourers, and Graduates with AI-Driven Support
- Malaysia
- Malaysia Offers Free Medical Treatment for SOCSO Contributions
- New Zealand
- Updates to New ESCT and FBT Changes
- Philippines
- Philippines Approves Minimum Wage Increase in Bicol Region
- Philippines Declares 1 April 2025 a Regular Holiday for Eid’l Fitr
- Minimum Wage Increase in Davao Region
- Singapore
- Singapore’s Working Seniors to Receive Earn and Save Bonus in March 2025
- Singapore Issues Pre-Filled Personal Tax Returns for 2025
- Singapore’s CPF SMRA Interest Rate to Stay at 4% for Q2 2025
- Singapore Opens Training Allowance Applications for SkillsFuture Level-Up Programme
- Singapore’s Retrenched Workers to Receive Monthly Support Through Job Search Activities
- Singapore to Remove Maximum Employment Period for Work Permit Holders
- Singapore’s 2025 Budget Highlights
- South Korea
- South Korea Expands Parental Leave to 3 Years for Dual-Income Couples
- South Korea Approved 27 January 2025 as Temporary Public Holiday
- Vietnam
- Vietnam to Replace Tax Identification Numbers with Personal IDs
- Vietnam Announces 5-Day Public Holiday for Reunification and Labour Day
If you have any questions regarding the content please contact Bella Khan at bella.khan@linksinternational.com or Lynette Liew at lynette.liew@linksinternational.com.
AUSTRALIA
Workers on Compensation Leave Not Eligible for Anti-Bullying Orders
The Fair Work Commission has ruled that employees on workers’ compensation leave are not eligible for anti-bullying orders under the Fair Work Act 2009, as they are not considered to be “at work”.
The decision confirms that such protections only cover behaviour that occurs while an employee is actively at work. Employers are still expected to manage workplace risks and take steps to prevent bullying.
Transitioning to Permanent Employment for Casual Employees Employed Before 26 August 2024
A casual employee can transition to permanent employment (either full-time or part-time) at any time if both the employer and employee agree. Casual employees also have a pathway to permanent status under the National Employment Standards (NES), known as the ‘employee choice pathway.’
The process for transitioning to permanent employment under the NES changed from ‘casual conversion’ to ’employee choice’ on 26 August 2024. Employment prior to 26 August 2024 is not considered when determining eligibility for the employee choice pathway.
If eligible, casual employees employed immediately before 26 August 2024 can submit a notice to change to permanent employment:
- From 26 February 2025, if they are not employed by a small business.
- From 26 August 2025, if they are employed by a small business.
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HONG KONG
Hong Kong Announces 2024/25 Tax Return Filing Deadlines
The Inland Revenue Department (IRD) has issued updated guidance for tax professionals on the filing deadlines for the 2024/25 tax year, ahead of the bulk issuance of income tax returns.
Profits Tax Returns for corporations and partnership businesses will be issued on 1 April 2025. Returns for those with an accounting date between 1 April 2024 and 30 November 2024 (code “N”) are due by 2 May 2025, with no extension granted. Extended deadlines apply for businesses with accounting dates between 1 December 2024 and 31 December 2024 (code “D”)—due by 15 August 2025—and for those between 1 January 2025 and 31 March 2025 (code “M”)—due by 17 November 2025. Loss cases may be submitted by 2 February 2026, provided an application is made by 3 November 2025.
For individuals, tax returns will be issued on 2 May 2025. A block extension has been granted to 2 July 2025 for represented cases not involving sole proprietorships, and to 2 October 2025 for those involving sole proprietorships (regardless of accounting date).
Hong Kong Increases Compensation for Work Injuries and Occupational Diseases
The Labour Department has announced an increase in compensation levels for employees injured at work, those suffering from occupational diseases, the families of deceased employees, persons suffering from pneumoconiosis or mesothelioma or family members of persons who die as a result of these diseases, and persons suffering from occupational deafness. The changes will take effect from 17 April 2025.
Following the Legislative Council’s approval of three resolutions, 18 compensation items under the Employees’ Compensation Ordinance, Pneumoconiosis and Mesothelioma (Compensation) Ordinance, and Occupational Deafness (Compensation) Ordinance will be adjusted upward by 3.8% to 86.3%.
Maximum Ex Gratia Severance Payment Increased
The maximum ex gratia payment from the Protection of Wages on Insolvency Fund for employees owed severance pay by insolvent employers will increase starting 21 March 2025.
Following a Legislative Council resolution under the Protection of Wages on Insolvency Ordinance, the payment cap will rise from HK$100,000 to HK$200,000, plus 50% of any additional entitlement beyond that amount.
Hong Kong Unveils 2025 Budget with Targeted Tax Relief and New Levies
On 26 February 2025, Hong Kong’s 2025–26 Budget outlines a mix of tax relief measures and revenue-raising initiatives, aiming to boost economic competitiveness while ensuring fiscal sustainability.
Key relief measures include a waiver of salaries tax, personal assessment, and profits tax for the 2024/25 assessment year, capped at HKD1,500, and rates concessions for both domestic and non-domestic properties, capped at HKD500 per property for Q1 of 2025/26. The stamp duty threshold has also been raised from HKD3 million to HKD4 million, effective immediately.
The Budget also introduces targeted industry support, including:
- Tax deduction for ship acquisition under operating leases
- Tax exemption for green methanol used for bunkering
- Half-rate profits tax concession for eligible commodity traders
- A review of tax incentives for acquiring intellectual property rights
- To raise revenue, the Government will increase:
- Air passenger departure tax from HKD120 to HKD200 (effective Q3 2025/26)
- A proposed HKD200 levy on road vehicles departing Hong Kong
- Tunnel tolls and annual licence fees for electric private cars
The Budget also confirms that the OECD Pillar Two global minimum tax regime will be implemented from fiscal year 2027/28, expected to generate around HKD15 billion.
New Application and Increased Visa Fees for Talent and Investment Schemes
The 2025-26 Budget introduced a new HK$600 application fee for various talent and investor admission schemes and increased visa/entry permit fees based on the length of stay to reflect the “user pays” principle, as of 26 February 2025.
Applicants and their dependants must now pay HK$600 per application for entry, stay condition changes, or extensions. Approved visa/entry permit fees have risen from a flat HK$230 to HK$600 (for stays of 180 days or less) or HK$1,300 (for stays over 181 days).
These fees apply to ten admission schemes, including the Top Talent Pass Scheme, General Employment Policy, and Technology Talent Admission Scheme.
Hong Kong Expands Coverage in Talent List
An expansion of Hong Kong’s Talent List was announced, which will now cover 60 professions facing local talent shortages. The updated list took effect on 1 March 2025.
Nine new professions have been added, including accountants, financial professionals with Islamic market expertise, commodities trading specialists, experienced systems architects, patent professionals, legal knowledge engineers, ship surveyors, green shipping experts, and aircraft maintenance engineers.
Hong Kong’s Profits Tax Return Portal Downtime
The Inland Revenue Department (IRD) has announced a temporary suspension of electronic filing services for profits tax returns from 16 March 2025 to 31 March 2025. This downtime is necessary for system updates ahead of the enhanced profits tax return services launching on 1 April 2025.
The bulk issuance of profits tax returns for the 2024/25 assessment year will begin in April 2025. Upon resumption, businesses and corporations are encouraged to file their profits tax returns for the 2022/23 to 2024/25 assessment years via electronic filing services.
Hong Kong Minimum Wage to Increase to HK$42.10
The Chief Executive in Council has approved the Minimum Wage Commission’s recommendation to raise the statutory minimum wage from HK$40 to HK$42.10 per hour, with the new rate set to take effect on 1 May 2025, pending Legislative Council approval.
Deadline for Code ‘M’ Profits Tax Returns
The Inland Revenue Department (IRD) has extended the filing deadline for Code ‘M’ profits tax returns under the block extension scheme.
For companies with an accounting date between 1 January and 31 March 2024, returns filed by tax representatives may now be submitted by 14 February 2025, instead of the original 31 January 2025 deadline.
Seeking to simplify your HR administration and payroll processes in Hong Kong? Contact our professional payroll team now!
INDIA
India Announces Three Key Changes to EDLI Scheme
On 10 March 2025, The Employees’ Provident Fund Organisation (EPFO) has introduced three major updates to the Employees’ Deposit Linked Insurance (EDLI) scheme to improve death benefit coverage for EPF members and their families.
First, a minimum life insurance benefit of ₹50,000 will now be provided to the family of newly joined EPF members who pass away within their first year of service. Second, death benefits will now extend to members who die within six months of their last contribution, even after a non-contributory period—provided their name hasn’t been removed from the rolls.
Lastly, the EPFO will now consider service continuity despite short gaps of up to two months between jobs. This ensures families remain eligible for the higher death benefit range of ₹2.5 lakh to ₹7 lakh, even if there was a brief employment break.
India Announces Budget 2025-2026 with Focus on Employment, Gig Workers and Tax Reforms
Finance Minister Nirmala Sitharaman presented the Union Budget 2025–2026 on 1 February 2025, highlighting key initiatives aimed at gig worker welfare, employment generation, and personal income tax reform.
Gig workers on digital platforms will be issued identity cards, registered on the e-Shram portal, and provided healthcare benefits under the PM Jan Arogya Yojana. To boost job creation, the government announced schemes for sectors such as footwear and leather (expected to create 22 lakh jobs) and the toy manufacturing industry. A new National Institute of Food Technology will also be established in Bihar to support youth employment and farmer income through the food processing sector.
Under the new personal income tax regime, no tax will be payable for incomes up to Rs12 lakh per annum, or Rs12.75 lakh for salaried individuals after the standard deduction. A revised tax structure has also been proposed, with progressive rates starting at nil for incomes up to Rs4 lakh and going up to 30% for incomes exceeding Rs24 lakh.
India Extends Deadline for Direct Tax Vivad Se Vishwas Scheme
The Central Board of Direct Taxes (CBDT) has extended the deadline to access the most favourable terms under the Direct Tax Vivad Se Vishwas (DTVSV) scheme to 31 January 2025, replacing the earlier cut-off of 31 December 2024.
Announced in the Union Budget 2024–25 and enacted via the Finance (No. 2) Act, 2024, the DTVSV scheme offers taxpayers a chance to resolve pending income tax disputes on concessionary terms.
From 1 February 2025, applications will be subject to an additional 10% surcharge on the tax payable.
De-Linking of Erroneously Linked Members IDs From UAN
The Employee Provident Fund Organisation (EPFO) will allow members to delink any ID erroneously associated with their Universal Account Numbers (UAN), which is assigned by the organisation to all eligible salaried employees.
In order to empower the members to delink any erroneous Member Id in their UAN which had been linked without their knowledge, it has been decided to provide a facility to the members to De-Link such wrongly linked MIDs from their UAN,” EPFO said in a circular issued on 17 January 2025.
PF Transfer and EPF Member Profile Update and Their Changes
EPFO has introduced several key changes for 2025 including simplified member profile updates, an easier PF account transfer process, a new joint declaration procedure, the Centralized Pension Payment System (CPPS), and updated guidelines for higher pension benefits to enhance administrative efficiency and member experience.
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INDONESIA
Indonesia Cuts Work Accident Insurance Contributions by 50% for Labour-Intensive Sectors
The Indonesian government is offering a 50% reduction in work accident insurance contributions for employees in labour-intensive industries from February to July 2025. This is outlined in Government Regulation No. 7 of 2025, which adjusts JKK contributions for qualifying sectors.
The discount applies across all levels of work accident risk and covers industries such as food, beverage, and tobacco, textiles and apparel, leather and leather goods, footwear, children’s toys, and furniture.
Indonesia Issues Circular Mandating Full THR Payment Before Eid
The Indonesian government has issued Circular Letter No. M/2/HK.04.00/III/2025, requiring companies to pay the Eid allowance (THR) in full—no instalments allowed—to all eligible workers.
THR applies to employees who have worked for at least one month, including those on fixed-term, indefinite-term, and daily wage agreements. For employees with over 12 months of service, THR is based on their average earnings over the past 12 months. For those with less than 12 months, it is calculated based on their average monthly wage. For output-based pay, the average income over the past year will be used.
THR must be paid no later than 7 days before the religious holiday. With Eid al-Fitr falling on 31 March 2025, the deadline for THR payment is 24 March 2025.
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JAPAN
Revision of the Employment Insurance Act
There will be several changes to the Employment Insurance Act including:
- The employment insurance premium rate will be changed from 15.5% to 14.5% from April 2025. (EE portion is 5.5%, ER portion is 9%).
- Shortening the restriction period for Job Applicant Benefits for voluntary resignation, from 2 months to 1 month as of April 2025.
- The abolishment of employment allowance and reduction of employment promotion allowance from 30% to 20% as of April 2025.
- Reduction in the benefit rate for education and training benefits from 80% to 60% as of April 2025.
- Reduction in the benefit rate for Continuous Employment Benefits for the Elderly from 15% to 10% as of April 2025.
- The establishment of postnatal leave support benefits, as of April 2025.
- The establishment of childcare short-time employment benefits, as of April 2025.
- The mandatory submission of additional documents when extending childcare leave benefits, as of April 2025.
Revision of Nursing Care Leave Act
There are new policies implemented to prevent people from leaving the workforce due to Nursing Care leave including:
- Making it mandatory to make an effort to introduce telework as a measure for employees providing nursing care, effective as of April 2025.
- Employers notifying employees of available nursing care leave options and confirm the use of them, effective as of April 2025.
Japan to Expand Pension Coverage to More Part-Time Workers
Japan plans to expand eligibility for the kosei nenkin employee pension program by lowering the enrolment threshold for part-time workers. Currently, only companies with 51 or more employees are required to enroll eligible part-time staff.
The government aims to reduce this threshold to 21 employees by October 2027 and eliminate it two years later. Additionally, the income requirement of ¥1.06 million annually will be removed once minimum wages reach ¥1,016 per hour or more nationwide.
From October 2029, all employees working at least 20 hours per week will be required to join the program, regardless of income or company size. These updates will be part of the upcoming pension reform legislation.
Revision of Childcare Leave Act
Policies have been incorporated that make it easier to take childcare leave, such as increasing men’s involvement in childcare and providing income compensation during childcare leave:
- Renaming and expanding scope of Short-term Leave for Sick/Injured Childcare, as of April 2025.
- Expanding the scope of restrictions on overtime working.
- Abolish the provision in the labor-management agreement that “childcare leave and family care leave are not applicable to employees with fixed-term employment contracts of less than six months” from April 2025.
- Making it mandatory to make an effort to introduce telework as an alternative measure to short-time childcare work, as of April 2025.
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MAINLAND CHINA
China to Gradually Raise Retirement Age from 2025
Starting 1 January 2025, China will implement its first retirement age adjustment in over 70 years to address its aging population. The retirement age for men will gradually increase from 60 to 63, and for women, from 55 to 58 for civil servants and from 50 to 55 for blue-collar workers—over a 15-year period.
From 2030, the required pension contribution period will also increase from 15 to 20 years. The new policy introduces flexibility, allowing retirement up to 3 years earlier or later with employer consent.
While this change may present administrative and cost challenges, it offers greater flexibility in workforce planning. Employers are advised to maintain accurate internal records to track employees’ retirement timelines and adjust related processes accordingly.
China Launches 2025 Employment Initiatives for Disadvantaged Groups, Rural Labourers, and Graduates with AI-Driven Support
The MOHRSS has launched targeted initiatives for 2025 to boost employment quality, focusing on key groups such as disadvantaged individuals, rural laborers, and college graduates.
Key programs include the Employment Assistance Month (Dec 2024–Jan 2025) for job matching and social support, the Spring Breeze Campaign (Jan–Mar 2025) to promote rural employment and entrepreneurship, and recruitment drives for graduates via public-private partnerships.
The plan emphasizes AI-driven job matching, livestream recruitment, and policy enforcement to ensure compliance and service efficiency.
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MALAYSIA
Malaysia Offers Free Medical Treatment for SOCSO Contributors
Beginning in 2025, all Social Security Organisation (SOCSO) contributors in Malaysia will receive free medical treatment at panel clinics for work-related accidents and occupational diseases, according to Human Resources Minister Steven Sim Chee Keong.
Contributors can access treatment at any of the 1,400 Perkeso panel clinics nationwide—129 of which are in Penang—by simply presenting their identification card for verification. No upfront payment is required. Previously, contributors paid RM150–RM200 per visit and claimed reimbursement from SOCSO.
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NEW ZEALAND
Updates to New ESCT and FBT Changes
From 1 April 2025, employer superannuation contribution tax (ESCT) and fringe benefit tax (FBT) thresholds will change. FBT calculation methods will also change.
| New ESCT Thresholds | Tax Rate |
| $0 – $18,720 | 10.5% |
| $18,721 – $64,200 | 17.5% |
| $64,201 – $93,720 | 30% |
| $93,721 – $216,000 | 33% |
| $216,001 upwards | 39% |
| New FBT Thresholds | Tax Rate |
| $0 – $13,962 | 11.73% |
| $13,963 – $45,230 | 21.21% |
| $45,231 – $62,450 | 42.86% |
| $62,451 – $130,723 | 49.25% |
| $130,724 upwards | 63.93% |
Need help with your New Zealand payroll? Contact our team now!
PHILIPPINES
Philippines Approves Minimum Wage Increase in Bicol Region
The Regional Tripartite Wages and Productivity Board has approved a PHP40 increase in the daily minimum wage for the Bicol region under Wage Order No. RBV-22.
The daily minimum wage will rise from PHP395 to PHP435 across all sectors and industries. The increase will be implemented in two tranches—on 5 April 2025 and 1 December 2025.
Philippines Declares 1 April 2025 a Regular Holiday for Eid’l Fitr
President Ferdinand R. Marcos Jr. has declared 1 April 2025 a regular national holiday in observance of Eid’l Fitr.
Minimum Wage Increase in Davao Region
The Regional Tripartite Wages and Productivity Board 11 has approved a PHP29 daily wage increase in the Davao Region, as of 7 March 2025.
With this adjustment, the new daily minimum wage will be PHP510 for non-agriculture workers and PHP505 for agriculture workers.
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SINGAPORE
Singapore’s Working Seniors to Receive Earn and Save Bonus in March 2025
Over 570,000 eligible Singaporeans will receive the first payout of the Earn and Save Bonus, ranging from S$400 to S$1,000, in March 2025 as part of the Majulah Package.
Working seniors born in 1973 or earlier with an average monthly income of S$500 to S$6,000 in 2024, living in a property with an annual value of S$31,000 or less, and owning no more than one property, will qualify. Bonus amounts will vary by income level and will be automatically credited to recipients’ CPF accounts.
Singapore Issues Pre-Filled Personal Tax Returns for 2025
In March 2025, taxpayers under the No-Filing Service (NFS) will receive notifications confirming they are not required to file a personal income tax return for the Year of Assessment 2025. However, they are reminded to review the pre-filled information, particularly dependant-related reliefs, as new eligibility criteria apply from YA 2025.
Around 500,000 taxpayers will benefit from the Direct Notice of Assessment (D-NOA), with returns finalised based on employer-submitted data. Some self-employed individuals may also benefit, with returns auto-filled using information from intermediaries.
Those needing to update income or relief details can use the Amend Tax Bill service via myTax Portal within 30 days of the tax bill date. The filing deadline for individuals and partnerships remains 18 April 2025.
Singapore’s CPF SMRA Interest Rate to Stay at 4% for Q2 2025
The Central Provident Fund (CPF) interest rate for the Special, MediSave and Retirement Accounts (SMRA) will remain at the floor rate of 4% per annum from 1 April to 30 June 2025, as the pegged rate continues to fall below the 4% threshold. The SMRA rate is pegged to the 12-month average yield of 10-year Singapore Government Securities plus 1%.
The Ordinary Account (OA) interest rate will also stay unchanged at the floor rate of 2.5%, and the HDB housing loan concessionary rate will remain at 2.6%, which is 0.1% above the OA rate.
CPF members below 55 will earn an extra 1% on the first S$60,000 of their combined balances (capped at S$20,000 for OA). Members aged 55 and above will receive up to 3% additional interest on their combined balances, with tiered interest benefits continuing to apply even if they are on CPF LIFE.
Singapore Opens Training Allowance Applications for SkillsFuture Level-Up Programme
Singaporeans aged 40 and above can apply for the SkillsFuture Level-Up Programme training allowance starting 10 March 2025. The allowance supports full-time upskilling or reskilling programmes commencing on or after 1 April 2025.
Eligible individuals will receive a monthly training allowance of 50% of their average income over the past year, with a minimum of S$300 and a cap of S$3,000.
From early 2026, a S$300 part-time training allowance will also be introduced to help mid-career workers offset expenses like transport and books.
Singapore’s Retrenched Workers to Receive Monthly Support Through Job Search Activities
Under the new SkillsFuture Jobseeker Support scheme, retrenched Singaporeans can receive up to S$6,000 over six months by completing employment-related activities such as attending career fairs, updating resumes, or taking part in career coaching.
To qualify, applicants must be aged 21 and above, previously earned up to S$5,000/month, and became unemployed due to involuntary reasons like retrenchment or business closure. They must also live in a property with an annual value of S$31,000 or less.
The scheme, targeting lower- and middle-income workers, will launch for Singapore citizens in mid-April 2025, and extend to permanent residents in early 2026.
Singapore to Remove Maximum Employment Period for Work Permit Holders
The Ministry of Manpower (MOM) has announced that, from 1 July 2025, work permit holders will no longer be subject to the maximum employment period, which currently ranges between 14 to 26 years, depending on skill level, sector, and country of origin. The maximum employment age will also be raised from 60 to 63 to align with the local retirement age, and the age cap for new applicants will increase to 61.
In addition, from 1 June 2025, Bhutan, Cambodia, and Laos will be added to the list of non-traditional sources for work permit holders. From 1 September 2025, eligible occupations in the manufacturing and services sectors will expand to include cooks, heavy vehicle drivers, and manufacturing operators, with employers required to offer at least S$2,000/month and maintain a sub-dependency ratio below 8%.
The MOM also announced changes to the S Pass framework, raising the minimum qualifying salary to S$3,300 from 1 September 2025 (and S$3,800 for the financial sector), increasing with age. The S Pass Tier 1 levy will also rise to S$650, aligning it with Tier 2. Meanwhile, the Manpower for Strategic Economic Priorities (M-SEP) scheme will be extended to 3 years from 1 May 2025, with added eligibility criteria requiring firms to send local employees for overseas or leadership development programmes.
Singapore’s 2025 Budget Highlights
On 18 February 2025, Mr. Lawrence Wong, Prime Minister and Finance Minister, presented the 2025 Singapore Budget.
Here are the key points that businesses and HR leaders should be aware of:
- The SkillsFuture Workforce Development Grant supports workforce upskilling, business transformation, and job redesign with up to 70% funding.
- The revamped SkillsFuture Enterprise Credit will be available as an online wallet for easy access to workforce transformation credits.
- From 2026, the CPF contribution rate for workers aged 55-65 will increase by 1.5% to strengthen retirement savings.
- The Senior Employment Credit (SEC) will extend until 2026, offering wage offsets for employers hiring seniors.
- The government will continue its commitment to supporting lower-wage workers by enhancing the Progressive Wage Credit Scheme.
- A 50% corporate income tax rebate for the Year of Assessment 2025 will be implemented.
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SOUTH KOREA
South Korea Expands Parental Leave to 3 Years for Dual-Income Couples
The Ministry of Employment and Labor has approved up to 3 years of combined parental leave for dual-income couples, as of 23 February 2025, under revisions to the Gender Equality Employment Act, Employment Insurance Act, and Labor Standards Act.
Key changes include:
- Extended Parental Leave: Each parent can take 1.5 years of leave if both use childcare leave for at least 3 months, with up to KRW1.6 million in financial support for the extended period. Single-parent families and parents of severely disabled children can also take 1.5 years of leave without meeting this condition.
- Paternity Leave Increase: Fathers can now take 20 days of leave, split into three installments within 120 days of birth.
- Enhanced Fertility & Pregnancy Leave: Infertility treatment leave increases to 6 days per year (2 paid), and miscarriage/stillbirth leave for early pregnancies (within 11 weeks) extends to 10 days. Reduced working hours will now be available for parents with children aged 12 or younger and high-risk pregnant women.
South Korea Approved 27 January 2025 as Temporary Public Holiday
South Korea’s government approved 27 January 2025 as a temporary public holiday, which created an extended 6-day break from 25 to 30 January, in line with the Lunar New Year, which fell on 29 January 2025.
The decision was made during a Cabinet meeting and is aimed at stimulating the local economy.
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VIETNAM
Vietnam to Replace Tax Identification Numbers with Personal IDs
Starting 1 July 2025, Vietnam will replace tax codes with ID numbers to manage tax matters, as outlined in Circular 86, effective from 6 February 2025.
The change applies to individuals, dependents, households, and business households. A Vietnamese citizen’s personal identification (ID) number consisting of 12 digits will now serve as the primary identifier for tax purposes.
Vietnam Announces 5-Day Public Holiday for Reunification and Labour Day
Vietnam will observe a 5-day holiday from 30 April to 4 May 2025 to celebrate Reunification Day and International Workers’ Day. Public sector employers are advised to adjust work schedules by replacing Saturday, 26 April with a day off on 2 May.
Additionally, Hùng Kings Commemoration Day will be observed on Monday, 7 April 2025. For businesses without fixed weekends, adjustments should be made to ensure employees receive adequate time off.
Under the 2019 Labour Code, employers may request staff to work during holidays due to operational needs. If employees agree, they must be paid overtime at 300% of their daily wage, as specified in Article 98.
Our Vietnam team of expertise can help your business further streamline HR operations.
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