Links Labour Law Insider – Latest Tax, Payroll & Labour Law Updates
Welcome to Links’ Labour Law Insider, our quarterly publication. Our Q3 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 in Asia Pacific and the Middle East.
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
- Australia to Increase Minimum Wage by 3.5%
- Increase in Super Guarantee to 12% from 1 July 2025
- Hong Kong
- Hong Kong Issues 2025 Reminder on Tax Reporting Obligations for Taxpayers and Employers
- Hong Kong Abolished MPF Offsetting Arrangement
- Hong Kong Launched Business and Tax Representative Portals
- Hong Kong Passes Employment (Amendment) Bill 2025 – Approving the “468 Rule”
- India
- India Confirms 8.25% Interest Rate on EPF for FY 2024-25
- Delhi Government Raised Minimum Wages Across All Worker Categories
- Indonesia
- Indonesia Issues Directive Against Discriminatory Hiring Criteria
- Indonesia Bans Employers from Retaining Employees’ Personal Documents
- Mainland China
- Announcement on Extended Unemployment Insurance Benefits Policy
- Malaysia
- Malaysia to Enforce Mandatory Stamping of Employment Contracts
- EPF to Enforce Mandatory Contributions for Non-Malaysian Employees
- Malaysia Revises E-Invoicing Rollout Schedule
- Malaysia Launched MADANI Workers’ Card and Announced Gig Worker Protections
- New Zealand
- New Zealand to Increase Paid Parental Leave Rates
- New Zealand Announces Budget 2025 with Changes to Working for Families and KiwiSaver
- New Zealand Amended Law on Retention of Employment Agreements
- Philippines
- Philippines Implements Minimum Wage Increase in Eastern Visayas and Soccsksargen
- Singapore
- Singapore Releases 2026 Public Holiday Dates
- Singapore Maintains CPF SMRA Interest Rate at 4% for Q3 2025
- Singapore Launched Temporary Financial Support for Unemployed Citizens
- South Korea
- South Korea Updates Employer Subsidy Rules for Childcare Leave
- South Korea Boosts Budget for Employment Maintenance Support
- South Korea to Raise Pay for “Daddy Bonus” Parental Leave Recipients
- Introduction of New Top Talent Visa
- National Pension Upper Limit to Increase from July 2025
- Taiwan
- Taiwan Announces New National Holidays for 2025
- Taiwan Extended Corporate Income Tax Filing Deadline
- Tax Incentives for SMEs Raising Salaries Extended
- United Arab Emirates
- Dubai Implements Flexible Summer Working Hours for Public Sector Workers
- Vietnam
- Vietnam Grants Level-2 Electronic Identification (eID) Registration for Foreigners in Vietnam
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
Australia to Increase Minimum Wage by 3.5%
Australia’s Fair Work Commission has announced a 3.5% rise in the national minimum wage, effective from 1 July 2025.
The minimum hourly wage will rise to AUD24.95.
Increase in Super Guarantee to 12% from 1 July 2025
The super guarantee (SG) rate will increase to 12% on 1 July 2025. The increased rate will need to be applied for all salary and wages paid to eligible workers on and after 1 July.
This is even if some or all of the pay period it relates to its before 1 July.
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HONG KONG
Hong Kong Issues 2025 Reminder on Tax Reporting Obligations for Taxpayers and Employers
On 15 May 2025, Hong Kong’s Inland Revenue Department (IRD) issued a formal reminder outlining key tax reporting obligations under Sections 51 and 52 of the Inland Revenue Ordinance. The guidance highlights important responsibilities for both individual taxpayers and employers in the 2025 tax year.
Under Section 51, taxpayers are reminded to:
- Notify the IRD within four months of the end of their basis period if they are chargeable to tax and have not received a return (s 51(2))
- Notify the IRD within one month if they cease to carry on a trade, hold an office, own taxable property, or have assessable income (s 51(6))
- Notify the IRD at least one month prior to departure if leaving Hong Kong for over one month, unless frequently traveling for work (s 51(7))
- Report any change of address within one month (s 51(8))
Under Section 52, employer obligations include:
- Reporting new employees chargeable to Salaries Tax within three months of hiring (s 52(4))
- Notifying the IRD at least one month in advance when ceasing to employ an individual chargeable to Salaries Tax (s 52(5))
- Giving advance notice if such an employee is to leave Hong Kong for more than one month (s 52(6))
- Refraining from making payments to such departing employees for one month from the date of notice, unless with written consent from the IRD (s 52(7))
To comply with the above, employers are instructed to file forms IR56E, IR56F, and IR56G via the Employer’s Return e-Filing Services under eTAX for new hires, terminations, and employee departures, respectively.
These obligations aim to maintain accurate tax records and ensure proper reporting for individuals and businesses. Non-compliance may result in penalties.
Hong Kong Abolished MPF Offsetting Arrangement
On 1 May 2025, the abolition of the use of accrued benefits from employers’ mandatory MPF contributions to offset severance payment (SP) and long service payment (LSP) officially took effect in Hong Kong.
Employers may still use accrued benefits from voluntary MPF contributions and contractual gratuities linked to length of service to offset SP/LSP. In support of the new arrangement, the Labour Department launched a 25-year Subsidy Scheme to assist employers in covering SP/LSP costs.
Under the scheme, employers must first pay SP/LSP in accordance with the Employment Ordinance before applying for reimbursement from the Labour Department.
Hong Kong Launched Business and Tax Representative Portals
On 30 April 2025, Hong Kong’s Inland Revenue Department (IRD) announced that businesses and tax representatives could begin registering accounts for the new Business Tax Portal (BTP) and Tax Representative Portal (TRP).
These portals are part of a broader digital transformation initiative under eTAX, with the Individual Tax Portal (ITP) scheduled to launch alongside BTP and TRP in July 2025. The new system aims to expand electronic tax services and improve filing efficiency.
The TRP will require tax representatives to submit block extension applications or notifications electronically via the new block extension service.
Hong Kong Passes Employment (Amendment) Bill 2025 – Approving the “468 Rule”
The Hong Kong Legislative Council has passed the Employment (Amendment) Bill 2025 to revise the “continuous contract” requirement under the Employment Ordinance (Cap. 57), replacing the “418 rule” with the “468 rule” – making it easier for employees to access statutory benefits. The weekly working hours threshold will be reduced from 18 to 17 hours.
A new calculation method has also been introduced – if an employee works fewer than 17 hours in a particular week, their contract will still be considered continuous if their total working hours over that week and the three preceding weeks reach at least 68 hours.
The revised requirement will take effect on 18 January 2026.
Seeking to simplify your HR administration and payroll processes in Hong Kong? Contact our professional payroll team now!
INDIA
India Confirms 8.25% Interest Rate on EPF for FY 2024-25
On 24 May 2025, the Indian government ratified an 8.25% interest rate on Employees’ Provident Fund (EPF) deposits for the fiscal year 2024–25.
The rate was earlier proposed by the Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO).
This marks an official confirmation of EPF returns for the year, directly impacting retirement savings for millions of salaried employees across India.
Delhi Government Raised Minimum Wages Across All Worker Categories
Effective 1 April 2025, the Government of Delhi increased the minimum wage rates for all categories of workers in response to rising inflation in the capital.
Under the revised structure, unskilled workers will receive Rs18,456 per month, semi-skilled workers Rs20,371, and skilled workers Rs22,411. Workers with graduate-level qualifications or above will now earn Rs24,356 per month.
The new wage rates aim to enhance financial stability for workers at varying skill levels across Delhi.
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INDONESIA
Indonesia Issues Directive Against Discriminatory Hiring Criteria
On 30 May 2025, Indonesia’s Ministry of Manpower released Ministerial Circular No. M/6/HK04/V/2025, urging employers to eliminate age, appearance, and other personal requirements from job advertisements.
The circular explicitly prohibits criteria such as age, height, marital status, ethnicity, and skin colour – reinforcing the principle of merit-based recruitment.
Employers across the country are expected to immediately comply with the directive and ensure hiring practices are based on qualifications and job relevance.
Indonesia Bans Employers from Retaining Employees’ Personal Documents
On 20 May 2025, Manpower Minister Yassierli issued a circular officially banning employers from demanding and retaining original copies of employees’ personal documents. The move responds to growing public concern over the use of documents like diploma certificates as collateral to discourage resignations.
Documents now protected under the ban include competency certificates, passports, birth and marriage certificates, and vehicle ownership documents (BPKB). Employers can no longer prevent employees from resigning or seeking other opportunities using such measures.
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MAINLAND CHINA
Announcement on Extended Unemployment Insurance Benefits Policy
The government has extended unemployment insurance policies to support business stability and workforce development. Eligible enterprises with full premium payments can claim up to 30% (large firms) or 60% (SMEs) of unemployment insurance refunds for job retention efforts, subject to layoff rate criterias.
Employees with 12+ months of insurance coverage can receive skill-upgrade subsidies of up to ¥2,000 for vocational certifications, with enhanced quotas for urgent skills.
Unemployment benefits, including insurance payouts and medical coverage, will continue to safeguard displaced workers. Streamlined “application-free” processes and digital platforms will optimise policy delivery, while stricter fund oversight ensures compliance and fraud prevention, effective until December 2025.
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MALAYSIA
Malaysia to Enforce Mandatory Stamping of Employment Contracts
The Inland Revenue Board of Malaysia (LHDN) has announced that all employment contracts must be stamped starting 1 January 2026, as part of the Self-Assessment System for Stamp Duty (STSDS) introduced in the Budget 2025. This follows nationwide audits under the Stamp Duty Audit Framework (RKADS), which found that many contracts were not stamped in accordance with the Stamp Act 1949, where the required duty is RM10.
To ease the transition, employment contracts finalised before 1 January 2025 will be exempt from stamp duty. Contracts signed between 1 January and 31 December 2025 will still be subject to stamp duty but will enjoy a waiver on late-stamping penalties if stamped by 31 December 2025.
EPF to Enforce Mandatory Contributions for Non-Malaysian Employees
The Employees Provident Fund (EPF) has announced that mandatory EPF contributions will be extended to all non-Malaysian citizen employees working in Malaysia, excluding domestic servants. This applies to individuals who hold a valid passport and an employment pass issued by the Immigration Department of Malaysia.
The new requirement will take effect with wages paid in October 2025, for the contribution month of November 2025. Both employers and employees will be required to contribute 2% of monthly wages under the new scheme, aligning with the EPF’s efforts to broaden social protection coverage across the workforce.
Malaysia Revises E-Invoicing Rollout Schedule
On 11 June 2025, the Inland Revenue Board (IRB) announced a revised timeline for the implementation of electronic invoicing requirements. Taxpayers with annual turnover exceeding MYR5 million will now be required to begin e-invoicing from 1 July 2025.
Taxpayers with turnover above MYR1 million will follow from 1 January 2026, a delay from the earlier planned July 2025 start. All remaining companies will be phased in by 1 July 2026, with exemptions for businesses earning less than MYR500,000.
The rollout began with the largest taxpayers on 1 August 2024, and those with turnover exceeding MYR25 million have been subject to the requirement since 1 January 2025.
Malaysia Launched MADANI Workers’ Card and Announced Gig Worker Protections
On 1 May 2025, the Malaysian government officially launched the MADANI Workers’ Card as part of its initiative to support low-income and unionised workers.
The MADANI Workers’ Card grants eligible union members discounts of up to 30% on essential goods and services across Malaysia. The card is intended to ease the financial burden on workers by offering access to nationwide savings on key purchases.
In a related development, the Prime Minister also confirmed that the long-anticipated Gig Workers Bill will be tabled in the next Dewan Rakyat session. The bill aims to formally recognise and protect gig and platform workers in Malaysia, addressing existing legal and welfare gaps in this growing employment sector.
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NEW ZEALAND
New Zealand to Increase Paid Parental Leave Rates
The maximum weekly rate of paid parental leave will increase from NZ$754.87 to NZ$788.66, effective 1 July 2025.
This annual adjustment under the Parental Leave and Employment Protection Act 1987 reflects rising average weekly earnings. The minimum payment for self-employed parents will also increase from NZ$231.50 to NZ$235 per week, aligning with the 1 April 2025 minimum wage rise.
Eligible parents – including adoptive, surrogate, and those affected by miscarriage or stillbirth – can receive payments for up to 26 weeks.
New Zealand Announces Budget 2025 with Changes to Working for Families and KiwiSaver
On 22 May 2025, Finance Minister Nicola Willis delivered Budget 2025, introducing key updates to the Working for Families scheme and KiwiSaver programme. The reforms aim to support economic recovery while targeting benefits to lower- and middle-income earners.
From 1 April 2026, the Working for Families abatement threshold will rise to NZ$44,900, while the abatement rate increases to 27.5%. Payments for the Best Start tax credit will now be income-tested from year one for children born on or after 1 April 2026.
KiwiSaver changes include raising default contribution rates to 3.5% (from 1 April 2026) and 4% (from 1 April 2028), reducing the government contribution rate from NZ$521.43 to NZ$260.72 (from 1 July 2025), and expanding eligibility to 16- and 17-year-olds.
New Zealand Amended Law on Retention of Employment Agreements
An amendment to the Employment Relations Act 2000, which came into force on 30 March 2025, introduced a new requirement for employers to retain a copy of each employee’s employment agreement and ensure it is readily accessible.
Employers must provide a copy of the agreement to the employee within 7 working days upon request.
All other rights and obligations relating to employment agreements under the Act remained unchanged.
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PHILIPPINES
Philippines Implements Minimum Wage Increase in Eastern Visayas and Soccsksargen
Effective 1 June 2025, the National Wages and Productivity Commission has confirmed new minimum wage rates for workers in Eastern Visayas and Soccsksargen.
In Eastern Visayas, the new rates are set at PHP405 for workers in agriculture, cottage industries, and small retail establishments (10 workers or fewer), and PHP435 for those in non-agriculture and larger service/retail sectors (11 workers and above).
Meanwhile, workers in Soccsksargen will receive a standard minimum wage of PHP430 as part of the fourth tranche of their wage adjustment.
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SINGAPORE
Singapore Releases 2026 Public Holiday Dates
On 16 June 2025, the Ministry of Manpower (MOM) released the official dates of Singapore’s 11 gazetted public holidays for 2026:
- New Year’s Day
- Chinese New Year
- Hari Raya Puasa
- Good Friday
- Labour Day
- Hari Raya Haji
- Vesak Day
- National Day
- Deepavali
- Christmas Day
Singapore Maintains CPF SMRA Interest Rate at 4% for Q3 2025
On 22 May 2025, Singapore’s Central Provident Fund (CPF) Board confirmed that the interest rate for Special, MediSave, and Retirement Accounts (SMRA) will remain at the floor rate of 4% per annum from 1 July to 30 September 2025, as the pegged rate remains below the floor.
The Ordinary Account (OA) interest rate will also remain unchanged at 2.5%, while the concessionary interest rate for HDB housing loans stays at 2.6% for Q3 2025.
CPF members below age 55 will earn an extra 1% interest on the first S$60,000 of their combined CPF balances. Members aged 55 and above will receive an additional 2% on the first S$30,000 and 1% on the next S$30,000, with interest credited to SA, RA, or CPF LIFE accordingly.
Singapore Launched Temporary Financial Support for Unemployed Citizens
Effective 15 April 2025, Singaporeans from lower- to middle-income groups who are involuntarily unemployed became eligible to apply for temporary financial assistance under the new SkillsFuture Jobseeker Support scheme.
Successful applicants may receive payouts of up to S$6,000 over 6 months, subject to completing job search activities and meeting monthly point targets.
Applicants must have earned an average gross monthly salary of S$5,000 or less and resided in a property with an annual value not exceeding S$31,000. As a one-time concession, those who lost their jobs on or after 1 April 2024 may qualify without meeting the usual work history requirement, if they apply by 15 June 2025.
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SOUTH KOREA
South Korea Updates Employer Subsidy Rules for Childcare Leave
Effective 1 July 2025, South Korea will grant employers 100% of childcare leave support even if an employee voluntarily resigns within 6 months after taking childcare leave or reduced working hours. This addresses concerns that employers were unfairly denied half the subsidy under the existing rules.
Additional revisions under the Employment Insurance Act and related decrees include expanded eligibility for early re-employment benefits for long-term self-employed individuals, updated exclusion criteria for military personnel, and new data management duties for the Vocational Skills Bank.
South Korea Boosts Budget for Employment Maintenance Support
On 21 May 2025, the Ministry of Employment and Labor announced an increased allocation of KRW11.1 billion to the Employment Maintenance Support Fund, bringing the total 2025 budget to KRW81.4 billion.
The expansion aims to assist businesses affected by global economic uncertainty, rising tariffs, and large-scale forest fires.
Eligible employers may receive between 50% to 66% of the leave allowance paid to employees, capped at KRW66,000 per employee per day, for up to 180 days annually.
South Korea to Raise Pay for “Daddy Bonus” Parental Leave Recipients
On 27 May 2025, the Ministry of Employment and Labor announced a proposed revision to the Enforcement Decree of the Employment Insurance Act, aiming to align the “daddy bonus system” pay with the standard parental leave salary.
The revision ensures workers who took part in the temporary “daddy bonus” scheme—originally in effect until 31 December 2022—will now receive up to KRW2 million per month during months 4–6, and KRW1.6 million after month 7 of leave. This adjustment applies retroactively to leave periods starting 1 January 2025.
Previously, post-third-month payments under the scheme were limited to 50% of regular wages, capped at KRW1.2 million, resulting in lower support compared to standard parental leave.
Introduction of New Top Talent Visa
On 3 April 2025, a new F-2 visa to attract highly skilled foreign professionals in key industries such as semiconductors, biotechnology, secondary batteries, and displays was launched.
Eligible applicants included those with a master’s or doctoral degree from a top 100 global university or at least 8 years of experience, including 3 years at a top 500 global company, and an annual income near KRW150 million (approximately US$102,000). Applicants earning over KRW199.82 million annually could also qualify regardless of academic or work experience.
Top-tier visa holders and their families may apply for permanent residency after 3 years.
National Pension Upper Limit to Increase from July 2025
As of July, the upper limit of the monthly income of the national pension will be adjusted from KRW6.17 million to KRW6.37 million, and the lower limit will be adjusted from KRW390,000 to KRW400,000.
High-income earners with monthly income of 6.37 million won or more will see their monthly insurance premiums increase from KRW555,300 to KRW573,300.
The minimum insurance premium paid by subscribers with less than KRW390,000 per month will also be raised by KRW900 from KRW35,100 to KRW36,000.
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TAIWAN
Taiwan Announces New National Holidays for 2025
On 9 May 2025, Taiwan officially enacted the Act on the Implementation of Commemorative and Festival Holidays, introducing new national holidays for 2025 by presidential decree.
The new holidays include Little Lunar New Year’s Eve, Labour Day (now extended to all sectors), Confucius’ Birthday (28 September), Retrocession Day and Battle of Guningtou (25 October), and Constitution Day (25 December). The legislation replaces earlier administrative orders and adds 5 public holidays to the 2025 work calendar.
The law also grants indigenous tribes flexibility to select 3 holidays based on their own traditional customs, replacing the previously fixed date set by the Council of Indigenous Peoples. The act takes effect immediately upon promulgation.
Taiwan Extended Corporate Income Tax Filing Deadline
On 18 April 2025, Taiwan’s Ministry of Finance announced an extension of the filing deadline for 2024 corporate income tax returns to 30 June 2025.
The extension applied to profit-making enterprise income tax declarations, including claims for various investment-related deductions.
It also covered applications for research and development tax relief, as well as investment deductions related to smart machinery, 5G mobile communication systems, and ICT products and services.
Tax Incentives for SMEs Raising Salaries Extended
To encourage small and medium-sized enterprises (SMEs) to raise employee salaries to retain talent, the government amended Paragraph 2 Article 36-2,of the Act for Development of Small and Medium Enterprises on 7 August 2024.
If SMEs raise the average salary paid to the domestic junior employees, the SMEs can deduct up to 175% of the incremental annual gross salary payments, excluding statutory minimum wage adjustment, to the junior employees from its current year profit-seeking enterprise income. This policy applies retroactively from 1 January 2024 and will remain in effect until 31 December 2033.
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UNITED ARAB EMIRATES
Dubai Implements Flexible Summer Working Hours for Public Sector Workers
The Dubai Government Human Resources Department (DGHR) has announced the implementation of flexible summer working hours for public sector employees. The new policy will take effect from 1 July to 12 September 2025 and applies to all government entities in Dubai.
Under this initiative, government departments may choose between two working schedules. The first option offers a four-day workweek, with employees working 8 hours per day from Monday to Thursday and having Fridays off. The second option maintains a five-day workweek, where employees work 7 hours per day from Monday to Thursday and 4.5 hours on Friday.
Our UAE team of expertise can help your business further streamline HR operations.
VIETNAM
Vietnam Grants Level-2 Electronic Identification (eID) Registration for Foreigners in Vietnam
From 1 July 2025, Vietnam began implementing Level-2 electronic identification (eID) registration for foreigners via local Immigration Departments in selected provinces, including Hanoi, Ho Chi Minh City, and Dong Nai.
This eID is essential for foreigners – especially company legal representatives – to access e-government services such as tax registration, e-invoice issuance, digital banking, labour reporting, and business licensing.
Our Vietnam team of expertise can help your business further streamline HR operations.
Want a summary of the Q3 2025 Labour Law Insider?
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Disclaimer: This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. This post contains links to other websites owned by third parties. The content of such third-party sites is not within Links International’s control, and we cannot and will not take responsibility for the information, content or personal information collected by third-party sites.