Links Labour Law Insider – Latest APAC Tax, Payroll & Labour Law Updates
Introducing 2025’s first edition of Links’ Labour Law Insider, our quarterly publication. This edition provides a detailed overview of key updates in taxation, labour law, payroll, and visa regulations across the Asia-Pacific region, 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.
- Hong Kong
- Hong Kong Extends Deadline for 2023/24 “Code M” Profits Tax Returns
- Hong Kong Ratifies Double Tax Agreements with Five Countries
- Hong Kong Announces New Tax Concessions
- Mainland China
- China Announces Extended Public Holidays for 2025
- China to Roll Out Private Pension Scheme Nationwide
- China Issues Regulations on Network Data Security Management
- China Introduces Visa-Free Access for Citizens of 9 More Countries
- Macau
- Macau Introduces Employer-Paid Maternity Leave Subsidy Scheme
- Amendment to Macau’s Labour Relations Law
- Singapore
- Singapore Introduces New Rules for Workers Handling Higher-Risk Machinery and Combustible Dust
- Singapore’s Civil Servants to Receive 1.05-month Year-End Bonus
- Singapore Reveals Labour Market Advance Release for 2024
- Singapore Increases Parental and Paternity Leave with New Law
- Singapore to Close CPF Special Account for Members Aged 55 and Above
- Malaysia
- Johor to Introduce 2-Hour Friday Break for Employees
- Malaysia to Implement RM1,700 Minimum Wage for All Private Sector Workers
- Malaysia’s 2025 HR and Employment Budget Highlights
- Malaysia Increases Salary Ceiling for Social Security Contributions to RM6,000
- Vietnam
- Vietnam’s Lunar New Year Holiday for 2025 Approved
- Vietnam Extends VAT Reduction into 2025
- Updates to Social Insurance Law as of 1 July 2025
- Updates to Health Insurance Law as of 1 July 2025
- Updates to Trade Union Law as of 1 July 2025
- Updates on Tax Administration and Personal Income Tax Effective 1 January 2025
- Indonesia
- 2025 Minimum Wage Update
- Indonesia to Raise VAT on Luxury Goods to 12% on 1 January 2025
- Government Releases PMK 81/2024 on Coretax, 42 Old Regulations Revoked
- Taiwan
- Taiwan to Expand Tax Incentives for MSMEs from 2025
- Taiwan Clarifies Rules on Interest Expense Deductions for Shareholder Loans
- Taiwan Implements Changes in the Amount of Insurance Salary for Level 1
- Change of Ordinary Insurance Premium Rate for Labour Insurance
- Changes in the National Health Insurance Salary
- South Korea
- South Korea to Extend Childcare and Maternity Leave for Parents of Severely Disabled Children
- South Korea to Recognise Civil Servant Childcare Leave as Work Experience for Promotion
- Supreme Court Broadens Scope of Ordinary Wages to Encompass Conditional Bonuses
- India
- India to Modernise Administration of Permanent Account Numbers
- India Issues New Guidelines on Compounding of Tax Offences
- India Launches Upgraded e-Shram 2.0 Portal for Unorganised Workers
- India Announces 3% Increase in Dearness Allowance
- Latest Updates on UAN Activation and Linking Bank Accounts with Aadhaar
- India’s EPFO Issues Updated Guidelines on Digital and E-Signatures
- Thailand
- Thailand Approves Additional Public Holidays for 2025 and Early 2026
- Employee Welfare Fund in Thailand Effective as of 1 October 2025
- New Daily Minimum Wage Increases to 400 Baht as of 1 January 2025
- Philippines
- Philippines Releases Official Holiday List for 2025
- Schedule of SSS Contributions Effective January 2025
- Australia
- Australia Releases Draft Guidelines for Labour Hire Arrangement Orders
- Criminalising Intentional Wage Underpayments
- Child Support and the Protected Earnings Amount in 2025
- New Zealand
- New Zealand Advances Bill Criminalising Non-Payment of Wages
- New Zealand Launches Online Pay Gap Calculator Toolkit
- Adult Minimum Wage to Increase to NZ$23.50 per hour From 1 April 2025
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.
HONG KONG
Hong Kong Extends Deadline for 2023/24 “Code M” Profits Tax Returns
The Inland Revenue Department announced an extension for filing “Code M” profits tax returns for the 2023/24 assessment year. Taxpayers had until 29 November 2024 to submit their returns, moving the original deadline of 15 November 2024.
This extension applies to taxpayers whose accounting periods end between 1 January 2024 and 31 March 2024.
Hong Kong Ratifies Double Tax Agreements with Five Countries
Hong Kong has taken steps to ratify double tax agreements (DTAs) with Armenia, Bahrain, Bangladesh, Croatia, and Turkey. On 30 October 2024, the government tabled five Orders under the Inland Revenue Ordinance in the legislature. The DTAs will come into effect once ratification procedures are completed by both Hong Kong and the respective jurisdictions, increasing Hong Kong’s network of double tax agreements to 51.
The treaties establish capped withholding tax rates for Hong Kong residents:
- Armenia: Dividends capped at 0% or 5%, interest and royalties at 5%.
- Bahrain: Royalties capped at 5%.
- Bangladesh: Dividends capped at 10% or 15%, and interest, royalties, and technical service fees at 10%.
- Croatia: Dividends, interest, and royalties capped at 5%.
- Turkey: Dividends capped 5% or 10%; interest and royalties capped at 10%, reduced to 7.5% for financial institution loans exceeding two years or royalties for industrial, commercial, or scientific requirement.
These agreements aim to strengthen economic ties by eliminating double taxation and encouraging cross-border investment.
Hong Kong Announces New Tax Concessions
In the 10 October 2024 Policy Address, the Chief Executive outlined plans for new tax concessions aimed at boosting Hong Kong’s economy.
To position Hong Kong as a leading commodities storage hub, the Government plans to introduce a preferential tax regime to attract enterprises, enhance storage capacity, and increase trade volume.
Seeking to simplify your HR administration and payroll processes in Hong Kong? Contact our professional payroll team now!
MAINLAND CHINA
China Announces Extended Public Holidays for 2025
The State Council has released China’s official 2025 public holiday schedule, extending the Spring Festival and Labour Day breaks with two additional days each. The updated schedule includes an 8-day Spring Festival, a 5-day Labour Day holiday, and a combined 8-day break for the National Day and Mid-Autumn Festival.
These adjustments are designed to boost domestic consumption, improve citizens’ quality of life, and drive economic growth by encouraging increased travel and leisure activities during the longer holidays. The changes will take effect on 1 January 2025.
China to Roll Out Private Pension Scheme Nationwide
China officially rolled out its private pension scheme on 15 December 2024, after a two-year trial phase.
Under this initiative, domestic workers covered by the country’s basic pension insurance system can voluntarily set up private pension accounts, with an annual contribution cap of 12,000 yuan.
Participants in the scheme can enjoy benefits such as tax incentives and access their funds upon reaching retirement age, experiencing permanent disability, or relocating abroad.
China Issues Regulations on Network Data Security Management
Chinese Premier Li Qiang has issued a State Council decree introducing new regulations on network data security management, effective from 1 January 2025.
These regulations establish general principles for network data security, expand on personal information protection measures, and enhance mechanisms for handling critical data.
The document also provides updated guidelines for cross-border data security, outlining conditions under which data processors may share personal information with overseas entities.
Furthermore, it clarifies the obligations of internet platform service providers, specifying data protection standards for third-party services and products.
China Introduces Visa-Free Access for Citizens of 9 More Countries
China announced an expansion of its visa-free entry policy to include nine more countries as of 30 November 2024:
- Bulgaria
- Romania
- Croatia
- Montenegro
- North Macedonia
- Malta
- Estonia
- Latvia
- Japan
Citizens of these countries can now enter visa-free for up to 30 days, with exchange visits added as a valid reason for entry. These updates apply to all eligible countries and are valid until 31 December 2025.
Planning to expand your business into China? Learn more about how our professional HR team can help!
MACAU
Macau Introduces Employer-Paid Maternity Leave Subsidy Scheme
The Macau SAR Government has introduced the “Employer-Paid Maternity Leave Subsidy Scheme” under Administrative Regulation No. 34/2024 to help employers adapt to extended maternity leave and foster harmonious labour relations.
Eligible employers who pay 70 days of maternity leave to local female employees giving birth between 26 May 2023 and 31 December 2025 can apply for a 14-day subsidy within 150 days of delivery.
Employers of employees who gave birth before 29 October 2024 must apply by 27 January 2025 if the leave has been fully paid.
Amendment to Macau’s Labour Relations Law
Effective on 19 December 2024, Macau’s Law No. 23/2024 revises Article 70 of the Labour Relations Law (Law No. 7/2008). The update caps the maximum relevant income used to calculate compensation for termination without just cause at MOP 21,500, unless a higher amount is agreed upon by the employer and employee. This amendment ensures clearer guidelines for resolving employment disputes.
We can help you improve your business’ HR efficiency in Macau!
SINGAPORE
Singapore Introduces New Rules for Workers Handling Higher-Risk Machinery and Combustible Dust
Starting 1 January 2025, companies in Singapore must comply with updated regulations to enhance the safe handling of higher-risk machinery and combustible dust.
Manufacturers and suppliers are now required to ensure machinery is designed, inspected, and tested for safe use. Clear instructions on safe operation must also be provided. These measures aim to give buyers greater confidence that their machinery meets established safety standards. Buyers seeking additional guidance can consult the list of inspection companies under the Ministry of Manpower’s Inspection Programme for Safe Machines.
Suppliers and occupiers handling combustible dust must label packages or containers to highlight associated hazards and provide safety information. For organic combustible dust, such as flour or starch, the labelling requirement applies to packages weighing 25kg or more. Occupiers must also notify the ministry and their landlords if handling combustible dust quantities that meet or exceed thresholds specified in the Fourth Schedule of the Workplace Safety and Health (General Provisions) Regulations.
Singapore’s Civil Servants Received 1.05-month Year-End Bonus
It was announced on 25 November 2024 that Singapore’s Public Service Division has announced a year-end Annual Variable Component (AVC) bonus of 1.05 months for all civil servants.
Junior-grade officers, including those in grades equivalent to MX15 and MX16 and the Operations Support Scheme, received an additional one-time payment of S$600.
Combined with mid-year payments, civil servants will receive a total bonus equivalent to 1.5 months for 2024, with junior-grade officers receiving up to an additional S$850.
Singapore Reveals Labour Market Advance Release for 2024
The Labour Force in Singapore Advance Release 2024 reveals a sustained high labour force participation rate, though it has declined for the third consecutive year, attributed to a growing proportion of seniors. The participation rate for residents aged 15 and above dropped 68.6% in 2023 to 68.2% in 2024, despite increases across most age groups.
However, participation among seniors aged 55 and older continues to rise, reflecting a decade-long trend. Employment among persons with disabilities aged 15 to 64 also improved, increasing from 32.7% in 2023 to 33.6% in 2024, while most workers transitioning industries reported income growth.
Unemployment among professional, managerial, executive, and technical workers rose slightly from 2.4% in 2023 to 2.7% in 2024. Meanwhile, lower-income workers at the 20th percentile saw nominal income grow significantly, from S$2,826 in 2023 to S$3,026 in 2024.
Median gross monthly income also increased, rising from S$5,197 in 2023 to S$5,500 in 2024, highlighting overall income growth in the labour market.
Singapore Increases Parental and Paternity Leave with New Law
Parliament has passed the Child Development Co-Savings (Amendment) Bill, expanding parental leave entitlements. From 1 April 2025, parents of children born or after this date will be entitled to 6 weeks of shared parental leave, increasing to 10 weeks for children born from 1 April 2026. Eligible fathers of Singaporean children will receive 4 weeks of mandatory government-paid paternity leave starting 1 April 2025.
Employers must notify employers at least 4 weeks before taking parental leave in a continuous block to allow time for operational planning. From the same date, it will also be unlawful to dismiss or issue dismissal notices to employees on government-paid paternity or adoption leave, extending existing protections for mothers on maternity leave.
Singapore to Close CPF Special Account for Members Aged 55 and Above
The Central Provident Fund (CPF) Special Account (SA) for members aged 55 and above will be closed starting from the second half of January 2025. This change, along with the expansion of the Home Protection Scheme (HPS), follows recent amendments to the CPF Act.
Members will be notified of their SA closure via hard copy, email, or SMS. Upon closure, SA savings will be transferred to the Retirement Account (RA) up to the Full Retirement Sum (FRS), where they will continue to earn the long-term interest rate. Any remaining SA savings will move to the Ordinary Account (OA) and can be withdrawn on demand. Members can choose to transfer their OA savings to their RA, up to the prevailing Enhanced Retirement Sum (ERS), to benefit from higher interest rates.
With the ERS increasing to 4 times the Basic Retirement Sum from 1 January 2025, over 99% of CPF members aged 55 and above will be able to transfer their SA savings to the RA if desired.
Additionally, the HPS, which already covers members with pre-existing conditions deemed to be in good health, will expand from mid-2025 to include members with certain less severe conditions, such as specific types of strokes and heart disorders.
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MALAYSIA
Johor to Introduce 2-Hour Friday Break for Employees
Effective 1 January 2025, Johor will implement a 2-hour Friday break for employees in both the public and private sectors, enabling Muslims to perform their prayers. This adjustment coincides with the state’s weekend shift from Friday-Saturday to Saturday-Sunday.
The new break extends the current 1.5-hour Friday break for private sector employees.
Malaysia to Implement RM1,700 Minimum Wage for All Private Sector Workers
Beginning February 2025, Malaysia will enforce a minimum wage of RM1,700 for all private sector workers, including foreign nationals.
Key Details:
- The policy covers all private sector workers, excluding domestic workers and apprentices.
- This measure aligns with the ILO Equal Remuneration Convention, ratified by Malaysia in 1997, to prevent wage discrimination based on nationality. Employers are required to comply with laws mandating equal pay for local and foreign workers.
Non-compliance could lead to penalties ranging from RM1,000 to RM20,000 or imprisonment of up to five years.
The government had also decided to delay the implementation of the RM1,700 minimum wage for employers with fewer than five employees by six months until 1 August 2025.
Malaysia’s 2025 HR and Employment Budget Highlights
On 18 October 2024, Prime Minister and Finance Minister YAB Dato’ Seri Anwar bin Ibrahim unveiled the 2025 Budget, focusing on wage growth, investment attraction, and support for vulnerable communities.
Key highlights include the Self-Employment Social Security Scheme, which will cover up to 70% of employee contributions with RM100 million allocated. Employers hiring individuals with disabilities or ex-convicts will receive a monthly incentive of up to RM600 for three months.
The Employee Provident Fund (EPF) will mandate contributions from non-citizen workers and increase the i-Saraan matching incentive from 15% to 20%, with a maximum annual limit of RM500 and a lifetime cap of RM5,000. The EPF is also reviewing policies to enable members to transfer savings to close family members’ accounts. This proposal will be implemented in phases, subject to further notice and approval.
Malaysia Increases Salary Ceiling for Social Security Contributions to RM6,000
The Social Security Organisation (SOCSO) has raised the monthly wage ceiling for contributors from RM5,000 to RM6,000, effective 1 October 2024. This update aligns with amendments to the Employee Social Security Act 1969 and the Employment Insurance System Act 2017.
The higher ceiling enhances benefits for employees covered under these Acts. Benefits include Temporary Disablement, Permanent Disablement, Dependants’ Benefit, Invalidity Pension, and Survivors’ Pension under the Employee Social Security Act 1969. Additional support, such as the Employment Search Allowance, Reduced Income Allowance, and Early Re-employment Allowance, is provided under the Employment Insurance System Act 2017.
Employers must adjust their contributions to reflect the new ceiling from 1 October 2024 and ensure the updated contribution amounts are included in employees’ pay statements for compliance and record-keeping purposes.
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VIETNAM
Vietnam’s Lunar New Year Holiday for 2025 Approved
Prime Minister Pham Minh Chinh has approved a 9-day holiday for the 2025 Lunar New Year (Tet), running from 25 January to 2 February 2025.
Additional public holidays for 2025 include a 5-day break for National Reunification Day (30 April) and May Day (1 May) from 30 April to 4 May, and a 4-day holiday for National Day (2 September) from 30 August to 2 September.
Vietnam Extends VAT Reduction into 2025
Vietnamese authorities have announced that the temporary 2% reduction in the value-added tax (VAT) rate will be extended through the first half of 2025.
Under this legislation, the VAT rate will remain at 8%, reduced from the standard 10%. However, the lowered rate does not apply to sectors such as telecommunications, financial services, banking, securities trading, insurance, real estate, metals, mining (excluding coal), oil, chemicals, or excise goods.
Updates to Social Insurance Law as of 1 July 2025
The Social Insurance Law outlines the rights and obligations of individuals and organisations concerning social insurance, as well as the framework for its implementation. It addresses social retirement benefits, procedures for registration, collection, and payment of social insurance, and both compulsory and voluntary insurance policies.
Additionally, it includes provisions on social insurance funds, supplemental retirement insurance, mechanisms for addressing complaints and violations, and the state’s role in managing social insurance.
Updates to Health Insurance Law as of 1 July 2025
The health insurance contribution rate is calculated as a percentage of the salary used as the basis for mandatory social insurance contributions, as defined by the Law on Social Insurance (referred to as the “monthly salary”), pension, allowance, or applicable reference level. From 1 July 2025, the contribution rate will increase from 4.5% to 6%, with employers contributing 4% and employees contributing 2%.
Updates to Trade Union Law as of 1 July 2025
Updates on the Trade Union Law (Law No. 50/2024/QH15):
- Participation of Foreign Employees: Foreign employees working in Vietnam under contracts of 12 months or longer are eligible to join and participate in grassroots trade unions.
- Organisational Structure: The law provides clarity on the roles of grassroots trade unions and outlines the responsibilities of higher-level trade unions in supporting workers who are not union members.
Updates on Tax Administration and Personal Income Tax Effective 1 January 2025
This law introduces amendments to various legislations, including the Law on Securities, the Law on Accounting, the Law on Independent Audit, the Law on the State Budget, the Law on the Management and Use of Public Property, the Law on Tax Administration, the Law on Personal Income Tax, the Law on National Reserves, and the Law on Penalties for Administrative Violations.
- Tax Obligations and Exit Restrictions: Individuals with outstanding tax liabilities may be temporarily prohibited from leaving Vietnam until their tax obligations are resolved.
- E-commerce Tax Collection: Operators of e-commerce platforms with payment functionalities are required to withhold and report taxes on behalf of individual sellers using their platforms.
Our Vietnam team of expertise can help your business further streamline HR operations.
INDONESIA
2025 Minimum Wage Update
President Prabowo Subianto announces that the average national minimum wage will be increased by 6.5% in 2025.
Indonesia to Raise VAT on Luxury Goods to 12% on 1 January 2025
The value-added tax (VAT) hike to 12% will officially come into force on 1 January 2025. This new rate is only applicable to luxury goods and services.
Government Releases PMK 81/2024 on Coretax, 42 Old Regulations Revoked
To support the implementation of the Coretax System, the government has issued Minister of Finance Regulation (PMK) Number 81 of 2024. This regulation aims to enhance transparency, effectiveness, efficiency, accountability, and flexibility in the system’s application.
Taking effect on 1 January 2025, the regulation repeals 42 outdated tax provisions deemed irrelevant to the Coretax System.
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TAIWAN
Taiwan to Expand Tax Incentives for MSMEs from 2025
Starting in 2025, Taiwan will extend tax breaks and additional support to micro, small, and medium-sized enterprises (MSMEs),with a focus on high-tech industries and helping businesses expand into international markets.
The government plans to invest TWD11.6 billion to assist MSMEs in digital transformation, net-zero transitions, and developing domestic and international market channels. Additional measures include loan and tax incentives, credit guarantee support, and the establishment of a one-stop service portal to streamline resources for MSMEs.
Taiwan Clarifies Rules on Interest Expense Deductions for Shareholder Loans
In October 2024, Taiwan’s federal tax agency has issued guidance on the education of interest expenses when a company uses a loan to provide an interest-free or low-interest loan to a shareholder.
If a company borrows funds from an unrelated financial institution and pays interest, but subsequently lends the funds to a shareholder at a lower or no interest rate, the deductible interest expense must be reduced proportionally.
The tax agency reminds companies to self-adjust interest expense deductions during income tax settlement declarations to comply with regulations. Failure to do so may result in tax adjustments and repayments.
Taiwan Implements Changes in the Amount of Insurance Salary for Level 1
Starting 1 January 2025, the insurance salary for Level 1 will be adjusted to TWD 28,590.
The Bureau of Labour Insurance will automatically update the insurance salary of insured individuals to TWD 28,590 if their current amount is below this threshold, requiring no action or reporting from the insured unit.
Change of Ordinary Insurance Premium Rate for Labour Insurance
Effective 1 January 2025, the ordinary insurance premium rate for labour insurance will increase by 0.5% bringing it to 11.5%. The premium will be calculated based on the insured person’s monthly insurance salary, with a total premium of 12.5% inclusive of a 1% employment insurance premium.
Changes in the National Health Insurance Salary
Effective 1 January 2025, the National Health Insurance salary for the highest level will be adjusted to TWD 313,000.
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SOUTH KOREA
South Korea to Extend Childcare and Maternity Leave for Parents of Severely Disabled Children
Effective 23 February 2025, South Korea will extend childcare leave for single parents and parents of severely disabled children to 1.5 years without additional conditions. Parents of premature babies and individuals experiencing miscarriage or stillbirth will also benefit from extended leave periods.
Under proposed amendments to the Gender Employment Equality Act, Employment Insurance Act, and Labor Standards Act, if both parents use childcare leave for more than three months, the leave will be extended from one year to 1.5 years. Single parents or those with severely disabled children can access the extended leave without this condition.
Maternity leave for premature babies will increase from 90 days to 100 days if the baby is admitted to a neonatal intensive care unit. High-risk pregnant women will be able to utilise shortened working hours throughout their pregnancy, rather than just within 12 weeks or after 36 weeks. Additionally, leave for miscarriage or stillbirth during the first 11 weeks of pregnancy will double, from 5 days to 10 days.
South Korea to Recognise Civil Servant Childcare Leave as Work Experience for Promotion
On 2 October 2024, South Korea’s Ministry of Personnel Management announced a “Comprehensive Plan to Enhance Personnel Autonomy”, which includes recognising the entire duration of civil servant childcare leave as work experience for promotion.
Additionally, childcare leave allowances will now be paid in full throughout the leave period, regardless of the child’s birth order or treatment status.
Supreme Court Broadens Scope of Ordinary Wages to Encompass Conditional Bonuses
On 19 December 2024, the Supreme Court has ruled that conditional regular bonuses, once excluded from ordinary wages, must now be included. This decision overturns a 2013 ruling that deemed such bonuses to lack ‘fixedness’.
The court clarified that wages paid consistently and uniformly, regardless of conditions, qualify as ordinary wages. However, to preserve legal stability, the ruling will not be applied retroactively.
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INDIA
India to Modernise Administration of Permanent Account Numbers
On 26 November 2024, India is set to enhance the administration of Permanent Account Numbers (PANs) through the Income Tax Department’s PAN 2.0 project.
The initiative aims to consolidate PAN and Tax Deduction Account Number (TAN) services into a unified portal, replacing the current system spread across the e-Filing Portal, UTIITSL Portal, and Protean e-Gov Portal. The proposed one-stop platform will allow taxpayers to apply for tax identification numbers, update details, link Aadhaar with PAN, request re-issuance, and validate PANs seamlessly.
PAN 2.0 will reduce paper-based processes, offer faster processing times, and provide PANs free of charge. The project also prioritises improved personal data protection and will introduce a dedicated call centre and helpdesk to assist users.
India Issues New Guidelines on Compounding of Tax Offences
On 17 October, The Income Tax Department introduced new guidelines for the compounding of offences under the Income Tax Act, replacing all previous rules. These updates allow taxpayers to settle cases with the tax authority to avoid prosecution and simplify the process for resolving disputes.
Key changes include removing restrictions on offence categories and the number of applications a taxpayer can file. Offences under Sections 275A and 275B, previously ineligible, can now be compounded. Additionally, the 36-month time limit for filing applications from the date of complaint has been abolished, expanding access for eligible cases.
The new guidelines also remove interest charges on delayed payment of compounding fees and reduce rates for various offences, making the process more taxpayer-friendly. These changes aim to provide greater flexibility and encourage compliance with tax laws.
India Launches Upgraded e-Shram 2.0 Portal for Unorganised Workers
On 21 October 2024, Union Labour and Employment Minister Mansukh Mandaviya has unveiled the e-Shram 2.0 portal, designed to streamline access to social security schemes for unorganised workers.
The enhanced portal simplifies the registration process, enabling unorganised workers to easily enroll and benefit from various government welfare programs. The minister urged all unorganised workers to register and take advantage of the available schemes.
India Announces 3% Increase for Dearness Allowance
On 16 October 2024, the central government has raised the dearness allowance and dearness relief for central government employees and pensioners by 3%, increasing the total from 50% to 53% of basic pay.
The revised rate, applicable from 1 July 2024, will be paid in addition to the basic salary.
Latest Updates on UAN Activation and Linking Bank Accounts with Aadhaar
The Employees’ Provident Fund Organisation (EPFO) issued an important announcement on 22 November 2024, highlighting the necessity of linking your Aadhaar number with your Universal Account Number (UAN) to access EPFO benefits without interruptions. On 4 December 2024, the EPFO extended the deadline for completing this process, with the new deadline now set for 15 January 2025.
Completing your UAN activation and Aadhaar linking by the revised deadline is essential to maintain your eligibility for various EPFO benefits, including those offered under the Employment Linked Incentive (ELI) scheme.
India’s EPFO Issues Updated Guidelines on Digital and E-Signatures
The Employees Provident Fund Organisation (EPFO) has released updated guidelines for employers on processing Digital Signature Certificate (DSC) and e-signature requests, aiming to improve security and compliance.
As mandated in previous circulars from the Central PF Commissioner, DSCs and e-signatures are required for authenticating establishment-related documents and submitting statutory returns. According to the new circular issued on 10 October 2024, employers must submit an online request through the unified portal, including three specimen signatures of the designated signatory, countersigned by the employer. An up-to-date Form 5A, detailing ownership, along with the name and mobile number of the signatory, is also required.
The request letter must be stamped with the employer’s seal and include valid identification credentials, such as an Aadhaar card or UAN card. EPFO field offices are responsible for verifying the authenticity of Aadhaar details through designated online tools.
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THAILAND
Thailand Approves Additional Public Holidays for 2025 and Early 2026
Thailand’s cabinet has approved new public holidays for 2025 and January 2026 to encourage tourism and stimulate economic growth. These additional holidays will create long weekends.
For 2025, Monday, 2 June and Monday, 11 August will be designated as holidays, resulting in 4-day weekends following the Queen’s birthday on 3 June and Mother’s Day on 12 August.
Additionally, 2 January 2026 will be a public holiday, extending the New Year break to five days. This brings the total number of public holidays in 2025 to 21.
Employee Welfare Fund in Thailand Effective as of 1 October 2025
Employers and employees in Thailand will each be required to contribute 0.25% of their wages to the Employee Welfare Fund, as mandated by the Labour Protection Act. This contribution rate will increase to 0.5% beginning 1 October 2030.
Under the Ministerial Notification on Criteria and Procedures for Employers to Provide Assistance in Cases of Employment Termination or Death, employers are provided with clear guidelines for offering financial support to employees or their beneficiaries in such circumstances. Employers who adhere to these prescribed criteria and procedures are exempt from the obligation to register their employees as members of the Employee Welfare Fund.
Additionally, the following does not apply to employers who already have a provident fund as per the Law of the provident fund.
New Daily Minimum Wage Increases to 400 Baht as of 1 January 2025
The cabinet has approved new minimum wage rates, as proposed by the tri-partite Wage Committee.
The highest minimum wage will apply only to workers in Phuket, Chachoengsao, Chon Buri, and the Ko Sui district of Surat Thani. Meanwhile, the wage in Mueang district of Chiang Mai and Hat Yai district of Songkhla will be set at 380 Baht, and in Bangkok and its six surrounding provinces, the rate will rise to 372 Baht.
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PHILIPPINES
Philippines Releases Official Holiday List for 2025
President Ferdinand Marcos Jr has issued Proclamation No.727, announcing the regular and special non-working holidays for 2025. Regular holidays include key dates such as:
- 1 January (New Year’s Day)
- 9 April (Bravery Day)
- 17 and 18 April (Maundy Thursday and Good Friday)
- 1 May (Labour Day)
- 12 June (Independence Day)
- 25 August (National Heroes Day)
- 30 November (Bonifacio Day)
- 25 December (Christmas Day)
- 30 December (Rizal Day)
Special non-working days include:
- 21 August (Ninoy Aquino Day)
- 1 November (All Saints’ Day)
- 8 December (Feast of the Immaculate Conception)
- 31 December (Last Day of the Year)
Additional special non-working days include:
- 29 January (Chinese New Year)
- 19 April (Black Saturday)
- 31 October (All Saints’ Day Eve)
- 24 December (Christmas Eve)
A special working day has also been designated on 25 February for the EDSA People Power Revolution Anniversary.
Schedule of SSS Contributions Effective January 2025
Pursuant to the following issuances, the new schedule of contributions for business employers (ER) and employees (EE) and guidelines was issued.
Republic Act No 11199, otherwise known as the Social Security Act of 2018, includes the following provisions:
- Contribution Rate to 15%
- Minimum Monthly Salary Credit (MSC) to 5,000
- Maximum Monthly Salary Credit (MSC) to 35,000
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AUSTRALIA
Australia Releases Draft Guidelines for Labour Hire Arrangement Orders
The Fair Work Commission (FWC) has unveiled draft guidelines for labour hire arrangement orders under the Fair Work Act 2009. These orders aim to ensure labour hire employees are paid a protected rate equal to their counterparts in the host business.
Section 306W of the Act authorises the FWC to establish these guidelines, with the labour hire arrangement orders taking effect on 1 November 2024.
Criminalising Intentional Wage Underpayments
Starting 1 January 2025, deliberately underpaying wages or entitlements may become a criminal offence. This does not apply to genuine mistakes.
Employers could face criminal charges if they:
- Are required to pay amounts such as wages, paid leave entitlements, or contributions for the employee’s benefit, like superannuation or salary sacrifice arrangements.
- Intentionally take actions that result in these amounts not being paid by their due date.
These provisions only apply to intentional underpayments occurring after the changes take effect. However, they may also cover ongoing conduct that began before the provisions were introduced.
Child Support and the Protected Earnings Amount in 2025
The Protected Earnings Amount (PEA) is the portion of an employee’s or contractor’s wages that cannot be deducted for child support purposes. However, the PEA does not apply to garnishee notices issued under section 72A of the Child Support (Registration and Collection) Act 1988.
The PEA is updated annually on 1 January to account for changes in the cost of living.
From 1 January 2025, the following rates apply:
- Weekly rate: AU$534.23
- Fortnightly rate: AU$1,068.46 (Weekly rate x 2)
- Four-week period: AU$2,136.92 (Weekly rate x 4)
- Monthly rate: AU$2,322.95 (Daily rate x 30.4375)
For child support calculations, a year is considered to have 365.25 days to account for leap years, and the average number of days in a month is 30.4375 (365.25 / 12).
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NEW ZEALAND
New Zealand Advances Bill Criminalising Non-Payment of Wages
On 17 October 2024, New Zealand’s Parliament passed the second reading of the Crimes (Theft by Employer) Amendment Bill, which seeks to make deliberate non-payment of wages a criminal offence.
Under current law, employees must approach the Employment Relations Authority to recover unpaid wages, often requiring them to navigate complex civil processes. The proposed Bill aims to address this issue by introducing criminal penalties for intentional wage theft by employers.
New Zealand Launches Online Pay Gap Calculator Toolkit
On 13 November 2024, the Minister for Women announced the launch of an online pay gap calculator toolkit, now available on the Ministry of Women’s website. The tool is designed to help businesses calculate and address gender pay disparities.
Highlighting that women earn, on average, 8.2% less than men – a figure that has seen little change since 2017 – the Minister emphasised the importance of reducing this gap as a key priority. Businesses using the toolkit will gain access to:
- A pay gap calculator based on a standard methodology,
- A customised, downloadable action plan, and
- Guidance materials to assist throughout the process.
This initiative aims to empower organisations to identify and take actionable steps to close the gender pay gap.
Adult Minimum Wage to Increase to NZ$23.50 per hour From 1 April 2025
The Workplace Relations and Safety Minister has announced an increase in the adult minimum wage to NZ$23.50 per hour, up by 35 cents from the current rate of NZ$23.15.
The training and starting-out minimum wages will also rise to NZ$18.80 per hour, maintaining 80% of the adult minimum wage. This represents an increase from the current rate of NZ$18.52 per hour.
For employees working 40 hours a week, the new adult minimum wage will result in an additional NZ$14 per week before tax.
Approximately 141,900 workers in New Zealand currently earning between the old and new minimum wage rates are expected to benefit from this pay increase.
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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.