Links Onboard – Latest APAC Tax, Payroll & Labour Law Updates
Below is the latest issue of Onboard, a quarterly update by Links. Our legislation update covers major tax, labour law, payroll and visa developments across Asia. It is designed to get you updated at-a-glance.
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- Hong Kong
- Application of Reimbursement of Maternity Leave Pay Scheme (RMLP) Open
- Macau
- E-submission for Dsf and FSS available in “一戶通”
- Mainland China
- Increased Support for Small Enterprises and Self-Employed
- Childcare Subsidy Scheme After Announcement of the Three-Child Policy
- Minimum Wage Revised for Jiangxi Province
- Taiwan
- Taipei Launches COVID Relief to Aid Businesses and Individuals Till July 31st
- Vaccinated Employees are Entitled to 2 Days Off Work
- New Law Mandates Occupational Accident Insurance for All Workers
- Deferred Payment of Labour Insurance Due to COVID-19
- Singapore
- Update on Requirements for Safe Management Measures at the Workplace
- Reduced Entry Approvals for Work Pass Holders
- Revised CPF contribution rates from 1 January 2022
- Updated Border Measures from 23 June 2021
- Malaysia
- Malaysia Launches Pemerkasa Plus
- HR Development Levy Extended
- Thailand
- Cabinet Has Been Approved to Reduce the Monthly Social Security Contribution Rate From 5% to 2.5% for Both Parties
- Government Approves US$4.5 Billion Economic Stimulus Package
- Workers Will Get Covid Vaccines in June/July
- Vietnam
- New Guidance on Work Permits
- Indonesia
- New Immigration Policies
- Religious Holiday Allowance (THR) Still Mandatory Despite COVID-19
- Cambodia
- Notification on Update on Current Address of Workers/Employees for Authorities
- Prakas on Launch of Public Services Related to the Labour and Vocational Training Sector via Automate System
- Philippines
- US$215.9 Million Disbursed in Maternity Benefits in 2020
- The Department of Labor and Employment Giving Out Freebies to Vaccinated Workers
- South Korea
- Reduction in Weekly Maximum Working Hours for Smaller Firms
- Japan
- Amendments to Act on Improvement of Employment Management for Part-time and Fixed-Term Workers (“Equal Pay for Equal Work)
- Amendment of the ‘Act on Stabilization of Employment of Elderly Persons’
- Australia
- Update to the Law of Casual Employment
- Tax Further Reduced for Small and Medium Businesses from 1 July 2021
- Launch of Employment Contract Tool
- Minimum Wage to Increase by 2.5%
- Superannuation is Scheduled to Increase from 9.5% to 10% from 1 July 2021
- New Zealand
- Minimum Employee Sick Leave Entitlement Increases to 10 Days from 24 July 2021
- The Due Date Income Tax Returns on 7 July
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
Application of Reimbursement of Maternity Leave Pay Scheme (RMLP) Open
The Reimbursement of Maternity Leave Pay Scheme or RMLP Scheme is now open for application. Employers are entitled to apply for reimbursement for Maternity Leave Pay for the 11th to 14th weeks under the RMLP Scheme, subject to a cap of HK$80,000 per employee.
Looking to streamline your business in HK? Contact our professional payroll team now!
MACAU
E-submission for Dsf and FSS available in “一戶通”
Companies with online submission in Dsf & FSS need to apply “一戶通” for online submission going forward.
Need more information about business in Macau? Contact us now!
MAINLAND CHINA
Childcare Subsidy Scheme After Announcement of the Three-Child Policy
The Childcare Subsidy Scheme is a national statutory benefit in Mainland China. Eligible employees can receive a certain amount of reimbursement for childcare service every month. Eligibility and payment standards vary depending on the province and city.
For more information: https://www.linksinternational.com.cn/article/detail/1617
Increased Support for Small Enterprises and Self-Employed
The State Council will boost support for micro & small enterprises and self-employed individuals. Financial institutions will be encouraged to expand credit loans, first-time loans medium- and long-term loans and loan renewals without principal repayment, and to promote the pay-as-you-go lending model.
Minimum Wage Revised for Jiangxi Province
From 1 April 2021, the minimum wage for the following cities/urban areas in Jiangxi will increase:
- Nanchang
- Jiujiang, Shangrao, Ji’an, Pingxiang
- Yichun, Jinggangshan, Rujin
Expanding into China? Learn more about how our professional HR team can help!
TAIWAN
Taipei Launches COVID Relief to Aid Businesses and Individuals
The Taipei city government has rolled out a COVID-19 relief package. Includes:
- Tax exemptions
- Cash handouts
- Loans with reduced interest rates
Vaccinated Employees are Entitled to 2 Days Off Work
Employees who receive the COVID-19 vaccine will be entitled to 2 days off work. They will not be required to prove they are feeling unwell and only need to show their vaccination card. Whether the leave will be paid will be up to the employer.
New Law Mandates Occupational Accident Insurance for All Workers
Under the Occupational Accident Insurance and Protection Act, Employers are mandated to sign all their employees up for occupational accident insurance regardless of the company’s size. Companies can face a fine of up to NT$100,000 if they don’t comply.
Deferred Payment of Labour Insurance Due to COVID-19
Insured withholding units and professional workers that meet certain conditions can apply for deferred payment of labour, insurance premiums and labour pensions before November 30.
Unsure about the business regulations in Taiwan? Our expertise can help!
SINGAPORE
Update on Requirements for Safe Management Measures at the Workplace
The requirements for safe management measures at the workplace has been updated. This includes measures like providing employees with an option to work from home, have safety precautions in place, take care of the workplace, adhere to travel advisories, etc.
Reduced Entry Approvals for Work Pass Holders
Due to the resurgence of Covid-19 cases, the Government is reducing entry approvals for work pass holders entering Singapore.
- Migrant domestic workers and Construction, Marine Shipyard and Process (CMP) work pass holders who have earlier obtained approval will be allowed entry as approved with a few exceptions
- Other work pass holders who obtained approval to enter prior to 5 July will not be allowed to enter
Revised CPF contribution rates from 1 January 2022
As recommended by the Tripartite Workgroup on Older Workers, the CPF contribution rates for employees aged 55 to 70 will be increased to strengthen their retirement adequacy.
The revised CPF contribution rates for Singapore Citizens and Singapore Permanent Residents (from third year and onwards) will take effect from 1 January 2022. There is no change to the CPF contribution rates for other age groups.
Updated Border Measures from 23 June 2021
From 23 June 2021, the duration of the Stay-Home Notice (SHN) for new travellers arriving from higher risk countries/regions will be subject to 14 days instead of 21 days at dedicated SHN facilities.
For information visit the Government website: Click Here
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MALAYSIA
Malaysia Launches Pemerkasa Plus
On 31 May 2021, Malaysia launches Pemerkasa +, a financial aid package of RM40 Billion. The three objectives are to:
- increase public healthcare capacity;
- continue the rakyat welfare agenda; and
- support business continuity.
Some support businesses can expect to receive, include:
- Relief on loan repayments
- Further allocation for microcredit working capital
- Rental discounts
HR Development Levy Extended
The ‘PSMB Act’ has been amended to cover new industries. Employers in these categories are now required to pay a levy to the Human Resources Development Fund (HRDF).
Our expertise is helping businesses in Malaysia grow! Learn more.
THAILAND
Cabinet Has Been Approved to Reduce the Monthly Social Security Contribution Rate From 5% to 2.5% for Both Parties
This rate will effective from June 2021- August 2021.
| Portion | Monthly SS Rate (%) | Maximum Amount (THB) | Minimum Amount (THB) |
| Employee | 2.5 | 375.00 | 42.00 |
| Employer | 2.5 | 375.00 | 42.00 |
Government Approves US$4.5 Billion Economic Stimulus Package
To counter the nation’s biggest coronavirus outbreak, an economic stimulus package of US$4.5 billion has been approved by the Government. The measures include cash handouts, co-payments, and rebates.
Workers Will Get Covid Vaccines in June/July
The Social Security Office (SSO) has assured employees covered under Section 33 of the Social Security Act (SSA) that the vaccination drive against Covid-19 will begin in June. Employees under Section 33 can still book to get the vaccines with their employers who will forward their names to the SSO. Both applicable for online and offline filling but not allows employee to walk-in to register by themselves because the Social Security Office will coordinate registration for this vaccination program, by asking all companies to submit information about their employees who want to be vaccinated.
Links has been helping enterprises in Thailand grow. See how you can benefit from partnering with us!
VIETNAM
New Guidance on Work Permits
Decree No. 152 replace Decree No. 11, which includes guidance on the recruitment of foreign and Vietnamese employees working in Vietnam.
Vietnam is experiencing an economic boom! Links can help your business further streamline operations.
INDONESIA
New Immigration Policies
The Director General of Immigration issued Circular Letter No. IMI-0661.GR.01.01, which updates the immigration policies regarding Visa and Stay Permit Provisions during the New Normal Adaptation Period.
Religious Holiday Allowance (THR) Still Mandatory Despite COVID-19
Employers must still pay religious holiday allowance (THR) to employees in full or face fines and the suspension of business activities. Payments of THR can be no later than one week before the start of the religious holiday. Recognised holidays include:
- Eid-il-Fitri for Muslims;
- Christmas for Catholics and Protestants (considered as two different religions in Indonesia);
- Nyepi for Hindus;
- Vesak for Buddhists; and
- Chinese New Year for Confucianists
Is your business located in Indonesia? Outsource your payroll to improve business processes!
CAMBODIA
Notification on Update on Current Address of Workers/Employees for Authorities
Notification #029 from Ministry of Labour and Vocational Training (MLVT) dated June 10, 2021:
According to the necessity of the Phnom Penh Capital Administration, MLVT would like to inform all owners or directors of factories/enterprises and workers/employees as follows:
1- For owners/directors of factories/enterprises, MUST:
– Update the current real address (rented house/room, village, commune, district and province/capital) of workers/employees and send it to MLVT by 25 June 2021.
2- For workers/employees, MUST:
– Ask the owner of their rented house/room in order to provide the current real address to the company in charge person
Prakas on Launch of Public Services Related to the Labour and Vocational Training Sector via Automate System
Prakas #430 from Ministry of Labour and Vocational Training (MLVT) about the launching of public services related to the labour law and vocational training sector via automation system to promote the quality, effectiveness, transparency and accountability. This new system will be effective from 11 January 2021.
– In order to use the online portal, Cambodian companies that were already registered with the MLVT before 1 May 2021 must re-register using the online portal.
– Companies that were already registered with the MLVT from 1 May 2021 will automatically be registered for the online portal.
– This is a new one-off obligation
– The re-registration via online should complete as soon as possible before the labour inspection.
Want to expand your footprint into Cambodia? Links can help you!
PHILIPPINES
US$215.9 Million Disbursed in Maternity Benefits in 2020
Since the expansion of Maternity Leave in 2019, the level of disbursement in maternity benefits has almost doubled.
The Department of Labor and Employment Giving Out Freebies to Vaccinated Workers
To encourage more workers to get vaccinated, the Department of Labor and Employment are giving out bicycles and other freebies to fully vaccinated employees under the BakSikleta program.
Looking for 100% In-Country payroll services? Partner with Links now!
SOUTH KOREA
Reduction in Weekly Maximum Working Hours for Smaller Firms
From 1 July 2021, the weekly maximum working hours will be reduced to 52 hours from 68 hours for small enterprises with 5 – 49 workers. Businesses with 5 to 29 employees will be temporarily (1 July 2021 to 31 December 2022) allowed to have employees work an additional 8 hours if they are able to give reason and period for additional overtime.
Unfamiliar with South Korean labour law? Contact our team now!
JAPAN
Amendments to Act on Improvement of Employment Management for Part-time and Fixed-Term Workers (“Equal Pay for Equal Work)
An employer is prohibited from creating an unreasonable difference of working conditions such as base salary and bonus between regular workers and parttime or fixedterm workers, in light of employees’ duties and responsibilities. Further, in the case where parttime or fixedterm workers’ duties and responsibilities are deemed to be equivalent to those of regular workers, an employer is prohibited from making a discriminatory treatment. Effective April 1st 2021 (for SMEs).
Amendment of the ‘Act on Stabilization of Employment of Elderly Persons’
To tackle its aging society, Japan has amended its “Act on Stabilization of Employment of Elderly Persons”. Effective from April 1, the amendments require employers to ‘make best efforts’ to take measures to secure working opportunity for their employees up to the age of 70.
Need help dealing with complications in Japan? Contact our team now!
AUSTRALIA
Update to the Law of Casual Employment
On the 22nd March 2021, Parliament passes the Fair Work Amendment Bill 2021, which updates the law of casual employment. This includes a new definition of ‘Casual Employee’, the conversion of casuals to permanent employment, employers providing “Casual Employment Information Statement” prepared by the Fair Work Ombudsman.
Tax Further Reduced for Small and Medium Businesses from 1 July 2021
From 1 July 2021, companies with a turnover of less than $50 million will see a new tax rate of 25%.
Launch of Employment Contract Tool
The Australian Government have launched an employment contract tool to help small businesses create basic employment contracts that comply with workplace laws.
Minimum Wage to Increase by 2.5%
The new national minimum wage will apply from your first full pay period on or after 1 July 2021. This means if you have a weekly pay period that starts on Monday, the new rates will apply from Monday 5 July 2021.
The award increase will happen in 3 stages.
The increase doesn’t affect employees who already get paid more than the new minimum wage.
Most awards will increase from the first full pay period on or after 1 July 2021. The increase for the Retail Award will apply from the first full pay period on or after 1 September 2021. The other 21 awards will increase from the first full pay period on or after 1 November 2021.
Superannuation is Scheduled to Increase from 9.5% to 10% from 1 July 2021
Super guarantee percentage will increase from 9.5% to 10% from July 2021
Need to simplify your HR and Payroll? Click here to learn more.
NEW ZEALAND
Minimum Employee Sick Leave Entitlement Increases to 10 Days from 24 July 2021
Parliament has passed an amendment bill that will increase the minimum employee sick leave entitlement from 5 days to 10 days per year. This change will take place from 24 July 2021 and will be available for employees after reaching 6 months of employment or on their sick leave entitlement anniversary.
The Due Date Income Tax Returns on 7 July
Due date for IR3, IR3NR, IR4, IR6, IR7, IR8 and IR9 Income Tax Returns on 7 July 2021
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If you have any questions with regards to the content in our Onboard or Links International’s HR Outsourcing services, please contact Bella Khan at bella.khan@linksinternational.com or Lynette Liew at lynette.liew@linksinternational.com.
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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.