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.
- Hong Kong
- LegCo Approves Labour Bill to Abolish MPF Offsetting Arrangement
- Major Amendments to Employment Ordinance 2022 Under Anti-epidemic Measures Comes Into Effect on 17 June 2022
- Sickness Allowance to include Anti-Epidemic Measures
- Dismissal of Unvaccinated Workers (Without Exemption) Is Now Permissible Under EO
- Employees’ Compensation Protection Extended to Employees Commuting to or From Work Under “Extreme Conditions”
- Mainland China
- Security Assessment Rules For Cross-border Data Transfer
- Shanghai Rolls Out Unemployment Rate Control Subsidy
- Shanghai Unveils Subsidy to Boost Employment
- Announcement on Shanghai’s Social Security Payment Base in 2022
- Beijing Implements New Policy Package to Stabilise Employment
- Hunan Province Launches Maternity Leave Extensions
- Retirement & Re-Employment Age Increased to 63 and 68 Respectively
- Introduction of Popular Places Pass for Migrant Workers Residing in Dormitories
- Revised Entry Requirements for Construction, Marine Shipyard and Process (CMP) Sectors Work Permit Holders (WPHs)
- Singapore Government to Provide Businesses and Workers With New S$1.5BN Support Package
- Increase in Co-funding Share for 2022 Progressive Wage Credit Scheme (PWCS) Support
- Current Jobs Growth Incentive Extended Till September 2022
- Foreign Worker Levy Waiver for Chicken Slaughterhouses
- Energy Efficiency Grant
- Enterprise Financing Scheme (Trade Loan)
- Enterprise Financing Scheme (Working Capital Loan)
- Amendments to the Employment Act to Take Effect on 1 September 2022
- Maternity Leave & Protection
- Paternity Leave
- Sexual Harassment Notice
- Maximum Weekly Working Hours
- Flexible Working Arrangements (FWA)
- Update to Visas, Passes and Permits Application
- Amendments to the Employment Act to Take Effect on 1 September 2022
- New Long-Term Resident Visa
- Reduced Social Security Contribution Rate for Employer & Employee Portion
- Minimum Wage Increases by 6%
- Social Insurance Statutory Contribution Rate Reverting Back to 17.5%
- Government Reminder to Submit Report on Employment of Foreign Employees in Ho Chi Minh
- Use of Electronic Personal Income Tax Withholding Certificate
- Implementation of Labour Inspection Self-Declaration via Automation System
- Implementation of the Social Security Pension Scheme for Persons Under the Provisions of the Labour Law
- Implementation Date of the Contribution Payment for Pension Scheme by the Obligation and Voluntary
- BPJS Health Starts Trialing Universal Class for 5 Government Hospital
- New Wage (Labour) Code 2022 Brings Changes to Working Hours, Annual Leaves, In-Hand Salaries
- Working Hours
- Overtime Hours
- Full and Final Payment
- Provident Fund Contributions and Take Home Salary
- Maternity Leave
- Leave Eligibility
- Lowest EPF Interest Rates in 40 Years at 8.1%
- New Wage (Labour) Code 2022 Brings Changes to Working Hours, Annual Leaves, In-Hand Salaries
- Wage Increase Across Most Regions
- PhilHealth Direct Contributions Premium Rate Increase
- South Korea
- Launch of Injury Allowance
- Increased Maximum Contribution of Statutory National Pension
- Higher Contribution Rates for Statutory Employment (Unemployment) Insurance
- Amendment of Childcare and Family-care Leave Act
- Expansion of Social Insurance Coverage
- Increased National Minimum Wage and Minimum Award Wages
- The Super Guarantee Rate Increases From 1 July 2022
- New Zealand
- Increase in Paid Parental Leave Payments
- Ending Vaccine Mandate for Border & Corrections Workers
- Protected Disclosures (Protection of Whistleblowers) Act 2022
LegCo Approves Labour Bill to Abolish MPF Offsetting Arrangement
Hong Kong Legislative Council passed the Employment & Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill 2022 (Bill) on 9 June 2022.
In effect, employers will be prohibited to use employees’ pensions to cover severance payments and long service payments.
The abolition of the offsetting arrangement has no retrospective effect and will be implemented in tandem with the full implementation of the eMPF Platform of the Mandatory Provident Fund Schemes Authority in 2025.
Major Amendments to Employment Ordinance 2022 Under Anti-epidemic Measures Comes Into Effect on 17 June 2022
Amendments to Employment Ordinance (EO) 2022 came into effect on 17 June 2022. Major amendments include:
A) Sickness Allowance to Include Anti-epidemic Measures
As of 17 June 2022, an absence by compliance with the Prevention and Control of Disease Ordinance (Cap. 599) (e.g. the restriction imposed by an isolation order, a quarantine order or a “restriction-testing declaration” can be counted as a sick day under the Employment Ordinance (EO).
Employers are required to grant sickness allowance to eligible employees. Dismissal of an employee by reason of the employee’s absence from work due to his/her compliance with the above-mentioned restriction is considered unreasonable dismissal under EO.
This amendment does not apply to restrictions imposed on persons arriving in Hong Kong is not included.
B) Dismissal of Unvaccinated Workers (Without Exemption) Is Now Permissible Under EO
An employee (without exemption) may be dismissed within 56 days of receiving a written request from the employer if they fail to produce proof of having received the COVID-19 vaccine
Relevant provisions will be repealed when the pandemic is under control and vaccination is no longer a matter of grave public health concern.
Employees’ Compensation Protection Extended to Employees Commuting to or From Work Under “Extreme Conditions”
Starting 2 July 2022, coverage of the Employees’ Compensation Ordinance (Cap. 282) (ECO) is extended in the situation where an employee sustains an injury or dies as a result of an accident when commuting to or from work during the period of “extreme conditions” arising from a super typhoon or other natural disasters of a substantial scale.
This extension covers the employee’s direct route travels to and from their place of residence and workplace within a period of four hours for that day.
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Security Assessment Rules For Cross-border Data Transfer
Cyberspace Administration of China (“CAC”) released the final version of Measures for the Security Assessment of Outbound Data Transfer (the “Assessment Measures”), set to come into effect on 1 September 2022.
The measures apply to the security assessment for providing overseas important data or personal information that is collected and generated within mainland China. A security assessment should be carried out under the following scenarios:
|Outbound data transfer of “Important Data” overseas;|
|Outbound data transfer of personal information by |
(i) a Critical information infrastructure operator, or
(ii) a data handler processing personal information of more than 1 million individuals;
|Outbound data transfer of personal information by a data handler that has provided overseas, either personal information of more than 100,000 individuals or sensitive personal information of more than 10,000 individuals, on a cumulative basis since January 1 of the previous year; and;|
|Other scenarios required by Cyberspace Administration of China|
While Assessment Measures come into effect on September 1, 2022 (the “Effective Date”), Article 20 stipulates retroactive application, if such transfers do not comply with the Assessment Measures, rectification should be completed within 6 months of the effective date.
Shanghai Rolls Out Unemployment Rate Control Subsidy
Businesses that have maintained their employment layoff rate at 5.5% can apply for 600 yuan (US$90) of subsidies per employee, capping at 3 million yuan (US$449,760) for each enterprise.
Application for this subsidy can be submitted to employment service organisations before the end of the year.
Shanghai Unveils Subsidy to Boost Employment
Businesses and social organisations are also eligible to receive grants for employing people who have been registered as unemployed for over three months, as well as college graduates.
They can get a 2,000-yuan (US$30) subsidy for signing a labour contract with each new worker who qualifies under the scheme if they employ them for at least a year and pay their social security premiums.
This subsidy will be processed automatically and will not require any applications, legible enterprises will receive the subsidy via their social security accounts.
Announcement on the Upper and Lower Limits of Shanghai’s Social Security Payment Base in 2022
The 2021 monthly average salary for employees in Shanghai municipality is RMB 11396.
From July 1st, the new cap for the social security base in Shanghai will be RMB 34188/month; while the minimum will be RMB 6520/month.
Beijing Implements New Policy Package to Stabilize Employment
Beijing rolls out a 30-point plan to stabilise employment and increase relevant subsidies for college graduates and other important target groups.
The 30-point plan offers incentives for businesses to hire more people, promotes flexible employment, and pushes workers to choose jobs near where they live.
Hunan Province Launches Maternity Leave Extensions
Hunan launches a new provincial policy offering working extensions for working mothers.
The new policy allows mothers to apply for more days of leave up to when the child turns one. Salary awarded during the extended leave will be determined through negotiation between employers and workers.
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Retirement & Re-Employment Age Increased to 63 and 68 Respectively
From 1 July 2022, the minimum retirement age is increased from 62 to 63 years. Simultaneously, the re-employment age will be increased from 67 to 68.
Employers must offer re-employment to eligible employees who turn 63, up to age 68, to continue their employment in the organisation.
The raises are part of amendments to the Retirement and Re-employment Act, to establish the maximum possible statutory retirement and re-employment ages at 65 and 70 by 2030.
Introduction of Popular Places Pass for Migrant Workers Residing in Dormitories
From 24 June 2022, migrant workers residing in dormitories will have to apply for a Popular Places Pass instead of an Exit Pass to visit the four designated popular locations (Chinatown, Geylang Serai, Jurong East, and Little India) on Sundays and public holidays.
Revised Entry Requirements for Construction, Marine Shipyard and Process (CMP) Sectors Work Permit Holders (WPHs)
Singapore, we will be phase out the mandatory 2-day Pre-Departure Preparatory Programme (PDPP) requirement starting from 1 July 2022.
Existing PDPP providers for the Construction, Marine Shipyard and Process (CMP) Sectors will be expected to put in place Business Continuity Plans (BCP) for the PDPP regime in the event that the PDPP is reinstated (e.g. public health risks due to the emergence of new variants of concern).
All non-Malaysian male Work Permit Holders (WPHs) from the CMP sectors holding an In-Principle Approval (IPA) will still be required to undergo the residential onboarding programme at the MOM’s Onboard Centres upon their arrival in Singapore. Employers whose WPHs are required to undergo the Onboard programme must ensure that they have booked a slot at the Onboard Centre through the Onboard Booking System before their arrival in Singapore.
Entry requirements for vaccinated non-Malaysian Construction, Marine Shipyard and Process Sectors Work Permit Holders:
|Arrival up to 30 Jun 2359Hrs||Arrival from 1 Jul onwards|
|CMP WPHs on IPA from sources where the PDPP is available (currently Bangladesh, India and Myanmar)||2-day stay at a dedicated facility at source countries applied through PDPP provider |
(Refer to https://go.gov.sg/bca-pdpp for more information)
Up to 4 days of onboarding at MOM’s Onboard Centres upon arrival in SG
|Up to 4 days of onboarding at MOM’s Onboard Centres upon arrival in SG|
|CMP WPHs on IPA from other sources (except Malaysians)||Up to 4 days of onboarding at MOM’s Onboard Centres upon arrival in SG|
|Existing CMP WPHs (holding valid work permit) from all sources||No PDPP or onboarding requirements|
Singapore Government to Provide Businesses and Workers With New S$1.5BN Support Package
Singapore’s Ministry of Finance announced a S$1.5bn support package to provide targeted relief for businesses, workers, as well as households.
Key relief policies include:
A) Increase in Co-funding Share for 2022 Progressive Wage Credit Scheme (PWCS) Support
The government’s co-funding share for 2022 progressive wage credit scheme (PWCS) support will be increased from 50% to 75% for wages up to S$2,500 (first tier), and from 30% to 45% for wages above S$2,500 up to S$3,000 (second tier). All other existing scheme parameters remain unchanged.
B) Current Jobs Growth Incentive Extended Till September 2022
Businesses can continue to benefit from the current jobs growth incentive (JGI) till September 2022 for the hire of
- mature job seekers who have not been working for at least six months;
- persons with disabilities;
MOM has additional plans to extend the JGI to March, more details of the JGI extension will be provided closer to the current scheme’s expiry in September 2022.
C) Foreign Worker Levy Waiver for Chicken Slaughterhouses
There will be a one-month foreign worker levy waiver for Singapore’s 11 chicken slaughterhouses to support firms affected by the chicken export ban.
D) Energy Efficiency Grant
There will be an energy efficiency grant for local SMEs in the
- food services;
- food manufacturing; and
sectors with up to 70% support to adopt energy-efficient equipment in pre-approved categories.
E) Enterprise Financing Scheme (Trade Loan)
Trade Loan’s maximum loan quantum increased to $10m from 1 July 2022 to 31 March 2023; extended 70% risk-share during this period.
F) Enterprise Financing Scheme (Working Capital Loan)
SME Working Capital Loan’s maximum loan quantum increased to $500,000 from 1 October 2022 to 31 March 2023, after the Temporary Bridging Loan Programme expires on 30 September 2022.
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Amendments to the Employment Act to Take Effect on 1 September 2022
Major changes to the Employment Act are to be enforced on 1 September 2022. The Amendment Act will introduce significant changes to the Employment Act 1955 (the ‘Principal Act’).
Major amendments include:
A) Maternity Leave & Protection
Paid maternity leave is increased from 60 to 98 calendar days.
The amendments also provide protection against dismissal during pregnancy or in the event of complications following birth aside from in the case of:
- Engaged in misconduct,
- Willfully violated a condition of the employment contract, or
- The company has ceased its operations.
B) Paternity Leave
Employees who are married men are entitled to 7 days of paid paternity leave (for up to five births).
C) Sexual Harassment Notice
Going forward, employers are required to prominently display a notice to raise awareness of sexual harassment in the workplace.
D) Maximum Weekly Working Hours
The maximum weekly hours of labour required of Malaysian employees will be cut from 48 to 45 once amendments take effect.
E) Flexible Working Arrangements (FWA)
The amendment to the Employment Act 1955 introduces Flexible Working Arrangements (FWA) to employees in the country, allowing them to apply accordingly with their respective employers.
Upon receiving an application, employers must provide a written response on the approval/ rejection of the application within 60 days. In the case of a rejection, employers must provide relevant reasoning.
Update to Visas, Passes and Permits Application
Malaysia has updated their procedures for visas, passes, and permits.
Effective 20 June 2022, all transactions involving visas, passes, and permit applications will be processed in another office of the Department, called the UTC Kuala Terengganu branch.
Such applications will no longer be processed at the Department’s office at Wisma Persekutuan.
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New Long-Term Resident Visa
A new visa scheme to attract “high-potential” foreigners. From 1 September 2022, the new long-term resident (LTR) visa will be offered to four categories of foreign nationals:
- wealthy global citizens,
- wealthy pensioners,
- work-from-Thailand professionals, and
- highly-skilled professionals.
Reduced Social Security Contribution Rate for Employer & Employee from May to July
The cabinet approved the reduction of the Social Security contribution rate from 5% to 1% for both portals effective from May to July. This will revert back to the normal rate in August which is 5% for each portion (employee & employer) in 2022.
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Minimum Wage Increases by 6%
Starting 1 July 2022, the Minimum Monthly Wage for employees in Vietnam across the 4 regions will increase, varying from US$140 to US$202. The increase in minimum monthly wages is as follows:
- Region I – VND 4,680,000 (US$202)
- Region II – VND 4,160,000(US$179)
- Region III – VND 3,630,000 (US$157)
- Region IV – VND 3,250,000 (US$140)
In accordance, the minimum hourly wages for the relevant regions will be as follows:
- Region I – VND 22,500 (US$0.97)
- Region II – VND 20,000 (US$0.86)
- Region III – VND 17,500 (US$0.75)
- Region IV – VND 15,600 (US$0.67)
Social Insurance Statutory Contribution Rate Reverting Back to 17.5%
The reduction in employer contribution to Statutory Social Insurance from 17.5% to 17% ends on 31 June 2022. Employers will need to contribute the Statutory Social Insurance at 17.5% from July onwards.
Government Reminder to Submit Report on Employment of Foreign Employees in Ho Chi Minh
On 30 May 2022, the Department of Labour, Invalids and Social Affairs of Ho Chi Minh City (HCMC DOLISA) issued Official Letter 18502/SLDTBXH-VLATLD, reminding
employers to submit reports on the employment of foreign employees and foreign employee information collection forms.
- Reporting form: Form No. 07/PLI in Appendix I to Decree 152/2020/ND-CP
- Deadline: by 4 July for semi-annual reports and by 5 January for annual reports
- Submission method: online via https://forms.gle/JKW4gGgKUQfsrJYcA
Use of Electronic Personal Income Tax Withholding Certificate
The government issued guidelines on 29 June 2022 on the use of electronic Personal Income Tax withholding certificates from 1 July 2022
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Implementation of Labour Inspection Self-Declaration via Automation System
As noted by the Ministry of Labour and Vocation Training (MLVT), all companies will be obligated to make a labour inspection self-declaration in the automation system 2 times a year, end of June and December via the website: https://sicms.mlvt.gov.kh effective from 1 June 2022.
Implementation of the Social Security Pension Scheme for Persons Under the Provisions of the Labour Law
The Social Security Pension Scheme for persons under the labour law is scheduled to be implemented from 1 July 2022 onward.
A summary of the implementation of the Pension Scheme is below:
1- Contribution Rate:
- 1st year – 5th year : 4% (2% employee + 2% employer)
- 6th year – 10th year : 8% (4% employee + 4% employer)
- 11th year onward: the contribution rate will increase 2.75% every 10 years.
2- Contribution Amount:
- Minimum: 2% of 400,000 KHR = 8,000 KHR (Approximately: USD 2.00)
- Maximum : 2% of 1,200,000 KHR = 24,000 KHR (Approximately: USD 6.00)
Implementation Date of the Contribution Payment for Pension Scheme by the Obligation and Voluntary
Prakas #170/22 from MLVT dated 5 Jul 2022.
The Pension Scheme’s compulsory and voluntary pension contributions will take place from 1 October 2022.
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BPJS Health Starts Trialing Universal Class for 5 Government Hospital
The state-owned Health Care and Social Security Agency (BPJS Kesehatan) is seeking to gradually phase out its prevailing three-tiered National Health Insurance (JKN) hospitalisation classes and provide a fair health service system for all policyholders by 2024, the trial starts in July 2022 for 5 Government Hospital.
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New Wage (Labour) Code 2022 Brings Changes to Working Hours, Annual Leaves, In-Hand Salaries
New labour codes, come into effect on 1 July 2022. New codes will affect caps on working hours, overtime hours, statutory leaves and more.
Key Changes include:
A) Working Hours
The new labour codes will cap daily working hours to 12 hours (from the original 8) while weekly working hours will stay capped at 48 to encourage 4-day work weeks.
B) Overtime Hours
Moving away from the capped 50-hour overtime maximum imposed by the Factories Act, the new labour codes will now increase the maximum number of overtime hours to 125 hours.
C) Full and Final Payment
The new labour code mandates that companies must pay the full and final settlement of wages and dues within two days instead of the previous 45-60 days of an employee’s last working day following their resignation, dismissal or removal from employment and services.
D) Provident Fund Contributions and Take Home Salary
The basic salary of the employee will have to be 50% or more of the gross salary, meaning employees would not be able to get more than 50% of their salary in the form of allowance.
Employers will have to ensure that deductions made from the salary relate to specifically permissible deductions (such as contribution to Provident Fund, tax deduction at source (TDS), etc.)
E) Maternity Leave
Paid maternity leave is increased from the original 12 weeks to 26 weeks under the new policy, eligible for those working in an organization of more than 10 people.
F) Leave Eligibility
With the new policy, instead of 240 days, employees are eligible for leave after working with the company for 180 days.
Lowest EPF Interest Rates in 40 Years at 8.1%
Approval of the central government to credit an 8.1% rate of interest for 2021-22 to each member of the Employees’ Provident Fund (EPF) scheme.
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Wage Increase Across Most Regions
Wages in 14 regions to increase between PHP30 and PHP110.
The National Capital Region (NCR) was the first to make the change on 4 June 2022, with a wage hike of PHP33, raising the minimum wage rate to PHP570 for workers in the non-agriculture sector and P533 for those in the agriculture sector.
Cordillera Administrative Region (CAR)
Increase of PHP50-PHP60 to be implemented in two tranches.
- First tranche (14 June 2022) to PHP380
- Second tranche (1 January 2023) to PHP400
The salary of kasambahay (house helpers) will also increase by PHP500 to PHP1,500, bringing the new minimum wage to PHP4,500.
Ilocos Region (Region 1)
Increase of PHP60-PHP90 to be implemented in two to three tranches starting 6 June 2022.
- New minimum wage rate will range from PHP372 to PHP400
The new minimum wage of kasambahay (house helpers) will increase to PHP5,000.
Cagayan Valley (Region 2)
Increase to be implemented in two to three tranches starting 8 June 2022.
- New minimum wage rate will range from PHP400-PHP420
The new minimum wage of kasambahay (house helpers) will increase from PHP1,000 to PHP5,000.
Central Luzon (Region 3)
Increase by PHP40 to be implemented in two tranches across different sectors.
- New minimum wage rate will range from PHP414 to PHP460 in the region
- New minimum wage rate will range from PHP344 to PHP409 in the Aurora province
Calabarzon (Region 4)
Increase to be implemented in two tranches across different sectors.
- New minimum wage rate will range from PHP390 to PHP470 in the non-agriculture sector
- New minimum wage rate will range from PHP350 to PHP429 in the agriculture sector
- New minimum wage rate will range from PHP350 to PHP350 in retail and service establishments employing not more than 10 workers.
Increase of PHP35 to be implemented on 10 June 2022.
- New minimum wage rate will be PHP329 for establishments with less than 10 workers
- New minimum wage rate will be PHP355 for establishments employing 10 or more workers
The new minimum wage of kasambahay (house helpers) will increase from PHP1,000 to PHP4,500.
Bicol (Region 5)
Increase of PHP55 to be implemented in two tranches, on 10 June 2022 and 1 December 2022.
- New minimum wage rate will be PHP365 across all sectors
The salary of kasambahay (house helpers) will also increase by PHP1000 to PHP1,500, bringing the new minimum wage to PHP4,000.
Western Visayas (Region 6)
Increase to be implemented on 5 June 2022.
- New minimum wage rate will be PHP410 to PHP450 for workers in the private sector
The salary of kasambahay (house helpers) will also increase to PHP4,500
Central Visayas (Region 7)
Increase to be implemented on 14 June 2022.
- New minimum wage rate will range from PHP382 to PHP435
The salary of kasambahay (house helpers) will also increase by PHP500, bringing the new minimum wage to
- PHP5,500 for those in chartered cities and first-class municipalities
- PHP4,500 for those in other municipalities
Eastern Visayas (Region 8)
Increase to be implemented in two tranches, PHP25 upon effectivity of the wage order and another PHP25 on 2 January 2023.
- New minimum wage rate will be PHP375 in the non-agriculture sector and in retail and service establishments employing 11 or more workers
- New minimum wage rate will be PHP345 in the agriculture sector, cottage and handicraft, and retail and service establishments employing 10 workers or less
Northern Mindanao (Region 10)
Increase of PHP25 and PHP15 – 22 to be implemented in two tranches, on 18 June 2022 and 16 December 2022.
- New minimum wage rate will range from PHP378 to PHP405
The salary of kasambahay (house helpers) will also increase by PHP500, bringing the new minimum wage to
- PHP4,500 for cities and first-class municipalities
- PHP3,500 for other municipalities.
Davao Region (Region 11)
Increase of PHP47 to be implemented in two to three tranches starting 19 June 2022.
- New minimum wage rate will be PHP438 in the agriculture sector
- New minimum wage rate will be PHP443 in the non-agriculture sector
- New minimum wage rate will be PHP443 for retail/service establishments employing not more than 10 workers
The salary of kasambahay (house helpers) will also increase to PHP4,500
Soccsksargen (Region 12)
Increase of PHP32 to be implemented in two tranches, on 9 June 2022 and 1 September 2022.
- New minimum wage rate will be PHP368 for the non-agriculture sector
- New minimum wage rate will be PHP347 for agriculture/service/retail establishments.
Caraga (Region 13)
Increase to be implemented on 6 June 2022 for Butuan City and the provinces of Agusan del Norte, Agusan del Sur, and Surigao del Sur to PHP350 .
Increase to be implemented in two tranches on 6 June 2022 and 1 September 2022 for Dinagat Islands and Surigao del Norte, including Siargao Islands.
BARMM – Bangsamoro Autonomous Region in Muslim Mindanao
Increase of PHP16
- New minimum wage rate will be PHP316 for the industrial, manufacturing, construction and other technical sectors
- New minimum wage rate will be PHP341 for workers in Cotabato City and in 63 barangays in North Cotabato that are covered by BARMM as special geographic areas (SGAs)
- New minimum wage rate will be PHP306 in the agriculture sector
- New minimum wage rate will be PHP316 for the agriculture sector in Cotabato City and in 63 SGAs in North Cotabato
PhilHealth Direct Contributions Premium Rate Increase
PhilHealth Direct Contributions Premium Rate Increase Up To Php3,200/month.
The adjusted premium contribution rate of 4% took effect in January this year for employers and self-paying members. It takes effect in the Electronic Premium Reporting System (EPRS) and PhilHealth Member Portal (PMP) starting June 2022.
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Launch of Injury Allowance
Starting 4 July 2022, the South Korean government will kick off a pilot project on the injury allowance.
This project divides 6 regions into 3 groups, applies different models, and compares and analyses the size and financial requirements of support recipients for each model.
Increased Maximum Contribution of Statutory National Pension
Starting 1 July 2022, the monthly max contribution ceiling of the statutory national pension for employers and employees will increase from KRW235,800 to KRW248,850 each.
Higher Contribution Rates for Statutory Employment (Unemployment) Insurance
The employment insurance rate will be raised by 0.1% each for employees and employers as summarized in the following:
|Employment Insurance:||Before||From July 1, 2022|
(Varies depending on the number of employees)
|1.05% ∼ 1.65%||1.15% ∼ 1.75%|
The statutory social insurance rates are in effect from July 1, 2022, as follows Social Insurances:
|Social Insurances:||Employee portion||Employer portion||Total||Remark|
|National Pension (NP)||4.50%||4.50%||9.00%||Monthly contribution ceiling of 248,850KRW each from July 1, 2022|
|National Health Insurance (NHI)|
|a.||Health Insurance (HI)||3.50%||3.50%||6.99%||Monthly contribution ceiling of 3,653,550KRW each|
|b.||Long-term Care Insurance for the Elderly (HI-LTCI)||12.27%||12.27%||12.27%(*)||(*) Assessed at 12.27% of HI premium above|
|Employment Insurance (EI)||0.90%||1.15% ∼ 1.75%||2.05% ∼ 2.65%||Vary depending on the number of employees|
|Industrial Accident Compensation Insurance (IACI)||NIL||0.60 % ∼ 18.6%||0.60 % ∼ 18.6%||Vary depending on type of business|
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Amendment of Childcare and Family-care Leave Act
This new Childcare at Birth Leave will be applicable to male employees starting 1 October 2022. It is an addition to the existing government-paid childcare leave entitlements which can now be taken in one or two separate instalments.
The amendment will give male employees 4 weeks of leave to be taken within 8 weeks of the child’s birth. The Childcare at Birth Leave will be payable by social security at the same rate as maternity leave (67% of covered pay).
Expansion of Social Insurance Coverage
The number of employees required to be covered by social insurance for part-time and other short-time workers was 501 or more, but from 1 October 2022 this number will be reduced to ‘101 to 500’.
Specific conditions for part-time workers are as follows.
- More than 20 and less than 30 hours of scheduled working hours per week.
These are the contractually prescribed working hours and do not include overtime hours, etc.
However, if the actual working hours are 20 hours or more per week for two consecutive months and are expected to continue, the employee will be covered from the third month.
- Monthly wages of JPY 88,000 or more.
This refers to basic wages and allowances and does not include overtime, bonuses, temporary wages, etc.
- Expected to be employed for at least two months.
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Increased National Minimum Wage and Minimum Award Wages
The Fair Work Commission has increased the National Minimum Wage and minimum award wages. Starting From 1 July 2022, the national minimum wage is $21.38 per hour or $812.60 per 38-hour week (before tax). Casual employees covered by the national minimum wage also get at least a 25% casual loading.
Modern award minimum wages will increase by no less than 4.6 per cent, with modern award rates below $869.60 per week attracting an increase of $40 per week and modern award rates above $869.60 per week attracting an increase of 4.6 per cent, to commence from 1 July 2022.
The Super Guarantee Rate Increases From 1 July 2022
On 1 July 2022, the super guarantee (SG) rate will increase from 10% to 10.5%.
The Norfolk Island transitional SG rate will increase from 6% to 7%.
The rate you’re required to use depends on when your employee is paid, not when the income is earnt. This means the new rate will need to be applied to any payments of salary or wages made on and after 1 July 2022, even if some or all of the relevant pay period is before 1 July.
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Increase in Paid Parental Leave Payments
The maximum weekly rate of paid parental leave will increase by 6.3%, from $621.76 per week to $661.12 before tax starting 1 July 2022.
For the self-employed, payments can either be:
- average weekly self-employed income up to a maximum of $661.12 a week before tax; or
- minimum payment of $212 a week before tax.
Receiving at the very least the equivalent of 10 hours a week at the minimum wage.
Ending Vaccine Mandate for Border & Corrections Workers
Starting 2 July 2022, border workers and corrections staff are no longer mandated to be fully vaccinated as the risk COVID-19 poses at the border is much lower.
The vaccine mandate for health and disability workers remains as they have close interactions with people of particular vulnerability to the disease.
Protected Disclosures (Protection of Whistleblowers) Act 2022
Protected Disclosures (Protection of Whistleblowers) Act 2022 takes effect in replacing the Protected Disclosures Act 2000 starting 1 July 2022.
Key changes in the 2022 Act:
- extending the definition of serious wrongdoing
- allowing people to report serious wrongdoing directly to an appropriate authority at any time while clarifying the ability of the appropriate authority to decline or refer the disclosure
- specifying what a receiver of disclosure should do
- clarifying internal procedure requirements for public sector organisations
- requirements to state how they will provide support to disclosers
- clarifying the potential forms of adverse conduct disclosers may face.
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