Asia: Social Security Payments

Employees who are Singapore citizens or permanent residents and their employers are required to make social security contributions into the Central Provident Fund (CPF). The obligation also applies to some self-employed persons. It applies regardless of coverage by the Employment Act once an employee earns more than SGD50 per month.

CPF contributions are computed based on the employee's wages on a variable scale.

The employer pays both the employee's and employer's contribution to the CPF Board. The employer is entitled to deduct the amount of the employee's contribution from the employee's salary (but is not entitled to deduct the amount of the employer's contribution).

Employers and employees are free to agree on additional retirement benefits under an individual employment contract or a collective agreement.

Non-Singapore citizens who are not permanent residents are not required to contribute to the CPF.

The Mandatory Provident Fund (MPF) system was set up to establish a formal system of retirement protection in Hong Kong and it applies to employers, employees and self-employed persons.

An employer has a number of legal obligations under the MPF Ordinance, which include:

· enrolling all employees (except for exempted persons) who are employed for 60 days or more in a registered MPF scheme; and

· making mandatory contributions to such an MPF scheme for the employees' benefit.

An employer will be criminally liable if they fail to meet such obligations.

A self-employed person must also enrol in, and make contributions to, an MPF scheme.

Employees (if they earn at least HKD7,100 per month) and their employers are each required to make monthly contributions to an employee's MPF fund. The amount of each party's monthly contribution is equal to the lower of 5% of the employee's relevant income or HKD1,500.

The employer must deduct the employee's contribution from the employee's wages and deposit that amount, together with the employer's contribution, into the employee's MPF fund.

An employee has a right to choose between the constituent funds offered under the MPF scheme and is allowed to transfer accrued benefits derived from their own contributions, once a year on a lump sum basis, to a fund of their choice.

Exemptions

An employee of less than 18 years of age or more than 65 years of age is exempt from the requirements of the MPF Ordinance. An employee who earns less than HKD7, 100 per month is exempt from the requirement to make employee MPF contributions.

In addition, any employers or employees who participate in a retirement scheme in respect of which an exemption certificate has been granted under the Mandatory Provident Fund Schemes (Exemption) Regulation are exempt from the requirements of the MPF Ordinance. Further exemptions apply to foreign employees who are working in Hong Kong pursuant to an employment visa: (i) for less than 13 months; or (ii) who are members of a provident, pension, retirement or superannuation scheme in a jurisdiction outside Hong Kong.

Employers and employees must make social security contributions to the Manpower Social Security Administrator (BPJS Ketenagakerjaan or Manpower BPJS) and the Health Social Security Administrator (BPJS Kesehatan or Health BPJS).

The rates of contribution for Manpower BPJS are as follows:

· occupational accident benefits — the employer contributes between 0.24% to 1.74% of monthly wages, depending on the type of business;

· old age benefits — 5.7% of monthly wages. The employer contributes 3.7% and the employee contributes 2% of monthly wages;

· death benefits — the employer contributes 0.3% of monthly wages; and

· pension benefits — 3% of monthly wages. The employer contributes 2% and the employee contributes 1% of monthly wages.

Apart from the above, there are also unemployment insurance benefits which provide cash payments, access to job openings and training. The premium for the unemployment insurance benefits is paid by the Central Government.

The current rate of contribution for Health BPJS is 4% of monthly wages for the employer and 1% of monthly wages for the employee.

Social security

For employees who are "insured persons", their employer and the Government must make mandatory contributions to the social security fund in accordance with the Social Security Act (SSA).

An "insured person" refers to an employee who is over 15 but not more than 60 years of age.

The employer pays both the employee's and employer's contributions to the social security fund. The employer is entitled to deduct the amount of the employee's contribution from the employee's wages.

The SSA generally provides that the rate of the employee's contribution is 5% of the employee's wages, up to a maximum contribution of THB750. Employers and the Government are also required to contribute an equal amount.

Provident fund

Unlike contributions to the social security fund, contributions to the provident fund are not mandatory.

Under the Provident Fund Act (PFA), a provident fund may be established by agreement between an employer and their employees and upon registration in

accordance with the PFA.

The employer pays both the employee's savings and employer's contributions to the provident fund at a rate prescribed by the provident fund's rules. The employer is entitled to deduct the amount of the employee's savings from the employee's wages.

The PFA provides that the rates of the employee's savings and the employer's contribution is between 2% to 15% of the employee's wages. The employer's contribution does not have to match the employee's savings.

Employee Welfare Fund

From 1 October 2026, Thailand will enforce mandatory participation in the Employee Welfare Fund for employers with 10 or more employees who do not provide equivalent welfare through other schemes (eg, provident fund).

Both employers and employees are required to contribute to the Employee Welfare Fund:

· From 2026 to 2031, the contribution rate is 0.25% of wages for both the employer and employee.

· From October 2031 onwards, the contribution rate will be increased to 0.5%.

Employers must deduct the employee’s portion from wages and remit both contributions monthly to the Department of Labour Protection and Welfare.

Employers are required to maintain labour and social security insurance coverage for employees. There is no fixed monthly contribution amount but one is usually set out in the employment contract or casual basis.

Labour Insurance

Labour insurance comprises of workers' accident compensation and unemployment insurance. Workers' accident compensation insurance operates when employees get sick, injured, or die while they are working or commuting to work. Unemployment insurance operates when an employee leaves an employer and is unable to find a new job. Benefits are paid once the employee has been covered by unemployment insurance for 12 or more months in the last 24 months.

Social Insurance

Social insurance comprises employees' health and pension insurance. Health insurance operates when employees get sick or injured due to reasons that are unrelated to work. Long-term care insurance is a system that allows persons 40 years of age or older to receive long-term care insurance services if they require support or care for a specific reason (or regardless of the cause for persons 65 years of age or older). Employees' pension insurance operates when employees reach retirement age.