Employee benefits in Asia: what is statutory, what is expected, what is competitive
Every Asian market has a statutory floor of benefits, a layer of customary extras that candidates treat as standard, and a set of genuinely competitive perks. Offer only the floor and you will struggle to hire; the guide below sets out all three layers for the region’s main hiring markets, so that an EOR contract can be written to the market rather than to the law.
The statutory floor
| Market | Annual leave | Sick leave | Maternity / paternity | Other statutory |
|---|---|---|---|---|
| Hong Kong | 7 days, rising to 14 with service | Accrues 2–4 days a month, 4/5 pay | 14 weeks at 4/5 pay; 5 days paternity | 16 statutory holidays (2026); MPF |
| Singapore | 7 days, rising to 14 | 14 days outpatient, 60 hospitalisation | 16 weeks (citizen child); 4 weeks paternity | 11 public holidays; CPF; childcare leave |
| Mainland China | 5–15 days by total career service | Medical-treatment period with pay floors by city | 98 days plus local extensions (128–158 typical); 7–30 days paternity by province | Housing fund; 11 public holidays plus local |
| Japan | 10 days after 6 months, to 20 after 6.5 years | No statutory paid sick leave; health-insurance allowance from day 4 | 14 weeks; childcare leave to age 1–2 for either parent | About 16–18 public holidays; bonus customary |
| South Korea | 15 days after 1 year, to 25 | No statutory paid sick leave outside industrial accidents | 90 days; 20 days paternity (2025) | Statutory severance; 15 or so public holidays |
| India | 12–21 days by state law | Typically 12 days by state | 26 weeks (first two children); no statutory paternity in private sector | Gratuity; statutory bonus for lower-paid staff |
| Indonesia | 12 days after 1 year | Paid, uncapped duration with tapering pay | 3 months; 2 days paternity (more under 2024 law) | THR allowance; BPJS |
| Philippines | 5 days service incentive leave | Within the 5 days; SSS sickness benefit | 105 days; 7 days paternity | 13th-month pay; about 18 regular and special holidays |
| Vietnam | 12 days, plus 1 per 5 years | Social-insurance sick pay, 30–60 days a year | 6 months; 5–14 days paternity | 11 public holidays; Tet bonus customary |
| Malaysia | 8 days, rising to 16 | 14–22 days, 60 hospitalisation | 98 days; 7 days paternity | EPF; 11 or more public holidays |
| Thailand | 6 days after 1 year | 30 days paid | 98 days, 45 at employer’s cost | 13 public holidays; severance from 120 days |
Entitlements as at September 2026, simplified. Several are being extended — Hong Kong’s statutory holidays, Korea’s paternity leave, Indonesia’s parental rights — so confirm the current figure at contract stage.
The customary layer
These are not required by law in most markets but are so widespread that their absence costs you candidates.
- A 13th month or year-end bonus. Mandatory in the Philippines and (as THR) Indonesia; customary and expected in Hong Kong, China, Taiwan, Vietnam, Japan and Korea, where summer and winter bonuses are often a substantial share of total pay. Write the terms into the contract — discretionary or guaranteed, pro-rated for leavers or not — because in Hong Kong and several other markets the law regulates end-of-year payments once promised.
- Private medical insurance. Expected for professional hires almost everywhere, including markets with strong public systems. In China and Vietnam it commonly extends to dependants; in India group medical cover is standard from the first employee.
- Housing and transport allowances. Customary in China (on top of the statutory housing fund), Vietnam, the Philippines and India; often structured for tax efficiency, which an EOR should handle correctly.
- Meal allowances. Common in Japan, Korea, Taiwan, Vietnam and the Philippines, sometimes tax-advantaged up to a cap.
- Additional leave. Statutory minimums in Hong Kong, Singapore, Malaysia and Thailand are low by international standards; competitive employers offer 15–20 days.
The competitive layer
What distinguishes an offer in the region’s tight labour markets: supplementary retirement contributions (topping up MPF or CPF, or voluntary provident funds in Thailand and Indonesia), share options or phantom equity structured for local tax, flexible and remote working, learning budgets, and — for internationally mobile hires — home-leave flights and school fees. Most EORs can administer these; the good ones will tell you which are tax-efficient in which country.
How an EOR delivers benefits
- Statutory benefits are automatic.The EOR’s entity is the employer, so leave, social insurance and mandatory bonuses are its legal obligation; they should appear in the quote without being asked for.
- Customary benefits are written into the contract.You decide the package; the EOR drafts it to local law and administers it. Ask how bonuses, allowances and medical cover are taxed in the country.
- Group schemes give small teams big-company cover.The larger EORs pool employees across clients into group medical and life schemes, which is how a two-person team in Jakarta gets corporate-grade insurance.
- Equity needs local structuring.Share options granted by a foreign parent to an EOR employee raise tax and securities questions in most Asian jurisdictions. Providers vary greatly in how well they handle this; ask before promising equity.
Frequently asked questions
Do I have to pay a 13th month?
By law only in the Philippines (13th-month pay) and Indonesia (THR). Everywhere else it is customary, and in the markets where bonuses form a large share of pay — Japan, Korea, China, Hong Kong — an offer without one will be read as a pay cut. Whether to guarantee it or keep it discretionary is a drafting decision your EOR should advise on.
Can an EOR enrol one employee in group medical insurance?
Usually yes. The larger providers pool employees across clients; smaller ones may need a minimum headcount or use individual policies. Ask what cover, what excess and whether dependants are included.
Are allowances taxable?
It depends on the country and the allowance. Several markets exempt housing, meal or transport allowances up to a cap or under specific structures; others tax everything as salary. An experienced EOR will structure the package for the country rather than copying a template.
Which providers handle benefits well?
Our Asia EOR ranking notes which providers administer group medical, allowances and bonuses across the region, and which leave it to you.
See the rankingSources
- Hong Kong Employment Ordinance (Cap. 57); Singapore Employment Act and Child Development Co-Savings Act; PRC Regulations on Paid Annual Leave and Special Provisions on Labour Protection of Female Employees; Japan Labour Standards Act and Child Care and Family Care Leave Act; Korea Labour Standards Act and Equal Employment Act; India Maternity Benefit Act and state shops-and-establishments acts; Indonesia Law 13/2003 as amended; Philippines Labor Code, PD 851 and RA 11210; Vietnam Labour Code 2019 and Social Insurance Law; Malaysia Employment Act 1955 (2022 amendments); Thailand Labour Protection Act.