Free resource · SEA hiring

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An interactive guide to the employment compliance, contracts, payroll, statutory benefits, and onboarding essentials companies need before hiring across Southeast Asia.

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Compliant hiring across Southeast Asia

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The checklist

SEA Hiring Readiness Checklist

Use this interactive checklist to review the essentials for hiring in Southeast Asia: from employment compliance and local contracts to payroll, statutory benefits, employee onboarding, and Employer of Record readiness.

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Identified the target SEA country and role typeConsider talent availability, cost, and compliance complexity. Malaysia and the Philippines tend to be lower-friction entry markets.

Decided between setting up a local entity or using an EOREntity setup in Indonesia can take 10 to 12 weeks and requires resident directors. An EOR gets you compliant and hired in days with no permanent commitment.

Role type confirmed: full-time employee, contractor, or freelancerThis is a legal classification with statutory consequences, not just a label. Every SEA country treats misclassification differently.

Total cost of employment budgeted, not just base salaryAdd 15 to 25% above gross salary for statutory contributions, depending on country.

Confirmed whether the role is remote-first or requires physical in-country presence

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Mandatory employer statutory contributions reviewed for your target countryEach country has its own scheme: EPF/SOCSO/EIS (Malaysia), BPJS (Indonesia), SSS/PhilHealth/Pag-IBIG (Philippines), SHUI (Vietnam). Rates range from roughly 7% to 21% of payroll.

Mandatory bonuses and allowances budgetedPhilippines: 13th month pay (legal requirement). Indonesia: THR religious holiday allowance (legal requirement). These cannot be withheld based on company performance.

Statutory leave and public holiday entitlements confirmedAnnual leave minimums range from 6 days (Thailand) to 12 days (Vietnam, Indonesia). Public holidays vary from 11 (Malaysia) to 19 or more days (Philippines).

Industry-specific hiring restrictions reviewed for your target marketIndonesia and the Philippines have foreign ownership rules affecting certain sectors. Check the Negative Investment List (PH) or DNI list (ID) if your industry may be affected.

Worker classification risk assessed: employee vs. contractorMisclassification creates retroactive liability in every SEA country. Penalties date back to the start of the working relationship, not the date of discovery.

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Employment contract is locally compliant and in the correct languageVietnam requires contracts in Vietnamese to be legally binding. Indonesian contracts should be bilingual. English-only contracts offer very limited protection in local courts.

Contract covers local statutory entitlements, probation, and termination terms

IP assignment and confidentiality clauses adapted for local jurisdictionClauses enforceable in Singapore may not hold up in the Philippines or Indonesia. Each market needs bespoke drafting.

Data privacy obligations reviewed under local lawMalaysia (PDPA 2010), Philippines (Data Privacy Act 2012), Indonesia (PDP Law 2022), Vietnam (Decree 13/2023). Consent and breach notification rules differ across all four.

Right-to-work verification process defined for the target country

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Payroll currency, cycle, and disbursement method confirmedThe Philippines runs semi-monthly payroll (two runs per month), unlike the monthly cycle common elsewhere. Plan your payroll calendar and cash flow accordingly.

All statutory contribution enrollment and payment deadlines mappedMost deadlines fall between the 10th and 15th of the following month, but vary by country and agency. Late payments attract penalties and interest.

Mandatory year-end bonuses and allowances included in annual budget

Medical and leave benefits benchmarked against local market expectationsStatutory minimums are often below market expectations for professional roles. A package competitive in one market may underperform in another.

Payroll platform confirmed to handle multi-currency, multi-country processing

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Equipment, system access, and day-one experience plannedShipping equipment to Indonesia or the Philippines can take 2 to 4 weeks with customs. Consider local procurement or budget for local purchase.

Local public holidays and religious observances factored into the onboarding timelineEid al-Fitr (Indonesia, Malaysia), Christmas (Philippines), Tet (Vietnam), and Songkran (Thailand) create extended shutdowns. Plan onboarding windows carefully.

Hiring managers briefed on local communication normsIndirect communication is common across SEA. In many cultures, 'yes' signals understanding, not agreement. Build structured check-ins to surface issues early.

In-country HR contact or EOR local support team identified for employee queries

HR materials and employee handbook localised for the country

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Your readiness

See where you stand before you hire

Your score updates as you work through the checklist. The more boxes you tick, the closer you are to a compliant, confident first hire in Southeast Asia.

0/ 25 essentials confirmed

0–9

Early stageKey compliance gaps remain. Get expert input before committing to a hire.

10–18

Getting thereSolid foundation. Close the remaining items to avoid retroactive risk.

19–25

Hire-readyYou've covered the essentials. Time to move from planning to hiring.

Readiness:0/25

Common questions

Things people ask before hiring in SEA

No. Companies can hire compliantly across SEA without setting up local entities by using an Employer of Record (EOR). The EOR becomes the legal employer in each country, handling contracts, payroll, statutory contributions, and compliance, while you direct the day-to-day work.

An EOR is a third-party company that legally employs workers on your behalf in a foreign country. You manage the work; the EOR manages all legal employer obligations: employment contracts, payroll processing, tax withholding, statutory benefit contributions, and ongoing labor law compliance.

Each country has its own statutory system. Key examples: Malaysia requires EPF, SOCSO and EIS contributions; Indonesia mandates BPJS health and employment insurance plus THR (religious holiday allowance); the Philippines requires SSS, PhilHealth, Pag-IBIG and 13th month pay; Vietnam requires SHUI (social, health, and unemployment insurance). Rates and timelines vary significantly.

Misclassification creates retroactive liability in every SEA country. Unpaid statutory contributions plus penalties date back to the start of the working relationship, not the date of discovery. The contract label does not override the actual working arrangement.

Typically 1 to 2 weeks in Malaysia and the Philippines. Indonesia and Vietnam can take 2 to 3 weeks due to statutory registration requirements (e.g. BPJS enrollment in Indonesia). This compares to 10 to 12 weeks to set up a local entity from scratch.

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SEA Hiring Readiness Checklist

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Things people ask before hiring in SEA

We handle the checklist.
You focus on the hire.

Hiring in SEA?Start here.

SEA Hiring Readiness Checklist

Hiring IntentGlints handles this

Legal & ComplianceGlints handles this

Contracts & DocumentationGlints handles this

Payroll & BenefitsGlints handles this

Onboarding & CultureGlints handles this

See where you stand before you hire

Things people ask before hiring in SEA

We handle the checklist.You focus on the hire.

We handle the checklist.
You focus on the hire.