Your EOR handles most of these automatically. But “automatically” only works if your provider is tracking the right things — and some of these 2026 changes have cash-flow and headcount-planning implications that your EOR can’t manage for you. Here’s what’s actually changing and what you need to act on.
Singapore
Employment Pass Salary Threshold Increase
MOM raised the EP qualifying salary threshold to SGD 5,600/mo for most sectors and SGD 6,200/mo for financial services (up from SGD 5,000 and SGD 5,500 respectively).
Impact: Any foreign national employee whose salary falls below the new threshold at renewal is at EP rejection risk. Your EOR should be flagging affected employees 6 months before renewal — not at the time of application.
Action: Confirm your EOR runs proactive EP eligibility checks before renewal dates, not reactively.
COMPASS Framework — Full Enforcement
COMPASS — introduced in 2023 — now has no legacy exemptions. All new and renewal EP applications are scored on salary, qualifications, workforce diversity, and local employment support. 40 points minimum to pass.
Companies with high concentrations of a single foreign nationality score lower on diversity. If that describes your Singapore headcount, ask your EOR which employees are at COMPASS risk before their renewals come up.
CPF Ordinary Wage Ceiling
CPF ordinary wage ceiling increased to SGD 7,400/mo in 2025 (phased increase), with further increases planned through 2026. This raises the maximum CPF contributions for higher-earning Singapore Citizens and PRs — budget accordingly for salary increases that push employees above the previous ceiling.
India
Labour Codes — Continued Rollout
India’s four consolidated Labour Codes continue to roll out at the state level in 2026. Three specific impacts:
- Provident Fund: “Wages” definition broadened to include components previously excluded. This increases the PF-contributable base for employees with structured salary packages — your actual PF cost is likely higher than it was two years ago.
- Gratuity: Social Security Code provisions expand gratuity applicability to fixed-term employees (not just permanent employees).
- Maternity: Enhanced provisions in some states.
Action: Ask your EOR how they are tracking state-level Labour Code notifications for your specific states of operation. A generic “we’re monitoring it” is not sufficient.
TDS Rate Adjustments
The Union Budget 2025-26 introduced TDS rate adjustments under Section 192 (salary TDS). Employees may notice minor changes in monthly net salary — prepare for questions.
Malaysia
Employment Act 2022 — Enhanced Enforcement
The Employment (Amendment) Act 2022 changes are now firmly established. Three that matter most:
- Flexible working requests: Employees can formally request flexible arrangements; employers must respond in writing within 60 days with reasons for any refusal. Non-compliance triggers enforcement.
- Paternity leave: 7 days paid (up from zero statutory days).
- OT pay expansion: Expanded categories of workers eligible for overtime pay.
What’s new in 2026: The Labour Department is increasing inspections, particularly in manufacturing and hospitality. Check your EOR’s response process for flexible work requests — the 60-day response requirement is being enforced.
Minimum Wage
Malaysia’s minimum wage stands at RM 1,700/mo. A 2026 adjustment is expected. Your EOR should apply minimum wage updates automatically — verify this.
South Korea
52-Hour Workweek — Increased Enforcement
The 52-hour maximum (40 standard + 12 overtime) now applies to companies with fewer than 5 employees after the 2024 extension. In 2026, MOEL is increasing inspections and penalties.
South Korean employees must not exceed 52 hours/week. If their roles require more, you must restructure workload or obtain a Selective Working Hours arrangement — there is no other option.
Action: Confirm your EOR tracks and enforces the 52-hour cap. If they’re not monitoring hours, you’re exposed.
Minimum Wage
South Korea’s minimum wage for 2026 is KRW 10,030/hour (up from KRW 9,860 in 2025). Monthly equivalent: approximately KRW 2,096,270.
Mandatory Severance — EOR Provisioning
Every South Korean employee with 1+ year of service is entitled to 30 days salary per year of service as a retirement benefit (퇴직금) — payable on any termination including voluntary resignation. This is not negotiable and cannot be waived.
Action: Confirm your EOR provisions this monthly from day one of employment. Under-provisioning is a common source of financial surprise at offboarding.
Vietnam
Social Insurance Contribution Ceiling
Vietnam’s social insurance ceiling is 20x the regional minimum wage. For Ho Chi Minh City and Hanoi (Region 1), the regional minimum from July 2024 is VND 4,960,000/mo — giving a ceiling of approximately VND 99,200,000/mo. Above this, no additional BHXH contributions apply.
High-earning Vietnam employees benefit from capped social insurance — confirm your EOR is applying the cap correctly, not over-contributing.
Minimum Wage
Vietnam’s 2025 adjustment increased Region 1 minimum wage by 6% to VND 4,960,000/mo. The 2026 adjustment is expected to follow a similar trajectory — your EOR applies this automatically.
Indonesia
Omnibus Law — Continued Implementation
Three changes from the Job Creation Law that are now in effect:
- PKWT duration: Fixed-term contracts now permitted up to 5 years total (up from 3 years under the old law)
- Severance formula: Adjusted multipliers for different termination scenarios
- Outsourcing: Expanded list of activities permissible for outsourcing
The extended PKWT duration gives more flexibility for fixed-term arrangements. The core termination cost structure for PKWTT (permanent) employees remains expensive — see the EOR Termination Guide for Indonesia severance calculations.
Provincial Minimum Wages
Jakarta’s 2025 minimum wage: IDR 5,067,381/mo. The 2026 announcement is expected by December 2025. Your EOR applies provincial minimum wage updates as they are announced.
Japan
36 Agreement Overtime Caps — Stricter Enforcement
MHLW is increasing scrutiny of 36 Agreement compliance in 2026. The statutory overtime cap under a special provision 36 Agreement is 100 hours in any single month and 720 hours annually. Violations: fines up to ¥300,000 and potential criminal prosecution of managers.
Action: Confirm your Japan EOR monitors overtime hours monthly and sends alerts when employees approach the cap. If they’re not tracking this, your company is exposed.
Minimum Wage
Japan’s national minimum wage: ¥1,055/hour (October 2024, up from ¥1,004). Tokyo: ¥1,163/hour. The government targets ¥1,500/hour nationally by 2030 — expect annual increases.
China
PIPL Enforcement — Increased Scrutiny
China’s Personal Information Protection Law (PIPL) enforcement by the Cyberspace Administration of China is increasing. For companies using EOR in China, verify:
- Employee personal data is stored on China-based servers
- Cross-border data transfers are covered by a CAC security assessment, standard contractual clauses, or the employee’s explicit consent
- Personal Information Protection Impact Assessments (PIPIA) are completed for cross-border transfers
Action: Ask your China EOR specifically how they handle PIPL compliance and where employee data is stored. A vague answer is a compliance gap.
Social Insurance Contribution Bases
China’s 2026 contribution base updates for Beijing, Shanghai, and Shenzhen — reflecting average wage changes — will be announced mid-year. Your EOR applies these automatically.
Key Actions for EOR Users in 2026
- Singapore: Verify all EP holders are above SGD 5,600/mo. Pull up renewal dates for anyone close to the threshold.
- India: Ask your EOR how they are tracking state-level Labour Code notifications for your states of operation. Get specifics.
- South Korea: Confirm overtime tracking for all South Korean employees — 52-hour enforcement is increasing.
- South Korea: Verify severance is provisioned monthly from day one, not just calculated at offboarding.
- Indonesia: Review PKWT contract durations against the new 5-year maximum.
- Japan: Confirm 36 Agreement management and monthly overtime monitoring is in place — in writing.
- China: Request documentation of your EOR’s PIPL compliance process and data storage location.
- All markets: Verify your EOR has applied the 2026 minimum wage rates. Ask for confirmation, don’t assume.
