You don’t need a local entity to hire in Asia. You need an EOR and a clear read on which market you’re entering, because the process and cost differ significantly across countries. This guide walks through the full process, from picking a market to running your first payroll.

Step 1: Choose Your Target Market

Pick your country before engaging an EOR — fees, timelines, and compliance complexity vary enough to affect your decision.

Asia Hiring Difficulty Rating

Step 2: Select an EOR Provider

Four things the right provider must have:

1. Owned entities (not just third-party partners) in your target countries
2. Published pricing — if they require a sales call before disclosing fees, that’s a red flag
3. Local currency payroll in your target markets
4. A compliant contract template for your specific country

For most companies hiring in Asia:

• Best overall: Deel
• Best value for Asia: Multiplier
• Best compliance tooling: Remote
• Best for enterprise: Papaya Global

See our Provider Directory for detailed reviews.

Step 3: Provide Employee Details to the EOR

After signing your client agreement, you’ll need:

• Full legal name (as on passport or national ID)
• Date of birth and nationality
• Residential address in the country
• Proposed start date
• Agreed compensation (base salary, any allowances)
• Role title and job description
• Whether the employee already has work authorisation in the country

Step 4: The EOR Prepares the Employment Contract

Your EOR drafts a locally-compliant employment contract. It should cover:

• Job title and description
• Salary and currency
• Working hours
• Annual leave entitlement (per local law)
• Notice period
• Termination provisions
• IP assignment and confidentiality clauses
• Probation period (if applicable)

You review and approve. The EOR and employee sign.

:::note In Japan and Indonesia, the contract must be in the local language or bilingual. The EOR provides this as standard. :::

Step 5: Employee Onboarding

The EOR handles all government registrations:

The employee completes their onboarding via the EOR platform — ID upload, bank details, tax forms. Typically 30–60 minutes of their time.

Step 6: First Payroll Run

On the employee’s first pay date, the EOR:

1. Calculates gross salary
2. Deducts employee’s statutory contributions (CPF, PF, SSS, etc.)
3. Deducts income tax withholding
4. Disburses net salary to the employee’s bank account in local currency
5. Remits employer statutory contributions to relevant authorities
6. Issues a payslip to the employee

Your invoice covers gross salary + employer contributions + EOR service fee.

Step 7: Ongoing Management

Your ongoing responsibilities once the employee is live on payroll:

• Performance management: You direct all work and manage performance
• Expense approvals: Via the EOR platform
• Time-off approvals: Leave requests routed to you for approval
• Salary changes: Notify the EOR of increases or adjustments
• Termination: Instruct the EOR with adequate notice; they manage the legal process

The EOR handles monthly payroll, statutory filings, labour law updates, and year-end tax documents (Form 16, IR8A, etc.).

Three Mistakes Worth Avoiding

Misclassifying employees as contractors

If your worker has fixed hours, uses your tools, and works exclusively for you — they are an employee under any Asian regulator’s test. Misclassification carries back-dated social insurance penalties, and authorities in the Philippines, China, and Indonesia actively pursue it.

Underestimating total employment cost

The “all-in” cost of an employee in Asia is not just salary. Add:

• Employer statutory contributions: 15–30% of gross salary depending on country
• EOR service fee
• Mandatory benefits (13th month pay in Philippines, etc.)

Budget 20–35% above gross salary for total employment cost.

Skipping the work pass step

Foreign nationals working in Singapore or Japan need valid work passes. Your EOR can sponsor these, but EP processing in Singapore takes 3–8 weeks. Plan around that timeline, not around your target start date.

Frequently Asked Questions: Hiring in Asia

How long does it take to hire someone in Asia using an EOR? Singapore and India: first payroll can be ready in 1–3 business days for employees who already have the right to work. Japan and Indonesia: 5–10 business days due to more complex registration requirements.

What information do I need to start the EOR process? At minimum: name, nationality, residential address in the target country, proposed salary, and start date. The EOR platform collects everything else.

Can I use one EOR for multiple Asian countries? Yes — this is one of the main reasons to use Deel, Remote, or Multiplier. All support multi-country hiring from a single platform and invoice.

What happens if I want to terminate an employee hired through an EOR? Instruct the EOR to terminate. They manage the compliant process — notice period, final payroll, severance calculation where required, and deregistration. Japan and Indonesia have the most complex termination processes.

Can I convert an EOR employee to a direct hire later? Yes. If you set up a local entity later, you transfer the employee’s contract. The employee’s continuity of employment — for leave, probation, and severance calculations — must be preserved in the transition.

Is using an EOR in Asia tax-efficient? The EOR service fee is a deductible business expense. Salary and statutory contributions are managed entirely in the local jurisdiction. No unusual tax implications for the client company beyond normal cross-border service payments.

AK Anchal Katyal Published June 28, 2025