Scaling HR in Asia: Singapore, Hong Kong & India Compared
A compliance-led breakdown of employment contracts, payroll obligations, and offboarding practices across three of Asia’s most strategic markets.
As global markets shift and remote talent becomes more accessible, Asia has emerged as a top hiring destination for companies looking to scale smartly. From tech developers in India to finance professionals in Singapore, and logistics and trading talent in Hong Kong, Asia’s labour ecosystem is both vast and dynamic.
The region offers a compelling mix of cost-efficient operations, highly skilled workforces, digital infrastructure, and diverse time zone coverage.
However, it is crucial to note that hiring in Asia is far from plug-and-play. Local laws around employment contracts, payroll, and statutory contributions vary drastically. Mistakes here can result in regulatory fines, talent attrition, or even reputational risk.
In this article, we compare Singapore, Hong Kong, and India – three of the region’s leading economies from a compliance and operations standpoint, focusing on contracts, payroll systems, and employment lifecycle practices to help companies make informed decisions when expanding their teams across borders.
1. Employment Contracts: One Concept, Three Realities
Singapore
While Singapore mandates written employment contracts, the structure is flexible, offering room for employers to customise terms. The Employment Act applies to most employees earning below certain salary thresholds, requiring the contract to include job scope, hours, salary, CPF contributions, leave policies, and notice periods. Employers typically attach or reference a Company Handbook to outline additional conditions.
Contracts must explicitly state terms around termination, bonus eligibility, and benefit entitlements to avoid ambiguity during disputes.
Hong Kong
Though not legally required, written contracts are industry standard in Hong Kong. Governed by the Employment Ordinance, employee relationships are heavily reliant on mutual agreement and proper documentation. Contracts typically cover job duties, working hours, wage terms, MPF enrolment, and notice conditions.
Compared to Singapore and India, Hong Kong is more hands-off in its regulation, but that does not mean non-compliance is tolerated, especially around timely payment of wages and proper treatment of employee benefits.
India
India enforces employment contracts through a complex mesh of central and state laws, notably the Shops and Establishments Acts and the new Labour Codes. Contracts must include designation, compensation, working hours, notice period, statutory deductions, and employee benefits. Larger companies also need to file standing orders with labour departments that formalise internal policies.
Localisation here is not optional. Every state may have its own leave entitlements, holidays, and even compliance thresholds, making India’s contract system one of the most intricate in Asia.
2. Statutory Contributions and Payroll: The Real Cost of Hiring
Singapore
Payroll in Singapore is processed monthly, with employers required to contribute to the Central Provident Fund (CPF) at approximately 17 percent employer and 20 percent employee for Singapore Citizens and PRs. In addition, employers pay a Skills Development Levy (SDL) and must comply with IRAS tax filings, including annual IR8A submissions for employee earnings.
The system is digital, efficient, and tightly regulated. Payslips are mandatory, and all records must be retained for at least two years.
Hong Kong
Hong Kong’s payroll system is relatively lightweight. The key statutory contribution is to the Mandatory Provident Fund (MPF), where both employer and employee contribute 5 percent each, capped at HKD 1,500 per month. This applies only to employees earning above HKD 7,100 per month and employed for more than 60 days.
There is no mandatory monthly tax deduction. Individuals file taxes themselves annually. For employers, this simplifies payroll execution, though ensuring correct MPF enrolment and wage documentation remains essential.
India
India’s payroll structure is the most complex of the three. Statutory deductions include:
- Provident Fund (PF): 12 percent employer and 12 percent employee
- Employee State Insurance (ESI): For employees earning up to ₹21,000 per month (3.25 percent employer and 0.75 percent employee)
- Professional Tax: Varies by state
- TDS (Tax Deducted at Source): Mandatory monthly income tax withholding
Compliance also requires monthly returns, digital filings, and timely payments to avoid penalties. With over 29 states, payroll must be tailored to local rules, especially for holidays, wage limits, and bonus calculations. This makes automation and local payroll expertise critical for operational stability.
3. Onboarding to Offboarding: Managing the Full Employment Lifecycle
Probation Periods
Probation norms vary across these markets. In Singapore and Hong Kong, probation typically lasts three to six months, with shorter notice periods for termination during this phase.
India also allows probation of similar length, but post-confirmation employment may come with additional legal protections, especially in certain states.
In all three regions, clear communication and written documentation around performance and transition to full employment are essential to minimise risk.
Termination and Exit Management
Singapore requires final salary and any leave encashment to be paid within seven days of termination. Severance pay is not mandatory unless outlined in the contract.
In Hong Kong, either party may terminate employment with proper notice or payment in lieu. Severance is only applicable for redundancy after two years of service.
India presents the most complexity, especially for permanent workers in larger firms, where terminations may require formal notices, severance, and even approval from local labour authorities. Mishandling exits can lead to long-standing disputes or labour court involvement.
A compliant offboarding process, supported by legal documentation and final settlement accuracy, is critical to protecting both company and employee interests in each jurisdiction.
How Beyond Borders HR Can Support Your Expansion
Hiring in Asia comes with complexity, but it does not have to come with confusion. Here is how BBHR helps you get it right:
- Employee Benefits Consulting: We benchmark packages across markets, work with local providers, and design cost-effective, compliant benefits tailored to each country. Read more about our Benefits Management services ->
- Global HR Compliance & Policies: From employment law advisory to works council negotiations, we handle documentation, contracts, and policy localisation. Read more about our HR Compliance & Policy services ->
- Global Mobility Services: Need to move leadership or staff? We manage visas, immigration, and cross-border assignments smoothly and legally. Read more about our Global Mobility services ->
Whether you are hiring one person or scaling an entire team, BBHR simplifies global HR so you can focus on growth.
Contact us today to learn more about how we can assist you with the scaling your company in Asia.
