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Work Permits in Thailand: What Employers Should Know?

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Work Permits in Thailand : What Employers Should Know?

Work Permits in Thailand What Employers Should Know

Thailand is a gateway to the ASEAN Economic Community, offering access to a market of 676.6 million consumers and robust trade connections with neighbouring economies such as China and India. To achieve high-income status by 2036, the Royal Thai Government has outlined a 20-year Strategy that drives economic transformation through Thailand 4.0. This initiative fosters innovation across key sectors like automation, aviation, biofuels, and digital industries, while the Eastern Economic Corridor (EEC) plays a pivotal role in accelerating industrial growth.

 

To further strengthen its position as an economic hub, Thailand offers various visa programs designed to attract skilled professionals and investors. The SMART Visa targets individuals in 13 key S-Curve industries, while the Long-Term Resident (LTR) Visa offers tax incentives for high-potential individuals. The Thailand Elite Visa also permits long-term stays ranging from 5 to 20 years, providing exclusive privileges such as settlement assistance and VIP services. These visa programs and BOI incentives help create a favourable environment for expatriates to contribute to Thailand’s thriving economy.

 

This guide provides employers with a detailed overview of work permit in Thailand and work visa regulations, empowering them to navigate the application process and ensure compliance with Thai labour laws.

Table Of Content

Regulation of Foreign Employment in Thailand

The Alien Working Act B.E. 2551 (2008) primarily regulates foreign employment in Thailand, requiring all foreigners to secure a work permit before employment in Thailand alongside strict compliance with immigration laws. 

 

However, certain occupations – such as labour, agriculture, accounting (excluding internal audits on occasions), civil engineering, clerical roles, legal services, and more – are strictly prohibited for foreigners. Only Myanmar, Laos, and Cambodian nationals can work in the labour and domestic sectors.

 

Therefore, one must refer to the list of restricted occupations before planning a career move in Thailand.

Who needs a Work Permit in Thailand?

All foreign nationals who wish to work legally in Thailand must obtain a work permit, except those exempted under the laws governing work permit requirements in the Kingdom. Specifically, a work permit is required for:

  • Foreign nationals employed by a Thai company or a foreign entity operating in Thailand.
  • Entrepreneurs wishing to establish and run a business in Thailand.
  • Freelancers or self-employed individuals providing services in Thailand (even if not employed by a company).

In summary, if you work in Thailand, you must obtain a work permit before commencing any work unless you fall under specific exemptions.

Exemption from a Work Permit

Under Thai law, certain activities are not classified as ‘work’ and do not require a work permit. These exemptions include:

  • Attending meetings, seminars, exhibitions, or trade fairs.
  • Attending technical training or seminar.
  • Purchase of goods at a trade fair. 
  • Participating in business visits, academic lectures, or board meetings of one’s company.

Exemptions also apply to:

  • Diplomats or Consulars entering Thailand for official duties.
  • UN officials and representatives of member countries.
  • Personal Servants of above officials.
  • Individuals on missions under Government agreements or to benefit education, culture, arts or sports.
  • Individuals with Government’ special permission.

Entry for Work Without a Work Permit in Special Cases

At its discretion, the Government can conditionally allow foreigners to enter the kingdom without a work permit in exceptional cases to fulfill ‘urgent and essential work’ for a period not exceeding 15 days, provided that they submit a written notification (form WP-10) along with other required documents.

In such cases, foreigners can enter Thailand with any visa, including a transit visa.

How do you get a Work Permit in Thailand?

While employers can submit applications on employees’ behalf, the permit is only issued after the employee legally enters Thailand.

  • Before applying, those entering on a tourist or transit visa must convert their status to a Non-Immigrant B Visa.
  • Required documents include a passport with a valid Non-Immigrant B visa, educational qualifications, work references, a medical certificate, three recent photographs (5×6 cm), and, if applicable, additional documents for licensed professions or marriage to a Thai national.
  • Applications must be submitted to the Department of Employment in Bangkok or provincial employment offices. Depending on the case, additional evidence or translations may be necessary to complete the process efficiently.

 

Visas and Immigration Law

Foreign nationals who intend to remain in Thailand to work or conduct business must obtain a work permit and comply with visa requirements in various visa categories, including tourist, visitor transit, immigrant, non-quota immigrant, and non-immigrant.  While many non-immigrant visas exist, a valid non-immigrant B visa is a prerequisite for applying for a work permit. It also entitles the holder to apply for multiple re-entry visas and permanent residency.

 

The non-immigrant visas include several categories. Some work visas among them are as follows:

Visas and Immigration Law

Duration of a Visa and Work Permit in Thailand

The duration of a work permit or visa depends on the purpose for which it is issued. For example:

Duration of a Visa and Work Permit in Thailand

Renewal Conditions for Work Permits

  •           A work permit must be renewed before it expires to avoid lapsing.
  •           During renewal, the applicant must provide proof of tax payments for the previous year.

Work Permit and Visas for BOI Promoted Companies

The Board of Investment (BOI) Thailand promotes valuable investments, offering a fast-tracked visa and work permit process for priority-sector businesses.

 

A foreigner in this category can enter Thailand for investment assessments, project work, or activities benefiting investment, provided they submit essential documents such as company registration, academic credentials, and project details.

 

A foreign applicant seeking permission to work under the Investment Promotion Act must apply for a work permit within 30 days of the BOI’s approval and may engage in authorised work while the application is being processed.

Smart Visa

The SMART Visa is a specialised visa that attracts skilled professionals, investors, executives, and entrepreneurs to targeted industries. It provides long-term stay options and exemption from work permits. It’s benefits include extended reporting requirements, fast-track services at international airports, and permission for spouses and children to stay and work in Thailand.

 

The visa has various categories, such as T, I, E, and S. Applicants must obtain a qualification endorsement before applying, and they can extend their visa through a streamlined renewal process. The SMART Visa simplifies work authorisation and fosters innovation and investment in Thailand’s priority sectors.

Single Window For Visa And Work Permit System

Bangkok’s One-Stop Service Center (OSSC) simplifies obtaining visas and work permits for foreigners to streamline the process. It’s main objective is to accelerate the application and renewal procedures and complete processing within three hours. The OSSC handles various services, including visa and work permit applications, renewals, multiple re-entry permit issuances, visa class changes, and fine payments.

Duties of Employers

The Foreign Working Act, 1978, specifies employers’ duties regarding issuing and maintaining work permits. Employers must:

  • Not allow foreigners to perform any function other than that described in their work permit.
  • Report changes in employment, transfers, and termination of foreign employees to labour authorities within 15 days.
  • Ensure that dismissed employees return their work permits to the labour authorities in Bangkok or to the provincial Department of Employment.
  • Ensure that permit holders obtain prior permission to change their occupation or workplace.
  • Notify the Immigration Bureau of any address changes every 90 days.
  • Report any change in address or status to the local police within 24 hours.
    The law does not force employers to return the work permit of their foreign employees, but if employers or employees wish to return it, they are allowed to do so.

Please read our Latest Guide On: Building Trust in Short-Term Employment – 7 Key Strategies 

Fines and Penalties

Thai laws are strict regarding compliance with work permits and visas.

 

Foreigners working without a valid work permit may face imprisonment of up to five years, a fine of 2,000 to 100,000 Baht, or both.

 

Employers who hire foreigners without a work permit may be fined 10,000 to 100,000 Baht per employee. While allowing a foreigner to work beyond the permitted scope can lead to a fine of up to 10,000 Baht.

 

Non-compliance or violations of other laws may result in one-time or daily fines until the laws are complied with.

 

Therefore, employers and employees must strictly adhere to work permit and immigration laws to avoid fines and legal issues.

Conclusion

Expanding into Thailand presents distinct challenges, particularly in navigating the complexities of work permits and visa regulations. However, with a clear understanding of the legal requirements, eligibility criteria, and compliance obligations, businesses can ensure a smooth entry into the market.

 

As a trusted leader in the workforce outsourcing industry, Galaxy Payroll brings 18 years of experience providing Employer of Record (EOR), outsourced payroll, and immigration services across Asia Pacific. Our expertise and established network enable us to streamline the work permit, visa process and employment process, ensuring full compliance with Thai regulations.

 

Galaxy Payroll is your trusted partner if you are considering hiring in Thailand. We will manage the work permit, visa, employment, payroll, and compliance processes, allowing you to focus on your core business objectives confidently.

 

Read our latest guide on : Employee Engagement in Difficult Times: 6 Key Strategies

Fast-Track Your Work Permit & Visa in Thailand

Get expert guidance on Thailand’s work permit and visa requirements. Ensure a smooth onboarding experience for your foreign employees.

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FAQ’S

What types of work permits are available in Thailand?

Work permits are typically issued for regular employees, executives, specialists and investors, with varying durations and conditions.

The Ministry of Labor, Thailand, generally processes applications within 30 business days. However, discrepancies in the applications, the requirement for additional documents, or departmental workloads may extend the processing time.

Yes, but you can work with an employer only if your work permit allows it specifically. Therefore, you must cancel it and get a fresh visa and work permit, when changing to a new employer. Do note also that the immigration department typically requires you to leave the country upon cancellation of your visa and work permit.

 

However, you can apply for an extension of stay. If granted, you can meanwhile obtain a new work permit to avoid leaving Thailand.

The Thailand Elite Visa is a long-term, privilege-entry visa designed for affluent individuals, investors and frequent visitors. It offers multiple entry benefits, extended stay options (5 to 20 years), and exclusive services like airport assistance, concierge support and lifestyle perks.                

Hiring in Macau: Essentials That Employers Should Know

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Hiring in Macau: Essentials That Employers Should Know

Hiring in Macau Essentials That Employers Should Know

The Hiring Edge: Why Macau Stands Out?

 

Patrick Dumont, President and COO of Las Vegas Sands Corp., stated that they believe strongly in the HCL story and have been investing in growth in Macau for years. The strategy is to grow the business and strategic advantages, and plans to continue acquiring more HCL shares, demonstrating their belief in its future value when asked about their allocation strategy regarding HCL shares.

 

Reflecting confidence in Macau’s evolving economy, Companies like Sands China also uphold investment efforts in non-gaming ventures such as luxury hotels and entertainment projects.

 

As the globally leading gambling hub, Macau attracts millions of tourists annually, fueling its growing service sector. With institutions like Citigroup providing corporate banking and investment services since 1902 and the introduction of the new Financial System Act, Macau is poised to surface as a scaling financial centre in the Greater Bay Area.

 

Its prestigious standing as a growing free port, absence of foreign exchange controls and competitive tax regime, make it a high-profile nexus for international business. The luxury goods market for instance is flourishing with international fashion brands establishing strong footholds to cater to high-spending tourists.

 

However, having recognised the risks of overdependence on the gaming industry and on mainland China for labour, resources and trade, the Government is actively taking steps to diversify the nation’s  economy.

 

Initiatives such as the Macau Development Plan 2024-2028 focus on the “1+4” strategy: integrated tourism and leisure, modern financial services, “big health”, high technology, and MICE (meetings, incentives, conventions, and exhibitions). 

 

These transformations, combined with structured employment contracts in Macau and a clear employment law framework, positions the country as an increasingly attractive destination for companies and professionals. 

Table Of Content

Options to Legally Hire in Macau

Hire in Macau

Employment Of Non-Residents In Macau

When local expertise is insufficient, hiring non-resident workers becomes quite a necessity. Employers who would like to employ non-residents must first obtain quota approval and an employment permit from the Labour Affairs Bureau and subsequently apply for a ‘Non-Resident Workers Identification Card’ known as the ‘Blue Card’ from the Public Security Police Force. Blue Card holders are allowed to perform work under authorized conditions such as with the approved employer, workplace, job position and term of employment.

 

The Government also allows foreign nationals to work in Macau as nanagerial personnel with technical and professional qualifications under one of its schemes that also provides residency options.

Upon fulfilling certain legal requirements, foreign entities are also allowed to send their employees to Macau to work as “consultants/technicians” and perform approved work tasks for a maximum of 45 continuous or non-continuous days within a 6 month period.

 

Given Macau’s emphasis on prioritising local employment, genuine efforts to recruit local citizens need to be demonstrated before hiring non-resident candidates. Collaborating with local universities and participating in job fairs are effective ways for companies to tap the local talent pool. 

Legal Framework Governing Employment In Macau

Macau’s Labour Relations Law (Law No. 7/2008) establishes the fundamental legal framework governing employment in the region. It defines employers’ and employees’ rights, obligations, and protections, ensuring a fair and regulated labour market.

1. Employment Contracts & Working Conditions

Employment contracts in Macau can be fixed-term, variable-term, or indefinite. Contracts exceeding 90 days require written agreements. Employment of 16- to 18-year-olds is allowed but with special provisions for minors. Normal working hours are 8 hours per day and 48 hours per week, with mandatory rest periods and compensation for overtime, night shifts, and holiday work.

2. Employee Rights & Protections

Equal employment opportunities must exist and discrimination based on gender, race, age, religion or political beliefs, are prohibited. Employers must provide safe working conditions, and employees have the right to privacy, fair wages and protection from unfair dismissal.

3. Leave Entitlements
  • Annual Leave: Minimum 6 paid days after one year of service.
  • Maternity Leave: 70 days (paid if employed for over a year).
  • Paternity Leave: 5 paid working days.
  • Sick Leave: Up to 30 consecutive days or 45 non-consecutive days per year.
4.   Benefits
  • Minimum Wage: As of January 1, 2024, the minimum wage in Macau is set at MOP 7,072 per month.
  • Social Security Contributions: Employers must contribute MOP 60 per month to the Social Security Fund for each permanent employee, while employees contribute MOP 30.
5. Termination & Compensation

Employers can terminate contracts with just cause (e.g., misconduct) or without cause, in which case severance pay applies. Compensation varies based on tenure, with rates increasing progressively for longer service. The maximum compensation is capped at 12 times the employee’s basic monthly salary unless a higher amount is agreed upon between the employer and employee (Article 70). Unlawful dismissals may result in fines or legal claims.

5. Compliance & Penalties

Employers must maintain employee records and adhere to payroll regulations. Violations- such as failure to pay wages, denying leave or engaging in unfair dismissal, will incur fines ranging from MOP 5,000 to MOP 50,000 per employee.

 

This legal framework ensures a balanced and fair employment environment in Macau while safeguarding workers’ rights and business interests.

Cultural Sensitivity and Workplace Integration in Macau

Understanding and respecting Macau’s cultural nuances is paramount for successful employee integration. Employers should consider:

  • Language Proficiency: While English is widely spoken, language support or training can enhance communication, especially with local staff who primarily speak Cantonese or Portuguese.
  • Cultural Training: Cultural awareness programs can facilitate better understanding and collaboration within a diverse workforce.

Unlock Brilliance: Hire With Galaxy Payroll Group

Hiring employees will manifest various critical aspects, such as legal compliance and the administrative burden.

 

By engaging an EOR in Macau, businesses can liberate themselves from the ordeal of tedious and costly process of establishing a legal entity in a new country. Through an EOR, companies are also free of the associated compliance tasks and administrative burden.

 

Galaxy Payroll Group has a long-standing presence in Macau and we are able to not only help you frame a clear expansion strategy, but at the same time, relieve your HR team of efforts around legal compliance and HR administrative work. We are poised to offer faster and effective hiring in Macau, so contact us now!

 

Disclaimer: This blog is for informational purposes only and does not constitute any legal advice.

 

READ ALSO: Work From Anywhere Policies: How EORs Can Help?

Hire in Macau with Confidence!

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FAQ’S

How can employers leverage technology to streamline recruitment in Macau?

Employers can use AI-driven recruitment platforms to ease locating the right talent and assessing candidate capabilities. Other Applicant Tracking Systems (ATS) exist to assist in workflow, organization and candidate tracking. 

Employment in Macau can be terminated under the Labour Relations Law through:

  • Revocation – Mutual agreement between employer and employee, with no notice or compensation required.
  • Rescission – Either party may terminate the contract with or without just cause. In case of rescission without a just cause, the Act provides for notice and compensation laws. Termination with just cause requires 15 days’ notice by the employer and 7 days’ notice by the employee.
  • Expiry – The contract ends when its term expires or the task is fulfilled or the employee is unable to work due to chronic illness or disability.
  • Denunciation – Parties may denounce the contract during the probationary period.

To hire foreign employees, employers must obtain a Non-Resident Work Permit (Blue Card) from the Macau Labour Affairs Bureau. The employer must also prove that the role cannot be filled by a local worker. 

The Government also allows foreign nationals to work in Macau as managerial personnel. This can happen upon the fulfilment of eligibility and completion of needful government requirements. 

Yes, while verbal contracts are legally valid, contracts exceeding 90 days require written agreements. The written employment contract must clearly specify salary, working hours, benefits and job duties, to avoid disputes.

How Global Companies Can Legally Hire Talent in The Philippines?

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How Global Companies Can Legally Hire Talent in The Philippines ?

How Global Companies Can Legally Hire Talent in The Philippines Galaxy

The Philippines has always been one of the preferred destinations for businesses looking to expand their global workforce. Cost efficiency is one of the key concerns and prime factors for these companies.

 

The Philippines is a developing economy with a lower GDP per capita compared to more developed nations, hence an employer can enjoy lower costs for operations. According to PayScale, the expected average annual salary for a Filipino customer service representative in 2025 is USD 4,013 as compared to USD 44,779 in the US.

 

The Asian Development Bank states in one of it’s reports, that besides facilitating lower operational costs for businesses, The Philippines is also home to approximately 700 active startups. These startups benefit from a workforce that possesses, higher levels of knowledge and advanced skills, to generate needful technological output.

 

Companies in the Philippines thus enjoy a combination of an affordable and skilled workforce together with high English proficiency – deeming it ideal for foreign investment.

 

In this guide, we explore different hiring models, from Employer of Record services to direct hiring and payroll management in Philippines, to help you navigate the legal and regulatory landscape when hiring in the Philippines.

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How to hire in the Philippines?

Direct Hiring

The Philippines government allows foreign companies or entrepreneurs to directly hire Filipinos, upon fulfilling the requirements of the SEC’s Company Registration System (CRS) for Corporations, or DTI Business Name Registration System for Sole Proprietorships – and having their respective businesses registered thereunder. 

 

One needs to check if they fall under the restricted category within the Foreign Investments Negative List (FINL), attain the required business permits, register with the Bureau of Internal Revenue (BIR) for taxes, and with the Filipino Social Security System, PhilHealth and Pag-IBIG.

 

Setting up a legal entity is beneficial for those who aim for long-term projections in The Philippines. Additionally, every business has its own differentiated need to opt for a particular business structure. For instance, large companies can quickly enter the Filipino market by acquiring companies and inherit it’s local capabilities. 

Engage an Employer of Record

Engaging an Employer of Record is a preferred choice for companies looking for an easier entry into the a foreign workforce. As local entity setups can take a lengthy and expensive process, companies can consider the EOR offering as a quicker and more cost-effective method.

 

Companies who have engaged an EOR service, are better able to devote their attention and resources to core business activities. A relief as well from the administrative burden of hiring and handling payroll, HR, and other related functions.

 

As EORs have a better understanding of their local labour laws, it helps to effectively mitigate any risk of non-compliance. Furthermore, it is also recommended for those who do not plan to make any heavy investments into The Philippines until some exploration has been carried out. 

BPO Model and Independent Contractors

It is worth noting that according to the IT & Business Process Association of The Philippines – IBPAP, the BPO industry in The Philippines employs over 1.4 million people and contributes to 8% of the country’s GDP.

 

However, it is also worth noting that not every business benefits from utilising a Business Process Outsourcing (BPO) model. This model will work for specific business tasks that often includes customer support, IT services and back-office operations. 

 

Similarly, Independent Contractors are more suitable for short-term projects and business needs for specialised skills; however, this presents a speedy and cost-effective avenue for hiring workers. It is thus important for future employers in The Philippines to have a grasp of the different models of hiring that can be employed, for specific needs.

Understanding Labor Laws & Employment Contracts

The principle that any doubts in the interpretation of labour laws should be resolved in favour of the employee rather than management – is critical for employers to understand about the fundamental thinking in Philippines jurisprudence. One can easily observe the kind of importance The Philippines government affords to labour rights. The basic laws are however similar to many other countries, few of the notable laws are as follows:

 

Ø  The employees have a right to a 13th month salary which should not be less than one twelfth of the total basic salary earned within a calendar year.

 

Ø  Contribution of 10% to Social Security System (SSS), 2.5% to the Philippine Health Insurance Corporation (PhilHealth), and 2% to Home Development Mutual Fund by the employer for fund salary above ₱1500.

 

Ø  Work performed beyond eight (8) hours is considered overtime. An additional compensation equivalent to employee’s regular wage plus at least twenty-five percent (25%) thereof, is required to be paid for overtime. Work performed beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.

 

Ø  Provision of service incentive leaves, paternity leaves and maternity leaves is duly required.

 

Ø  The Social Security Program provides a package of benefits in the event of death, disability, sickness, maternity and old age.

Conclusion

Companies need to assess and decide on choosing an appropriate way for effective hiring in The Philippines. By setting up a legal entity in The Philippines, companies can hire directly and retain full control over the process.

 

Alternatively, an EOR shoulders the responsibility of hiring by acting as the official legal employer. The EOR takes on the administrative burden of handling the entire process, and is in charge of the compliance and risk management of the engagement.

 

Contact Galaxy Payroll Group – a leading HR and Business Advisory service provider for the Asia Pacific region.

Expand Your Workforce in The Philippines with Galaxy Payroll Group

Galaxy offers expert HR and business advisory services, allowing companies to focus on  what matters most

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FAQ’S

Can a foreign company hire employees in the Philippines without a local entity?

Yes, foreign companies can hire employees in the Philippines by engaging an Employer of Record (EOR) service provider. They can also outsourcing the required function to a Business Process Outsourcing (BPO) provider, if suitable.

Foreign employers must comply with Filipino labour laws. This covers properly crafted employment contracts, adherence to statutory benefits, contributions and tax obligations.

There is high competition for skilled talent. There also needs to be clear understanding of employment regulations and cultural differences. Payroll and workforce management are common challenges for new overseas employers.

Building Trust in Short-Term Employment – 7 Key Strategies

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Building Trust in Short-Term Employment - 7 Key Strategies

Building Trust in Short Term Employment 7 Key Strategies Galaxy

As economies progresses, employer-employee relationship trends at times witness upside-down shifts. In the past, employees and employers have expectations of long-term work commitments. In today’s era of work, employees have a higher focus on work-life balance and look for more flexibility in work. On the other hand, as the marketplace evolves, companies have a higher need for access to  more specialised roles.

 

Short-term employment has therefore become a prevalent trend across the globe, especially, in the Asia-Pacific (APAC) region. This is driven by the gig economy, project-based roles, and evolving workplace dynamics. However, since the employees are engaged for a specific or short duration, building trust among them is challenging.

 

This article will explore what short-term employment entails and strategies to build trust with short-term employees.

Table Of Content

What Is Short-Term Employment ?

Short-term employment refers to a work arrangement where employees are hired for a fixed duration, often ranging from a few weeks to a few months. Unlike traditional long-term roles, these positions are time-line focused, project-based, seasonal, or require specific expertise.

 

Freelancers or consultants for specialised tasks, temporary staff for peak business periods, and project teams for short-term assignments, all come under the short-term employment category.

 

Importance Of Building Trust In Short-Term Employment

Just like long-term employees, trust needs to be established for those under short-term work arrangements. This is because of the following reasons:

  1. Enhanced Productivity: trust creates a positive work environment which leads to employee engagement and higher productivity.
  2. Reputation and Branding: Trustworthy organisations gain positive feedback in the market, attracting top talent even for short-term roles, thereby building a strong brand image.
  3. Retention of Knowledge: Employees who trust their employers do not hesitate to share knowledge with peers and trained successors, minimizing disruptions when they leave.
  4. Collaboration and Innovation: Trust enables employees to stay collaborated and share innovative ideas, leading to long-term business growth.
  5. Ethical and Sustainable Practices: Trust reflects the company’s commitment to employee respect and engagement which aligns to long-term sustainability and ethical practices.

Building Trust In Short-Term Employment – 7 Key Strategies

Building trust among employees is challenging, especially for short-term engagements. It requires intentional strategies tailored to meet the needs of the business. Here are key strategies that companies should adopt:

 

1.Create Inclusivity Through Employee Orientation And Effective Communication : The initial experience of employees, whether long-term or short-term, plays a crucial role in establishing trust. Creating a welcoming environment from day one reduces the “outsider” complex that short-term employees might experience. This would help foster better collaboration and develop the team dynamic. One of the best starts is to conduct an effective orientation by introducing new short-term employees to team members and vice-versa.

 

To add further, the exercise of effective communication will help build a foundation of trust. Businesses must provide detailed contracts, outlining roles, responsibilities, expected outcomes, and expected timelines. This will help ensure that short-term employees are well-informed about compensation, benefits, and company expectations.

 

2.Know About Your Team and Extend Support : Businesses who have a better understanding of their short-term employees’ backgrounds, skills and motivations, are best suited to tailor assignments or feedback to align with the individual’s strengths. This will also significantly help increase employee productivity and build employee confidence.

 

Additionally, extend support by :

  • Encouraging them to learn from mistakes without fear of blame, acknowledging your own errors to set an example of accountability.
  • As it is a short-term engagement, it is important to be able to provide guidance and constructive solutions.
  • It is also important to equip short-term employees with the right tools and resources for them to do the job and meet expectations.

When short-term employees feel prepared and supported, they are more likely to trust the organisation and deliver high-quality work.

 

3.Respect Ideas and Use Feedback Constructively : Actively listen to short-term employee suggestions and give assurance that their feedback is acknowledged.

Recognise and appreciate innovative ideas to problem-solving and offer constructive feedback that focus on improvement rather than criticism.

 

4.Foster Approachability and Friendliness : Short-term employees are more likely to trust leaders who are friendly and approachable. Creating an open communication channel where they can feel comfortable sharing concerns and conducting informal interactions helps maintain a positive and supportive demeanor, even in challenging periods during their short employment.

 

5.Honor Your Commitments : In lieu of the nature of short-term employment, keeping to your commitments is particularly important when building trust with short-term employees. Do ensure that you fulfil all your commitments made to short-term employees :

  • payment schedules and role expectations.
  • timely delivery of resources or support promised during onboarding.
  • Consistency in action builds credibility. Therefore,
  • Uphold company values uniformly across all employee levels.
  • Clearly communicate expectations and follow through consistently.
  • Demonstrate reliability in all interactions.

 

6.Create An Equitable Environment : An equitable environment has to exist to build trust with short-term employees. Therefore, companies should ensure:

  • that they offer competitive and fair compensation,
  • access to the same tools and resources as other employees,
  • provide additional benefits like completion bonuses, access to wellness programs or flexible work arrangements (if possible),
  • consistent and ethical treatment of all employees,
  • implement fair policies that reflect the company’s values.

 

7. Highlight Growth and Networking Opportunities : While short-term roles may not always lead to full-time positions, companies can foster a good relatiolnship by demonstrating long-term value. Consider:

  • facilitating networking opportunities within and outside the company,
  • providing certificates of service or endorsements for future work opportunities,
  • supporting employees in exploring company-wide roles across other projects or regions.

Being transparent about growth avenues demonstrates genuine care for the short-term employee’s future with the company.

Conclusion

Although there is currently a shift from long-term to short-term employment trends, it is essential for a business to not lose focus on it’s mission and organisational culture. However, taking strategic advantage of short-term employment might be challenging for HR teams who need to focus more on their core operations rather than short-term employee management.

In this regard, partnering with an EOR service provider can present a win-win situation for both your company and your employees. Engage Galaxy Payroll Group as your partner for short-term employment. As a leading EOR service provider in the APAC region, we can help simplify short-term employment operations like onboarding, compliance assurance, payroll management and employee support.

 

Read our latest guide on: How to Hire International Employees: A Comprehensive Guide

Building Trust With Short-Term Employees

Partner with Galaxy Payroll Group, a leading EOR service provider in APAC. Let us handle the brunt work while you focus on core business operations.

Contact us now!

FAQ’S

How can trust be established in short-term roles?

Trust can be built by offering open communication channels, clear expectations, constructive feedback, resource support, equitable treatment and adhering to mutually agreed commitments. 

Trust fosters better collaboration and helps improve productivity. When trust in the company is established, short-term employees are more motivated  to share ideas and train new incoming colleagues or replacements. Lastly, a happy short-term employee will likely give positive feedback in the marketplace which helps build a positive employer brand for the business.

Clear visibility on roles, goals, challenges and expected outcomes reflects transparency in the system. This energizes mutual understanding and helps avoid misconceptions.

Singapore Budget 2025: Building a Future-Ready Workforce

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Singapore Budget 2025 : Building a Future-Ready Workforce

Singapore Budget 2025 Building a Future-Ready Workforce galaxy

“Every Singaporean is supported from birth to old age, with more given to those with less. No one is left behind.” said Prime Minister Lawrence Wong, during his Budget Speech 2025, rightfully describing the essence of the budget.

 

Sixty years, a relatively short period for a country (by any means), yet the ‘Little Red Dot’ island that is known as Singapore, was able to mark an impactful presence on the global stage – bolstering it’s strong economy from year to year for over half a century. Underpinned by it’s robust economic policies and deep pool of a skilled workforce, Singapore has in many ways, ticked the critical checkboxes to attract foreign direct investment and high quality skilled workers from across the globe. 

 

Unlike previous years, where the focus leaned heavily on pandemic recovery, digital transformation, and global competitiveness, this year’s Singapore Budget 2025 signals a shift toward long-term workforce resilience and adaptability.

 

Let’s uncover what this budget has in store for employers and employees in Singapore. 

Table Of Content

The Singapore Budget 2025 Highlights:

Supporting Skills Development and Lifelong Learning

The Singapore government acknowledges that mid-career individuals face challenges in an evolving economic landscape, marked by rapid technological advancements and shifting job markets. Therefore, it is apparent that a focus is afforded on skills development and upgrade, especially for workers aged 40 and above. 

 

The government is committed to grant $4,000 to all Singaporeans of this age group, in SkillsFuture credits and a monthly training allowance of up to $3,000 for selected full-time courses. This scheme will be supported for up to 24 months; prioritizing lifelong learning and ensuring that Singapore employees are always equipped to meet the demands of evolving industries.

Increased Support for Part-Time Training and Workers with Lower Incomes

Taking care of the wage gap, Singapore Budget 2025 allocates a $300 monthly allowance to part-time trainees from 2026, ensuring that workers not only have the opportunity to upskill but are also supported financially while they do so. 

 

This will enhance the Workfare Skills Support Scheme and Progressive Wage Credit Scheme to provide additional support for lower-wage workers who are over the age of 30. There will be an increase in co-funding from 30% to 40% in 2025 and from 15% to 20% in 2026. With the additional support, businesses will be more encouraged to invest in skills upgrades for their workforce, regardless of age or wage level.

Workforce Transformation and Employer Support

A more comprehensive set of incentives for employers focused on workforce transformation under the revamped SkillsFuture Enterprise Credit program. This enhanced set of incentives will access businesses (with three or more resident employees) to at least $10,000 in credits, which can be used offset costs associated with employee training and enterprise transformation. 

 

To ensure that businesses are able to manage their workforce programmes efficiently, a new online wallet system has been introduced, allowing companies to track available credits and use status – thus reducing delays in funding.

 

Furthermore, to help companies modernize their workforce to align with new technological advancements, the Workforce Development Grant offers up to 70% funding for job re-design activities. 

Accelerating Inclusivity for Older Workers and Persons with Disabilities

Aging populations are always important concerns for governments worldwide. Therefore, it is equally important for governments to recognise that an inclusive workforce that supports older employees, is  critical for a robust and resilient economy. 

 

In view of this, the Singapore government has announced that the Senior Employment Credit will be extended until the end of 2026. This will continue to provide wage support for older Singaporean workers aged 69 and above – alongside an increase in the CPF contribution rate for workers aged 55-65 in 2026.  

 

By increasing financial support through expanded subsidy rates for adult disability services and the Matched Retirement Savings Scheme, the Budget justifies its title – Onward Together For A Better Tomorrow.

 

The Singapore Government will also continue working with organizations like SG Enable and the Special Needs Trust Company to encourage long-term financial planning for caregivers of persons with disabilities.

Fostering Work-Life Balance and Supporting Families

Singapore Budget 2025 acknowledges the value of work-life balance by including provisions that directly benefit working families. 

 

By introducing Large Families Scheme, where families with three or more children will receive upgraded financial support, will make it easier for parents to remain in the workforce whilst raising a family. The scheme includes a $5,000 increase in the Child Development Account (CDA) First Step Grant and $1,000 in LifeSG credits for each child in the family. 

Embracing Digital Transformation in HR

Technology plays a key role in the workforce development journey. Strategically, the Enterprise Compute Initiative will provide $150 million to support AI adoption. Businesses can engage with cloud service providers and AI experts, to help HR professionals stay ahead of the digital curve. It is anticipated that AI adoption and maturity will better equip Singaporean HR professionals to address challenges, such as talent shortage and employee expectations.

 

With initiatives such as the Digital Economy Council and the Smart Nation Digital Government Group, the Government ensures that businesses align with Singapore’s commitment to being a Smart Nation. 

Financial Support and Tax Incentives for Businesses

Singapore will continue to encourage investment in local enterprises through the $1 billion Private Credit Growth Fund, which will make it easier for expanding businesses to invest in development initiatives for their employees. 

 

A 50% corporate income tax rebate for the Year of Assessment 2025, with a cap of $40,000 is a very encouraging move for businesses who qualify for the rebate. 

Preparing for Future Challenges

Singapore Budget 2025, has forward-looking policies like the Heavy Vehicle Zero Emissions Scheme, which will address external challenges such as climate change, technological disruption and volatile global markets. The scheme will help businesses remain competitive and resilient in the face of new challenges.

 

In line with the Singapore Green Plan 2030, the introduction of the Green Skills Training Programme will provides targeted training to workers in key sectors such as clean energy, electric vehicle technologies and environmental sustainability. The intent for this programme is to boost the green economy and creation of more green jobs for Singaporeans. 

Conclusion: A Budget for the People and the Workforce

Singapore Budget 2025 introduces a refreshed push in Singapore’s journey towards a more inclusive and resilient future. All the initiatives and programmes underscore the government’s commitment to ensuring that every Singaporean worker has the support, opportunities, and resources they need to succeed.

 

With a focus on workforce development and skills upgrade, Singapore Budget 2025 aims to tie Singaporeans of all backgrounds with the country’s vision for continued economic growth and stability. 

 

Prime Minister Lawrence Wong’s words of “Every Individual Action Counts”, demonstrates the level of commitment required by the Government and all Singaporeans, towards establishing a thriving future for generations of Singaporeans to come. 

 

Our Quick Guide on Effective Taxation & Tax Planning Strategies for Businesses in Hong Kong

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FAQ’S

What are the key initiatives in Singapore Budget 2025?
  • The government continues to help Singaporeans cushion higher costs of living with a series of vouchers, rebates and credits schemes. This will be disbursed from May 2025 to January 2026.
  • Workers are encouraged to upskill with the introduction of new measures. Singapore Budget 2025 continues to build on the nationwide emphasis of helping Singaporeans to retrain or reskill.
  • With Singapore Budget 2025, more help has been afforded to working parents who are managing costs associated with raising children in Singapore. 

The Government has expanded the SkillsFuture Enterprise Credit Scheme to help companies fund training programs in high-demand sectors such as AI, data analytics and green technology. There are also sector-specific training programmes to prepare workers for evolving job demands.

The Budget acknowledges the value of work-life balance by including provisions that directly benefit working families. Schemes like the Large Families Scheme and Child Development Account (CDA), will help working parents who are raising families.

Work From Anywhere Policies: How EORs Can Help?

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Work From Anywhere Policies: How EORs Can Help?

Work From Anywhere Policies How EORs Can Help

The COVID pandemic has accelerated work-from-anywhere policies, and it is one of the most significant shifts global markets have witnessed, in recent years.

 

These policies allow employees to work from any location – whether it’s their home, a co-working space, or even another country. This shift has also reshaped traditional work practices and office environments.

 

Employees appreciate the flexibility of working from locations of their choice Work from anywhere (WFA) policies enhance job satisfaction and reduce turnover. It opens up an avenue for companies to hire skilled professionals regardless of geographical location. Companies therefore, are offering more flexible arrangements in order to attract higher quality talent.

 

Companies for instance have been looking at attractive markets in APAC such as Malaysia, Thailand and Vietnam, which offer a skilled and affordable talentpool. Whilst other APAC countries like Singapore, Hong Kong and Japan possess high quality workers in the spheres of  economics, technology and innovation.

 

However, implementing WFA policies is in itself challenging due to cultural diversity and varying manpower regulation across countries. This is where engaging an Employer of Record (EOR) service provider can help ease the complexities of global employment.

 

This article will run you through the advantages of hiring an EOR and how it can help address the challenges of implementing WFA policies.

Table Of Content

Challenges Of Implementing WFA Policies

While the adoption of WFA initiatives offers numerous benefits, the implementation part could pose some challenges. This especially is true for HR personnel who are : 

  1. not familiar or have very limited knowledge in handling international labour laws 
  2. possess little to no experience in managing a remote workforce.

In light of this, businesses might face some hurdles :

  • Non–compliance of varying tax regulations and labour laws. Insufficeint cover of   mandatory benefits, leave entitlements, etc., can result in legal disputes, penalties and irreparable reputational damage.
  • Companies may inadvertently create a “permanent establishment” in a foreign country, leading to corporate tax obligations for both the employer and employee.
  • Payroll processing can be resource-intensive and making local currency payments in some countries can be ‘painful’.
  • Securing appropriate health insurance and other benefits coverage for remote workers can be a complex affair when trying to manage from overseas.
  • In the hiring of Foreign Employees in another country, visa processes may be complexed and difficult. There is also a risk of wrongful application which may lead to an accidental violation of immigration laws.
  • Managing time zone differences.
  • Managing cultural differences and employee engagement.
  • Overcoming communication barriers.

How can EORs help simplify WFA initiatives?

An Employer of Record (EOR) can help simplify the implementation of work-from-anywhere policies by acting as the legal employer of the employees on behalf of the client company. The EOR will handle critical aspects of employment administration while allowing the business to focus on more important tasks. Read our Guide ‘What is an EOR’ to understand how EORs help businesses manage their workforce globally.

 

Although an EOR takes charge of the entire employment process in a specific country, the parties must define the scope of responsibilities to seize the full benefit of the EOR service.

 

EORs assist with :

1. Ensuring Compliance

Employers of Record (EORs) have local expertise in compliance with its country’s employment laws and regulations. It takes charge of employment requirements whilst minimizing risks of fines, penalties and lawsuits.

 

For example, an EOR ensures that the terms of the employment contract such as salary, working hours, benefits, termination, etc. comply with local manpower laws. Likewise, it also takes responsibility for minimum wages, tax and social security, benefits and leaves, health and safety, fair treatment and workers’ rights, etc.

 

2. Simplifying Payroll and Tax Management

The EOR will process salaries in local currencies considering exchange rates and regional pay cycles while managing statutory components like overtime, bonuses and benefits.

 

The EOR also needs to ensure tax compliance across jurisdictions by remitting taxes and social contributions on time. The EOR has to comply with tax treaties to avoid double taxation for employees and exit tax policies.

 

3. Providing Equitable Benefits

The Employer of Record (EOR) has to make sure that their employees across different locations receive fair and comparable compensation and perks despite the varying local regulations from country to country.

 

The EOR has to align salaries and allowances with the cost of living in each country to maintain financial equity among employees. It provides (where required) flexible benefits such as stipends for home office setup or coworking spaces.

 

4. Handling Immigration and Work Permits

The Employers of Record (EOR) also facilitates the application and management of work permits and visas for employees to legally work in a foreign country. It has to handle documentation, application process and compliance with immigration laws.

 

After the visa application is successful, the EOR has to continue to monitor any changes in regulations that could impact the foreign employee’s legal work status.

 

5. Managing Risk

Being the legal employer, an Employer of Record (EOR) absorbs many of the risks associated with international employment. For example:

  • Non-compliance with diverse labor laws can lead to fines and lawsuits.
  • Mismanagement of taxes, social security contributions and payroll, may result in legal penalties.
  • Employing workers in foreign locations could create an ‘unwanted’ taxable corporate presence.
  • Unauthorized work in foreign locations may lead to penalties or employee deportation.
  • Treatment of workers as ‘Contractors’ instead of ‘Employees’ can lead to misclassification risks.

 

6. Streamlining Onboarding and Offboarding

Employer of Record (EORs) make it easier for companies to implement WFA policies by providing country-specific guidance and smooth onboarding and offboarding of employees.

 

It handles everything from drafting employment contracts, payments and access to technology tools for an effective end-to-end process.

 

7. Data Security and Infrastructure

Ensuring compliance of data privacy laws like PDPA in Singapore and PIPL in China, is a very important exercise for all EORs.

 

EORs need to deploy cybersecurity measures such as firewalls, multi-factor authentication and advanced encryption. A centralized data management repository and secure systems for payroll and benefits are all critical components in a full-fledged Employer of Record (EOR).

How are EORs essential for businesses who want to expand their global workforce?

Different economies around the world follow different business and legal practices.  The APAC region in-specific offers a healthy mix of developed and developing nations with vast cultural diversity. Many companies especially see the benefits of utilising EORs in popular APAC destinations. For example :

  • Singapore : where there are strict regulations on employment contracts, CPF contributions and work visas.
  • Japan : With its complex labour laws and social security regime, employing talent in Japan requires careful compliance management.
  • Australia: Employers must adhere to the Fair Work Act, which governs wages, hours and working conditions.
  • Indonesia and Vietnam: Rapidly growing economies with evolving labour laws pose many challenges for foreign companies.

Conclusion

Work-From-Anywhere (WFA) policies represent a transformative approach to the modern workplace, offering unparalleled flexibility and access to global talent. However, successfully carrying out these initiatives require dealing with a variety of legal, tax and administrative challenges. Galaxy Group’s Employer of Record (EOR) services provides a practical and efficient solution for companies who want to embark on WFA initiatives with confidence.

 

Partner with Galaxy Group to unlock the full potential of your WFA policies. Foster innovation and growth in your organization, with the help of an established EOR provider like Galaxy Group. 

Implement Your WFA Initiative with a EOR provider today!

Partner with Galaxy Group, a leading EOR service provider in APAC for 20 years. We will take care of everything, while you focus on core business operations.

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FAQ’S

How can an EOR help simplify WFA policies?

The EOR is a country expert at handling complex tasks such as compliance, local employment regulations, payroll processing, tax remittance, work permits, addressing cultural and communication barriers, etc.

EORs will arrange to get work permits and visas for employees. They have to ensure compliance with immigration laws to enable the employee to work legally in the country.

The EOR typically helps simplify key WFA aspects which pertain to compliance with local laws, tax and risk management, payroll administration and provision of localized benefits.

An EOR minimizes PE risks by acting as the legal employer in the target country, ensuring that the client company is not liable for corporate taxes in the country.

The EOR takes cybersecurity measures, complies with data protection laws and uses secure platforms to protect sensitive employee information.