International payroll management cannot be summarised into one easy fixed calculation. Payroll calculation is complex and labor laws and practices differ from one country to another. Some countries are in favor of social balance rather than employee-oriented. Labour laws are equally strong and collective agreements protect labor relations.
In Malaysia, their EPF contribution differs from age group and salary bracket equates to different contributions from employees. If you are below the age of 60 and your earnings are up to RM5,000 contribution from an employee is 13% whereas, for salaries above RM5,000, an employee’s contribution is only 12% There is also a mandatory zakat (alms) deduction for Muslim staffs.
As for Singapore, CPF contribution for an aged group below 55 is 17% from employees regardless of earnings per month, and Muslim staff can opt to contribute to the Mosque Building Funds
Elsewhere in Vietnam, there are several taxes and deductions to be calculated such as Social Security Insurance, Trade Union Levy, and Personal taxes ranging from 5 -35%, similarly in the Philippines wages have several monthly mandatory deductions such as SSS, Philhealth, HDMF and withholding taxes.
Other weighing factors
More than 50% of the world’s population lives in the APAC region. Various languages are spoken and exchanged daily. The exchange rate differs from one country to another.
How do you stay competitive as a company? How can you attract buyers/sellers from Western countries? And at the same time translate that transformation to local languages? What if you have more than 1 entity to manage? What kind of solutions does your company require.
We can all agree that COVID-19 had disrupted many facades of lives and businesses. It had become a catalyst for a digital transformation in how we look at businesses and connectivity. It had accelerated the process from brick-and-mortar companies to click and order.
Globalization pushes our business to reinvent ways how we manage payroll, staffing, time attendance, leave management, and employee self-service. Companies continue to find the perfect marriage of affordability and quality HR Software solution provider
Companies adopting SAP solutions as a software-as-a-service (Saas). The cloud base platform is deemed more attractive as it is easily accessible anyway and makes collaboration more attractive.
At Cadena International, we understand the challenges that lie ahead of the pandemic/endemic situation, we recognized the different requirements and needs of an organization to run smoothly like a good oil cog machine.
Here’s why we are leaders in our industry.
We have more than 20 years of experience in collaboration in S.E.A, we understand the various labor laws and payroll management in each country.
You can view the data and user interface in multi-language e.g., Malay, Thai, Khmer, Vietnamese
Easy link for payroll reporting to various government agencies.
www.tembo-pay.com ww.cadena.com.sg www.cadena-hrmseries.com | ASEAN Payroll and HRMS software on the cloud by Cadena International