Hiring Costs in ASEAN

 ASEAN Briefing, Oct. 4, 2021

Indonesia

Minimum wage

Indonesia’s Ministry of Manpower issued circular No. M/11/HK.04/X/2020 in late October 2020, which advised that due to the economic impact of the pandemic, regional governments should keep monthly minimum wage rates the same as 2020.

Of Indonesia’s 34 provinces, only five have decided to increase the minimum wage for 2021. Calculations for the monthly minimum wage are carried out by the provincial or district wage council.

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Malaysia

Minimum wage

Malaysia’s 2020 monthly minimum wage rates are set to continue to 2021, although the government will launch a review later in 2021 to ensure earnings remain relevant to current economic conditions. The monthly minimum wage in 56 major cities is 1,200 ringgit (US$291), whereas the minimum wage in non-urban areas and rural towns is 1,100 ringgit (US$266).

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Philippines

Minimum wage

The Philippines has daily minimum wage rates that vary from region to region, ranging from PHP316 (US$6.57) to P537 (US$11.17) a day for 2021. The wages are set by tripartite regional wage boards located in every region.

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Singapore

Singapore does not have a minimum wage, but it does have a comprehensive social insurance system. The Central Provident Fund (CPF) is a social security savings scheme, in which contributions are mandatory for citizens and permanent residents only. Foreign workers are not eligible for the CPF scheme. Employers and employees contribute 17 percent and 20 percent, respectively, of ordinary monthly wages, up to an income ceiling of S$6,000 (US$4,530). The rates are applicable to employees aged 55 years and below.

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Thailand

Minimum wage

The daily minimum wage in Thailand is between 313 baht (US$10.03) — 336 baht (US$10.77) for 2021.

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Vietnam

Minimum wage

Vietnam sets a different minimum wage level across its four regions. Region I (urban Hanoi and Ho Chi Minh City) registered the highest minimum wage of VND 4,200,000 (US$181) while Region IV registered the lowest at VND 3,070,000 (US$132). Moreover, employees that have had vocational training must be paid at least seven percent higher than the applicable minimum wage rate.

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