Knowing the ins and outs of salary calculation is essential for employers, regardless of where their employees are located. In this blog post, we'll explore the details of salary calculation in Taiwan, Vietnam, and the Philippines. Worca.io showcases its deep knowledge of local labor and accounting laws, providing insights that empower employers seeking remote teammates. Discover the breakdown of social insurance costs in each country to gain a comprehensive understanding of your financial responsibilities.
Let's dive in and explore the salary calculation intricacies in Taiwan, Vietnam, and the Philippines.
In Taiwan, employers are required to contribute to three main areas: National Health Insurance, labor pension, and labor insurance. When combined, these contributions typically amount to approximately 12-14% of the employee's monthly salary. Being aware of these obligations helps employers assess the overall cost of hiring and effectively manage their financial responsibilities.
Employers in Vietnam have obligations towards social insurance, health insurance, unemployment insurance, and a small part of union fees. Collectively, these contributions add up and equal to 18-21% of the employee's monthly salary. Additionally, it is common for employers in Vietnam to provide allowances as part of the local work culture, which should also be factored into the salary calculation.
In the Philippines, there are three mandatory employer contribution funds: the Social Security System, PhilHealth, and the Home Development Mutual Fund (PAG-IBIG Contribution). These contributions typically amount to approximately 10-13% of the employee's monthly salary. Familiarizing yourself with these mandatory contributions is crucial when operating in the Philippines.
To provide a comprehensive overview, here's a chart showcasing the monthly total cost of employment (TCE), which includes the salary to the employee and the payroll taxes to the local government in each country:
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*Numbers are close estimates. All numbers in USD.
For employers seeking remote teammates or looking to optimize their hiring strategies, Worca.io is here to provide comprehensive support. Our platform empowers businesses with deep insights into local labor regulations, enabling them to streamline their hiring processes and maximize their global workforce.
