The clock is ticking! With the start of the new year, operations across Asia are set to be impacted by critical changes to payroll, personal taxes, and statutory deductions. These aren't just minor adjustments—they require fundamental changes to your payroll system's logic, including rate ceilings and tax bracket calculations.
To ensure compliance and avoid penalties from January 1, 2026, your systems must be updated for the following key jurisdictions.
| Country | Component | Effective Date | New Value / Detail | Calculation Impact & Notes |
| SG | CPF Ordinary Wage (OW) Ceiling | 1 Jan 2026 | S$8,000 / month (Up from S$7,400) | Maximum CPF contribution increases for all employees earning S$8,000 or more. The CPF Annual Ceiling remains at S$102,000. |
| SG | Senior Worker CPF Rates (Ages 55–65) | 1 Jan 2026 | Total Rate increases by 1.5% for all affected employees. | Aged 55–60: Total rate ⬆️ from 32.5% to 34% (Employer ⬆️ 0.5%, Employee ⬆️ 1.0%). Aged 60–65: Total rate ⬆️ from 23.5% to 25% (Employer ⬆️ 0.5%, Employee ⬆️ 1.0%). |
| TH | Social Security (SSO) Wage Ceiling (Phase 1) | 1 Jan 2026 | THB 17,500 / month (Up from THB 15,000) | Maximum monthly contribution for employer and employee increases from THB 750 (5% of 15,000) to THB 875 (5% of 17,500). This is Phase 1 (2026-2028). |
| TH | PIT New Deductions & Cap | 2026 Tax Year | New Deductions: TISA (up to THB 800K) and Bonds (up to THB 200K). | System Logic Change Required: Payroll must incorporate these new deductions for monthly withholding (PND 1) and be prepared for a new, unified ceiling on total discretionary deductions (e.g., insurance, RMF, TISA). |
| VN | PIT Personal Deduction (FCD) | 1 Jan 2026 | VND 15,500,000 / month (Up from VND 11M) | Lowers the taxable base significantly. Mandatory update for monthly PIT withholding calculation. |
| VN | PIT Dependent Deduction (FCD) | 1 Jan 2026 | VND 6,200,000 / month (Up from VND 4.4M) | Lowers the taxable base significantly. Mandatory update for monthly PIT withholding calculation. |
| VN | Regional Minimum Wage (RMW) Base | 1 Jan 2026 | 7.2% Average Increase (e.g., Zone 1: VND 5.31M) | Increases the floor for base wages and, critically, raises the maximum cap for Unemployment Insurance (UI) contributions (20x RMW) in each zone. |
| HK | Continuous Contract ("418" ➡️ "468" Rule) | 18 Jan 2026 | 68 hours or more in aggregate over a 4-week period. | Increases Statutory Benefits Eligibility: System must check if an employee has worked more 17 hours/week OR more 68 hours / 4 weeks. If either is met, the employee is eligible for statutory holiday pay, sick leave, etc. |
| KH | Garment/Textile Minimum Wage | 1 Jan 2026 | Regular Workers: US$210 / month (Up from $208) | Mandatory base salary update and subsequent increase in the minimum hourly rate for calculating overtime and seniority pay. |
Singapore is finalizing its multi-year plan to strengthen retirement savings.
| Component | Current (2025) | New (Jan 1, 2026) | Impact to System |
| CPF Ordinary Wage (OW) Ceiling | S$7,400 / month | S$8,000 / month | Maximum amount of salary subject to monthly CPF increases. |
| CPF Contribution Rates (Ages 55–65) | Varies (e.g., 32.5% total for 55–60) | Increases by 1.5% Total | System must update rates, with Employer contribution ⬆️ by 0.5% and Employee ⬆️ by 1.0%. |
This table provides the exact rate changes for your payroll system.
| Employee Age | Total Rate (2025) | Total Rate (2026) | Employer Share (2026) | Employee Share (2026) |
| Above 55 to 60 | 32.5% | 34.0% | 16.0% | 18.0% |
| Above 60 to 65 | 23.5% | 25.0% | 12.5% | 12.5% |
Statutory Reporting Alert: The IRAS Release 15.0 interface file specification for e-submission of employee remuneration is mandatory for the upcoming Year of Assessment (YA) 2026 filing cycle.
Vietnam’s changes will significantly reduce the Personal Income Tax (PIT) burden on middle-income employees.
These higher non-taxable amounts must be applied to the January 2026 payroll.
Taxpayer Deduction: Rises from VND 11,000,000 to VND 15,500,000 / month.
Dependent Deduction: Rises from VND 4,400,000 to VND 6,200,000 / month.
The previous 7-tier system is replaced with a streamlined 5-tier table, which simplifies calculations and widens the brackets.
| PIT Tier | Monthly Taxable Income (VND) | New Tax Rate |
| Tier 1 | Up to VND 10,000,000 | 5% |
| Tier 2 | Over VND 10M to VND 30,000,000 | 15% |
| Tier 3 | Over VND 30M to VND 60,000,000 | 25% |
| Tier 4 | Over VND 60M to VND 100,000,000 | 30% |
| Tier 5 | Above VND 100,000,000 | 35% |
A 7.2% average increase in the RMW directly impacts the maximum base for Unemployment Insurance (UI) contributions (capped at 20x RMW).
Text us or drop a message below for different zones table.
| Zone | Minimum Monthly Wage (Until Dec 2025) | New Minimum Monthly Wage (Jan 1, 2026) | UI Max Cap Impact |
| Zone I (HCM, Hanoi) | VND 4,960,000 | VND 5,310,000 | Max UI Contribution Base ⬆️ to VND 106,200,000 |
Thailand is implementing the first phase of a crucial Social Security Fund (SSO) update, along with new tax relief options.
SSO Wage Ceiling: The base for the 5% employer/employee contribution rises from THB 15,000 to THB 17,500 per month.
Maximum Monthly Contribution: ⬆️ from THB 750 to THB 875 (for both employer and employee).
New Tax Reliefs (2026 Tax Year): Systems must incorporate new fields and limits for:
Thailand Individual Savings Account (TISA): Up to THB 800,000 deduction, subject to income thresholds.
Long-Term Bond Purchases: Up to THB 200,000 deduction.
Statutory Reporting Alert: Prepare for mandatory electronic filing of monthly PND 1 returns and update the reporting fields to accommodate the new TISA/Bond deductions.
The focus in Malaysia is on expanding the scope of existing reliefs for the Year of Assessment (YA) 2026.
Childcare Relief: The relief is now a permanent RM 3,000 and the age limit is expanded to include children up to 12 years old.
Medical Relief Expansion: The total RM 10,000 medical relief scope is widened, including expanded coverage for vaccinations and early intervention programs for disabled children.
Stamp Duty Exemption: The wage threshold for employment contract stamp duty exemption increases to RM 3,000.
Statutory Reporting Alert (CP8D/Form EA): Updates to the Form EA and CP8D layout for the 2025 income year (to be filed in early 2026) are expected to reflect these new, expanded relief categories.
Hong Kong Continuous Contract: Effective January 18, 2026, the eligibility for statutory benefits (holiday pay, sick leave) changes from 72 hours over 4 weeks to 68 hours over 4 weeks (the "468" Rule).
Cambodia Minimum Wage: Effective January 1, 2026, the minimum wage for regular GFT workers increases to US$210 (up from $208), affecting base pay and overtime rates.
Whether or not you are a HR Forte's user, receiving this alert is part of our commitment to ensuring your seamless compliance.
If you are an user of HR Forte system, you do not need to worry about how these changes will affect your HR and payroll process or perform any additional tasks to implement them.
At HR Forte systems, we have diligently analyzed and incorporated all these statutory and tax updates into our system. All necessary rate ceilings, formulas, tax bracket logic, and effective dates—down to the specific January 18th Hong Kong rule—have been tested and deployed.
What This Means For You:
✅ Zero User Intervention: The changes will take effect automatically on their mandated dates.
✅ Guaranteed Accuracy: Your January 2026 payroll run will be calculated using the correct, compliant rates and thresholds across all jurisdictions.
✅ Compliance Assured: We track and update the law so you don't have to.
For our users, your HR Forte system is fully updated, compliant, and ready for 2026!
If you wish to view the technical release notes for your internal audit purposes, please contact our support team.
The most significant change is the increase in the Personal Deduction (from VND 11M to VND 15.5M/month) and the Dependent Deduction (from VND 4.4M to VND 6.2M/month). Additionally, the progressive tax structure is simplified from 7 tiers to 5 tiers, resulting in a lower tax burden for most middle-income earners.
No. The Thai Social Security (SSO) wage ceiling increases from THB 15,000 to THB 17,500 effective January 1, 2026. HR Forte systems has automatically updated the payroll calculation logic to apply the new maximum contribution of THB 875 per month (5% of THB 17,500). Your records will be calculated correctly without manual intervention.
The "468 Rule" is the new threshold for a continuous employment contract in Hong Kong, changing from 72 hours over 4 weeks to 68 hours over 4 weeks. This rule takes effect on January 18, 2026. HR Forte systems is programmed to use this new, lower threshold to automatically trigger eligibility for statutory benefits (like holiday pay) starting on that mid-month date.
Yes. The CPF Ordinary Wage (OW) ceiling is the final step in the announced phased increase, rising from S$7,400 to **S$8,000** per month, effective January 1, 2026. HR Forte systems has updated the CPF calculation logic to reflect this higher ceiling, ensuring the correct maximum contributions are deducted for your January payroll.
No direct action is required by you for the core system function. HR Forte systems has created new reporting fields to accommodate the TISA and Long-Term Bond deductions for employees who opt into them. The system also contains the necessary income threshold validations and is prepared for the new, unified cap on total deductions expected to apply for the 2026 tax year.