HR and payroll management covers the recurring work of paying employees correctly and keeping their employment records compliant: payroll calculations, statutory contributions, payslips, employee onboarding and offboarding, contract management, attendance and leave tracking, and benefits administration. For a company with staff in one market, this is largely an execution function. For a company with staff across several Asia Pacific markets, it also means tracking a different statutory contribution scheme, a different payroll cycle, and different labor law in every country.
Employer of Record (EOR) services are closely related but solve a different problem. Rather than just processing payroll on a company's behalf, an EOR becomes the legal employer of the staff in that market — handling the employment contract, payroll, statutory contributions, and compliance — while the client company directs the person's day-to-day work. This is what allows a business to hire in a new country before it has its own registered entity there.
| Area | What it covers |
|---|---|
| Payroll processing | Salary calculation, payslip generation, and payroll-linked reporting on a recurring cycle |
| Statutory contributions | Calculating and remitting the mandatory local contributions tied to payroll (see below — these differ by market) |
| Employee records and contracts | Establishing and maintaining employment contracts and personnel records for accuracy and audit-readiness |
| Onboarding and offboarding | Contract execution, onboarding documentation, and compliant offboarding when an employee leaves |
| Attendance and leave management | Tracking attendance, leave balances, and time-off records |
| Benefits and allowances | Administering employee benefits, allowances, and stipends in line with company policy and local rules |
| Visa and immigration support | Managing work passes, visas, and immigration compliance for relocated or foreign staff |
One of the most concrete differences between running payroll in one country versus several is that each Asia Pacific market has its own mandatory statutory contribution scheme, tied to different names, rates, and filing rhythms:
| Market | Statutory scheme(s) tied to payroll |
|---|---|
| Singapore | CPF (Central Provident Fund) and SDL (Skills Development Levy) |
| Mainland China | Individual Income Tax (IIT) withholding and social insurance contributions |
| Hong Kong | MPF (Mandatory Provident Fund) |
| Malaysia | EPF (Employees Provident Fund), SOCSO, and EIS |
| Taiwan | NHI (National Health Insurance) and labour insurance |
A payroll run that's correct in one market can be non-compliant in another simply because the underlying scheme is different. This is the main reason companies with multi-market headcount use a single provider rather than running payroll separately in each country: one provider that already knows CPF, MPF, EPF, IIT, and NHI rules removes the need to build that expertise five times over.
These three options solve different problems and suit different situations.
| Option | Who's the legal employer | Best for |
|---|---|---|
| Employer of Record (EOR) | The EOR provider | Hiring in a market before you have (or want) your own local entity |
| Outsourced payroll | Your own company | Companies that already have a local entity but want payroll execution handled externally |
| In-house HR and payroll | Your own company | Companies with enough local headcount to justify dedicated internal HR/payroll staff |
A common pattern is to start with EOR to hire the first employees in a new market, then transition to outsourced payroll (or in-house HR) once the company incorporates its own entity there — the employment relationship moves from the EOR to the company itself at that point.
What's the difference between EOR and outsourced payroll?
With EOR, the provider is the legal employer of the staff, which means you don't need your own local entity to hire someone. With outsourced payroll, your own company remains the legal employer and the provider only handles payroll processing and compliance — you need your own registered entity in that market first.
Do statutory contribution rules really differ that much between APAC markets?
Yes. Singapore uses CPF and SDL, mainland China uses IIT withholding plus social insurance, Hong Kong uses MPF, Malaysia uses EPF/SOCSO/EIS, and Taiwan uses NHI and labour insurance. These are separate schemes with separate rates, contribution caps, and filing requirements — none of them are interchangeable.
Can I hire someone in a new market this month without incorporating first?
Yes, through an EOR arrangement. The EOR legally employs the person on your behalf, so you can start operating with staff in a new market while you decide whether and when to incorporate your own entity there.
What happens to employees when I move from EOR to my own entity?
Once your own entity is incorporated and operational, employment is transferred from the EOR to your company, which becomes the new legal employer. The employee's role typically continues without disruption, though the transfer needs to be documented correctly under local labor law.
Does HR and payroll outsourcing cover visa and immigration support?
Often yes, particularly for relocated staff. It typically includes work pass and visa applications, along with ongoing immigration compliance, alongside the core payroll and HR administration work.