Hiring foreign employees across Southeast Asia is becoming increasingly complex. Governments across the region continue to adjust work permit requirements, salary thresholds, application systems, eligibility rules, and foreign workforce policies.
For international employers, these changes can directly affect who they can hire, how quickly employees can start working, and how much a foreign hire may cost. Several important developments have taken effect or been announced across Southeast Asia in 2026.
Companies employing expatriates or planning cross-border hiring should therefore review their workforce strategies before submitting new applications or renewals.
Thailand Continues Its Shift Toward Digital Work Permits
Thailand has modernised its foreign-worker administration through the nationwide e-WorkPermit system. The system officially launched in October 2025 and remains an important part of Thailand’s work-permit environment in 2026.
Employers and foreign workers can use the electronic system for processes including:
- Work permit applications
- Renewals
- Employment notifications
- Application status tracking
- Electronic payments
- Appointment scheduling
The system is intended to reduce paperwork and make foreign-worker administration more transparent and accessible. However, digitalisation does not remove the underlying compliance requirements. Employers still need to ensure that the foreign national, job position, immigration status and employment arrangement meet the applicable requirements.
Thailand also maintains restrictions on certain occupations for foreign nationals, making the employee’s actual role an important part of work-permit planning.
Malaysia Introduced Major Employment Pass Changes in June 2026
Malaysia has introduced one of the most significant expatriate employment changes in the region this year. A revised Employment Pass salary policy took effect on 1 June 2026. Under the new structure, the minimum salary thresholds increased significantly.
The revised thresholds are:
- Employment Pass Category I: RM20,000 and above
- Employment Pass Category II: RM10,000–RM19,999
- Employment Pass Category III: RM5,000–RM9,999
The previous thresholds were substantially lower. Malaysia has also introduced a more structured employment-duration framework. Category I can generally be granted for up to ten years, while Categories II and III are linked to requirements involving plans for the transfer of knowledge and eventual development of local talent.
All new and renewal Employment Pass applications submitted from 1 June 2026 must follow the revised requirements.
For employers, this means expatriate workforce planning should now begin before recruitment. A candidate may be qualified for the position but still fail to meet the immigration requirements if the proposed compensation or employment structure does not satisfy the relevant Employment Pass category.
Singapore Is Preparing Employers for Higher Pass Thresholds
Singapore continues to refine its foreign workforce framework. Employment Pass candidates currently need to satisfy a two-stage eligibility framework. They must first meet the applicable qualifying salary and, unless exempted, pass the Complementarity Assessment Framework (COMPASS).
The current minimum Employment Pass qualifying salary is S$5,600 per month for most sectors and S$6,200 for financial services, with higher requirements applying progressively with age. Singapore has already announced the next increase.
For new applications submitted from 1 January 2027, the minimum qualifying salary will rise to:
- S$6,000 for most sectors
- S$6,600 for financial services
The S Pass is also changing. The current minimum qualifying salary is S$3,300 for most sectors, with higher age-adjusted requirements. Singapore has announced that the minimum will rise to S$3,600 for new applications from January 2027.
Although these increases take effect in 2027, companies recruiting during late 2026 should already consider them when planning salaries, renewals and long-term foreign workforce budgets.
Vietnam Has Streamlined Its Work Permit Framework
Vietnam introduced a new framework for foreign workers through Decree No. 219/2025/ND-CP. The regulation aims to simplify administrative procedures while improving the management of foreign employees working in Vietnam. Under the framework, employers applying for a work permit need to provide documentation explaining their need to employ a foreign worker. Provincial-level People’s Committees are responsible for issuing, reissuing, extending and revoking work permits.
For valid applications, authorities are expected to decide on work-permit issuance within ten working days.
For international companies, the changes make it particularly important to prepare supporting documents correctly before submission.
The employer must still demonstrate that the foreign employee and position satisfy the relevant requirements. Companies should therefore consider immigration planning before setting a foreign employee’s intended start date.
The Philippines Centralised Alien Employment Permit Processing in 2026
The Philippines made an important administrative change to its Alien Employment Permit (AEP) system in June 2026. Effective 9 June 2026, the Department of Labor and Employment centralised the processing, evaluation and issuance of AEPs at its Central Office. DOLE Regional Offices stopped accepting and processing new and renewal AEP applications.
The change builds on the revised AEP guidelines introduced in 2025, which strengthened the rules governing employment of foreign nationals. The centralisation is intended to create greater consistency in how foreign employment rules are applied across the country. For employers, this means previous processes involving regional offices may no longer apply.
Companies hiring foreign nationals in the Philippines should make sure their immigration and HR teams are working with the current application procedure rather than relying on an older process.
Indonesia Is Integrating Foreign-Worker and Immigration Systems
Indonesia also introduced an important administrative development in September 2026. A joint ministerial decision provides for integration between the country’s Online Single Submission (OSS) system, the Ministry of Manpower’s employment-service systems, and immigration’s All Indonesia application.
The integration relates to approval of plans for the use of foreign workers and applications connected to limited-stay visas and residence permits for foreign workers in the investment context. For international employers, this reflects a broader regional trend. Employment authorisation and immigration processes are increasingly becoming digitally connected.
That can make administration more efficient, but it can also make inconsistencies between corporate, employment and immigration information easier for authorities to identify. Companies should therefore ensure that job titles, salary information, employer details and other information remain consistent across applications and government systems.
A Work Permit Is Only One Part of Foreign Employment Compliance
One of the biggest mistakes international employers make is treating immigration as a standalone administrative task. Receiving permission to work does not automatically mean every part of the employment arrangement is compliant.
Companies may also need to consider:
- Employment contracts
- Payroll registration
- Personal income tax
- Social security
- Employee benefits
- Minimum salary requirements
- Immigration status
- Dependant requirements
- Employment notifications
- Renewal deadlines
The exact requirements vary significantly between countries. This is why immigration, payroll and HR teams should work together when relocating or hiring foreign employees.
Salary Is Becoming More Important for Work Pass Eligibility
One noticeable trend across the region is the increasing connection between salary and foreign-worker eligibility. Malaysia significantly increased its Employment Pass thresholds in 2026. Singapore has announced higher Employment Pass and S Pass qualifying salaries for 2027.
These policies reflect a wider effort by governments to ensure that foreign professionals complement local labour markets and are employed in appropriately skilled positions.
For employers, this means compensation planning can no longer happen independently from immigration planning. Before offering a foreign candidate a salary, HR teams should understand whether that amount supports the intended work-pass category.
Companies Should Plan Renewals Earlier
Work permit compliance does not end when the initial application is approved.
Companies also need systems for monitoring:
- Passport expiry dates
- Work permit expiry dates
- Visa validity
- Employment Pass or permit conditions
- Salary changes
- Job title changes
- Employer changes
- Renewal requirements
- Changes in government policy
A foreign employee who qualified when first hired may face different requirements at renewal if regulations have changed. Companies should therefore review upcoming renewals well before permits expire.
How an Employer of Record Can Support International Hiring
Managing foreign employees becomes particularly complicated when a company is expanding into a country where it does not already have local HR, payroll or immigration infrastructure.
An Employer of Record (EOR) can support international companies with areas such as:
- Local employment contracts
- Payroll administration
- Employee benefits
- Employment compliance
- Work permit coordination
- Visa and immigration support
- Onboarding and offboarding
- Ongoing local HR administration
The exact immigration route still depends on the employee, nationality, position, salary and destination country’s rules. An EOR does not remove government eligibility requirements. Instead, it can provide the local employment infrastructure and expertise needed to manage the process more effectively.
This can be particularly valuable for companies hiring across several Southeast Asian countries at the same time.
Looking Ahead
Southeast Asia remains an important destination for international talent, but governments are becoming more deliberate about how foreign employees enter and participate in local labour markets. In 2026, the direction is clear.
Work permit processes are becoming more digital. Salary and skills requirements are becoming more important. Governments are strengthening oversight while attempting to make legitimate applications more efficient.
For international employers, immigration planning should therefore begin before an employment offer is finalised. Companies need to understand whether the employee qualifies, whether the salary supports the required pass, what documentation is needed and how long the process may take.
Most importantly, businesses should avoid treating Southeast Asia as one immigration market. Thailand, Malaysia, Singapore, Vietnam, the Philippines and Indonesia each operate their own systems, and those systems continue to evolve.
Keeping up with those changes is becoming an essential part of building a compliant regional workforce.
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