Cost of contract hire services in Asia - What you're really paying for

Imagine this: you’re hiring a team of project engineers in Malaysia to kick off a new venture. The agency gives you a quick, straightforward quote—until the first invoice arrives. Suddenly, you’re staring at line items for statutory contributions, insurance, and admin fees you didn’t even know existed.

That’s a familiar story in contract hiring across Asia. Whether you’re scaling fast, bringing in hard-to-find skills, or keeping your headcount flexible, contract hiring is a smart move. But the costs? They’re often a bit of a black box.

Countries have different social charges, agency markups vary, and local compliance requirements can add hidden costs. If you’re not prepared, your budget can suffer.

That’s why breaking down these costs upfront is so important. It helps you:

• Plan with confidence: No nasty surprises blowing up your forecast.
• Compare across countries: Spot where your hiring dollar goes furthest.
• Get what you pay for: Make sure the agency’s fees match the value and support you’re getting.

When you see exactly where your money is going, it’s easier to make wise decisions and prove that your contract hiring strategy is paying off.

What’s typically included in contract hire services?

Signing up for a contract hire solution means you’re not just paying someone to find candidates. Most providers bundle a whole range of HR, compliance, and admin support into one handy employment outsourcing package, saving you the hassle of juggling multiple vendors for a contingent workforce

This often includes: 

• Onboarding: They’ll set up your new hires with contracts, policies, and first-day essentials so you can hit the ground running. Costs may vary depending on the level of localisation or number of hires but you can expect to pay between USD$200 to USD$500 per hire.

• Payroll processing: From calculating salaries to managing tax deductions and payslips, payroll processing is all handled behind the scenes, keeping your team paid on time. Providers typically charge between USD$15 to USD$120 per employee, per month.

• Statutory compliance: In Asia, every country has its own rules for social security, taxes, and contributions. Good providers ensure compliance with local laws, avoiding pitfalls like worker misclassification. While this is often bundled into service fees, as a standalone charge, it can cost between USD$40 to USD$100 per employee/month depending on the complexity of local laws.

• Visa facilitation: If you’re hiring expatriates, many agencies help with work permits and immigration paperwork. This can set you back between USD$800 to USD$4000 per hire (one-time fee).
• Ongoing admin: Think leave tracking, processing employee benefits and leave requests, even offboarding when contracts end. It is efficient administrative support designed to keep your day-to-day running smoothly.  In most APAC markets, this costs between USD$20 to USD$100 per employee/month, depending on tech systems used and reporting needs.

What drives the cost of contract hiring?

You're not alone if you’ve ever wondered why contract hire quotes can look wildly different across roles, countries, or even industries. Many factors shape your pay, some obvious while others less so. Here’s a quick look at the main drivers:

• Market conditions: Demand for a talented temporary workforce pushes rates up in hot markets (think renewables or data centres). Likewise, premiums can be expected during talent shortages or major projects (like a new industrial zone).

• Industry specifics: Highly regulated sectors, such as oil & gas or pharmaceuticals, often require extra compliance steps, certifications, or risk allowances, which can increase the final bill.

• Talent availability: Scarce skills cost more. Hiring a local administrative coordinator isn’t the same as sourcing a bilingual AI engineer. Where the talent pool is thin, prices climb.

• Country-level statutory costs: Each country has rules on employer contributions, insurance, and taxes. For example, statutory costs in Thailand differ significantly from those in Singapore or Vietnam.

• Service scope: The more the provider handles—like visa sponsorships, relocation, or bespoke reporting—the higher the service fees.

• Contract duration and volume: Longer contracts or larger batches of hires often give you more negotiating power. If you fill ten roles for 18 months, you’ll likely see better rates than hiring one person for three months.

All these factors combine to shape your final costs. The key? Discuss with your provider what’s influencing the numbers so you can adjust your strategy or your expectations accordingly.

Key cost components explained

Understanding what you’re paying for in a contract hire setup helps to break the total cost into its main building blocks. Here’s what typically goes into your invoice:

• Base salary: This is the biggest chunk. It’s what your contractor takes home before personal taxes. The more specialised or scarce the skill, the higher this number climbs.

• Statutory contributions: These are mandatory employer payments covering social security, pension funds, and health insurance. They’re set by local employment law and can vary widely from country to country. (For example, employer contributions in the Philippines look very different from those in Thailand.)

• Service fees or markups: Your provider charges this for managing the hire, covering everything from sourcing and vetting candidates to handling payroll, compliance, and day-to-day account management. It’s usually a percentage of the salary.

• Add-on fees: Need extra services like background checks, customised reporting dashboards, or laptops provisioned for your team? These often come as optional add-ons, billed separately.

Seeing it laid out like this makes it easier to compare quotes from different vendors or to ask the right questions if something on your bill seems unusually high.

Regional cost comparisons

Costs can vary dramatically depending on where you’re hiring and why.

You’ll see higher salary benchmarks and employer contributions in mature economies like Singapore. Meanwhile, emerging markets such as India or the Philippines can be far more cost-effective on the wage front. Still, they may come with extra spend on compliance processes, local partnerships, or even providing equipment.

For example, hiring a mid-level software developer on contract in Singapore could easily cost 2 to 2.5 times what you’d pay in Malaysia or Vietnam for a similar role. That’s due to higher statutory costs, stronger wage expectations, and tighter regulations.

This is why tailoring your hiring strategy market by market is so important. Trying to set a blanket budget across different countries often leads to surprises—or missed opportunities.

The table below shows the average monthly costs for contract hires across different countries in ASPAC:

Note: Actual figures vary by role, level, and local regulations.

Questions to ask your vendor

Getting complete clarity on costs starts with asking the right questions and not being afraid to dig into the details. The best vendors will welcome this. After all, it shows you’re serious about building a transparent partnership.

Here are some key things to ask upfront:

• Are statutory contributions itemised?
  Ensure your quote includes social security, health insurance, and pensions, so you don’t lump everything into one vague “cost.”

• Is the service fee fixed or does it scale with salary changes?
  Some markups are locked in, while others adjust if the contractor’s pay changes—this is important to know so you can budget accurately over time.

• How do you handle benefits, overtime, and local leave policies?
  These can vary a lot by country. Find out what’s included by default and what might need separate agreements.

• What exactly is covered in onboarding and exit management?
  Do they prepare contracts, run background checks, collect equipment at the end, or is that on you?

• Are there additional fees for things like custom reporting, visa sponsorships, or equipment provisioning?
  Better to find out now than be surprised by extra invoices later.

Additional costs to consider

Even the most reputable providers sometimes build in costs that aren’t obvious immediately. That doesn’t mean they’re hiding anything—it just means you need to know where to look (and what to ask).

Here are a few common extras to watch for:

• Implementation fees: Some vendors charge one-time costs for setting up your account, integrating with your systems, or tailoring workflows. It’s a fair charge, but it's best to factor it in upfront.
• Premium features: Want custom dashboards, priority support, or deeper analytics? These often sit outside the standard package and come with added fees.
• Early termination penalties: If you end a contract earlier than planned—say, due to a sudden budget cut—penalties might be built into the agreement. Always know the exit terms.
• Local bonus norms: Employers often pay a 13th-month bonus or other statutory gratuities in countries like the Philippines or Indonesia. Check whether these are included in your vendor’s markup or passed directly to you.

The bottom line? Always ask for a detailed, itemised quote and take time to read the fine print. Knowing about these potential costs upfront protects your budget and avoids awkward surprises down the line.

How to optimise your spend

Once you’ve figured out how contract hiring costs work, you can start fine-tuning your strategy and stretch your budget further without cutting corners.

Here’s how:

• Benchmark salaries and statutory costs. Make sure your payment is in line with local market rates and legal obligations. This will help you stay competitive (so you can actually attract talent) without overpaying.
• Negotiate service markups. Most vendors will offer more favourable rates, especially if you’re hiring multiple roles or expanding into several countries at once. Don’t be shy about asking as volume gives you leverage.
• Consolidate your vendor relationships. Working with fewer partners across regions can unlock bulk discounts and makes it easier to maintain consistent compliance and service levels.
• Use local expertise. Engaging providers with strong local roots can cut down on cultural missteps and reduce legal risks. They’ll also be better equipped to navigate country-specific processes that might slow others down.
• Review contracts annually. Markets shift, statutory costs change, and your business priorities evolve. A yearly check ensures you’re still getting the best value and staying fully compliant.

Make informed hiring decisions

In Asia’s fast-moving labour markets, contract hiring can give you the agility to grow, adapt, and tap into specialised skills, without locking yourself into long-term commitments. But it only works to your advantage if you truly understand what you’re paying for.

At Airswift, we help companies across Asia navigate these complexities daily. We offer complete visibility into costs so you can make confident, informed decisions with our global workforce solutions.

Want to see how it could work for your business? Contact our recruitment specialists today to start building your tailored contract hiring solution.