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Towers Watson Data ServicesWillis and Towers Watson have merged to form Willis Towers Watson.

Towers Watson Data Services is a leading provider of compensation and benefit practices information to companies worldwide. In Asia Pacific, we publish an extensive library of survey and research reports that help HR professionals to manage their HR programs.

User Benefits

• Develop cost-effective salary and benefit packages• Stay up to date with the latest HR developments• Ensure compliance with local laws and customs

2016 Reports on Compensation, Benefit and Employment Practices – Asia PacificYour one-stop resource for all your data needs

2016 Company Benefits and Practices Report – Asia Pacific

This survey report allows you to benchmark your benefit programs against the prevalent market practices offered by companies in Asia Pacific. Covering: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.

Each country chapter covers:

• Salary increases • Compensation positioning • Starting salaries for graduates • Fixed and variable payment • Car benefits programs • Transportation allowance (new)• Mobile phone (new)• Sales incentives • Employee education and training • Working hours

• Business travel and relocation policies• Attraction and retention • Service awards • Supplementary retirement plan • Health care benefits • Employee wellness • Insurance plans • Paid time off • Meal benefits • Flexible benefits

HR POLICIES AND PRACTICES

2015 General Industry Compensation Report – Asia Pacific

Variable Pay

Short-Term Incentive/Variable Pay Plan Eligibility

Organization Offers Any Type of Short-Term Incentive/Variable Pay Plan (Excluding Sales Incentive Plans)

Number of Responses Yes

291 80.8%

Employee Categories Eligible for Short-Term Incentives/Variable Pay

Business Unit Head

and Country Manager Executive

Middle Manager and

Senior Professional

Supervisory and

Professional

Technical and

Business Support

Production and Manual

Labor

Performance-Based Bonus Plan (includes target based and discretionary schemes) 96.4% 96.0% 95.7% 93.6% 92.6% 90.9%

Voluntary Profit-Sharing Plan 2.6% 1.8% 2.1% 1.7% 1.3% -

Performance-Based Bonus Plan

Organization's Performance-Based Bonus Plan is Formula Driven OR Discretionary

Business Unit Head

and Country Manager Executive

Middle Manager and

Senior Professional

Supervisory and

Professional

Technical and Business

Support

Production and Manual

Labor

Formula-Driven Performance-Based Bonus Plan 46.0% 44.7% 41.7% 39.2% 37.6% 38.2%

Discretionary Performance-Based Bonus Plan 54.0% 55.3% 58.3% 60.8% 62.4% 61.8%

Average Actual Bonus as a Percent of Base Salary

10th 25th Median 75th 90th Average

Business Unit Head and Country Manager 9.1% 20.0% 30.7% 46.3% 60.0% 34.9%

Executive 11.0% 16.3% 25.0% 35.7% 47.3% 27.4%

Middle Manager and Senior Professional 8.3% 12.0% 16.6% 23.5% 32.0% 21.0%

Supervisory and Professional 6.8% 9.0% 11.7% 17.1% 23.0% 14.0%

Technical and Business Support 4.8% 7.5% 10.4% 15.0% 23.4% 13.3%

Production and Manual Labor 3.9% 7.0% 10.0% 15.0% 20.0% 12.0%

BENEFITS DESIGN PRACTICES

2015 General Industry Compensation Report – Asia Pacific

Surgery/Hospitalization

Types of hospitalization benefits

Business Unit Head

and Country Manager Executive

Middle Manager and

Senior Professional

Supervisory and

Professional

Technical and

Business Support

Production and Manual

Labor

Room and Board Fees 100% 100% 100% 100% 100% 99%

In-Hospital Doctor Visits 98% 98% 98% 98% 98% 97%

In-Hospital Specialist Visits 85% 85% 82% 82% 80% 78%

Surgical Fees 98% 98% 99% 99% 98% 98%

In-Hospital Miscellaneous Services 92% 91% 90% 90% 90% 91%

Level of reimbursement of room and board fees

Business Unit Head

and Country Manager Executive

Middle Manager and

Senior Professional

Supervisory and

Professional

Technical and

Business Support

Production and Manual

Labor

No Daily limit 15% 10% 9% 10% 9% 10%

Daily Maximum Limit 85% 90% 91% 90% 91% 90%

Type of room covered for reimbursement of room and board fees

Business Unit Head

and Country Manager Executive

Middle Manager and

Senior Professional

Supervisory and

Professional

Technical and

Business Support

Production and Manual

Labor

Ward Room Level 6% 8% 13% 33% 44% 52%

Semi-Private Room Level 20% 28% 40% 30% 21% 17%

Private Room Level 34% 28% 13% 3% 2% 1%

No Restriction to Room Level 39% 36% 34% 34% 33% 30%

Daily maximum amount for room and board fees (Local currency)

Business Unit Head

and Country Manager Executive

Middle Manager and

Senior Professional

Supervisory and

Professional

Technical and

Business Support

Production and Manual

Labor

10th 1,000 850 675 450 400 350

25th 1,391 1,200 900 600 531 500

Median 1,800 1,595 1,200 800 700 600

75th 2,425 2,200 1,500 1,200 1,000 900

90th 3,000 2,800 2,000 1,500 1,409 1,200

2016 General Industry Compensation Reports

The reports provide a comprehensive picture of compensation and benefits practices of over 300 positions in your local markets across a diverse range of industries. Countries covered: Australia, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.

Report Features

Pay Components: Base salary, Fixed/Guaranteed bonus, Fixed cash allowances, Guaranteed compensation, Variable pay, Total compensation

Job Holder Data: Incumbent’s age, Years of service, Years of relevant experience

Employee Categories and LevelsOver 300 positions from entry level to top management.

Job FunctionsGeneral management, administrative services, corporate services, and legal, marketing and sales, customer service and support, finance and accounting, IT, human resources, engineering and R&D, manufacturing, operations, supply chain and logistics, graduate management trainee

Benefits, HR Policies and Practices Offer unrivaled coverage in benefits and HR policies, the following data is presented:

• Salary increases • Compensation positioning • Starting salaries for graduates • Fixed and variable payment • Car benefits programs • Transportation allowance (new)• Mobile phone (new)• Sales incentives • Employee education and training • Working hours

• Business travel and relocation policies• Attraction and retention • Service awards • Supplementary retirement plan • Health care benefits • Employee wellness • Insurance plans • Paid time off • Meal benefits • Flexible benefits

Data is presented by the following employee groupings: • Business Unit Head/Country Manager• Executive• Mid Management/Senior Professional

• Supervisory/Professional• Technical/Business Support• Production/Manual Labor

Also Available: Asia Pacific Compensation Reports – By Function• General Management, IT, Finance and Accounting• Human Resources and Administration• Sales, Marketing and Customer Services• Manufacturing, Logistics, Engineering and Research

2 hrresource.towerswatson.com

2015 Benefits Profile – Asia Pacific

This report is a comprehensive guide to statutory benefits and supplementary company benefit practices across Asia Pacific. 17 countries are covered: Australia, Bangladesh, China, Hong Kong/Macau, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

Each country chapter is organized as follows:

Overview• Benefits environment• Key data• Key changes in recent years

Social Security/Mandatory Benefits• Retirement benefits• Death and disability benefits• Workers’ compensation benefits • Healthcare benefits• Other social security benefits

Supplementary Company Benefits Program• Retirement benefits• Death and disability benefits• Health and wellness benefits• Paid time off• Other benefits

Financial Summary• Accounting and reporting• Tax aspects

16

Benefits Profile

New Zealand

Supplemental Programs

Retirement

Overview The majority of supplemental retirement plans in New Zealand are registered superannuation schemes. The main requirements for a scheme to be registered are that it is governed by a trust deed and it meets various disclosure requirements. These schemes receive no advantageous tax treatment of any significance compared to other forms of saving in New Zealand, and benefits are therefore determined by the philosophy of the employer and market practice.

Prevalence The provision of supplemental occupational pensions is low and declining. According to the Financial Markets Authority (FMA) 2013 Superannuation Scheme report, the percentage of the workforce covered by occupational retirement plans has dropped from 13.9% in 2002 to 10.0% by 2012. Coverage of KiwiSaver, the voluntary retirement savings scheme introduced by the government in 2007, continues to grow with over half of the workforce enrolled in the scheme as of2013.

Private-superannuation plans are divided between retail plans (open to the general public) and employer-sponsored plans. The total number of plans declined from 512 in 2011 to 457 in 2013, with the number of employer-sponsored plans dropping from 204 in 2011 to 156 as of the end of 2013.The FMA attributes the reduction in number of employer plans as the result of more employers joining multi-employer plans to reduce administrative costs. Most retail and employer plans are small. Only 66 employer plans have total assets in excess of NZD 50 million but they account for 90% of all superannuation scheme assets.

Supervisory Bodies Financial Markets Authority (FMA).

Eligibility Eligibility for membership is determined by the employer, and practice varies widely. Membership is normally voluntary, although a few employers make membership compulsory.

Members are most commonly full-time employees, although part-time employees are eligible to join some schemes. Plans may also restrict membership to employees with a minimum period of service, generally between three months and two years.

Retirement Age Normal Retirement Age

Commonly age 65, based on normal retirement age for social security.

Early Retirement Age

Early retirement may be permitted with the employer's agreement.

Late Retirement Age

Not common.

Service Definitions Pensionable service is calculated from the date of joining the plan. In some cases service prior to joining the plan (e.g., from the date of employment with the organization) is included in the determination of the resignation benefit.

Covered Earnings Salary for benefit purposes is normally basic pay, exclusive of bonuses, allowances, overtime and other variable receipts. If employees whose earnings include a significant commission element are members, some allowance may be made for the commissions.

5

Benefits Profile

New Zealand

Statutory/Mandatory Programs

Overview

Statutory Programs Statutory programs are set up and operated by the government with all employers required to comply typically through payroll deductions.

With the sole exception of workers' compensation, the social security system is funded out of general tax revenue. The system provides a wide range of social welfare benefits including old age, survivors' and disability pensions, cash sickness, maternity, healthcare, parental leave, workers' compensation benefits, and unemployment and family allowances. All legal residents are eligible for benefits, subject to a length-of-residency requirement, depending on the benefit concerned.

Mandatory Programs Mandatory programs are required to be implemented by companies. They are not managed by the government but typically by providers selected by the company or individual.

The government introduced a new occupational retirement savings plan, referred to as KiwiSaver, in 2007 with the aim of increasing the level of retirement savings for the general population. All new employees are automatically enrolled in the scheme unless they choose to opt out within the first eight weeks of employment. Employers are also required to contribute to the individual's KiwiSaver account or equivalent company retirement plan.

Employers are not otherwise required to provide their employees with retirement, health or welfare plans.

Retirement Benefits - Statutory

Overview The Superannuation Pension is funded from general revenue and partial pre-funding via the New Zealand Superannuation Fund. The plan is legislated by the New Zealand Superannuation Act 2001 and is administered by the Ministry of Social Development.

The New Zealand Superannuation Fund is a sovereign wealth fund intended to pre-fund future superannuation costs by investing government contributions and the return on investment over the long term. The fund was established in 2003 with an initial investment of NZD 2.4 billion. The fund's total assets as of June 30, 2014 were NZD 25.82 billion, with a rate of return since inception of 9.78% per annum (vs. a risk-free rate of return of 5.06% per annum).

Reforms In 2009, the government suspended its regular full payments to the Superannuation Fund, due to arising budget deficit. Partial payments will be made, depending on financial and budgetary considerations. The government has indicated it projects resumption of regular payments in 2020/21.

Eligibility All permanent legal residents are covered by the social security system; however, individuals who have been resident for a relatively short period of time may not qualify for an old-age pension.

Benefit Entitlement

Claimants must have attained normal retirement age and have at least ten years of residency after age 20, including five years after age 50. Periods of time spent in certain countries such as Australia, Canada, the Netherlands or the United Kingdom may be counted as periods of qualified residence under reciprocal arrangements New Zealand has with those and other countries.

The benefit is generally not subject to income or asset testing, with the exception of married pensioners where one of the partners is not qualified for a pension. Benefits may also be reduced for retirees receiving a social security pension from another country.

2015/2016 Asia Pacific Mobility Policies and Practices Report

5 

Section 1: Formal Mobility Practice73% of the survey participants have a formal mobility policy in their organization. The typical length of a formal mobility policy is between 2 to 5 years (41%). Further, more than half of the respondents have a formal mobility policy in place for less than 5 years.

The most prevalent type of assignment practiced by the survey respondents is Project Based Assignment (33%), followed by Employee Requested Long Term Assignment (18%) and Extended Business Trips/ Rotational Assignment (14%). The least prevalent assignment types in this study are Consecutive Assignment, Employee Requested Short Term Assignment and Permanent International Transfer.

Chart 1.1 Type of Assignment Practiced

The typical duration for Short Term Assignment is 6 to 12 months (68%), whilst the typical duration for Long Term Assignment is between 2 to 3 years (59%).

1%

1%

1%

7%

8%

8%

9%

14%

18%

33%

0% 20% 40% 60% 80% 100%

Consecutive Assignment

Employee Requested Short Term Assignment

Permanent International Transfer

Temporary Long Term Assignment

Commuter Assignment

Temporary Short Term Assignment

Developmental Assignment

Extended Business Trips/ Rotational Assignment

Employee Requested Long Term Assignment

Project Based Assignment

14%

41%

9%

32%

1 to 2 years

2 to 5 years

5 to 10 years

More than 10 years

Length of Policy

2015/2016 Asia Pacific Mobility Policies and Practices Report

23 

Section 8: Other Assignee Benefits Compensation aside, assignee benefits are key to supporting, motivating and so ultimately retaining assignees.

8.1 Healthcare 

Healthcare coverage varies according to the type of assignment. Unsurprisingly, home country plan is the most commonly adopted plan for commuter assignment, consecutive assignment, extended business trips/ rotational assignment, project based assignment, as well as temporary short term assignment and temporary long term assignment types. As for employees on short term assignment, long term assignment and permanent international transfer, the host country plan remains the preferred healthcare coverage amongst the surveyed organizations. International plans are generally less preferred across all the assignment types.

Chart 8.1a Healthcare Coverage

8.2 Home Leave 

Home leave gives an assignee an opportunity to return home, or to a different location, in the course of an international assignment. It is also known as assignment leave or annual vacation. The provision of home leave depends on the type of assignment and is generally limited to project based assignments (35%), temporary short term assignments (41%) and temporary

48%

53%

50%

22%

75%

29%

40%

42%

45%

62%

10%

21%

61%

13%

50%

60%

25%

18%

15%

43%

47%

29%

11%

13%

21%

25%

27%

23%

6%

8%

9%

0% 20% 40% 60% 80% 100%

Temporary Short Term Assignment

Temporary Long Term Assignment

Project Based Assignment

Permanent International Transfer

Extended Business Trips/ Rotational Assignment

Employee Requested Short Term Assignment

Employee Requested Long Term Assignment

Developmental Assignment

Consecutive Assignment

Commuter Assignment

Home Country Plan Host Country Plan International Plan Based on the seniority

2016 Company Car Benefits Report – Asia Pacific

This report will help you to stay up-to-date on market practices and policy movements, identify current car policy issues and develop a flexible and cost-effective car program. The report covers: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam.

Policies Data Data is presented by six categories:• Country Manager• Executive• Middle Management• Supervisory / Professional• Sales Manager• Sales Professional

Overall Policy• Types of policy• Decision-making• Common areas under policy review

Company Car• Financing methods• Car allocation criteria• Car makes and models• Car purchase value/leasing value/rental value• Running costs• Replacement period and option to purchase• Use of personal car – reimbursement and mileage claim

Car Allowance• Eligibility• Factors considered when

determining allowance amount• Cash allowance amount

Data by Position• Benefit prevalence• Car model• Purchase value • Leasing value• Car allowance

Each country chapter is organized as follows:

2015/2016 Asia Pacific Mobility Policies and Practices Report New!

The report captures the essence of how mobility frameworks are structured in organizations. Learn how to formulate your mobility policies more efficiently and cost effectively from the latest market practices. This report will help you to:

• Understand the latest mobility frameworks• Design and implement a mobility program• Overcome common challenges in formulating a mobility policy

Report Content • Executive summary • Formal mobility practice (types of

assignment, key challenges)• Program assessment• Mobility outsourcing• Assignee compensation

• Mobility risk management• Benefits (Housing, children education,

Insurance, Health care, travel, meal, taxation)

• Relocation, localization and repatriation policies

2016 Reports on Compensation, Benefit and Employment Practices 3

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2016 Geographic Salary Differentials Report – Asia PacificThis report enables you to meet the growth and expansion goals of your organization by understanding local geographic pay. Covering 10 countries/locations: China, India, Indonesia, Japan, Korea, Malaysia, Philippines, Taiwan, Thailand and Vietnam. The report will help you to:

• Manage expansion cost effectively by understanding salary differentials among regions and cities

• Stay competitive to attract and retain key talent across geographic locations• Rationalize salary differences in staff relocation

Report Features • Salary differentials among key cities/regions domestically relative to a major city• Salary differentials among key cities/regions domestically relative to the national average• Data breakdown by six employee categories:

– Business Unit Head/Country Manager– Executive– Middle Management and Senior Professional

– Supervisory and Professional– Technical and Business Support– Production and Manual Workers

– Master (excluding MBA)– Master of Business Administration (MBA)– Doctorate (PhD.)

2016 Starting Salaries Report – Asia PacificThis invaluable resource will help employers and hiring managers to determine appropriate and competitive salaries to attract talent in the graduate labor market. Covering 13 countries/locations: Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan, Thailand and Vietnam. The report will help you to:

– High School/Secondary School– Business/Technical Training– University

• Starting salaries are presented by 11 key functions:– Accounting and Finance, Administrative Services, Customer Service/Technical

Support, Engineering, Human Resources, IT, Legal, Manufacturing, Marketing, Sales/Business Development, Supply Chain, Logistics and Procurement

• Attract talent from different education levels• Maintain competitiveness and cost effectiveness of starting salaries• Save costs in selecting locations for increasing graduate hire

Report Features • Presenting base pay of graduate starting salaries • Starting salaries are presented by six education levels:

2015 Employment Terms and Conditions Report – Asia PacificA comprehensive coverage of employment laws in Asia Pacific to help you to ensure compliance with local laws and customs. 19 countries/locations are covered: Australia, Bangladesh, Cambodia, China, Hong Kong, India, Indonesia, Japan, Korea, Laos, Malaysia, Myanmar, New Zealand, Philippines, Singapore, Sri Lanka, Taiwan, Thailand and Vietnam.

Each country chapter is organized as follows: Overview• Employment environment• Key changes in recent years• Key breakpoints related to number of employees

Start of Employment• Contract of employment• Non-compete and other clauses• Suspension of employment/change of contract• Trial period• Employment of foreigners• Other important recruitment issues

Active Employment• Pay and working hours • Holidays and leave• Equal opportunities• Health and safety• Training• Social security

Industrial Relations• Framework for employee participation • Works council, Collective bargaining• Industrial action

Termination of Employment• Types of termination• Notice period• Termination indemnity• Severance payment• Termination at retirement• Transfers of undertakings

Also Available:IndoChina report

2015 Benefits Profile and Employment Terms – By CountryThis report combines information from the Benefits Profile and the Employment Terms and Conditions Report into a “By Country” report. 16 country/location reports are available.

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