top of page

LABOR RECRUITMENT FEES

NATIONAL LAWS IN ASIA RELATED TO
WORKER LABOR RECRUITMENT FEES

To support better policy and business decisions, we are developing a resource that will summarize national laws across Asia related to the charging of labor recruitment fees to workers.

7 countries map.png

Recruitment Fee Laws in Cambodia, India, Indonesia, Myanmar, Taiwan, Thailand, and Vietnam

Can workers be charged recruitment fees?

CAMBODIA

Yes, workers can be charged fees, but the policies mandate that these costs be “transparent and reasonable”.

No legal maximum exists for service fees. Workers are legally responsible for all fees formalized through the "Job Placement Service Contract" signed between the worker and the agency.

INDIA

Yes, workers can be charged recruitment fees, but only within strict legal limits and by registered agents. Rs. 30,000 + 18% GST.

The agent is required to issue a formal receipt for the amount collected. Workers should never be charged for repatriation expenses, and any fee collected beyond the prescribed government limits is a criminal offense.
However, there are new legally binding regulations for domestic workers to receive journey allowance and food security benefits.

INDONESIA

Yes, though recent reforms aim for 'zero cost' for some sectors. Workers are still commonly charged fees, but the government has been moving to exempt certain sectors.

MYANMAR

Yes, workers are legally obligated to pay prescribed service fees. However, the government establishes official maximum fee caps that recruitment agencies are permitted to charge, depending on the job type and destination country.

Workers must also pay an additional 5% commercial tax on these fees.

TAIWAN

No (Recruitment Fees), but Yes (Service Fees). Taiwan's law prohibits brokers from charging migrant workers recruitment fees. However, they can legally charge monthly service fees.

THAILAND

No, recruitment agencies (licensees) are strictly prohibited from demanding or receiving any money or assets from foreign workers. However, certain “mandatory expenses” may apply, as prescribed by law.

The law permits workers to be charged for necessary costs (e.g. passports, health check-up, work permit), which may be paid upfront by the employer and subsequently deducted from the worker’s wages at a rate not exceeding 10% per month.

VIETNAM

Recruitment fees depend on the type of employment. For domestic employment within Vietnam, recruitment agencies are not permitted to charge recruitment fees to workers, regardless of whether the worker is a Vietnamese national or a foreign migrant working in the country. However, for overseas employment, where Vietnamese citizens are recruited to work abroad as migrant workers, agencies may charge service fees, but these are strictly regulated and subject to legal caps under national legislation.

Did you know that even when workers are recruited under zero-cost Employer Pays Principle (EPP) schemes in Asia, many migrant workers still end up paying recruitment fees and sometimes fall into debt?

Ethical recruitment is possible from the First Mile

Our Summary of Relevant Laws 

Cambodia

- Policy on Labour Migration for Cambodia 2019-2023 - Sub-Decree 190 on the Management of Sending Cambodian Workers Abroad through Private Recruitment Agencies - Prakas No. 047/13 (2013) On private recruitment agencies - Meeting on Determining Recruitment Service Fees for Sending Cambodian Workers to Work in Japan and Thailand — Ministry of Labour and Vocational Training (MLVT), Association of Cambodian Recruitment Agencies (ACRA) and relevant government representatives responsible for overseas employment regulation

Myanmar

- Law Relating to Overseas Employment - SPDC Law No 3/99 - OE Meeting Directive (April 5, 2024): Country-wise Service Fee Collection Rates -

Vietnam

- Labor Code No. 45/2019/QH14 - Law No. 69/2020/QH14 on Vietnamese Workers Working Abroad under Contract - Decree No. 12/2022/ND-CP on Penalties for Administrative Violations in the Fields of Labor, Social Insurance, and Vietnamese Workers Working Abroad under Contract - Law No. 38/2013/QH13 on Employment - Decree No. 23/2021/ND-CP Prescribing Details of the Implementation of Several Articles of the Employment Law regarding Employment Service Centers and Businesses

India

- Emigration Act and Emigration Rules of 1983. - MEA/PGE Official Advisory 2025/26 - Occupational Safety, Health and Working Conditions (OSHWC) Code, 2020

Taiwan

- Employment Services Act (ESA)

Indonesia

- Law No. 18 of 2017 - BP2MI Regulation No. 9 of 2020. - Ministry of Manpower Regulation No. 18 of 2024 on Placement of Indonesian Workers

Thailand

- Royal Ordinance on the Management of Foreign Workers (2017) (as amended by Emergency Decree B.E. 2561/2018 - Labour Protection Act B.E. 2541 - Ministerial Regulation Prescribing Fees and Exemptions for the Management of Alien Workers B.E. 2563 (2020)

© 2026 Issara Institute, Inc.

Issara badge teal bg.png
bottom of page