Employer of Record in Hong Kong

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Effortless hiring in

Hong Kong

Hong Kong is a dynamic city blending Chinese traditions with British colonial influences. Known as a global financial hub, it boasts a stunning skyline and attractions like Victoria Peak and the Symphony of Lights. Hong Kong’s cuisine, including dim sum, is a major draw. The city’s bustling markets and festivals like Chinese New Year reflect its vibrant culture. Its natural beauty includes hiking trails and beaches, offering a stark contrast to its urban energy.

Languages

Chinese and English

Population

7.4 Million

Capital City

Hong Kong

Currency

Hong Kong Dollar (HKD)

Cost of living ranking

8th

VAT (Value Added Tax)

Hiring in

Hong Kong

Employment Contracts

Employment contracts in Hong Kong can be oral or written; however, written contracts are highly recommended to ensure clarity. These contracts should detail:
Job responsibilities.
Compensation.
Working hours.
Leave entitlements.
Termination conditions.
According to the Employment Ordinance (EO), employers must provide a written contract within one month of the employee starting work.

Probationary Period

The probationary period is typically up to three months, during which either party can terminate the employment with a shorter notice period. If specified in the contract, notice may be as short as seven days after the first month.

Payroll Management in

Hong Kong

Payroll Frequency

Employees are generally paid on a monthly basis, with payments made at the end of each month. Employers are required to provide itemized pay statements detailing wages and any deductions.

Minimum Wage

As of May 1, 2019, the statutory minimum wage is HK$37.5 per hour. This rate is subject to review and adjustment by the government.

Overtime

Hong Kong labor laws do not specify standard working hours or mandatory overtime compensation. Overtime arrangements should be clearly defined in the employment contract or company policies. Standard working hours are generally considered to be 44 hours per week.

Taxation in

Hong Kong

Employee Contributions

Mandatory Provident Fund (MPF): Employees aged 18 to 64 employed for 60 days or more are required to contribute 5% of their relevant income to an MPF scheme, subject to minimum and maximum relevant income levels.

Employer Contributions

Mandatory Provident Fund (MPF): Employers must also contribute 5% of the employee's relevant income to the MPF scheme.

Income Tax

Hong Kong operates a progressive tax system with salaries tax rates ranging from 2% to 17% depending on income levels. Employers are responsible for withholding the appropriate amount from employees' salaries and remitting it to the Inland Revenue Department.

Leave in

Hong Kong

Types of Leave in Hong Kong

Annual Leave

Employees are entitled to paid annual leave ranging from 7 to 14 days, depending on their length of service under a continuous contract.

Statutory Holidays

Hong Kong recognizes 12 statutory holidays annually. Employees employed under a continuous contract are entitled to these holidays with pay.

Sick Leave

Employees earn paid sick leave at a rate of two days for each completed month during the first 12 months of employment and four days for each subsequent month thereafter, up to a maximum of 120 days.

Maternity Leave

Female employees are entitled to 14 weeks of maternity leave if they have been employed under a continuous contract for at least 40 weeks before the expected delivery date. The employer is required to pay maternity leave pay at four-fifths of the employee's average daily wages.

Paternity Leave

Male employees are entitled to five days of paid paternity leave for each child born, provided they have been employed under a continuous contract and meet other specified conditions.

Benefits in

Hong Kong

Mandatory Provident Fund (MPF)

Both employers and employees contribute to the MPF, a compulsory savings scheme designed to provide retirement benefits.

Health Insurance

While employers are not required by law to provide health insurance, many offer it as part of their employee benefits package.

Termination in

Hong Kong

Notice Period

The required notice period for termination depends on the terms specified in the employment contract. If not specified, the EO provides default notice periods based on length of service:
Less than 3 months: 1 day.
Between 3 months and less than 2 years: 1 week.
More than 2 years: Notice periods increase according to length of service.

Severance Pay

Employees who have completed at least 24 months of continuous service and are dismissed due to redundancy are entitled to severance pay calculated based on two-thirds of the employee's last full month's wages multiplied by the number of years of service.

Dismissal Procedures

Employers must have justifiable grounds for termination, such as performance issues or redundancy. Specific procedures must be followed according to the Employment Ordinance, including providing written notice and settling all dues.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

Employment Contracts

Probationary Period

Payroll Frequency

Minimum Wage

Overtime

Employee Contributions

Employer Contributions

Income Tax

Types of Leave in Hong Kong

Mandatory Provident Fund (MPF)

Health Insurance

Notice Period

Severance Pay

Dismissal Procedures

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