Hong Kong

Currency
Hong Kong dollar (HKD)
Payroll Frequency
Monthly
Employer Taxes
5.00% + 1500.00 HKD

About 

Hong Kong

Hong Kong is a major global financial hub, known for its ease of doing business, low taxation, and pro-employer legal environment. While it operates under the "one country, two systems" framework with China, Hong Kong maintains a distinct legal and economic system. With a highly skilled workforce and minimal payroll complexity, it’s an ideal market for expanding global teams, especially in finance, tech, and legal services.

Overview

Population
~7.3 million
Language
Chinese, English
Capital
Hong Kong
Currency
Hong Kong dollar (HKD)
Country code
+852
Min wage
40 HKD per hour
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
48 hours per week

Payroll

Cycle

Monthly

Avg employer tax

5.00% + 1500.00 HKD

Taxation

Tax breakdown - Employer

Average Employer Contributions:

Mandatory Provident Fund (MPF)
5% of employee’s monthly salary (capped at HKD 1,500/month)
Other taxes
None (no social security or payroll taxes for employers)

Average Employee Contributions:

MPF
5% of salary (capped at HKD 1,500/month)

Salaries Tax (Progressive):

On first HKD 50,000
2%
On next HKD 50,000
6%
On next HKD 50,000
10%
On next HKD 50,000
14%
On the remainder
17%
OR
Flat 15% tax on net income, whichever is lower
VAT

0%

Holidays / PTO

Public holidays in 2024
  • 1 Jan: New Year's Day
  • 1 Feb: Lunar New Year
  • 2 Feb: The Second Day of Lunar New Year
  • 3 Feb: The Third Day of Lunar New Year
  • 5 Apr: Ching Ming Festival
  • 15 Apr: Good Friday
  • 16 Apr: The Day Following Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 2 May: Labor Day Holiday
  • 8 May: Birthday of Buddha
  • 9 May: Birthday of Buddha Holiday
  • 3 Jun: Tuen Ng Festival
  • 1 Jul: HKSAR Establishment Day
  • 12 Sep: The Day Following Mid-Autumn Festival
  • 1 Oct: National Day
  • 4 Oct: Chung Yeung Festival
  • 25 Dec: Christmas Day
  • 26 Dec: The First Weekday After Christmas Day
  • 27 Dec: Christmas Holiday
Sick days
  • Employees earn 2 paid sick days/month in the first year, up to 120 days
  • Paid at 80% of daily average wage, funded by the employer
  • Requires a medical certificate for absences longer than 2 days
Maternity leave
  • 14 weeks of paid leave
  • Employer pays 80% of average daily wage
  • Government reimburses employers for additional 4 weeks beyond the original 10
  • Employee must have completed 40 weeks of service
Paternity leave
  • 5 working days, paid at 80% of average daily wage
  • Must be taken within 14 weeks of childbirth

Parental Leave:

  • No statutory parental leave beyond maternity and paternity provisions

Termination Process

Valid Reasons for Termination

  • Misconduct, redundancy, contract expiration, or mutual agreement
  • Must not be discriminatory or retaliatory
  • No obligation to state reason for termination unless challenged

Notice Period

  • 7 days during probation (after 1 month)
  • 1 month for permanent employees unless otherwise stated in contract
  • Can be replaced with payment in lieu

Severance Pay(applies to redundancy or long service):

  • Entitled after 24 months of continuous service
  • Formula: 2/3 of last month’s salary x years of service (capped at HKD 390,000)
  • Long Service Pay and Severance Pay cannot be claimed for the same period

Probation Period

  • Typically 1–3 months
  • Either party can terminate with 7 days’ notice or pay in lieu after the first month

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Tax Calculation

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HK
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation

Hong Kong

Hong Kong is a major global financial hub, known for its ease of doing business, low taxation, and pro-employer legal environment. While it operates under the "one country, two systems" framework with China, Hong Kong maintains a distinct legal and economic system. With a highly skilled workforce and minimal payroll complexity, it’s an ideal market for expanding global teams, especially in finance, tech, and legal services.
Contractor Management
EOR
Payroll
Contractor of Record
Currency
Hong Kong dollar (HKD)
Payroll Frequency
Monthly
Employer Taxes
5.00% + 1500.00 HKD

Overview

Population
~7.3 million
Language
Chinese, English
Capital
Hong Kong
Currency
Hong Kong dollar (HKD)
Country code
+852
Min wage
40 HKD per hour
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
48 hours per week

Payroll

Salaried Employees
Monthly, typically paid on the last working day of the month
Time-Based Employees
Monthly, typically paid on the last working day of the month
Avg employer tax

5.00% + 1500.00 HKD

Tax Breakdown

Average Employer Contributions:

Mandatory Provident Fund (MPF)
5% of employee’s monthly salary (capped at HKD 1,500/month)
Other taxes
None (no social security or payroll taxes for employers)

Average Employee Contributions:

MPF
5% of salary (capped at HKD 1,500/month)

Salaries Tax (Progressive):

On first HKD 50,000
2%
On next HKD 50,000
6%
On next HKD 50,000
10%
On next HKD 50,000
14%
On the remainder
17%
OR
Flat 15% tax on net income, whichever is lower

VAT

VAT

0%

Tax Calculation for Hong Kong
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
HK
*
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Hong Kong typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be in writing and signed by both parties
  • Include job title, duties, working hours, salary, MPF, and leave entitlements
  • Should specify whether there’s a probation period or bonus eligibility

MPF Enrollment

  • Mandatory for all employees aged 18–64 (unless exempt, e.g., expats on short-term assignments)
  • Must enroll within 60 days of employment

Tax Setup

  • Register employee with the Inland Revenue Department (IRD)
  • Issue IR56E (new hire form) within 3 months of start date

Payslip & Payroll Setup:

  • Issue monthly payslips showing base salary, MPF deductions, bonuses, and overtime
  • Retain payroll records for at least 7 years

Onboarding Documents

Collect copy of HKID or passport, visa (if applicable), address proof, and bank account details

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Hong Kong
When drafting an employment contract for employees in Hong Kong, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Employees earn 2 paid sick days/month in the first year, up to 120 days
  • Paid at 80% of daily average wage, funded by the employer
  • Requires a medical certificate for absences longer than 2 days
Maternity leave
  • 14 weeks of paid leave
  • Employer pays 80% of average daily wage
  • Government reimburses employers for additional 4 weeks beyond the original 10
  • Employee must have completed 40 weeks of service
Paternity leave
  • 5 working days, paid at 80% of average daily wage
  • Must be taken within 14 weeks of childbirth

Parental Leave:

  • No statutory parental leave beyond maternity and paternity provisions

12 Public holidays in Hong Kong

Note: Employees are entitled to 12 statutory holidays, and most employers provide 17 public holidays in line with the general holiday calendar.

1st
New Year's Day
1st
Lunar New Year
2nd
Lunar New Year
3rd
Lunar New Year
18th
Good Friday
20th
Easter
1st
Labor Day
12th
Buddha’s Birthday
1st
Hong Kong SAR Establishment Day
1st
National Day
11th
Chung Yeung Festival
25th
Christmas Day
25th
Boxing Day
  • 1 Jan: New Year's Day
  • 1 Feb: Lunar New Year
  • 2 Feb: The Second Day of Lunar New Year
  • 3 Feb: The Third Day of Lunar New Year
  • 5 Apr: Ching Ming Festival
  • 15 Apr: Good Friday
  • 16 Apr: The Day Following Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 2 May: Labor Day Holiday
  • 8 May: Birthday of Buddha
  • 9 May: Birthday of Buddha Holiday
  • 3 Jun: Tuen Ng Festival
  • 1 Jul: HKSAR Establishment Day
  • 12 Sep: The Day Following Mid-Autumn Festival
  • 1 Oct: National Day
  • 4 Oct: Chung Yeung Festival
  • 25 Dec: Christmas Day
  • 26 Dec: The First Weekday After Christmas Day
  • 27 Dec: Christmas Holiday

Termination Process

Valid Reasons for Termination

  • Misconduct, redundancy, contract expiration, or mutual agreement
  • Must not be discriminatory or retaliatory
  • No obligation to state reason for termination unless challenged

Notice Period

  • 7 days during probation (after 1 month)
  • 1 month for permanent employees unless otherwise stated in contract
  • Can be replaced with payment in lieu

Severance Pay(applies to redundancy or long service):

  • Entitled after 24 months of continuous service
  • Formula: 2/3 of last month’s salary x years of service (capped at HKD 390,000)
  • Long Service Pay and Severance Pay cannot be claimed for the same period

Probation Period

  • Typically 1–3 months
  • Either party can terminate with 7 days’ notice or pay in lieu after the first month

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Hong Kong with RemotePass

Hiring in Hong Kong is straightforward but managing local MPF contributions, taxes, and contracts can be time-consuming. With RemotePass, you can hire employees or contractors in Hong Kong compliantly without opening a local entity. We handle everything from onboarding to payroll and offboarding, so you can grow confidently in Asia’s financial capital.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Hong Kong.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Hong Kong

العملة
Hong Kong dollar (HKD)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
5.00% + 1500.00 HKD

عن 

Hong Kong

Hong Kong is a major global financial hub, known for its ease of doing business, low taxation, and pro-employer legal environment. While it operates under the "one country, two systems" framework with China, Hong Kong maintains a distinct legal and economic system. With a highly skilled workforce and minimal payroll complexity, it’s an ideal market for expanding global teams, especially in finance, tech, and legal services.

ملخص

التركيبة السكانية
~7.3 million
اللغة
Chinese, English
العاصمة
Hong Kong
العملة
Hong Kong dollar (HKD)
رمز الاتصال الدولي
+852
الحد الأدنى للأجور
40 HKD per hour
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
48 hours per week

الرواتب

موعد صرف الرواتب

Monthly

متوسط ​​ضريبة صاحب العمل

5.00% + 1500.00 HKD

تحصيل الضرائب

التوزيع الضريبي - صاحب العمل

Average Employer Contributions:

Mandatory Provident Fund (MPF)
5% of employee’s monthly salary (capped at HKD 1,500/month)
Other taxes
None (no social security or payroll taxes for employers)

Average Employee Contributions:

MPF
5% of salary (capped at HKD 1,500/month)

Salaries Tax (Progressive):

On first HKD 50,000
2%
On next HKD 50,000
6%
On next HKD 50,000
10%
On next HKD 50,000
14%
On the remainder
17%
OR
Flat 15% tax on net income, whichever is lower
ضريبة القيمة المضافة

0%

العطل / PTO

العطلات الرسمية في عام 2024
  • 1 Jan: New Year's Day
  • 1 Feb: Lunar New Year
  • 2 Feb: The Second Day of Lunar New Year
  • 3 Feb: The Third Day of Lunar New Year
  • 5 Apr: Ching Ming Festival
  • 15 Apr: Good Friday
  • 16 Apr: The Day Following Good Friday
  • 18 Apr: Easter Monday
  • 1 May: Labor Day
  • 2 May: Labor Day Holiday
  • 8 May: Birthday of Buddha
  • 9 May: Birthday of Buddha Holiday
  • 3 Jun: Tuen Ng Festival
  • 1 Jul: HKSAR Establishment Day
  • 12 Sep: The Day Following Mid-Autumn Festival
  • 1 Oct: National Day
  • 4 Oct: Chung Yeung Festival
  • 25 Dec: Christmas Day
  • 26 Dec: The First Weekday After Christmas Day
  • 27 Dec: Christmas Holiday
الإجازات المرضية
  • Employees earn 2 paid sick days/month in the first year, up to 120 days
  • Paid at 80% of daily average wage, funded by the employer
  • Requires a medical certificate for absences longer than 2 days
إجازة الأمومة
  • 14 weeks of paid leave
  • Employer pays 80% of average daily wage
  • Government reimburses employers for additional 4 weeks beyond the original 10
  • Employee must have completed 40 weeks of service
إجازة الأبوة
  • 5 working days, paid at 80% of average daily wage
  • Must be taken within 14 weeks of childbirth

Parental Leave:

  • No statutory parental leave beyond maternity and paternity provisions

إنهاء العقد

عملية الإنهاء

Valid Reasons for Termination

  • Misconduct, redundancy, contract expiration, or mutual agreement
  • Must not be discriminatory or retaliatory
  • No obligation to state reason for termination unless challenged

Notice Period

  • 7 days during probation (after 1 month)
  • 1 month for permanent employees unless otherwise stated in contract
  • Can be replaced with payment in lieu

Severance Pay(applies to redundancy or long service):

  • Entitled after 24 months of continuous service
  • Formula: 2/3 of last month’s salary x years of service (capped at HKD 390,000)
  • Long Service Pay and Severance Pay cannot be claimed for the same period

Probation Period

  • Typically 1–3 months
  • Either party can terminate with 7 days’ notice or pay in lieu after the first month
فترة الإشعار

Standard notice periods are 30 days unless the employment contract specifies a longer period.

مكافأة نهاية الخدمة

Employers must give severance pay to eligible employees (i.e. those who have been employed for at least two years and who have neither resigned nor been summarily dismissed). Severance pay amounts to either two-thirds of 22,500 HKD or two-thirds of the employee's regular salary (whichever figure is lower) for each year of service (up to a maximum payment of 390,000 HKD).

فترة الاختبار

Employment contracts in Hong Kong must stipulate the length of the probation period, which is typically somewhere between one week and one month.

ازدهار القوى العاملة عن بعد في _

تحديات التوظيف عن بعد في _

تبسيط التوظيف عن بعد في _ باستخدام ريموت باس

حساب الضريبة

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HK
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري
GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي
GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
طلب عرض أسعار مفصل