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
13th Salary

Common practice, especially in finance and professional services, but not required by law

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
Gross monthly salary costs
Estimated taxes and contributions
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
Gross yearly salary costs
Estimated taxes and contributions
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

Annual Leave
  • Minimum 7 days/year, increasing to 14 days after 9 years of service
  • Most employers offer 10–15 days regardless of tenure
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

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

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.

Free 7-day trial

No credit card required

Cancel anytime

Hiring in Hong Kong | Payroll, Tax & Employment Guide

Hong Kong gives you access to highly skilled, multilingual talent in one of Asia’s most trusted business hubs. This guide explains the essentials to hire here with confidence.

RemotePass makes hiring in Hong Kong simple. We handle compliance, contracts, and payroll so you can stay focused on growing your business.

Key Takeaways for Hiring in Hong Kong

  • Employment contracts in Hong Kong are flexible but must clearly state notice terms, probation, compensation, and statutory entitlements.
  • MPF contributions are mandatory for most employees, with 5% contributions from both employer and employee.
  • Salaries Tax uses low progressive rates (2% – 17%) or a standard rate of 15%, whichever results in a lower tax bill.
  • Foreign employees require employer notification to immigration authorities upon termination, and visas end immediately unless replaced.

Quick Facts For Hiring In Hong Kong

Continent
Asia
Capital
Hong Kong
Currency
Hong Kong Dollar (HKD)
Language
Chinese (Cantonese) and English
Payroll Cycle
Monthly
Pay Date
Last day of the month

Hong Kong Employment Contract Overview

Hong Kong employment contracts are straightforward and flexible, but they must clearly set out terms like notice, probation, compensation, and leave entitlements. Below is the basic structure we follow for compliant contracts.

Contract Type
Fixed-term/Open-ended
Local Language Required?
No
Bilingual?
No
Probation Period
Not fixed by law. Typically one to three months as per contract.
Minimum Paid Time Off
After 12 months continuous employment: Seven days. Increases by one day per additional year, up to 14 days after nine years of service.
Public Holidays
14 public holidays
Notice Period
First month (probation period): without notice or payment in lieu
After the first month: Seven days if the period is not specified in the employment contract or notice period listed in employment contract, but it must be equal to or longer than statutory notice period.
For continuous employment longer than two years: One month, unless a longer notice period is agreed upon in the contract

What Do You Need To Include In A Hong Kong Employment Contract?

Hong Kong keeps employment contracts refreshingly straightforward, but you still need to cover a few essentials to stay compliant. Here’s what every employer should spell out clearly so you and your new hire start off on solid ground.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details
  • Address details
  • Leave entitlement
  • End date (if applicable)

How Does Payroll and Taxation Work in Hong Kong?

Hong Kong payroll is straightforward. Your main obligations are the five percent MPF contribution and issuing the correct IR56 tax forms, while employees handle their own Salaries Tax. Here’s all you need to know to hire compliantly.

Hong Kong Payroll Setup

Salary currency

Hong Kong Dollar (HKD)

Minimum Wage

HKD 40.1 per hour

Hours per Week

No statutory limit on work hours, but standard practice is 40 to 48 hours per week.

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

Not required.

Gross Salary Structure

Gross salary does not follow a standardized structure in Hong Kong.

What Payroll Taxes Do Employers Pay in Hong Kong?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Mandatory Provident Fund (MPF):

5% (on monthly in come up to HKD 30,000)

Relevant Income includes wages, commissions, contractual bonuses, allowances, and regular overtime

What Payroll Taxes Do Employees Pay in Hong Kong?

Individual Income Tax

Hong Kong taxes employment income through Salaries Tax, applied at progressive rates or at a standard rate.

Social Contributions


Mandatory Provident Fund (MPF):

5% (on monthly income up to HKD 30,000)

Hiring cost calculator 

*
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
Gross monthly salary costs
Estimated taxes and contributions
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
Gross yearly salary costs
Estimated taxes and contributions
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

Mandatory Employee Benefits in Hong Kong

Employment of expats is supported in Hong Kong.

Benefits Provider Funded Through Notes
Pension/ Social Security Government

Payroll Contributions

The Mandatory Provident Fund (MPF) applies to all employees aged 18–64, including full-time, part-time, and casual workers, and participation is mandatory.

Leave and Holiday Entitlement in Hong Kong

Annual leave

Employees earn statutory paid annual leave based on their continuous years of service:

  • One to two years: seven days

  • Three years: eight days

  • Four years: nine days

  • Five years: 10 days

  • Six years: 11 days

  • Seven years: 12 days

  • Eight years: 13 days

  • Nine+ years: 14 days

Employers schedule leave after consulting the employee and must give at least 14 days’ written notice unless the employee agrees to a shorter period. Leave accrued in one year can generally only be taken the following year, though many employers allow same-year use.

Public holidays

Hong Kong has 14 statutory public holidays under the Employment Ordinance:

  • New Year's Day (Jan 1)

  • Lunar New Year (first 3 days)

  • Ching Ming Festival

  • Good Friday

  • The day following Good Friday

  • Labour Day (May 1)

  • Birthday of the Buddha

  • Tuen Ng Festival (Dragon Boat Festival)

  • Hong Kong Special Administrative Region Establishment Day (July 1)

  • The day following the Chinese Mid-Autumn Festival

  • Chung Yeung Festival

  • and the first weekday after Christmas Day.

If a statutory holiday falls on a rest day, employers must provide a substitute holiday. Under the Employment (Amendment) Bill of 2021, the number of statutory holidays will progressively increase to 17 days from January 1, 2022 onward.

Sick Leave

Paid sick leave accumulates at a rate of two days per month of service during the first year and four days per month in subsequent years, up to a maximum balance of 120 days. Sick leave is paid at 80% of the employee’s average daily wage based on prior earnings.

Maternity Leave

Employees are entitled to 14 weeks of statutory maternity leave. Through the RMLP Scheme, employers can apply for reimbursement for weeks 11 - 14, up to HKD 80,000 per employee.

Paternity Leave

Employees receive five days of paid paternity leave for children born on or after January 18, 2019 (previously three days).

Eligibility requires continuous employment for four weeks at 18 hours per week or more, with proper notification given; three months before the expected birth date or at least five days in advance if notice is late. Paternity leave is paid at four-fifths (⅘)of the average daily wage calculated over the last 12 months.

Other Types of Leave

None.

Termination and Offboarding in Hong Kong

Terminating employment in Hong Kong is all about timing, documentation, and paying out what's owed. Once you know the statutory notice rules and what counts as a lawful dismissal, the offboarding process becomes much easier to manage.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Hong Kong Employee Resignation

Notice

Form

A written notice by the employee to the employer to resign under a continuous contract.

Notice period

  • If the employee is in their first month of probation, a minimum notice period is not required

  • After the first month of probation, the employee must give at least seven days notice or apply the longer contractual notice period if the employment contract provides one.

  • Once the employee has completed probation (or if no probation applies), the employer follows the contractual notice period; if the contract does not specify one, the employer must give one month's notice.

Payment in lieu of notice or notice waiver

Either party may offer payment instead of working the notice period if both agree; if no notice is given and no payment in lieu is agreed, the employee may be in breach under the contract.

End-of-Service Benefits

Severance/Gratuity

Not applicable in resignations.

Other Benefits

  • Payment of wages earned up to the date of resignation

  • Payment for any unused statutory annual leave

  • Any other contractual entitlements including bonuses, allowances, etc. that have accrued

Termination Documentation

  • Written acknowledgement by employer of the resignation and its effective date

  • Final pay slip showing all components (wages, unused leave, etc.)

  • Certificate of employment or proof of service if requested by the

Employer Termination With Cause in Hong Kong

Acceptable grounds

  • Wilful disobedience of a lawful and reasonable order

  • Misconduct inconsistent with the duty of loyalty and faithful discharge of duties

  • Fraud or dishonesty

  • Habitual neglect of duties

Notice

Form

Written notice of termination or summary dismissal, clearly specifying the effective date of termination.

Notice period

If terminating for cause (summary dismissal), no notice is required in advance.

Payment in lieu of notice or notice waiver

In case of summary dismissal, no payment in lieu of notice is required.

End-of-Service Benefits

Severance

No entitlement to severance or long service payment when termination is for cause via summary dismissal.

Other Benefits

  • Payment of wages accrued up to the date of termination

  • Holiday pay for unused leave accrued before termination

  • Any other contractual benefits that have become due prior to termination

Termination Documentation

  • Written termination letter specifying the cause and date of dismissal

  • Payslip or statement showing final settlement of wages, leave pay etc.

  • If requested, a certificate of employment or separation showing employment period and position

Employer Termination Without Cause in Hong Kong

Acceptable Grounds

The employer does not need to provide a specific reason when terminating without cause, as long as proper notice or payment in lieu is given.

Notice

Form

Written.

Notice period

  • During probation period: if beyond the first month of probation, at least 7 days notice is required unless the contract specifies more.

  • After probation: usually the notice period is agreed in the contract; if none is agreed, a minimum of 1 month notice is required

Payment in lieu of notice or notice waiver

The employer can choose to waive the notice period by paying the employee an amount equal to their earnings for that notice period.

End-of-Service Benefits

Severance

  • Severance payment is due where the employee has been continuously employed for at least 24 months and is dismissed because of redundancy (not possible under the EOR setup) or other genuine operational reasons.

  • If the employee qualifies for severance, they are not eligible for long service payment and vice versa.

Other Benefits

  • Wages earned up to the date of termination

  • Payment for untaken annual leave and pro rata public holidays as per contract or statute

  • Payment for any other contractual or statutory entitlements accrued up to termination

Termination Documentation

  • A termination letter to the employee specifying the termination date and notice given or payment in lieu

  • A final pay statement detailing all wages, leave payments, severance or other benefit payments

  • If requested, a certificate of employment or separation showing period of service and position

Mutual Termination Agreements in Hong Kong

Notice

Form

A written mutual agreement signed by both parties.

Notice period

Not required by law if termination is by mutual consent, unless specified in the agreement.

Waiver of notice

Not applicable unless the mutual agreement includes payment in lieu as part of the terms.

End-of-Service Benefits

Severance

  • Severance payment is not automatically due in mutual termination.

  • However, if the termination is initiated by the employer and agreed to by the employee, and the employee qualifies for severance (at least 24 months of service and redundancy-type situation, which is not possible under the EOR setup), it can be included.

  • Long service payment may also apply if the employee has at least 5 years of service and the agreement is not treated as a resignation.

Other Benefits

  • Wages earned up to the termination date must be paid

  • Payment for any unused statutory annual leave and pro-rated entitlements

  • Other contractually agreed benefits or ex gratia amounts may be included in the termination agreement

Termination Documentation

  • Signed mutual termination agreement setting out the terms, final date of employment, and any payments to be made

  • Final wage and benefit statement

  • Certificate of employment if requested by the employee, indicating the period and nature of employment

Offboarding Process for the End of Fixed-term Contracts in Hong Kong

If the Fixed-Term Contract Ends Normally

Notice

  • No statutory notice is required if the fixed-term contract expires on its agreed end date and neither party seeks to renew it.
  • However, if the contract includes a renewal clause or requires notice before expiry, those terms must be followed.

End-of-Service Benefits

Severance/Gratuity

  • If the contract ends due to redundancy and the employee has at least 24 months of continuous service, severance payment may be required (not possible under the EOR setup).
  • If the employee has worked for five or more years and the contract ends without serious misconduct or resignation, long service payment may apply if severance is not paid.

Other Benefits

  • Payment for wages up to the contract end date
  • Compensation for unused statutory annual leave and pro-rated statutory holidays
  • Other contractually agreed benefits (e.g. bonuses, allowances), if accrued before the end date

If the Employer Terminates Early

Notice

  • If the contract allows early termination with notice, the employer must give the agreed notice period or payment in lieu.
  • If no early termination clause exists, ending the contract early can be considered a breach of contract and could entitle the employee to compensation.

End-of-Service Benefits

Severance/Gratuity

  • Severance is payable if the employee has at least 24 months of continuous service and is terminated due to redundancy (not possible under the EOR setup).
  • Long service payment may be due if the employee has at least 5 years of service and is dismissed without cause and not paid severance.
  • Compensation in lieu of the remaining contract term may apply if the contract is breached without proper notice.

Other Benefits

  • Final payment of earned wages
  • Payment for unused leave and other accrued statutory entitlements
  • Any other compensation agreed in the employment contract or negotiated upon early termination

Final Payment Timing & Immigration and Visa Compliance in Hong Kong

Final Payment Deadline

The employer must pay all outstanding wages and termination-related payments (including notice pay, leave pay, and any severance or long service payment) no later than seven days after the date of termination of employment.

Penalty

If the employer fails to make final payment within seven days, they are in breach of the Employment Ordinance. The employee may lodge a complaint with the Labour Department. The employer may face criminal liability, including fines and prosecution. Continued failure to pay can also entitle the employee to lodge a civil claim and may result in additional penalties or court-ordered compensation.

Visa and Immigration Compliance

  • For foreign employees on employment visas, the employer is required to notify the Immigration Department of the termination in writing.
  • The notification should be made as soon as possible after termination.
  • The work visa becomes invalid upon termination, and the foreign national must either leave Hong Kong or obtain a new visa if they wish to stay.
  • The employer should also issue a Certificate of Employment if requested, to support future visa applications or immigration processing.
  • Employers must retain accurate records of employment and termination for compliance purposes.

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.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Expand in Hong Kong, Hassle-Free

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

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.

FAQs About Hiring in Hong Kong

Got Questions? Find Answers Here

Who's exempt from MPF contributions?

Very few people. If your employee is aged 18-64 and works at least 60 days, MPF applies whether they're full-time, part-time, or casual. The only real exemptions are for those covered under recognized overseas retirement schemes or employees in specific exempt categories.

Seven days of annual leave after a year seems low. Is that normal?

Yes, that's Hong Kong. It scales slowly. One extra day per year of service until it caps at 14 days after nine years. Many competitive employers offer more generous leave in their contracts to attract talent.

What's the difference between severance and long service payment?

You can't get both. It's one or the other. Severance applies when someone's dismissed due to redundancy (not possible under EOR) after 24 months. Long service payment applies when someone's dismissed without cause after five years. Different thresholds, different reasons, but never both.

What happens to an expat's visa when they leave?

It becomes invalid immediately. You must notify Immigration in writing as soon as possible. The person needs to leave Hong Kong or secure a new visa quickly—there's no grace period once employment ends.

How does the Salaries Tax calculation work?

Hong Kong calculates it both ways, progressive rates (2%-17%) and a flat 15% standard rate, then charges whichever is lower. For most employees, progressive rates result in less tax. High earners usually hit the 15% standard rate cap.

Does sick leave carry over if I don't use it?

Yes, it accumulates up to a maximum of 120 days. Employees build a sick leave bank over time, which makes it less likely you'll face long unpaid absences.

Let’s Chat

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

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

نظرة عامة

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

الموظفون برواتب ثابتة
Monthly, typically paid on the last working day of the month
الموظفون بنظام الأجر الزمني
13th Salary

Common practice, especially in finance and professional services, but not required by law

متوسط ​​ضريبة صاحب العمل

5.00% + 1500.00 HKD

تحصيل الضرائب

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

ضريبة القيمة المضافة

0%

حساب الضريبة في 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.
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
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
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Hong Kong عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

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

العناصر الأساسية في عقد العمل في Hong Kong
عند إعداد عقد عمل للموظفين في Hong Kong يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

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

الإجازة السنوية
  • Minimum 7 days/year, increasing to 14 days after 9 years of service
  • Most employers offer 10–15 days regardless of tenure
12 عطلات رسمية في 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

عملية إنهاء العقود

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.

نمو سوق العمل عن بُعد _  

تحديات التوظيف عن بُعد في  _

تبسيط التوظيف عن بُعد في _ مع ريموت باس

نمِّ فريقك في Hong Kong
مع ريموت باس

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Hong Kong .

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

Hiring in Hong Kong | Payroll, Tax & Employment Guide

Hong Kong gives you access to highly skilled, multilingual talent in one of Asia’s most trusted business hubs. This guide explains the essentials to hire here with confidence.

RemotePass makes hiring in Hong Kong simple. We handle compliance, contracts, and payroll so you can stay focused on growing your business.

Key Takeaways for Hiring in Hong Kong

  • Employment contracts in Hong Kong are flexible but must clearly state notice terms, probation, compensation, and statutory entitlements.
  • MPF contributions are mandatory for most employees, with 5% contributions from both employer and employee.
  • Salaries Tax uses low progressive rates (2% – 17%) or a standard rate of 15%, whichever results in a lower tax bill.
  • Foreign employees require employer notification to immigration authorities upon termination, and visas end immediately unless replaced.

Quick Facts For Hiring In Hong Kong

Continent
Asia
Capital
Hong Kong
Currency
Hong Kong Dollar (HKD)
Language
Chinese (Cantonese) and English
Payroll Cycle
Monthly
Pay Date
Last day of the month

Hong Kong Employment Contract Overview

Hong Kong employment contracts are straightforward and flexible, but they must clearly set out terms like notice, probation, compensation, and leave entitlements. Below is the basic structure we follow for compliant contracts.

Contract Type
Fixed-term/Open-ended
Local Language Required?
No
Bilingual?
No
Probation Period
Not fixed by law. Typically one to three months as per contract.
Minimum Paid Time Off
After 12 months continuous employment: Seven days. Increases by one day per additional year, up to 14 days after nine years of service.
Public Holidays
14 public holidays
Notice Period
First month (probation period): without notice or payment in lieu
After the first month: Seven days if the period is not specified in the employment contract or notice period listed in employment contract, but it must be equal to or longer than statutory notice period.
For continuous employment longer than two years: One month, unless a longer notice period is agreed upon in the contract

What Do You Need To Include In A Hong Kong Employment Contract?

Hong Kong keeps employment contracts refreshingly straightforward, but you still need to cover a few essentials to stay compliant. Here’s what every employer should spell out clearly so you and your new hire start off on solid ground.

Employee Information

  • Full name
  • ID number
  • Role / Job title
  • Start date
  • Contract duration
  • Working hours
  • Probation and notice conditions
  • Termination provisions
  • Compensation details
  • Address details
  • Leave entitlement
  • End date (if applicable)

How Does Payroll and Taxation Work in Hong Kong?

Hong Kong payroll is straightforward. Your main obligations are the five percent MPF contribution and issuing the correct IR56 tax forms, while employees handle their own Salaries Tax. Here’s all you need to know to hire compliantly.

Hong Kong Payroll Setup

Salary currency

Hong Kong Dollar (HKD)

Minimum Wage

HKD 40.1 per hour

Hours per Week

No statutory limit on work hours, but standard practice is 40 to 48 hours per week.

Payroll Frequency

Monthly

Weekdays

Monday through Friday

Mandatory Bonuses

Not required.

Gross Salary Structure

Gross salary does not follow a standardized structure in Hong Kong.

What Payroll Taxes Do Employers Pay in Hong Kong?

Employer cost % (estimate):


Employer Cost %

Contributions Breakdown

Mandatory Provident Fund (MPF):

5% (on monthly in come up to HKD 30,000)

Relevant Income includes wages, commissions, contractual bonuses, allowances, and regular overtime

What Payroll Taxes Do Employees Pay in Hong Kong?

Individual Income Tax

Hong Kong taxes employment income through Salaries Tax, applied at progressive rates or at a standard rate.

Social Contributions


Mandatory Provident Fund (MPF):

5% (on monthly income up to HKD 30,000)

حاسبة تكلفة التوظيف

*
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.
تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
إجمالي تكاليف الراتب الشهري
الضرائب والمساهمات المقدرة
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
إجمالي تكاليف الرواتب السنوية
الضرائب والمساهمات المقدرة
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي

Mandatory Employee Benefits in Hong Kong

Employment of expats is supported in Hong Kong.

Benefits Provider Funded Through Notes
Pension/ Social Security Government

Payroll Contributions

The Mandatory Provident Fund (MPF) applies to all employees aged 18–64, including full-time, part-time, and casual workers, and participation is mandatory.

Leave and Holiday Entitlement in Hong Kong

Annual leave

Employees earn statutory paid annual leave based on their continuous years of service:

  • One to two years: seven days

  • Three years: eight days

  • Four years: nine days

  • Five years: 10 days

  • Six years: 11 days

  • Seven years: 12 days

  • Eight years: 13 days

  • Nine+ years: 14 days

Employers schedule leave after consulting the employee and must give at least 14 days’ written notice unless the employee agrees to a shorter period. Leave accrued in one year can generally only be taken the following year, though many employers allow same-year use.

Public holidays

Hong Kong has 14 statutory public holidays under the Employment Ordinance:

  • New Year's Day (Jan 1)

  • Lunar New Year (first 3 days)

  • Ching Ming Festival

  • Good Friday

  • The day following Good Friday

  • Labour Day (May 1)

  • Birthday of the Buddha

  • Tuen Ng Festival (Dragon Boat Festival)

  • Hong Kong Special Administrative Region Establishment Day (July 1)

  • The day following the Chinese Mid-Autumn Festival

  • Chung Yeung Festival

  • and the first weekday after Christmas Day.

If a statutory holiday falls on a rest day, employers must provide a substitute holiday. Under the Employment (Amendment) Bill of 2021, the number of statutory holidays will progressively increase to 17 days from January 1, 2022 onward.

Sick Leave

Paid sick leave accumulates at a rate of two days per month of service during the first year and four days per month in subsequent years, up to a maximum balance of 120 days. Sick leave is paid at 80% of the employee’s average daily wage based on prior earnings.

Maternity Leave

Employees are entitled to 14 weeks of statutory maternity leave. Through the RMLP Scheme, employers can apply for reimbursement for weeks 11 - 14, up to HKD 80,000 per employee.

Paternity Leave

Employees receive five days of paid paternity leave for children born on or after January 18, 2019 (previously three days).

Eligibility requires continuous employment for four weeks at 18 hours per week or more, with proper notification given; three months before the expected birth date or at least five days in advance if notice is late. Paternity leave is paid at four-fifths (⅘)of the average daily wage calculated over the last 12 months.

Other Types of Leave

None.

Termination and Offboarding in Hong Kong

Terminating employment in Hong Kong is all about timing, documentation, and paying out what's owed. Once you know the statutory notice rules and what counts as a lawful dismissal, the offboarding process becomes much easier to manage.

Type Possible?
Termination for Cause (poor performance, misconduct, etc.) Yes
Termination without Cause Yes
Mutual Termination Agreement (MTA) Yes
Redundancy Not possible under the EOR setup

Employee Resignations

Employee
Resignations

 Termination with Cause

Termination
with Cause

Termination without Cause

Termination
without Cause

Mutual Termination Agreement

Mutual Termination
Agreement

 Fixed Term Contract

Fixed Term
Contract

Hong Kong Employee Resignation

Notice

Form

A written notice by the employee to the employer to resign under a continuous contract.

Notice period

  • If the employee is in their first month of probation, a minimum notice period is not required

  • After the first month of probation, the employee must give at least seven days notice or apply the longer contractual notice period if the employment contract provides one.

  • Once the employee has completed probation (or if no probation applies), the employer follows the contractual notice period; if the contract does not specify one, the employer must give one month's notice.

Payment in lieu of notice or notice waiver

Either party may offer payment instead of working the notice period if both agree; if no notice is given and no payment in lieu is agreed, the employee may be in breach under the contract.

End-of-Service Benefits

Severance/Gratuity

Not applicable in resignations.

Other Benefits

  • Payment of wages earned up to the date of resignation

  • Payment for any unused statutory annual leave

  • Any other contractual entitlements including bonuses, allowances, etc. that have accrued

Termination Documentation

  • Written acknowledgement by employer of the resignation and its effective date

  • Final pay slip showing all components (wages, unused leave, etc.)

  • Certificate of employment or proof of service if requested by the

Employer Termination With Cause in Hong Kong

Acceptable grounds

  • Wilful disobedience of a lawful and reasonable order

  • Misconduct inconsistent with the duty of loyalty and faithful discharge of duties

  • Fraud or dishonesty

  • Habitual neglect of duties

Notice

Form

Written notice of termination or summary dismissal, clearly specifying the effective date of termination.

Notice period

If terminating for cause (summary dismissal), no notice is required in advance.

Payment in lieu of notice or notice waiver

In case of summary dismissal, no payment in lieu of notice is required.

End-of-Service Benefits

Severance

No entitlement to severance or long service payment when termination is for cause via summary dismissal.

Other Benefits

  • Payment of wages accrued up to the date of termination

  • Holiday pay for unused leave accrued before termination

  • Any other contractual benefits that have become due prior to termination

Termination Documentation

  • Written termination letter specifying the cause and date of dismissal

  • Payslip or statement showing final settlement of wages, leave pay etc.

  • If requested, a certificate of employment or separation showing employment period and position

Employer Termination Without Cause in Hong Kong

Acceptable Grounds

The employer does not need to provide a specific reason when terminating without cause, as long as proper notice or payment in lieu is given.

Notice

Form

Written.

Notice period

  • During probation period: if beyond the first month of probation, at least 7 days notice is required unless the contract specifies more.

  • After probation: usually the notice period is agreed in the contract; if none is agreed, a minimum of 1 month notice is required

Payment in lieu of notice or notice waiver

The employer can choose to waive the notice period by paying the employee an amount equal to their earnings for that notice period.

End-of-Service Benefits

Severance

  • Severance payment is due where the employee has been continuously employed for at least 24 months and is dismissed because of redundancy (not possible under the EOR setup) or other genuine operational reasons.

  • If the employee qualifies for severance, they are not eligible for long service payment and vice versa.

Other Benefits

  • Wages earned up to the date of termination

  • Payment for untaken annual leave and pro rata public holidays as per contract or statute

  • Payment for any other contractual or statutory entitlements accrued up to termination

Termination Documentation

  • A termination letter to the employee specifying the termination date and notice given or payment in lieu

  • A final pay statement detailing all wages, leave payments, severance or other benefit payments

  • If requested, a certificate of employment or separation showing period of service and position

Mutual Termination Agreements in Hong Kong

Notice

Form

A written mutual agreement signed by both parties.

Notice period

Not required by law if termination is by mutual consent, unless specified in the agreement.

Waiver of notice

Not applicable unless the mutual agreement includes payment in lieu as part of the terms.

End-of-Service Benefits

Severance

  • Severance payment is not automatically due in mutual termination.

  • However, if the termination is initiated by the employer and agreed to by the employee, and the employee qualifies for severance (at least 24 months of service and redundancy-type situation, which is not possible under the EOR setup), it can be included.

  • Long service payment may also apply if the employee has at least 5 years of service and the agreement is not treated as a resignation.

Other Benefits

  • Wages earned up to the termination date must be paid

  • Payment for any unused statutory annual leave and pro-rated entitlements

  • Other contractually agreed benefits or ex gratia amounts may be included in the termination agreement

Termination Documentation

  • Signed mutual termination agreement setting out the terms, final date of employment, and any payments to be made

  • Final wage and benefit statement

  • Certificate of employment if requested by the employee, indicating the period and nature of employment

Offboarding Process for the End of Fixed-term Contracts in Hong Kong

If the Fixed-Term Contract Ends Normally

Notice

  • No statutory notice is required if the fixed-term contract expires on its agreed end date and neither party seeks to renew it.
  • However, if the contract includes a renewal clause or requires notice before expiry, those terms must be followed.

End-of-Service Benefits

Severance/Gratuity

  • If the contract ends due to redundancy and the employee has at least 24 months of continuous service, severance payment may be required (not possible under the EOR setup).
  • If the employee has worked for five or more years and the contract ends without serious misconduct or resignation, long service payment may apply if severance is not paid.

Other Benefits

  • Payment for wages up to the contract end date
  • Compensation for unused statutory annual leave and pro-rated statutory holidays
  • Other contractually agreed benefits (e.g. bonuses, allowances), if accrued before the end date

If the Employer Terminates Early

Notice

  • If the contract allows early termination with notice, the employer must give the agreed notice period or payment in lieu.
  • If no early termination clause exists, ending the contract early can be considered a breach of contract and could entitle the employee to compensation.

End-of-Service Benefits

Severance/Gratuity

  • Severance is payable if the employee has at least 24 months of continuous service and is terminated due to redundancy (not possible under the EOR setup).
  • Long service payment may be due if the employee has at least 5 years of service and is dismissed without cause and not paid severance.
  • Compensation in lieu of the remaining contract term may apply if the contract is breached without proper notice.

Other Benefits

  • Final payment of earned wages
  • Payment for unused leave and other accrued statutory entitlements
  • Any other compensation agreed in the employment contract or negotiated upon early termination

Final Payment Timing & Immigration and Visa Compliance in Hong Kong

Final Payment Deadline

The employer must pay all outstanding wages and termination-related payments (including notice pay, leave pay, and any severance or long service payment) no later than seven days after the date of termination of employment.

Penalty

If the employer fails to make final payment within seven days, they are in breach of the Employment Ordinance. The employee may lodge a complaint with the Labour Department. The employer may face criminal liability, including fines and prosecution. Continued failure to pay can also entitle the employee to lodge a civil claim and may result in additional penalties or court-ordered compensation.

Visa and Immigration Compliance

  • For foreign employees on employment visas, the employer is required to notify the Immigration Department of the termination in writing.
  • The notification should be made as soon as possible after termination.
  • The work visa becomes invalid upon termination, and the foreign national must either leave Hong Kong or obtain a new visa if they wish to stay.
  • The employer should also issue a Certificate of Employment if requested, to support future visa applications or immigration processing.
  • Employers must retain accurate records of employment and termination for compliance purposes.

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.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Expand in Hong Kong, Hassle-Free

From onboarding and payroll to offboarding and visa support, RemotePass simplifies it all so you can focus on growing your team.

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.

FAQs About Hiring in Hong Kong

Got Questions? Find Answers Here

Who's exempt from MPF contributions?

Very few people. If your employee is aged 18-64 and works at least 60 days, MPF applies whether they're full-time, part-time, or casual. The only real exemptions are for those covered under recognized overseas retirement schemes or employees in specific exempt categories.

Seven days of annual leave after a year seems low. Is that normal?

Yes, that's Hong Kong. It scales slowly. One extra day per year of service until it caps at 14 days after nine years. Many competitive employers offer more generous leave in their contracts to attract talent.

What's the difference between severance and long service payment?

You can't get both. It's one or the other. Severance applies when someone's dismissed due to redundancy (not possible under EOR) after 24 months. Long service payment applies when someone's dismissed without cause after five years. Different thresholds, different reasons, but never both.

What happens to an expat's visa when they leave?

It becomes invalid immediately. You must notify Immigration in writing as soon as possible. The person needs to leave Hong Kong or secure a new visa quickly—there's no grace period once employment ends.

How does the Salaries Tax calculation work?

Hong Kong calculates it both ways, progressive rates (2%-17%) and a flat 15% standard rate, then charges whichever is lower. For most employees, progressive rates result in less tax. High earners usually hit the 15% standard rate cap.

Does sick leave carry over if I don't use it?

Yes, it accumulates up to a maximum of 120 days. Employees build a sick leave bank over time, which makes it less likely you'll face long unpaid absences.

دعنا نَدْرُدْش

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.