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Hong Kong

Asia·Hong Kong·Cantonese
Employer of RecordWork permit
Ask compliance →Talk to an expert

Rely on Lerio for accurate interpretations of complex employment laws in Hong Kong.

Capital
Hong Kong
Currency
HK$ / HKD
Language
Cantonese
Population
7M
Working week
40 hours / week
Statutory leave
13 holidays / year
Tax year
Jan – Dec
Minimum wage
HK$40

Partner with Lerio to keep employment in Hong Kong legally sound — contracts, payroll and statutory benefits handled against the live rule set.

CurrencyPayroll
All compensation is paid in HKD (HK$). Cross-border funding is converted at the daily rate on the pay date.
Working hoursSchedule
The standard week is 40 hours / week. Hours beyond the statutory limit are treated as overtime and typically paid at a premium.
Paid leaveTime off
Statutory time off is 13 holidays / year, in addition to nationally observed public holidays.
Payment frequencyCadence
The most common payment frequency is monthly. By law employees can also be paid bimonthly or weekly.
Minimum wageFloor
The statutory minimum is HK$40. Lerio blocks any contract drafted below the floor.
Tax yearCalendar
The Hong Kong tax year runs Jan – Dec. Year-end filings are prepared automatically.

Every figure below is modelled, not memorised — and traceable to its source via the calculator on the right.

Employee taxes

withheld from gross

Employee Taxes

withheld from gross
Personal Income Tax
Method A (Progressive Income Tax)
Tax Rate (%)
HKD 50,000
2%
HKD 50,000 - HKD 100,000
6%
HKD 100,001 - HKD 150,000
10%
HKD 150,001 - HKD 200,000
14%
Above HKD 200,001
17%
Method B (Limited Tax)
Tax Rate (%)
On the first HKD 5 million
15%
Over HKD 5 million
16%
Mandatory Provident Fund (MPF)
Description
Tax Rate (%)
Applied to annual gross income up to HKD 360,000
5%

Employer taxes

on top of gross

Employer Tax

on top of gross
Mandatory Provident Fund (MPF)
Description
Tax Rate (%)
Applied to annual gross income up to HKD 360,000
5%
▲
Rates are indicative and depend on individual circumstances. Run a salary through the calculator for a full breakdown, or ask the compliance agent for a citable figure.

You can hire in Hong Kong through Lerio’s Employer of Record — no local entity required.

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An Employer of Record (EOR) in Hong Kong allows foreign companies to hire employees in the region without setting up a local entity. The EOR becomes the legal employer on paper, handling all compliance, payroll, taxes, and HR administration, while you retain full control over the employee’s day-to-day activities and performance.

Why Use an EOR in Hong Kong?

Hong Kong is one of the most business-friendly markets in Asia, known for its strategic location, simple tax regime, and international workforce. However, employing talent directly requires establishing a legal entity, registering with tax authorities, and ensuring compliance with local labor laws. An EOR eliminates these barriers, enabling quick market entry and risk-free hiring.

Key Benefits of EOR in Hong Kong

  • Fast Market Entry: Hire in Hong Kong within days without waiting months to set up a local company.

  • Full Compliance: The EOR ensures adherence to Hong Kong’s Employment Ordinance, MPF (Mandatory Provident Fund) obligations, and tax laws.

  • Cost-Efficiency: Avoid the overhead costs of incorporation, accounting, and ongoing entity maintenance.

  • Flexibility: Test the market or build a team without long-term commitments.

  • Talent Access: Attract and onboard skilled professionals in Hong Kong quickly.

How It Works

  1. You Select Talent: You recruit or we help you find the right candidate in Hong Kong.

  2. EOR Hires on Your Behalf: The EOR becomes the legal employer, drafting compliant contracts and managing registrations.

  3. Employee Works for You: The employee carries out their role as part of your team, fully aligned with your business goals.

  4. Ongoing Support: The EOR manages payroll, MPF contributions, tax filings, benefits, and HR compliance.

Employment Compliance in Hong Kong

  • Employment Contracts: Must be written and compliant with the Employment Ordinance.

  • Working Hours & Leave: Hong Kong law regulates rest days, holidays, maternity/paternity leave, and annual leave entitlements.

  • Mandatory Provident Fund (MPF): Both employer and employee contribute to retirement savings.

  • Taxation: Employers must file employer returns and ensure correct Individual Income Tax reporting.

  • Termination: Notice periods and severance rules are governed by local legislation.

Who Benefits from EOR in Hong Kong?

  • Companies expanding into Asia for the first time.

  • Businesses testing the Hong Kong market before incorporation.

  • Global firms hiring individual contractors who need to transition to compliant employees.

  • Enterprises managing distributed teams and seeking risk-free hiring solutions.

What Lerio handles

✓
Compliant local contract
Drafted to Hong Kong labour law, in Cantonese and English, with the statutory clauses pre-filled.
✓
Onboarding & payroll setup
Tax registration, social-security enrolment and the first pay cycle, configured in HKD.
✓
Ongoing compliance
Document expiries, minimum-wage changes and Asia regulatory updates watched continuously.
✓
Statutory benefits
Leave, public holidays and mandatory contributions administered automatically.

Typical timeline

via EOR
Day 0
Offer accepted. Candidate details enter Lerio; the contract drafts itself from the Hong Kong template.
Day 1–3
Contract signed. Local registrations and benefit enrolment begin in parallel.
Day 3–7
Ready to work. Equipment, access and the first payroll run are scheduled.
Monthly
Steady state. Payroll, filings and compliance run on autopilot with a human approval gate.

Statutory benefits in Hong Kong, plus the supplemental coverage teams usually add.

Mandatory

✓
Pension
✓
Health insurance
✓
Time off

Commonly added

optional
✓
Supplemental coverage

1. Statutory Employee Benefits (Legally Required)

Employment conditions in Hong Kong are primarily governed by the Employment Ordinance (Cap. 57) — which sets out employees’ rights and employer obligations.

1.1. Paid Annual Leave

  • Entitlement: After 12 months of continuous employment.

  • Duration:

    • 1 year → 7 days

    • Gradually increases by 1 day per year of service up to a maximum of 14 days after 9 years.

  • Carry-over: Can be carried forward up to 12 months if agreed.

1.2. Statutory Holidays

  • Employees are entitled to 13 statutory holidays per year (to be increased to 17 by 2030).

  • If required to work, the employee must receive a day off or compensation pay.

1.3. Rest Days

  • At least 1 rest day in every 7-day period.

  • Rest days can be paid or unpaid, depending on contract terms.

1.4. Statutory Sick Leave and Sick Pay

  • Paid sick leave accrues at 2 days per completed month during the first year, and 4 days per month thereafter.

  • Can accumulate up to 120 days.

  • Statutory Sick Pay (SSP):

    • Paid at 80% of average daily wages.

    • Payable only if the sick leave is supported by a medical certificate and lasts for 4 consecutive days or more.

1.5. Maternity Leave and Pay

  • Leave: 14 weeks (extended from 10 in 2020).

  • Pay: 80% of average daily wages for eligible employees (those employed continuously for 40+ weeks before maternity leave).

  • Employer can apply for government reimbursement for the additional 4 weeks (up to HK$80,000).

1.6. Paternity Leave and Pay

  • Leave: 5 days.

  • Pay: 80% of average daily wages (if employed continuously for 40+ weeks before the leave).

1.7. Long Service Payment (LSP) / Severance Payment (SP)

  • Payable upon termination (other than dismissal for cause) or redundancy, depending on years of service.

  • Formula:
    (2/3) × (Last full month’s wages) × (Years of service)

    • Capped at HK$22,500 per year of service or HK$390,000 total (whichever is lower).

1.8. Mandatory Provident Fund (MPF)

  • The MPF system is Hong Kong’s compulsory retirement savings scheme.

  • Contribution rates:

    • Employer: 5% of employee’s relevant income

    • Employee: 5% (deducted from salary)

    • Income cap: HK$30,000/month → max contribution HK$1,500 each.

    • Employees earning below HK$7,100/month are exempt from contributing but employers must still contribute.

1.9. Protection Against Unfair Dismissal

  • Employees with 24+ months of continuous service are protected from dismissal without a valid reason (e.g., misconduct, redundancy, etc.).

1.10. Public Healthcare and Social Protection

  • Hong Kong offers public healthcare subsidized by the government.

  • No public unemployment or health insurance systems — hence many employers provide private medical coverage.

2. Common Voluntary (Employer-Provided) Benefits

Many employers offer additional benefits to compete for talent, especially in sectors like finance, tech, and professional services.

2.1. Medical and Dental Insurance

  • One of the most common perks.

  • Often includes outpatient, inpatient, and dental coverage for employees (and sometimes dependents).

2.2. Life and Accident Insurance

  • Lump-sum payment in case of death or permanent disability during employment.

2.3. Enhanced MPF / Retirement Schemes

  • Some employers contribute more than 5% or set up Occupational Retirement Schemes (ORSO) with higher benefits.

2.4. Performance and Annual Bonuses

  • Common practice in Hong Kong — often equal to one month’s pay (“13th month bonus”) or performance-based.

2.5. Paid Marriage and Compassionate Leave

  • Although not statutory, many employers provide 1–3 days for marriage and 1–5 days for bereavement.

2.6. Flexible and Remote Working

  • Increasingly popular, especially after COVID-19.

  • Some companies offer hybrid models or work-from-anywhere options.

2.7. Professional Development Support

  • Training, educational allowances, conference attendance, and certification reimbursements.

2.8. Employee Wellness Programs

  • Mental health support, gym memberships, wellness allowances, or team-building activities.

2.9. Meal or Transport Allowances

  • Especially in retail, manufacturing, or logistics sectors.

2.10. Stock Options / Equity Plans

  • Common among startups and multinational tech firms as part of long-term incentive schemes.

3. Typical Employer Practices

Benefit Type

Typical Offering (Beyond Statutory)

Annual Leave

14–20 days

MPF

Employer contributions up to 10% (for senior staff)

Medical

Full private coverage + dependents

Bonus

1–3 months’ salary, performance-linked

Work Flexibility

Hybrid / fully remote arrangements common in knowledge industries

4. Compliance & Best Practices

  • All employment contracts must comply with the Employment Ordinance and MPF Schemes Ordinance.

  • Employers must issue pay slips, keep wage records (for 12 months), and honour statutory entitlements.

  • Non-compliance can lead to fines or criminal liability.

5. Key Government Bodies

  • Labour Department (LD) – enforces the Employment Ordinance

  • Mandatory Provident Fund Schemes Authority (MPFA) – oversees retirement contributions

  • Inland Revenue Department (IRD) – tax compliance for salaries and benefits

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Lerio benchmarks each package against live Asia data — open the comp agent to see where an offer lands.