Employer of Record in Hong Kong

Businesses can only operate smoothly in Hong Kong if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Hong Kong below, to avoid any compliance issues.

Employment Contract Requirements

Navigating Hong Kong's dynamic business environment with international outlooks and sophisticated regulations is essential when initiating the employment process, which involves adhering to several formalities:

• Provide a comprehensive offer letter detailing the terms of employment.
• Specify the date of commencement of employment.
• Outline the employee's ordinary working days and hours.
• Clearly define the probationary period within the employment contract.

Onboarding Process

We can help you get a new employee started in Hong Kong quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Hong Kong

In Hong Kong, typical working hours are from 9 am to 6 pm, Monday to Friday, with no legal limitations on maximum working hours for adults. However, individuals aged 15 to 18 working in industrial settings are restricted to an 8-hour workday between 7 am and 7 pm, with a weekly limit of 48 hours.

Overtime in Hong Kong

Overtime regulations in Hong Kong are generally specified by the company's policy, which is usually outlined in either the employment contract or the Collective Bargaining Agreement.

Probation Period in Hong Kong

The probation period in Hong Kong for permanent employees is generally set between 1 month to 6 months.

Fiscal Year in Hong Kong

1 April - 31 March is the 12-month accounting period that businesses in Hong Kong use for financial and tax reporting purposes.

Payroll Cycle in Hong Kong

The payroll cycle in Hong Kong is usually monthly, with employees being paid by the last working day of the month.

Minimum Wage in Hong Kong

The minimum wage for employees in Hong Kong is typically 40 HKD per hour, amounting to ~6,400 HKD per month for a typical 40 hour work week.

Bonus Payments in Hong Kong

It is customary to pay a 13th salary before the Chinese Lunar New Year or at the end of the year.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 0% - 17% on top of the employee salary in Hong Kong.

Employee Payroll Tax Contributions

In Hong Kong , the typical estimation for employee payroll contributions cost is around 5%.

Individual Income Tax Contributions

Income tax in Hong Kong is 'Pay As You Earn'. The individual income tax ranges from 2% to 17%.

Pension in Hong Kong

In Hong Kong, the Mandatory Provident Fund (MPF) system serves as the primary pension scheme, requiring both employers and employees to make contributions to retirement funds managed by private trustees.

Mandatory Leave Entitlement in Hong Kong

The annual leave entitlement in Hong Kong is 8 - 14 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Hong Kong

Hong Kong has 13 mandatory national public holidays in a year.

Paid Time Off in Hong Kong

Employees with a minimum of 12 months of employment receive 7 days of paid annual leave, which increases by one day per additional year of service until reaching a maximum entitlement of 14 days in the ninth year of employment.

Maternity Leave In Hong Kong

In Hong Kong, a pregnant employee with a continuous contract of at least 40 weeks is entitled to 14 weeks of paid maternity leave, with an additional 14 weeks available for complicated or multiple births, beginning between two to four weeks before the due date.

Paternity Leave In Hong Kong

In Hong Kong, male employees with a continuous contract of at least 40 weeks before the first day of paternity leave can take 5 days of leave. This leave can be taken consecutively or on separate days within four weeks before the expected delivery date and up to 10 weeks after the actual birth of the child.

Sick Leave In Hong Kong

During the initial 12 months of employment, employees accrue 2 paid sick days per month. The following are also relevant to sick leave in Hong Kong:

• After completing one year of service, the accrual increases to 4 paid sick days per month.
• The maximum accumulation of paid sickness days is capped at 120.
• Sick pay is calculated at 80% of the average daily earnings in the preceding 12-month period before the first day of sickness for employees with more than 12 months of service.
• For employees with less than 12 months of service, sick pay is based on average earnings since the employment start date.

Parental Leave In Hong Kong

There is no statutory provision for shared parental leave in Hong Kong.

Termination Process in Hong Kong

The Employment Ordinance in Hong Kong outlines valid termination reasons, including:

• Employee misconduct
• Employee's capability or qualifications to perform their job
• Redundancy

Notice Period in Hong Kong

In Hong Kong, notice periods are typically 30 days, although employers can stipulate longer periods in employment contracts. During the probation period, neither the employer nor the worker needs to give notice to terminate.

Severance in Hong Kong

Employees with at least two years of continuous service are entitled to statutory severance payment in the event of redundancy.