Hong Kong
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Hong Kong
Everything you need to know about payroll, benefits & hiring top talent in Hong Kong
Currency
Hong Kong Dollar (HKD)
Salary payment frequency
Monthly
Capital
Time Zone
GMT +8:00
Official Languages
Chinese, English
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- Hong Kong, officially known as the Hong Kong Special Administrative Region of the People’s Republic of China (HKSAR), is a city and special administrative region of China located on the south coast of People’s Republic of China nearby Pearl River delta and the coast of South China
- It spans an area of 1,104 km2 (426 sq mi) and has a population of approximately 7.5 million
- Hong Kong is one of the most developed cities in the world, ranking 4th on the HDI
- Its nominal GDP is estimated at $368.633 billion (2021) and PPP is estimated at $472.395 billion (PPP, 2021)
Why Employ In Hong Kong?
- The main exports from Hong Kong are electrical machinery and appliances, textiles, watches and clocks, toys and jewellery
- 8.81 % of the population is between the ages of 15 and 24 years, with 42.66% of the population being between the ages of 25 and 54. Hong Kong has fairly mature population, making it a favourable country to hire more experienced employees
Overview of the Labour Law
- The Employment Ordinance (EO) is the main source of employment law in Hong Kong
- The EO applies to all employees under a contract of employment in Hong Kong, regardless of their nationality. It covers matters such as working hours, minimum wage, leave, notice periods and termination
- The Trade Union Ordinance is also applicable to those employees registered under a trade union
- Hong Kong labour regulation protect both the employer as well as the employee
Fun Country Facts
- Fiber Optics were invented by a Hong Kong professor
- The number 4 is considered unlucky and many buildings such as hospitals don’t have a 4th floor
- Hong Kong is the city with the greatest number of skyscrapers in the world
Why Use Playroll Services For Hong Kong?
- Employing in Hong Kong requires companies to have their own legal entity in the country as well to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Hong Kong
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing your team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Medical
Optional. Employers may choose to provide health and life insurance benefits to employees as a supplementary benefit
Employee’s Compensation Ordinance (ECO)
The amount of the liability which must be insured is determined by reference to the total number of the employees:
- Less than 200 employees- insurance policy must provide a minimum coverage of HK$100 million per event
- More than 200 employees- insurance policy must provide a minimum coverage of HK$200 million per event
Mandatory Provident Fund (MPF)
Calculated on total monthly salary
Calculated on a maximum salary of HKD 30,000 per month
5.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Mandatory Provident Fund (MPF)
Calculated on total monthly salary
Earning between 0.00 and 7100.00
0.00%
Earning between 7100.00 and 30,000.00
5.00%
Income Tax
Income Tax is ‘Pay As You Earn’
Income tax rate is the lower rate between the tax per income bracket and the standard rate on net income
Income bracket per annum
0.00 – 49,999.00
2.00%
50,000.00 – 99,999.00
6.00%
100,000.00 – 149,999.00
10.00%
150,000.00 – 199,999.00
14.00%
200,000.00 or more
17.00%
Standard rate on net income
15.00%
Employment Terms
General
Minimum Wage
- HKD 37.50 per hour
Working Hours
- There are no statutory standard working hours
- There is no specific statutory duration of the meal interval or rest breaks
- Employers and employees must negotiate work hours, meal intervals and rest breaks
- Typical working hours start at 09h00 and end at 18h00, Monday to Friday
Overtime
- There are no statutory standard working hours
- Employers and employees must negotiate overtime hours
Notice Period
- 7 days- if stipulated in the employment contract
- 1 month- if not stipulated in the employment contract
Severance Pay
- Calculated by multiplying two-thirds of the employee’s last month’s wages and the period of continuous employment (in years, including any fraction of a year). Monthly wages above HKD22,500 are disregarded. The maximum payment is HKD390,000
- The severance payment can be reduced by the total amount of gratuities paid to the employee, or by the value of benefits accrued in respect of that employee in an MPF scheme or occupational retirement scheme
Probation Period
- There is no statutory probation period
- It is common to provide a probation period between 1 and 6 months
Bonus
- There is no statutory bonus
- It is common provide a 13th month salary or an annual bonus
Public Holidays
- January 1st – New Year’s Day
- February 1st – February 3rd – Lunar New Year’s Day
- April 5th – Ching Ming Festival
- April 15th – Good Friday
- April 18th – Easter Monday
- May 1st – Labour Day
- May 8th – Birthday of Buddha
- June 3rd – Tuen Ng Festival
- July 1st – Hong Kong Special Administrative Region Establishment Day
- September 12th – The Second Day Following the Chinese Mid-Autumn Festival
- October 1st – National Day
- October 4th – Chung Yeung Festival
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- Employed between 1 and 2 years- 7 days per year
- Employed for 3 years- 8 days per year
- Employed for 4 years- 9 days per year
- Employed for 5 years- 10 days per year
- Employed for 6 years- 11 days per year
- Employed for 7 years- 12 days per year
- Employed for 8 days- 13 days per year
- Employed for 9 or more years- 14 days per year
Sick Leave
- Paid leave
- Paid by employer and Social Security
- 2 days for each completed month during the first 12 months of employment and 4 days for each completed month thereafter
- The maximum number of days that may be accumulated is 120 days
Maternity Leave
- Paid leave
- Paid by employer
- Minimum 14 weeks
- Employers may apply to the Government for reimbursement of the 11th to 14th weeks’ maternity leave pay
Paternity Leave
- Paid leave
- Paid by employer
- Minimum 5 days
Start hiring in Hong Kong today!