Hong Kong is a leading financial hub with a flexible, low-tax employment regime and a simple mandatory pension. All-in employer cost runs around 1.05x the gross salary. Here is what to know before your first Hong Kong hire.
Employment runs under the Employment Ordinance, with the Mandatory Provident Fund (MPF) the main statutory on-cost. There is no general social security; rules on holidays and continuous service are straightforward.
The statutory minimum wage is about HKD 40 per hour in 2024*, revised periodically.
Monthly payroll. A 13th-month or year-end bonus around Lunar New Year is common by contract.
There are statutory holidays and general holidays, moving toward 17 days a year as the two align.
Written terms are standard. Probation is commonly the first three months, with shorter notice during it.
The main employer cost is the MPF contribution of 5% of relevant income, subject to a cap. There is no employer social-security beyond MPF.
MPF is 5% of relevant income between a minimum and a maximum level, so the contribution is capped for higher earners.
Hong Kong has no payroll withholding; employees settle their own salaries tax at low rates. The employer files an annual return and manages MPF, which under EOR is ours.
From 7 days a year rising with tenure to 14 days under the Employment Ordinance.
14 weeks of maternity leave for eligible employees, with a portion reimbursed to the employer by the government.
Five days of paid paternity leave.
Paid sickness allowance accrues with service and is payable on qualifying sick days with a medical certificate.
Either side can end the contract with the notice in the agreement (commonly one month) or pay in lieu; 'continuous contract' rules trigger added entitlements.
Severance pay (for redundancy after two years) or long-service pay (after five years) is about two-thirds of a month's pay per year, subject to a cap.
Commonly three months, with as little as seven days' notice in the first month.
A contractor working like an employee can be found to be an employee, triggering Employment Ordinance entitlements and MPF.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Hong Kong employment contract, payroll, and MPF, handled. One invoice, flat $399 per month.