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Known for its status as a global financial hub, Hong Kong provides a gateway to Asian markets and a high degree of legal protection for businesses. Companies looking to hire in Hong Kong can benefit from a highly educated and skilled workforce, strategic location, robust economy, and business-friendly environment.
Employment contracts in Hong Kong can either be fixed term or indefinite, and there are no limitations on job titles that can be hired in Hong Kong.
There is no law in Hong Kong establishing a standard workday or workweek, setting a maximum number of work hours, or requiring payment of overtime. Such matters may be negotiated between the employer and the employee via an employment agreement. The common practice in Hong Kong is a 40-50 hour working week.
There is no law in Hong Kong binding a maximum number of work hours, or requiring payment of overtime. Such matters may be negotiated between the employer and the employee via an employment agreement.
Hong Kong's minimum wage is currently HKD 40 per hour, applicable regardless of age, contract type, or payment period.
There is no restriction on the use of probationary periods in Hong Kong, and they are common, typically ranging from 3 to 6 months.
Individual income tax rates in Hong Kong depend on many factors, including number of children, and range from 2% to 17%.
Employees and employers are both required to make mandatory contributions of 5% of the employee's relevant income into the employee's Mandatory Provident (MPF) Fund, subject to the minimum and maximum relevant income levels.
For monthly paid employees, the current minimum and maximum relevant income levels are $7,100 and $30,000 respectively, plus the above-mentioned 5% rule.
Any contributions exceeding 5% of the employee’s salary would be regarded as voluntary contributions to the MPF scheme and not deductible for tax purposes.
Employees in Hong Kong are entitled to 7 days' annual leave with pay after serving 12 months under a continuous contract.
There are no statutory rules governing unused leave. Agreements commonly stipulate one of the following:
If an employee has been working for at least 3 months before a public holiday, they get holiday pay. Holiday pay should be paid on the next payday after the public holiday.
The daily rate of holiday pay is equivalent to the average daily wages earned by the employee in the 12-month period preceding specific dates. For employees employed for less than 12 months, the calculation is based on the shorter period of employment.
Employees in Hong Kong receive 2 paid sickness days for each completed month of employment during the first 12 months, and 4 paid sickness days for each additional completed month of employment.
Paid sickness days can be accumulated throughout the entire employment period -- though accumulation should not exceed 120 days at any one time.
Sick leave in Hong Kong should be supported by an appropriate medical certificate. For absences due to compliance with specific anti-epidemic requirements, proof of such requirement is required under the Prevention and Control of Disease Ordinance (Cap. 599).
Employees in Hong Kong are entitled to 10 weeks of continuous maternity leave, and maternity leave is paid at 80% of the employee's regular salary.
To be eligible for paid maternity leave, an employee must have worked in the company for at least 40 weeks before the leave. The employee can inform their employer of their intention to start the leave at least 2 to 4 weeks before the confinement date. Failure to notify the employer results in leave commencing 4 weeks before the date of confinement.
Paternity leave is granted for 5 days to fathers before or shortly before the birth of a child. These days may be taken separately or consecutively based on the employee's preference. A father must have been employed for no less than 40 weeks to qualify for paternity leave. Additionally, a man can be entitled to paternity leave if they adopt a child and assume full responsibility (this applies if the adopted child is under the age of eighteen years).
An employee must notify the management of their intention to take paternity leave:
While on paternity leave, the employee receives 80% of their normal daily wage.
The following leaves are not mandatory, but are regularly offered by employers in Hong Kong:
There are several Public Holidays in Hong Kong. Public holidays that fall on a Sunday are moved to a weekday as a day off in lieu. Public holidays that fall on a Saturday are usually lost.
In most cases, employers need cause to terminate an employment contract.
An employer may terminate an employee’s contract without notice in cases of serious misconduct, such as:
Note: Participation in a strike is not grounds for termination without notice or payment.
An employee may terminate their employment contract without notice if:
Summary dismissal is a serious disciplinary action, and it applies only to cases of very serious misconduct or failure to improve after repeated warnings from the employer.
During probation, the minimum notice period is 7 days. Outside of probation, the minimum notice period is 1 month. Payment can be made in lieu of notice.
Any unused leave must be paid out in the employee’s final salary. Additionally, severance may be payable to the employee based on their length of service.
Termination payments usually include:
Employees with continuous service for 2 years or more are eligible for severance payments.
These are calculated using either:
Total severance payment is capped at HKD 390,000. Employers can offset liability by any gratuity or retirement scheme payment made to the employee for the years of service for which the severance payment is payable.
Presumption of Redundancy:
N/A
★ 5% - Mandatory Provident Fund (MPF)
You've sourced a full-time employee or contractor located in a country where your company is not incorporated.
Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.
Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.
It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.
Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.
