Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Discover EOR in Hong Kong, where foreign employers can gain valuable information and insights about hiring and managing employees in the region. Explore essential details on employment laws, worker classifications, rights and protections, remuneration, and the role of the courts in determining employment relationships. Our comprehensive resources will assist you in navigating the complexities and ensuring compliance when engaging in employment practices in Hong Kong.
| Overview | |
| Continent | Asia |
| Country | Hong Kong |
| Capital | Hong Kong |
| Time zone | UTC+08:00 (HKT) |
| Total Time zones | 1 |
| Working hours per week | 40–48 |
| Working week | Monday–Saturday |
| Typical hours worked | 8 (many people work on Saturday either a half-day or full-day) |
| Personal Tax filing deadline | 2nd July |
| Financial Year | 1 April – 31 March |
| Date format | dd.mm.yyyy |
| Currency | Hong Kong Dollar (HKD) |
Employer Payroll Contributions in Hong Kong
| Employers | % of Gross Salary |
| Mandatory Provident Fund (MPF) | |
| Monthly Gross Salary | Contribution |
| less than 7,000 HKD | 5% |
| between 7,000 HKD and 30,000 HKD | 5% |
| more than 30,000 HKD | 1,500 HKD |
| Total Employment Cost | 5% if gross salary is less than 30,000 HKD |
| Total Employment Cost | 1500 HKD if the gross salary is more than 30,000 HKD |
Employee Payroll Contributions in Hong Kong
| Employees | % of Gross Salary |
| Mandatory Provident Fund (MPF) | |
| Monthly Gross Salary | Contribution |
| less than 7,000 HKD | 0% |
| between 7,000 HKD and 30,000 HKD | 5% |
| more than 30,000 HKD | 1,500 HKD |
| Total Employee Cost | 0% if gross salary is less than 7,000 HKD |
| Total Employee Cost | 5% if gross salary is between 7,000 HKD 30,000 HKD |
| Total Employee Cost | 1500 HKD if the gross salary is more than 30,000 HKD |
Minimum Wages in Hong Kong
| Minimum Wage | |
| Minimum Wage | The minimum wage in Hong Kong is 37.5 HKD per hour. |
Payroll Cycle in Hong Kong
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not mandatory, down to individual company. |
Income Tax Slabs in Hong Kong
| Income Tax | |
| Up to $50K | 2% |
| Up to $100K | 6% |
| Up to $150K | 10% |
| Up to $200K | 14% |
| Above $200K | 17% |
Employment Categories in Hong Kong
In Hong Kong, the classification of individuals as employees or workers is defined by the Employment Ordinance (EO). An "employee" is someone who is bound by a contract of employment, which encompasses written or oral agreements where one party agrees to employ another who agrees to serve as an employee or apprentice.
The term "worker" does not have a specific legal definition in Hong Kong, and there is no clear test to differentiate between an "employee," "contractor," or "self-employed person." Instead, the nature of the employment is determined based on certain criteria.
In Hong Kong's employment law, the key distinction lies between "continuous" and "non-continuous" employment. To be classified as continuous employment, an individual must work for at least 18 hours per week for the same employer continuously for a minimum of four weeks. It is irrelevant if the employment is governed by separate contracts, as long as the required number of hours is met each week.
Independent contractors or self-employed individuals are recognized under Hong Kong law as distinct from employees. While most employment benefits outlined in the EO and other relevant ordinances apply to employees, independent contractors generally do not enjoy the same protections.
When determining whether a worker should be classified as an employee or independent contractor, Hong Kong courts consider various factors. These may include the level of control exerted over the work, the arrangements for remuneration and provision of equipment, and the worker's integral role in the business operation.
Misclassification of an employee as an independent contractor can lead to claims for entitlements under the EO. Employers may also face penalties for non-compliance with the laws governing employment obligations.
Understanding the distinctions between employee and independent contractor classifications is crucial for employers in Hong Kong to ensure compliance and provide appropriate benefits and protections to their workforce.