Hong Kong has the lightest mandatory contribution load in Asia — just 5% employer MPF, capped at HKD 1,500/month. No social insurance, no unemployment insurance, no universal healthcare contributions beyond MPF. For companies accustomed to China or South Korea payroll costs, this is refreshing. EOR still adds value here for speed: incorporating a Hong Kong company is straightforward, but if you need one or two people hired by next week, EOR is faster.
Hong Kong Employment at a Glance
| Detail | Value |
|---|---|
| Currency | Hong Kong Dollar (HKD) |
| Official Languages | Cantonese, English |
| Labour Regulator | Labour Department |
| Working Week | No statutory limit (typically 40–44 hours) |
| Annual Leave | 7–14 days (increases with tenure) |
| Probation Period | Typically 1–3 months (no statutory requirement) |
Mandatory Contributions
Mandatory Provident Fund (MPF)
- Employer: 5% of relevant income (capped at HKD 1,500/month)
- Employee: 5% of relevant income (capped at HKD 1,500/month)
- Minimum income threshold: HKD 7,100/month (employees below this threshold have zero employee contribution)
MPF is the sole mandatory contribution in Hong Kong. There is no social insurance, unemployment insurance, or employer-funded healthcare scheme.
Employment Ordinance
Hong Kong’s Employment Ordinance sets the employment floor:
- Minimum wage: HKD 40/hour (as of 2024)
- Rest days: At least 1 per 7 days
- Statutory holidays: 13 days per year (increasing to 17 by 2030)
- Annual leave: 7 days after 1 year, increasing by 1 day/year up to 14 days maximum
- Maternity leave: 14 weeks at 4/5 of average daily wages
- Paternity leave: 5 days
- Severance payment: Available for employees with 2+ years dismissed due to redundancy (2/3 of last month’s wages per year of service, offset by MPF balance)
- Long service payment: For employees with 5+ years terminated for non-redundancy reasons
Tax System
Hong Kong’s salaries tax is genuinely simple compared to the rest of Asia:
- Progressive rates from 2% to 17%, or a flat rate of 15% — whichever is lower for the employee
- No GST or VAT, no capital gains tax, no withholding tax on dividends
- Territorial basis: only Hong Kong-sourced income is taxable
This means an employee working partly from overseas may only owe Hong Kong tax on the portion of their work performed in Hong Kong — a useful planning point for regional hires.
Using an EOR in Hong Kong
EOR providers with Hong Kong coverage:
- Deel — owned entity, fast onboarding
- Remote — strong Asia coverage
- Multiplier — headquartered in Singapore with deep Hong Kong presence
- Oyster — covers Hong Kong
Hong Kong’s employer obligations are the lightest in the region. EOR is most valuable here for companies that want to hire 1–5 employees quickly without the administrative overhead of incorporation.
Key Considerations
No statutory working hours cap: Hong Kong has no maximum working hours legislation. Employment contracts must specify hours clearly. Reform has been debated but not enacted — do not assume any cap applies.
Continuous contract matters: After 4 consecutive weeks working 18+ hours per week, an employee gains “continuous contract” status. This unlocks rest day entitlements, statutory holiday pay, severance eligibility, and annual leave rights. Structure part-time arrangements carefully if you want to avoid this threshold.
Visa sponsorship: EOR providers in Hong Kong can typically assist with work visa applications — primarily the IANG (Immigration Arrangements for Non-local Graduates) and GEP (General Employment Policy) visas for non-residents. Processing times vary; confirm your EOR’s immigration capability upfront if you’re hiring non-Hong Kong residents.
