How to Hire Employees in Hong Kong using an Employer of Record?
Learn all you need about hiring employees in Hong Kong, laws, payroll and employer of records.
Quick Facts About Hong Kong
About Hong Kong
Hong Kong's strategic location, robust financial infrastructure, and simple tax system make it an attractive gateway for businesses expanding into the Asian market. While the city maintains its position as a major international financial center with high living standards and economic freedom indicators, setting up operations requires significant preparation. Companies face considerable time and resource investments when establishing a local presence, from incorporating an entity to navigating employment regulations and ensuring compliance with local labor laws.
Why use an EOR in Hong Kong?
Setting up a legal entity in Hong Kong can be complex and time-consuming, typically taking between 30 to 120 days and requiring a minimum capital of 1 HKD. Using an Employer of Record (EOR) allows you to start hiring immediately while ensuring full compliance with local labor laws and regulations.
Local Entity Setup
30-120 days
1 HKD
3000 HKD
Using an EOR
1-2 days
$0
$299-599
Per employee, includes all services
Employment Basics
Key requirements and regulations for hiring employees in Hong Kong.
Contract Requirements
Written employment contracts are not mandatory in Hong Kong, but they are recommended for clarity and legal protection.
The employment contract must include the following provisions:
- Job title
- Wage amount
- Wage period
- Termination notice period
Working Hours
Standard working hours in Hong Kong are 9 hours per day and 40 hours per week.
Overtime is limited to 20 hours, and must be compensated at 1x the regular hourly rate.
Probation Period
Probation period is not mandatory in Hong Kong. However, employers may include a probation period in the employment contract if desired.
Termination Requirements
Notice Period: 30 days (or 7 days if specified in contract)
Severance Pay: Eligibility: After 5 years of service Calculation: 2/3 of monthly wage × years of service (capped at HK$390,000)
Required documentation for termination:
- Written notice or payment in lieu
Compensation
Mandatory compensation requirements in Hong Kong.
Minimum Wage
The minimum wage is 40 HK per hourly.
Special Pay Requirements
Required Allowances:
- No statutory requirements
Required Bonuses:
- None mandated by law
Tax Structure
Tax obligations and reporting requirements for employers in Hong Kong.
income tax
| Income Range | Tax Rate |
|---|---|
| 0 - 50,000 | 2% |
| 50,000 - 100,000 | 6% |
| 100,000 - 150,000 | 10% |
| 150,000 - 200,000 | 14% |
| 200,000 - Above | 17% |
Employee Benefits
Hong Kong provides a comprehensive benefits package for employees that includes both mandatory and optional benefits. These benefits are designed to ensure employee welfare and comply with local regulations.
Mandatory Benefits
Leave Policies
Statutory leave entitlements for employees in Hong Kong.
Annual Leave
Employees are entitled to 7 days of annual leave per year, paid at 100% of their regular salary.
Sick Leave
Employees are entitled to 24 days of sick leave per year, paid at 100% of their regular salary.
Parental Leave
Employees are entitled to 70 days of parental leave per year, paid at 100% of their regular salary.
Paternity Leave
Employees are entitled to 5 days of paternity leave per year, paid at 100% of their regular salary.
Public Holidays
Hong Kong observes 15 public holidays throughout the year. Most holidays are paid at 100% of regular salary.
| Date | Holiday | Status |
|---|---|---|
| January 1 | New Year's Day | Mandatory |
| January 29 | Lunar New Year | Mandatory |
| January 30 | Lunar New Year | Mandatory |
| January 31 | Lunar New Year | Mandatory |
| April 5 | Ching Ming Festival | Mandatory |
| April 18 | Good Friday | Mandatory |
| April 21 | Easter Monday | Mandatory |
| May 1 | Labour Day | Mandatory |
| May 13 | Buddha's Birthday | Mandatory |
| July 1 | HKSAR Establishment Day | Mandatory |
| September 18 | Mid-Autumn Festival | Mandatory |
| October 1 | National Day | Mandatory |
| October 23 | Chung Yeung Festival | Mandatory |
| December 25 | Christmas | Mandatory |
| December 26 | Boxing Day | Mandatory |
Choosing an Employer of Record in Hong Kong
Key considerations and recommendations for selecting an EOR provider in Hong Kong.
What to Look for in an EOR Provider
When selecting an Employer of Record in Hong Kong, consider these key factors:
- Local expertise and presence in Hong Kong
- Compliance track record and regulatory knowledge
- Transparent pricing and fee structure
- Quality of customer support and response times
- Technology platform and integration capabilities
- Employee experience and onboarding process
Common Pitfalls to Avoid
Be aware of these potential issues when choosing an EOR provider:
- Hidden fees and unclear pricing structures
- Limited local market knowledge or presence
- Poor communication and support responsiveness
- Outdated technology and manual processes
- Lack of compliance guarantees
Recommended EOR Providers
To help you make an informed decision, we've created a comprehensive comparison of the best Employer of Record (EOR) providers in Hong Kong. Our analysis includes detailed pricing information, feature comparisons, and real customer reviews.