# Hiring in Hong Kong: employment costs, payroll and compliance

> Machine-readable page from EOR Overview (https://eoroverview.com/), an independent research platform for Employer of Record services.
> Canonical page: https://eoroverview.com/hiring-guides/hong-kong/
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> Statutory data last updated: 2026-01-01. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Asia |
| Currency | HKD (Hong Kong dollar) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | HK$40 | 2024 |
| Payroll cycle | monthly | 2026 |
| 13th-month salary | none | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 5% | 2024 |
| Employee social security | 5% | 2024 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 4.3 weeks | 2019 |
| Severance pay | 1.4 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Paid annual leave | 10 days | 2026 |
| Public holidays | 15 days | 2026 |
| Maternity leave | 14 weeks | 2026 |
| Paternity leave | 1 week | 2026 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 65 | 2018 |
| Unemployment rate | 2.8% | 2025 |
| GDP per capita | $54,075 | 2024 |
| Union density | 26.1% | 2016 |

## Overview

Hong Kong's employer social security contribution sits at 5% of gross salary, one of the lowest among major hiring destinations worldwide. That single figure tells you a lot about what hiring here looks like: a lean statutory cost base, a highly skilled labour force of around 3.8 million people, and an unemployment rate of just 2.8% in 2025, which means competition for good candidates is real.

Using an Employer of Record (EOR) in Hong Kong means you can put someone on a compliant local payroll without setting up a Hong Kong entity first. The EOR handles mandatory Mandatory Provident Fund (MPF) contributions, employment contracts under the Employment Ordinance, and payroll processing, while you focus on the actual work. With a GDP per capita above USD 54,000, you are hiring in a premium market, and salaries reflect that.

## Cost context

The employer cost on top of gross salary in Hong Kong is driven almost entirely by the MPF contribution, set at 5% of the employee's gross relevant income. There are no additional employer-side health insurance levies or multi-layered social security tiers stacked on top of that, which keeps the statutory on-cost structure straightforward compared to most other markets.

## Things to watch

A few things specific to Hong Kong are worth keeping front of mind before you hire:

- MPF contributions are capped, not open-ended. Both employer and employee each contribute 5% of gross salary into the Mandatory Provident Fund. The contribution applies to relevant income, so understanding the cap thresholds matters when budgeting for higher earners.

- Notice periods run just over four weeks. The statutory notice period averages 4.3 weeks, but many professional contracts go longer. Check what your EOR builds into the employment contract so you are not caught short when someone resigns or you need to end an engagement.

- Severance is calculated at 1.4 weeks per year of service. That is relatively modest compared to many Asian markets, but it still needs to be factored into any exit planning, especially for longer-tenured employees.

- Tight labour market. With unemployment at 2.8%, candidates have options. Salary benchmarking matters more here than in markets with looser labour supply, and your EOR should be able to help you position compensation competitively.

Providers ranked for Hong Kong: https://eoroverview.com/best/hong-kong/