Hiring in Hong Kong: Complete Guide 2027
Everything you need to know about hiring and managing employees in Hong Kong
Overview
Hong Kong is the cheapest developed market in Asia to put an employee on payroll. The employer pays 5% of salary into the Mandatory Provident Fund (MPF), capped at HK$1,500 a month, plus employees' compensation insurance; there is no other social security. Salaries tax tops out at 17% and the employee settles it with the Inland Revenue Department. The catch since 1 May 2025 is the long service payment, no longer offset against MPF: an EOR accrues two thirds of a month's wage per year of service. Foreign hires need an Employment Visa sponsored by the employing entity.
Currency
Primary Language
Payroll Tax
Pay Frequency
Overview
Employer Costs
Employer Social Contributions
Mandatory Benefits
EOR Service Fee
Total Additional Cost
Employee Deductions
Income Tax
Employee Social Contributions
Mandatory Employee Benefits
PAYROLL & SETUP
Setting Up Payroll in Hong Kong
Payroll in Hong Kong is monthly and wages are due within seven days of the end of the wage period (Employment Ordinance, Cap. 57). The employer needs a Business Registration certificate from the Inland Revenue Department and enrols each employee in an MPF scheme within 60 days. Contributions are 5% from the employer and 5% from the employee on relevant income between HK$7,100 and HK$30,000 a month, so each side pays at most HK$1,500; below HK$7,100 the employee pays nothing and the employer still pays its 5%. Money reaches the trustee by the 10th of the next month. Employees' compensation insurance is compulsory, 0.5 to 2% of payroll by occupation. No tax is withheld: the employer files IR56E within three months of a hire, IR56B each April and IR56F or IR56G on departure; the employee pays provisional salaries tax. Minimum wage is HK$43.1 an hour from 1 May 2026. The EOR handles the MPF enrolment, the IR56 filings and the insurance.
Key Labor Laws &
Requirements
Employment Contracts
- Written contract is standard, usually in English
- Continuous contract after 4 weeks of 18 hours or more
- Probation is contractual; no notice in the first month
Leave & Time Off
- 7 to 14 days' annual leave by tenure
- Paid sickness days accrue 2 to 4 a month, up to 120
- Maternity 14 weeks, paternity 5 days, at four fifths of pay
Termination Rules
- Notice of 7 days minimum, one month if not stated, or pay in lieu
- No statutory reason needed outside protected situations
- Long service payment after 5 years, no MPF offset since May 2025
COMPLIANCE
MPF Offsetting Abolition and Long Service Payment in Hong Kong
Until 1 May 2025 a Hong Kong employer could pay a long service payment or a severance payment out of its own MPF contributions. The Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2022 ended that for service after the transition date; the pre-transition portion stays offsettable, and the government shares the new cost for 25 years through a subsidy scheme. The amounts are real: two thirds of the last month's wages (capped at HK$22,500) per year of service, up to HK$390,000, as a long service payment after five years' service or as a severance payment on redundancy after two years. An EOR now has to accrue that liability from day one. Ask where it sits in the fee.
Key Challenges
- Long service payment no longer offset against MPF since 1 May 2025
- Every non-resident hire needs an Employment Visa sponsored by the employing entity
- No statutory cap on working hours, so overtime is whatever the contract says
- Medical insurance is expected on top of MPF
- Statutory holidays rising from 14 to 17 by 2030, a moving payroll calendar
Country Highlights
Advantages
- Employer on-cost of 5%, capped at HK$1,500 a month
- Salaries tax never above 16%, and no withholding to run
- English-language contracts under common law
- Termination on seven days' notice or pay in lieu, no reason required outside protected cases
- Freely convertible currency pegged to the US dollar since 1983
Popular Industries & Roles
Technology
Avg. Salary: HK$480k-HK$900k
Hong Kong's fintech and software employers compete with Shenzhen for engineers; English-speaking product and data roles pay a premium.
Financial Services
Avg. Salary: HK$600k-HK$1.2m
Asset management, private banking and insurance in Central pay the highest salaries in the city, with bonuses on top.
Logistics & Trade
Avg. Salary: HK$360k-HK$650k
The port, the airport and the trading houses employ supply-chain, procurement and shipping specialists serving the Pearl River Delta.
Top 3 Providers in Hong Kong
Based on our analysis of pricing, compliance record, service quality, and customer reviews
Links International
- APAC and Middle East EOR from $300/month
- 100% owned delivery across 30 locations
- Certified Workday, SAP and Oracle integrations
- Founded 1999 in Hong Kong; part of Ascentium
Deel
- EOR in 130+ countries; owned entities in 120+
- Contractor and EOR in one platform
- 300+ integrations including Slack, Workday
- AI-powered compliance automation
AYP Group
- APAC-owned entities in 14+ markets
- From $488/month EOR; $28/month payroll
- JuzTalent HRIS platform included
- No minimum headcount, transparent pricing
Frequently asked questions
Hiring in Hong Kong through an EOR, in short.
Need a shortlist?
Two minutes, ten providers ranked for your brief.
How much does an employer pay on top of salary in Hong Kong?
Employer contributions in Hong Kong come to 5% MPF, cap HK$1,500; the largest mandatory line is MPF 5%. With the other statutory benefits and a typical EOR fee, budget ~12–25% on top of gross salary.
What does an EOR charge per employee in Hong Kong?
Published EOR fees in Hong Kong run $400–700/mo per employee per month, with any setup fee negotiated separately. The fee is flat, so it weighs less as the salary rises.
What does an employee in Hong Kong pay in tax and contributions?
Income tax is 2–17%, capped at 15–16% and employee social contributions are 5% MPF, cap HK$1,500 (5% MPF), both withheld by the employer on every pay run.
How long does it take to hire through an EOR in Hong Kong?
1-3 Days once the employee's documents are in. The contract is issued by the EOR's local entity and payroll runs on the local cycle (Monthly).
Which EOR providers rank best in Hong Kong?
Links International, Deel and AYP Group hold the first three places in our ranking for hiring in Hong Kong. The full top 10, with the questions to put to each provider before signing, is here: Top 10 EOR providers in Hong Kong.
Find a better EOR — without risk
Compare EOR providers to gain insights on cost, coverage, and contract flexibility, ensuring compliance and payroll continuity.
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