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Hong Kong makes it easy for global businesses to hire, thanks to its skilled, English-speaking workforce and low tax rates. Its strong legal system and location help companies connect with both Asia and the rest of the world. With simple rules and good infrastructure, hiring in Hong Kong is fast and efficient.
Hong Kong offers a highly skilled, multilingual workforce and low employment costs, making it a top choice for global companies. However, hiring in the country isn’t that straightforward. Employers must comply with local regulations regarding minimum wages, employment contracts, and contributions to social security schemes.
Learn more about salaries, hiring costs, and legal requirements in Hong Kong.
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There are two main types of employment contracts in Hong Kong: continuous and non-continuous. Employers and employees use these contracts, whether verbal or written, to clearly define the terms of employment and ensure both sides understand their rights and responsibilities.
Notice periods: If the contract specifies a notice period, it must be at least seven days. If no notice period is specified, the default is one month’s notice.
Termination of employment: Employers can dismiss employees without notice in severe cases, such as misconduct or fraud. Employees can also resign without notice if they face danger, abuse, or are medically certified as permanently unfit after five years of service.
Learn more about the various types of employment contracts in Hong Kong, including the essential elements and key clauses.
Employee benefits in Hong Kong comprise a combination of mandatory benefits mandated by law and common perks offered by employers to attract and retain talent.
Dive deeper into the mandatory and additional employee benefits in Hong Kong!
Hong Kong has a well-defined tax system that applies to both individuals and businesses, with specific employer obligations for reporting and record-keeping. Employers are responsible for maintaining detailed payroll records, reporting employee remuneration to the Inland Revenue Department (IRD), and submitting annual employer returns.
Personal income tax rate: Standard rate: 15% on the first HKD 5 million of net income, and 16% on the remainder. There are also progressive rates ranging from 2% to 17% depending on the net income amount.
VAT: No VAT
Tax allowances: Married person’s allowance, child allowance, dependent parent/grandparent allowance, disabled dependent allowance, single parent allowance
Additional tax reliefs: Mandatory Provident Fund (MPF) contributions, charitable donations, home loan interest, elderly residential care expenses, self-education expenses, dependent brother or sister allowance, and disabled dependent allowance.
In Hong Kong, employers have reporting obligations but don’t withhold salary tax, which employees are required to file themselves.
Salary payment deadline: Paid monthly, but there is no specific legal deadline.
Taxes and contributions payment deadline: Employees are responsible for their tax payments, typically due in two instalments after receiving the tax assessment.
Payroll declarations deadline: Employers must file an Employer's Return (IR56B) annually, detailing employees' earnings, by May 31st for the previous tax year ending March 31st.
Payroll currency: HKD
The Employment Ordinance governs employment practices in Hong Kong and outlines the core rights and responsibilities of employers and employees. Employers must adhere to statutory rules regarding wages, working hours, leave, and termination to ensure fair and lawful treatment in the workplace.
Total employment cost:
Minimum wage: HKD 40 per hour
Probation period: Ranges from one to six months
EOR services in Hong Kong enable you to hire employees legally without establishing a local entity. The EOR takes on all legal responsibilities as the official employer, including:
PEO services in Hong Kong provide HR and administrative support while you remain the legal employer. They’re ideal for companies that already have a local entity but need help managing workforce operations, including:
Native Teams offers a payroll calculator tailored to Hong Kong’s labour laws. You can use it to easily estimate net and gross salaries, employer and employee contributions, and other mandatory deductions.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
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Freelancers and gig workers in Hong Kong are typically self-employed and responsible for their own tax filings and compliance under the Inland Revenue Ordinance.
As a client or employer, you are not required to withhold taxes or make social security contributions for them; however, it’s essential to ensure that the working relationship clearly reflects independent contractor status to avoid misclassification as an employee. Having a clear, written agreement that outlines the scope of work, payment terms, responsibilities, and deliverables is essential to define the relationship properly.
