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What should I know about hiring in Hong Kong?
Before embarking on a hiring process in Hong Kong, it’s important to become well-versed with the country’s employment regulations, work visas and tax system.
The labour law in Hong Kong governs aspects such as working hours, minimum wage, employment agreements, termination protocols, and the rights of employees. As an employer, you are also responsible for covering your employees’ mandatory taxes and benefits.
Additionally, it is crucial to be mindful of cultural differences and language obstacles in your interactions with employees in Hong Kong. That’s why hiring a local HR representative can play a vital role in bridging cultural differences and promoting more streamlined business operations.
Why is Hong Kong a good choice for finding remote employees?
Hong Kong is a great choice for finding remote employees for several reasons. Many Hong Kong residents are proficient in English, which is a significant advantage for companies with English as their primary language of communication.
In addition, the region has become an international business hub with a diverse talent pool that includes individuals with a global mindset and highly developed tech skills, which can be advantageous for remote collaboration.
Finally, Hong Kong’s low labour costs can make the country an attractive choice for businesses looking to optimise their budgets without compromising on talent quality.
How can Native Teams help you hire in Hong Kong
With the help of Native Teams, you can easily and compliantly hire new team members in Hong Kong. Our experts will offer valuable help by guiding you through local labour laws, regulations, and cultural/language complexities. Our Employer of Record solutions allow you to improve your benefits and compensation offerings, aligning them with market expectations to attract and retain top talent effectively.
Hire your first Hong Kongese employee with Native Teams.
Legal requirements for hiring in Hong Kong
Minimum wage
In Hong Kong, the minimum hourly wage is 40 HKD.
Contributions & taxes
Employer tax
The total employer tax is 7%.
Corporate tax
The corporate tax rate in Hong Kong is 16.5%.
Employee tax
The total employee tax is 5%.
Income tax
- Up to 50,000.00 HKD — 2.00%
- 50,001.00 HKD – 100,000.00 HKD — 6.00%
- 100,001.00 HKD – 150,000.00 HKD — 10.00%
- 150,001.00 HKD – 200,000.00 HKD — 14.00%200,001.00 HKD and over — 17.00%
To calculate the salary and taxes in Hong Kong please click here.
Payroll cycle
The payroll cycle in Hong Kong is on a monthly basis, and employers must make payments on the last day of each month.
Is there a 13th salary in Hong Kong?
Employers are obliged to pay a 13th salary before the Chinese Lunar New Year or at the end of the year.
Labor rules
Probation period
The probation period in Hong Kong usually lasts from 1 up to 3 months.
Notice period
The notice period for probation in Hong Kong is seven days. After the probation period, the employee is required to give a 30-day notice.
Severance period
If an employee has worked for at least 2 years and is made redundant, they’re entitled to a severance payment. This payment is calculated based on either a set amount for each year of service or 2/3 of their last month’s wages.
Working hours
The work week in Hong Kong lasts from 9 am to 6 pm, Monday to Friday. There are no strict rules on how many hours adults can work, but young people (15 to 18 years old) in industrial jobs can only work 8 hours a day between 7 am to 7 pm, with a maximum of 48 hours per week.
Leave and benefits
Public holidays
There are 15 official holidays in Hong Kong:
- New Year’s Day
- Chinese New Year
- Good Friday
- Holy Saturday
- Easter Monday
- Qingming Festival
- Labour Day
- Buddha’s Birthday
- Dragon Boat Festival
- Hong Kong’s Special Administrative Region Establishment
- The day following the Chinese Mid-Autumn Festival
- National Day of the People’s Republic of China
- Double Ninth Festival
- Christmas Day
- Boxing Day
Sick leave
In the initial year of work, employees get 2 paid sick days each month. After one year, it goes up to 4 days per month, with a limit of 120 paid sick days. The pay is figured at 80% of the average daily earnings over the past year before the sick day starts.
Maternity leave & Paternity leave
A pregnant employee working for at least 40 weeks before starting maternity leave can take 14 weeks of paid maternity leave. Male employees who have been working for at least 40 weeks before their first day of paternity leave can take 5 days off.
Other leave
Bereavement leave
There are no legal requirements regarding bereavement leave in Hong Kong, but certain companies choose to create their own policy.
Parental leave
In Hong Kong, there isn’t any additional legal parental leave.
Marriage leave
There are no laws regarding marriage leave.
What are the minimum vacation days?
Workers in Hong Kong can take 7 to 14 days of annual leave once they’ve completed 12 months on the job.
Insurance
Health security & private insurance
Anyone who has worked for an employer for at least three months within the previous fifteen months is entitled to free medical and dental care through the Social Security Administration.
*Native Teams can support you in finding the best private insurance in the country. Contact us, and we will send a comparison of insurance packages and prices.*
Visa
Relocation and work permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the visa/work permit process?
2 to 4 weeks depending on the authorities and provided documents.
Which documents do you need?
To apply for a visa/work permit in Hong Kong, upload the documents from our onboarding list (relocation to log in/pricing).
Why use Native Teams for hiring in Hong Kong?
Native Teams lets you employ team members ‘like a local’ meaning you get all the benefits of a global team, wherever you are based. Here are the reasons why you should use Native Teams for hiring:
- No paperwork: We will handle all the necessary paperwork for you.
- Save on taxes: We help you handle your taxes.
- No company set up: You can expand your business using our company entitles.
- Online onboarding: We’re here to ensure your onboarding process is trouble-free.
- No accounting: We will handle all of your accounting needs, including invoicing, payroll, and more.
- Increase your profit: We assist you in growing your business and maximizing your profits.
- Compliance expertise: we can assist your company in navigating the regulatory environments and ensure you meet all relevant requirements.
- Local support: We can assist you in understanding and complying with the relevant local laws.
