How to Choose an Employer of Record in Hong Kong: 8 Checks Before You Sign
Insights · By Chen ChunJie · Updated 10 October 2026
Short answer: choose a Hong Kong employer of record that employs through a named Hong Kong entity, handles MPF and employees’ compensation insurance from the first day, puts every fee in writing and is clear about which employees it covers. Hong Kong has no EOR licence or official certification, so these eight checks are how you verify a provider. They take about an hour with each one on your shortlist.
Last reviewed in October 2026 against Labour Department, MPFA and Inland Revenue Department sources.
1. Who will be the legal employer?
Ask for the name of the Hong Kong entity that will sign the employment contract. Some providers employ through their own company; others pass you to a local partner. Both can work, but with a partner you are relying on a company you have not vetted, and fixing a payroll error takes longer.
| Ask to see | Red flag |
|---|---|
| The entity’s name and business registration number on the draft employment contract. | “Our local partner” with no name. |
2. Will MPF be right from the first month?
Every employee aged 18 to 64 who stays 60 days or more must be enrolled in an MPF scheme. Employer and employee each pay 5% of relevant income, up to HK$1,500 a month, and contributions are due by the 10th of the following month. A provider who runs Hong Kong payroll every month will explain the first-month rules without checking notes.
| Ask to see | Red flag |
|---|---|
| A worked payslip for your hire’s salary showing both MPF lines. | A flat percentage with no HK$1,500 cap, or MPF described as optional. |
3. Is the employee covered by employees' compensation insurance?
Hong Kong requires every employer to hold insurance covering work injuries for all employees, full-time or part-time, before they start. Under an EOR the employer is the provider, so the policy has to be in the name of the entity that signs the contract. Employing someone without cover is a criminal offence.
| Ask to see | Red flag |
|---|---|
| The insurer’s certificate naming the employing entity. | You are told to arrange the cover yourself. |
4. What exactly does the fee include?
Some providers charge a flat monthly fee, others a percentage of salary or of total employment cost. Ask what is charged on top: setup, bonuses, expense claims, offboarding, bank charges, currency conversion and amendments to the contract.
| Ask to see | Red flag |
|---|---|
| A written price list that covers one-time and recurring charges. | Extra charges that appear only in the contract. |
5. How is the deposit held and returned?
Many EORs ask for a deposit. Ask how much, when it is invoiced and exactly when it comes back.
| Ask to see | Red flag |
|---|---|
| A clear refund point, such as after the final payroll. | Vague wording about deposits being “applied” to fees. |
6. Is the provider clear about who its EOR can employ?
A Hong Kong EOR is built for employing permanent residents and others who are free to take up a job. A candidate from overseas first needs an employment visa, which is granted for a specific job with a specific sponsoring employer. That is a different process with its own rules and costs. Ask which of your candidates the EOR covers and how a visa hire would be handled.
| Ask to see | Red flag |
|---|---|
| A clear answer for each candidate’s residency or visa status. | “We can employ anyone” with no questions about status. |
7. Will the contract, pay dates and records meet the Employment Ordinance?
Wages must be paid within 7 days after each wage period. The contract should set out the wage period, notice, holidays and any end-of-year payment, and the employer has to keep wage and employment records for the last 12 months.
| Ask to see | Red flag |
|---|---|
| A sample Hong Kong employment contract and a sample payslip. | A global template with no Hong Kong terms. |
8. Who files with the IRD, and what happens at exit?
The employer tells the Inland Revenue Department when someone joins (IR56E), reports their pay each year (IR56B) and tells it again when they leave (IR56F, or IR56G if they are leaving Hong Kong for good). Ask whether all of these are included, how notice and final pay work, and what the process is if you later move the employee to your own Hong Kong company.
| Ask to see | Red flag |
|---|---|
| The IR56 filings listed in the monthly fee, and a written exit and transfer process. | Leaver filings or exits billed as extra projects, or long minimum terms. |
Flat fee or percentage: which pricing is better?
Many global EOR platforms publish flat fees of roughly US$400 to US$700 per employee per month. A percentage fee scales with the salary. Neither is better in itself; compare what you would actually pay over a year for your hire, including setup fees, bank charges and the deposit.
For reference, NNRoad charges 8% of the monthly total employment cost, with a minimum of US$100 and a maximum of US$1,000 per employee. For a HK$40,000 salary that is about US$426 a month. See the full cost breakdown.
How NNRoad answers these checks
| Check | NNRoad Hong Kong EOR |
|---|---|
| Legal employer | Our own Hong Kong entity |
| MPF | Enrolment within the first 60 days; contributions calculated within the HK$1,500 cap and paid by the 10th of the following month |
| Insurance | Employees’ compensation cover under our own policy, with the premium quoted at cost |
| Fee | 8% of total monthly employment cost, minimum US$100 and maximum US$1,000; setup fee US$150 per employee |
| Deposit | One month’s total employment cost, refunded after the final payroll once all fees are settled |
| Who it covers | Hong Kong permanent residents and others who do not need an employment visa. Visa hires go through our Hire Foreigner in Hong Kong service |
| Contract and payslips | Hong Kong employment contract issued at onboarding; payslips every month in our online portal |
| IRD filings | IR56E, IR56B, IR56F and IR56G, included |
| Invoicing | One invoice per month, in US dollars |
Common questions
Is there a certified or licensed EOR in Hong Kong?
No. Hong Kong has no EOR licence and no official certification, so “certified EOR” is a marketing phrase. What you can verify is the employing entity’s business registration, its MPF scheme, its employees’ compensation insurance and, if it also recruits for you, its employment agency licence. Labour Department
What is the difference between a direct and an indirect EOR?
A direct EOR employs your hire through its own Hong Kong entity. An indirect EOR signs with you but uses a local partner as the actual employer. Ask which one you are buying, because it decides who you deal with when something goes wrong.
Is the cheapest Hong Kong EOR a good choice?
Sometimes. Compare the yearly cost, including setup fees, bank charges and the deposit, and check the eight points above. A low fee with errors in MPF or the IRD filings costs more in the end.
Can we change EOR provider later?
Yes, but the employee has to sign a new contract with the new provider. Plan the switch around a month end so payroll and MPF are not split, and agree in writing how the earlier service is treated.
Run these checks on NNRoad
Ask us for a sample contract, a sample payslip for your hire’s salary and a written quote. We reply within 24 hours.