Hire in Hong Kong

Hong Kong

PEO &

Employer of Record

Hire employees remotely in Hong Kong without a local entity. We handle HR compliance, payroll & taxes so you can focus on your business.

Business Language

Chinese, English

Salary Currency

Hong Kong Dollar (HKD)

Capital city

Hong Kong

Time zone

UTC +8

EOR in Hong Kong

from $375/ month

Hire Employees in Hong Kong

NNRoad provides payroll & employer of record (EOR) services in Hong Kong to ensure that your business complies with local labor laws and regulations. We process monthly payroll and act as the Employer of Record, taking on all local employer liabilities.

Fast Hiring

Start working with your remote employees in a week.

Foreigner Visas

NNRoad assists with overseas foreign hires visa needs.

Platform

Access your payroll reports on our portal.

Employer of Record (EOR) in Hong Kong

Employer of Record (EOR) services are for companies who do not have a legal entity in Hong Kong, but who want to hire localy. Employment and full liability are outsourced to NNRoad.

1. Candidate Selection

Select the candidates you want to hire in Hong Kong.

2. Employee Onboarding

We sign a local labor contract with your employees based in Hong Kong.

3. Compliance & Payroll

We manage monthly payroll, mandatory benefits & all HR compliance in Hong Kong.

EOR service includes:

Hiring and termination of employees/local labor contracts (contract administration – engagement, extension termination and conversion to permanent hire).

All mandatory employer (and employee) contributions filed and paid for your EOR employees.

Payroll recording, reporting and administration.

Distribution of salaries to employees through direct deposit into their bank accounts.

Calculation, reporting, filing and processing of EOR employee’s individual income tax due.

Collecting and processing your employee’s invoices for business related expenses.

Guiding and organizing your expat employee’s work visa application too guarantee their successful onboarding.

Standalone Payroll in Hong Kong

Payroll services are for companies who have a legal entity in Hong Kong, and want to outsource their salary disbursement, mandatory benefits, income tax filing and mandatory reports.
Payroll outsourcing

Employer of Record Status in Hong Kong

Using an Employer of Record (EOR) to hire employees in Hong Kong is a legally recognized practice, allowing companies to engage remote workers without establishing a local entity. An EOR acts as the legal employer, managing compliance with Hong Kong’s employment laws, including payroll, taxes, and statutory benefits.

This arrangement ensures that remote employees are hired in accordance with local regulations, providing a seamless solution for companies seeking to expand their workforce in Hong Kong while adhering to legal requirements. The EOR handles all administrative and legal aspects of employment, enabling businesses to focus on their core operations.

Hiring an Expat with an EOR in Hong Kong

This solution is particularly advantageous for hiring foreign expats, as the EOR handles the complex process of securing the necessary work visa and ensures adherence to local employment regulations. By managing all legal and administrative aspects of employment, the EOR enables companies to efficiently hire and manage both local and foreign talent, simplifying the process while ensuring full legal compliance.

Employee Income Taxes:

Individual income tax rates in Hong Kong are based on progressive tax brackets.

There are a number of deductions and allowances that can be used to reduce the amount of income tax payable, including expenses incurred in the course of earning income.

Hong Kong has a territorial taxation system, which means that only income earned in the territory is subject to tax. This means that income earned overseas is not subject to income tax in Hong Kong.

Tax Brackets:

Sample Calculation

2%: 0 – 50,000 HKD
6%: 50,000 – 100,000 HKD
10%: 100,000 – 150,000 HKD
14%: 150,000 – 200,000 HKD
17%: Over 200,000 HKD
Yearly income = 120,000 HKD
2% * 50,000 = 1,000
6% * 50,000 = 3,000
10% * 20,000 = 2,000
Total = 1,000 + 3,000 + 2,000
Yearly income tax = 6,000 HKD

Employer Contribution

In Hong Kong, both employers and employees are required to contribute to the Mandatory Provident Fund (MPF) scheme. It totals to 10% (2024), split in half between both parties, and is capped at HKD 18,000 per year.

The MPF scheme was introduced in 1999, and employer contributions have been steadily increasing since then. For example, in 2009, the employer contribution rate was 5%.

Despite the rising costs for employers, the MPF scheme has been generally well-received by businesses and employees alike. It provides a safety net for employees in case of retirement or other financial difficulties.

Employers also contirbute to the Employees’ Compensation Insurance, which is 2% of gross salary (2024).

Pension Fund

The Mandatory Provident Fund, abbreviated as MPF, is a mandatory savings system (pension fund) for Hong Kong residents’ retirement. According to their income and length of work, most employees and their employers are required to contribute monthly to mandated provident fund plans run by licensed private organizations.

Healthcare Insurance

Hong Kong has a well-developed healthcare system and social security network. Healthcare in Hong Kong is primarily delivered through the public hospital system, which is overseen by the Hospital Authority. There are also a number of private hospitals and clinics in operation.

In terms of social security, the government provides a safety net for residents who are unable to work due to illness or injury. The Social Security Allowance is available to those who meet certain eligibility criteria, and it provides financial assistance to help with living expenses.

While the public healthcare system in Hong Kong is comprehensive, it can be expensive for residents who do not have health insurance. For this reason, many people choose to take out private health insurance plans. These plans typically cover things like hospitalization, surgery, and outpatient care.

There are a number of insurance companies operating in Hong Kong, so it is important to shop around and compare plans before making a decision. It is also worth checking to see if your employer offers any health insurance benefits.

In summary, healthcare and social security are both important considerations for residents of Hong Kong. Having health insurance can help to offset the costs of medical care, and being aware of the social safety net can provide peace of mind in case of illness or injury.

hong kong

Working Hours Per Week

There is no standard working hour limit in Hong Kong; It can be freely agreed by labor and management.

Overtime

According to the Labour Department of Hong Kong, overtime pay is calculated based on an employee’s “standard hours of work”. Standard hours of work are the hours that an employee is contracted to work in a week. For example, if an employee’s standard hours of work are 40 hours per week, then any hours worked beyond those 40 hours would be considered overtime.

Overtime pay in Hong Kong is calculated at 1.5 times the employee’s hourly rate for the first 8 hours of overtime work, and 2 times the employee’s hourly rate for any overtime work beyond 8 hours.

There are a few exceptions to this rule. For example, if an employee works on a public holiday, they are entitled to 2 times their hourly rate for the entire day, regardless of how many hours they actually work.

Severance

In Hong Kong, the law provides for severance pay in cases of employment termination. The amount of severance pay is calculated based on the length of service and salary. For employees with less than 2 years of service, they are entitled to 1 month’s salary. For employees with 2-5 years of service, they are entitled to 2 months’ salary. And for employees with more than 5 years of service, they are entitled to 3 months’ salary. If an employee is terminated without cause, they are also entitled to a notice period and/or payment in lieu of notice, which is calculated based on their length of service.

There are some exceptions to these general rules. For example, if an employee is terminated due to redundancy, they are entitled to a severance payment of 4 weeks’ salary for each year of service. If an employee is terminated due to misconduct, they are not entitled to severance pay.

The law also provides for certain protections for employees who are terminated. For example, an employee cannot be terminated without cause within the first 2 years of employment unless there is a valid reason such as redundancy or Misconduct. After 2 years of employment, an employee can be terminated without cause by giving 1 month’s notice or 1 month’s salary in lieu of notice.

If you have been terminate your employment, you should check your employment contract to see if you are entitled to severance pay and/or notice period and/or payment in lieu

Notice Period

Both the employer and the employee have a seven-day notice period after the first month of work. In other cases, one month’s notice or as agreed shall be given.

Employment Contract

A contract of employment can be ended for a variety of reasons, including resignation, employer dismissal, constructive dismissal, the end of a defined term, or mutual agreement.

Termination without cause is generally possible in Hong Kong. But there are reasons where it is illegal to terminate the employment contract:

  • Maternity protection
  • Statutory paid sick leave
  • Employee gives information to authorities
  • Trade union activities
  • Work-related injury
  • Both the employer and the employee have a seven-day notice period after the first month of work.

    Probation Period

    A probationary period in Hong Kong usually lasts from 1 to 3 months. During the probation period, an employer may limit remuneration by offering a percentage of the normal salary for the position. The pay must not be less than the HK$40 per hour minimum wage.

  • Annual Leave

    Based on the Employment Ordinance, Cap. 57, employees under a continuous contract with at least one year of service are eligible for up to 14 days of paid annual leave, depending on their length of service. Employers frequently grant expanded contractual leave in addition to the statutory minimum.

    Sick Leave

    For each completed month in the first 12 months of work, the employee can have 2 days paid sick leave. The daily rate of sickness allowance is equal to 80% of an employee’s average daily salary in the 12-month period prior to the first day of sickness. The calculation is based on the shorter term if an employee has been hired for less than 12 months.

    Maternity Leave

    The maternity leave legislation in Hong Kong offer for ten weeks of paid leave if the mother has completed the following:

  • Has worked for at least 40 weeks on a continuous contract prior to the planned maternity leave
  • Her employer has been notified of her pregnancy and her plan to take maternity leave
  • If her work requires it, she has supplied a medical certificate stating the expected date of confinement

    Paternity Leave

    Employees must be employed for minimum 40 weeks before having access to paternity leave. The paternity leave consists of 5 days leave paid at 80% of the salary.

  • Public Holidays

  • New Year’s Day – January 1st
  • Lunar New Year – February 1-3
  • Ching Ming Festival – April 5th
  • Good Friday – April 15-16
  • Easter Monday – April 18th
  • Labour Day – May 1-2
  • Birthday of the Buddha – May 8-9
  • Tuen Ng Festival – June 3rd
  • Hong Kong Special Administrative Region Establishment Day – July 1st
  • Chinese Mid-Autumn Festival – September 11-12
  • National Day – October 1st
  • Chung Yeung Festival – October 4th
  • Christmas Day – December 25-26-27
  • Public holidays in Hong Kong
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