Hiring in Hong Kong
How to Hire Employees in Hong Kong: A 2026 Guide for Overseas Companies
Hiring in Hong Kong starts with identifying the legal employer and checking the candidate’s right to work. Your business can employ directly if it meets the applicable requirements, or NNRoad can employ a suitable local hire through EOR while you manage their work. Foreign employees require a separate Expat Employment assessment. The steps below cover employment terms, payroll, MPF, insurance and ongoing obligations.
Updated November 9, 2026 using Labour Department, MPFA, Inland Revenue Department and Immigration Department guidance. Requirements depend on the employee and arrangement.
Step 1: Decide who will employ the person
Decide whether your business will be the employer or needs NNRoad to employ the person. The employer is responsible for applicable employment, insurance, MPF and reporting duties. Payroll outsourcing supports an existing employer; contractor engagement is a separate route for genuinely independent work. Compare the options below.
| Option | When it fits |
|---|---|
| Direct employment by your business | Your business is ready to meet the registration, employment, tax and insurance requirements for its Hong Kong activities. |
| Employer of record | The Local Team employs a local employee while you manage their day-to-day work. |
| Expat Employment | You need NNRoad to employ a foreign employee; eligibility and the employment arrangement are assessed separately. |
| Payroll outsourcing | You are already the employer and need payroll calculations, payslips and related reporting support. |
| On-Demand Talent | NNRoad recruits, contracts with and pays a genuine independent contractor; you coordinate requirements and accept results. |
For a closer comparison of the models, read EOR vs PEO in Hong Kong.
Step 2: Check the candidate's right to work
Before entering into employment, inspect the candidate’s Hong Kong identity card and, if it is not a permanent identity card, their valid travel document and conditions of stay. Confirm that the proposed work is permitted, including any employer restriction or required approval. A non-permanent identity card alone is not proof of permission to take the job. See the Immigration Department’s employer checks.
| Status | Who it is for | What the employer does |
|---|---|---|
| Permanent resident, right to land or unconditional stay | People settled in Hong Kong | Verify identity and status. For a non-permanent identity card holder, also inspect the travel document and conditions of stay. |
| Employment visa (General Employment Policy, or the Admission Scheme for Mainland Talents and Professionals) | Professionals recruited from outside Hong Kong for a specific job | Provide employer and role evidence. Under ordinary employment conditions, changing employer requires prior approval; verify the individual’s actual permission. |
| Other visas, such as Top Talent Pass, IANG or dependant | People admitted in their own right or as a family member | Check the specific route, employment conditions and expiry. TTPS/IANG holders generally have time-limited permission without employer sponsorship; dependant conditions vary. |
NNRoad’s Hong Kong EOR service covers local employees. Foreign employees use our Expat Employment service, with the candidate’s permission and proposed role reviewed before onboarding. Neither route is an automatic immigration approval.
Step 3: Set the salary and package
Hong Kong’s Statutory Minimum Wage is HK$43.1 per hour from May 1, 2026, subject to statutory coverage and exemptions. Check pay against the hours worked; a monthly salary does not remove this requirement. See the Labour Department’s minimum-wage guidance.
Build a package around the role and candidate while meeting statutory requirements. Agree clearly which additional benefits are contractual and which bonuses are genuinely discretionary:
- A 13th-month payment or double pay, if agreed. There is no universal entitlement, but contractual end-of-year payments must follow the agreed terms and applicable statutory rules.
- A performance bonus with clear eligibility, assessment and payment terms
- Group medical insurance
- Additional annual leave above the statutory entitlement
For covered monthly-paid employees, budget employer MPF at 5% of relevant income, capped at HK$1,500 a month, plus employees’ compensation insurance and agreed benefits. Estimate the cost with our calculator, or see the cost of hiring an employee in Hong Kong.
Step 4: Write the employment contract
The Employment Ordinance covers most employees, including managers, subject to its exclusions. Use a written contract that reflects the actual job. Before employment starts, communicate wages, the wage period, notice terms and any end-of-year payment; give the employee a copy of the written contract. Include:
- Job title, main duties, start date and, for fixed-term roles, the end date
- Wages, allowances, the wage period and the pay day
- Working hours, rest days and any overtime pay
- Annual leave, holidays and sick leave
- Any end-of-year payment or bonus, and how it is worked out
- Probation, notice and payment in lieu of notice
- Confidentiality and ownership of work
Agree any probation period in the contract. During its first month, no notice or payment in lieu is required under the statutory notice rules. After that month, the agreed notice must be at least 7 days; if the contract is silent, at least 7 days applies. Other legal restrictions on dismissal still matter. See the Labour Department’s contract notes.
Step 5: Set up payroll, MPF and insurance
Wages become due at the end of each wage period and must be paid as soon as practicable, no later than 7 days afterwards. Labour Department
| Monthly relevant income | Employer MPF | Employee MPF |
|---|---|---|
| Less than HK$7,100 | 5% | Not required |
| HK$7,100 to HK$30,000 | 5% | 5% |
| More than HK$30,000 | HK$1,500 | HK$1,500 |
For covered monthly-paid regular employees aged 18–64 employed for at least 60 days. Exemptions, the new-employee contribution holiday and partial-period rules must be checked. Casual employees in catering and construction have separate arrangements. Source: MPFA.
- Enrol eligible regular employees in MPF within 60 calendar days. Employer contributions accrue from day one. For monthly-paid new employees, the employee contribution holiday covers the first 30 days and the immediately following incomplete wage period. Apply the special first-remittance deadline and subsequent monthly contribution calendar.
- Take out employees’ compensation insurance before the first day of work. Labour Department
- File IR56E within 3 months for a new employee likely to be chargeable to Salaries Tax, and submit the applicable annual employer returns, taking account of the IRD rules for employees already reported on IR56F or IR56G. IRD
- There is generally no routine salaries-tax withholding, but tax-clearance withholding may apply on a qualifying departure from Hong Kong. Employees remain responsible for their own tax return and payment obligations. See our salaries tax guide.
- Keep wage and employment records covering the preceding 12 months during employment and retain them for 6 months after departure. Apply any longer retention requirements for tax or other records separately. Labour Department
Step 6: Leave, working hours and holidays
| Topic | The rule |
|---|---|
| Rest days | Employees under a continuous contract are entitled to at least 1 rest day in every 7 days. |
| Working hours | There is no general statutory standard working week or overtime premium for adult employees. Agree hours and overtime terms, subject to applicable sector-specific rules. |
| Statutory holidays | 15 statutory holidays in 2026. Holiday pay requires at least 3 months under a continuous contract immediately before the holiday. A contract may provide additional general holidays. Labour Department |
| Annual leave | Paid annual leave after each 12 months under a continuous contract: 7 days for the first 2 years, rising by 1 day each year to 14 days from the 9th year. |
| Sickness allowance | Generally 4/5 of average daily wages for at least 4 consecutive sickness days, with a continuous contract, sufficient accrued paid sickness days and the required evidence. Specific exceptions apply, including qualifying pregnancy-related absences. |
| Maternity leave | 14 weeks for eligible employees under a continuous contract who meet the notification requirements. Statutory pay at four-fifths of average daily wages generally requires 40 weeks of continuous employment and the required evidence; the pay for weeks 11–14 is capped at HK$80,000. |
| Paternity leave | 5 days for eligible fathers under a continuous contract who give the required notice. Pay at four-fifths of average daily wages requires at least 40 weeks of continuous employment and the prescribed evidence. |
Statutory holidays are available to employees covered by the Employment Ordinance; paid holidays and other benefits have additional eligibility conditions. Since 18 January 2026, a continuous contract generally requires at least 4 weeks with the same employer and at least 17 hours each week, or, for a week below 17 hours, at least 68 hours across that week and the preceding 3 weeks. During the first 3 weeks, the weekly 17-hour requirement applies. Source: Labour Department.
Step 7: If the employee will work remotely
Working from home does not by itself remove Hong Kong employment obligations. Assess the actual work location and arrangement, then apply the relevant employment, MPF, insurance, immigration and tax rules. Work performed across borders needs a separate review before the location changes.
- Write the work location and any home-working arrangement into the contract.
- Tell your insurer where the employee works, so the employees’ compensation policy matches the real arrangement.
- Agree who provides equipment and how expenses are reimbursed.
- Set clear rules on confidentiality, data access and ownership of work.
Step 8: Ending the employment
Review the lawful reason, any protected circumstances and the contractual notice before ending employment. For an ordinary termination under a continuous contract, notice or payment in lieu is generally required as below; statutory exceptions need separate assessment. Under EOR, the Local Team handles formal employer actions after reviewing the client’s request.
| Stage of employment | Minimum notice |
|---|---|
| First month of probation | None |
| Rest of the probation period | As agreed, but at least 7 days; 7 days if the contract is silent |
| After probation, or with no probation | As the contract says, and at least 7 days. One month if the contract is silent |
- Calculate outstanding wages, notice pay, leave pay and other entitlements. Most termination payments are due within 7 days; severance payment has a separate deadline, generally within 2 months of the employee’s claim.
- Check severance eligibility after at least 24 months under a continuous contract, or long-service eligibility after at least 5 years; the reason and statutory conditions also matter. They are not both payable for the same service. Calculation and MPF-offset rules differ for service spanning May 1, 2025; use the Labour Department’s current guidance.
- Employees with at least 24 months under a continuous contract can seek remedies for unreasonable dismissal. Pregnancy, paid sickness days, work injury and other protected circumstances require specific review; giving notice alone does not make dismissal lawful. See employment protection.
- File IR56F normally at least 1 month before cessation for a reportable employee, unless IR56G applies. For a qualifying permanent or substantial departure from Hong Kong, file IR56G normally at least one month before departure. Withhold payments for one month from filing or until receipt of the IRD letter of release, whichever is earlier, subject to any applicable recovery notice. IRD
Hiring checklist for Hong Kong
- Legal employer and local or foreign employment route confirmed
- Identity card inspected and right to work confirmed
- Salary, 13th month, bonus, leave and insurance agreed
- Written contract signed, with a copy for the employee
- Employees' compensation insurance in place before day one
- MPF coverage, enrolment and contribution deadlines checked
- IR56E reporting obligation checked; file within 3 months where required
- Pay day set within 7 days after each wage period
Questions about hiring in Hong Kong
Can a foreign company hire employees in Hong Kong without a local entity?
For suitable local hires, NNRoad’s Local Team is the employer and handles employment administration, payroll, MPF, insurance and applicable employer reporting while you manage the work. Foreign employees require a separate Expat Employment assessment. Your company’s own activities may still create registration or tax obligations.
How long does it take to hire in Hong Kong?
The start date depends on candidate availability, agreements, employment checks, required work permission and payroll readiness. We respond within 24 hours and propose an approach within 3 days; these are separate from onboarding completion. Timing varies with applicable laws and processes; the workflow is a reference.
Do I have to pay MPF for every employee?
MPF generally covers regular employees aged 18–64 employed for at least 60 days, unless exempt. Casual catering and construction employees have separate rules. For employees entering Hong Kong for employment, an exemption may depend on permitted stay of no more than 13 months or participation in an overseas retirement scheme. Review the actual permission and any extension.
Is a 13th-month salary mandatory in Hong Kong?
There is no universal statutory 13th-month payment. If it is a contractual entitlement, the employer must follow the terms and applicable end-of-year payment rules. Annual payments are generally presumed contractual unless written terms clearly establish a genuinely discretionary or gratuitous payment.
Do employers withhold income tax in Hong Kong?
There is generally no routine Salaries Tax deduction from monthly payroll. For a qualifying departure, IR56G reporting and withholding can apply even when departure is not permanent. Normally payments are withheld for 1 month from filing or until the IRD release letter, whichever comes first, subject to any recovery notice.
What does it cost to hire through an EOR in Hong Kong?
Budget salary, employer MPF where applicable, employees’ compensation insurance, agreed benefits and any contractual or statutory exit liabilities. Separate employer costs from employee deductions and avoid treating a calculator subtotal as the full budget. See the Hong Kong employment-cost guide.
Hiring your first employee in Hong Kong?
Share the role, candidate’s status, work location and intended start date. NNRoad responds within 24 hours and proposes an approach within 3 days. NNRoad HQ coordinates the review; our qualified Local Team handles the local employment requirements. Risk-management support depends on accurate information and clients following our advisers’ recommendations.