Currency
Hong Kong Dollar (HKD)
EOR IN Hong Kong
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A guide to employing and growing your team in Hong Kong
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Hong Kong is a leading global financial hub and a premier gateway for trade between mainland China and the rest of the world. Its economy is characterized by low taxation, free trade, and a highly efficient services sector, particularly in banking, logistics, and professional services. The labor market is flexible and governed by the Employment Ordinance, which sets out the basic terms and conditions of employment. As of May 1, 2026, the Statutory Minimum Wage (SMW) in Hong Kong is HK$43.10 per hour, following a new annual review mechanism designed to keep pace with economic growth and inflation.
Employer Contributions
Mandatory Provident Fund (MPF): 5% (capped at HKD 1,500/month)
Total Employer Contribution: 5%
Employee Payroll Taxes
Mandatory Provident Fund (MPF): 5% (capped at HKD 1,500/month)
Total Employee Contribution: 5%
Employee Income Tax Rates
Hong Kong utilizes a progressive salaries tax system. Employees are charged the lower of the two following methods:
Progressive Rates on Net Chargeable Income: First HK$50,000: 2% ; Next HK$50,000: 6% ; Next HK$50,000: 10% ; Next HK$50,000: 14% ; Remainder: 17%
Standard Rate: A flat rate of 15% on net income (for the first HK$5 million, 16% on the remainder).
Statutory Leave
In Hong Kong, employees are entitled to 7 days of annual leave after 1 year of service, which gradually increases to 14 days after 9 years. There are 13 statutory public holidays per year.
Pregnancy and Maternity Leave
In Hong Kong, employees are entitled to 14 weeks of maternity leave, paid at 80% of average wages, subject to a cap. The leave is funded by the employer, with partial government reimbursement in some cases.
Paternity Leave
In Hong Kong, fathers are entitled to 5 days of paternity leave, paid at 80% of average wages, subject to a cap.
Work-Related Injury Leave
In Hong Kong, sick leave accrues up to 120 days and is paid at 80% of wages. Work injury leave is covered under the Employees’ Compensation Ordinance, which includes compensation for medical expenses and lost wages. Employees are also entitled to at least 1 rest day per week.
Termination Process
Either employer or employee can terminate the contract by giving proper notice or payment in lieu. Employers must ensure compliance with statutory protections and avoid unlawful dismissal (e.g., during pregnancy or sick leave).
Notice Period
During probation (first month): no notice required
After first month of probation: typically 7 days
After probation: as per contract (commonly 1 month)
Probation Period
Not legally required.
Common practice: 3 months