Hong Kong EOR Guide: Everything You Need to Know

Hong Kong remains an attractive market for international businesses. With an inflation rate of just 1.7% in 2024, the region offers a relatively stable economic environment for companies looking to expand and hire local talent.

But while the business landscape is favorable, hiring local talent in Hong Kong can be tricky. Companies must navigate strict compliance requirements, cultural nuances, and complex administrative processes. These factors become even more challenging for organizations without local expertise to hire in the region.

That’s where an Employer of Record (EOR) provider in Hong Kong steps in. In this guide, we’ll explore how these third-party partners help companies legally hire employees, manage payroll, and stay compliant with Hong Kong’s labor laws without the burden of setting up a local entity.

Learn more: Global Employer of Record Guide: Hong Kong

Hiring in Hong Kong Without a Legal Entity

Recruiting internationally poses several challenges for businesses. Cultural and time differences, administrative expenses, and difficulty sourcing top talent can make the process overwhelming, especially in countries with intricate region-specific labor laws.

Take Hong Kong, for example. While it is a special administrative region of China, its legal and economic systems operate independently from the mainland. As such, businesses looking to hire there must comply with Hong Kong’s unique labor laws and employment regulations.

Without local expertise, navigating these requirements can lead to costly compliance mistakes. That’s why many companies partner with an EOR provider in Hong Kong like Omni to ensure compliant hiring while simplifying the entire employee life cycle.

What is an Employer of Record (EOR)? 

An EOR is a third-party service provider that acts as the legal employer for companies expanding into new regions. They hire employees on behalf of client companies, pay salaries, and handle all legal and administrative duties while you retain total control of your workforce and operations.

Learn more about Omni’s EOR

According to Atlas, 30% of APAC countries use EOR services to solve hiring challenges, retain talent, and handle other international expansion challenges. EORs offer a cost-effective alternative to setting up a branch or subsidiary in Hong Kong, enabling faster market entry and quicker hiring without the need to establish a legal entity. They reduce expansion delays that can lead to missed market opportunities or project disruptions. 

Additionally, a licensed EOR provider in Hong Kong is well-versed in the region’s employment regulations, including the Employment Ordinance (EO), Minimum Wage Ordinance, and statutory contributions like the Mandatory Provident Fund (MPF) scheme. This ensures seamless compliance, helping your company avoid costly penalties, lawsuits, or reputational damage. In addition, an EOR reduces recurring administrative burdens, cutting down payroll processing and accounting costs so your HR team can focus on strategic growth.

Key EOR Provider Hong Kong Responsibilities

Employment contracts

An EOR provider Hong Kong drafts employment contracts that fully comply with the region’s labor laws. These contracts clearly define essential terms such as the employee’s classification (whether contractors or full-time employees), working hours, job scope, start date, salary, benefits, rest days, probation periods, and termination policies. By creating accurate contracts from the start, an EOR provider Hong Kong helps businesses avoid misclassification risks and potential legal disputes.

Omni’s centralized document management and e-signature capabilities make it easy to generate, store, and execute compliant employment contracts in a unified platform. Pre-loaded templates that are compliant with Hong Kong regulations reduce manual work and ensure that every agreement is legally sound.

Local payroll and MPF contributions

The EOR provider Hong Kong manages payroll for all your employees in compliance with local minimum wage laws. They also handle MPF contributions, deducting 5% of each employee’s monthly earnings, capped at HK$1,500 for incomes over HK$30,000. This due diligence ensures your business meets statutory obligations and avoids penalties related to payroll and social security compliance.

Omni’s multi-country payroll automates these calculations, deducts MPF as per caps and contribution rules, and generates payslips for employees. You can manage payroll for your Hong Kong team and global workforce all in one place, with real-time compliance safeguards and consolidated reporting. 

Read next: Hong Kong Payroll Guide

Tax filings

An EOR provider Hong Kong must also calculate, withhold, and file the appropriate income tax in compliance with local tax regulations. They ensure the correct tax rates are applied based on Hong Kong’s progressive tax system, as shown below:

Omni automatically calculates and withholds the appropriate taxes based on regulations, generates required tax documents like the IR56 tax forms, and supports timely submissions to the Inland Revenue Department. Combined with the document management system, all records are securely stored in the platform, making audits and reporting straightforward and hassle-free.

Local leave, termination and benefits laws

The EOR provider Hong Kong is responsible for properly administering statutory leave and benefits, such as health insurance, retirement plans, and, in some cases, employee development programs. Additionally, they comply with termination procedures during employee exits with Hong Kong’s Employment Ordinance. For example, during the probationary period (which can last up to three months), employees may be terminated with shorter notice periods as permitted by law.

Omni’s time-off management allows you to track statutory leave balances, including annual leave, sick leave, and statutory public holidays; configure approval workflows; and maintain accurate records. In the event of termination, Omni ensures that you apply the correct notice periods and calculate final payouts in accordance with regulations. 

Employee onboarding and offboarding

An effective EOR provider Hong Kong helps you deliver a smooth experience when employees join or leave your company.

Omni combines automated workflows, centralized document management, and an integrated employee database so you can streamline the entire process, from offer letters and onboarding checklists to benefits enrollment and offboarding procedures. New hires can complete tasks digitally, while HR teams maintain visibility and control over every process. 

Additional reading: Employee Onboarding Software Implementation Guide

Cost of Using an EOR Provider Hong Kong

The cost of using an EOR provider Hong Kong varies, depending on the EOR provider, your workforce size, industry complexity, and the services you need. Some EORs charge a percentage of the employee's gross salary, typically ranging between 6% to 15%. Others offer custom pricing models, sometimes including a one-time setup fee. Generally, expect to pay between $599 and $2,000 per employee per month.

Find a pricing plan that works for your budget.

These fees usually cover services such as onboarding, payroll processing, compliance management, and benefits administration, saving your company significant time and resources. But while EOR services may seem expensive upfront, they’re often more affordable than setting up and maintaining a legal entity, especially when factoring in registration fees, ongoing maintenance costs, legal consultation, and annual audits.

Choosing the Right EOR Provider Hong Kong

Use this comprehensive checklist to evaluate whether your EOR provider Hong Kong meets all your business needs:

Expertise in Hong Kong employment compliance

• Do they thoroughly understand Hong Kong labor laws, tax regulations, and MPF requirements?
• Can they advise you on employment classifications, mandatory benefits, and local HR practices to prevent compliance errors?

At Omni, our local experts are here to ensure you stay up-to-date with all statutory requirements and guide you through each decision. 

Direct local operations

• Do they have a legal entity and operational presence in Hong Kong, rather than relying on third-party agents or subcontractors?
• Can they provide transparent oversight and accountability for the entire employment life cycle?

Omni’s services are delivered through our own platform and dedicated teams, ensuring direct control, faster issue resolution, and full compliance.

End-to-end employment lifecycle management

• Can they draft compliant contracts, handle documentation, and statutory exit procedures during onboarding and offboarding?
• Do they handle probation terms, termination calculations, and exit documentation in accordance to Hong Kong regulations?

Comprehensive payroll, tax, MPF and benefits administration

• Do they handle salary payments in HKD, apply MPF contribution rules, and withhold correct taxes?
• Are employee benefits, mandatory filings, and monthly compliance reports included in the scope?

Omni’s multi-country payroll and tax automation ensures accurate, on-time payments and filings every time. Our reports and analytics features allow for detailed reporting to keep your HR and finance teams in sync. 

Automate your MPF calculations

Proven reputation with local clients

• Do they have positive client reviews and case studies specific to Hong Kong?
• Can they provide references from businesses of similar size and industry?

Omni is trusted by scaling companies across Asia Pacific and globally, with a track record of helping clients onboard and manage talent compliantly in Hong Kong. 

Why businesses choose Omni

Modern, user-friendly HR platform

• Is their HR platform intuitive, with self-service portals for employees and centralized dashboards for HR teams?
• Do they offer configurable workflows, analytics, and integrations with your existing systems?

Omni’s award-winning design is recognized for its exceptional user experience. From onboarding and payroll to reporting and time-off management, every feature is designed to be clear and intuitive, so your teams can work efficiently without steep learning curves.

Transparent pricing without hidden costs

• Is their fee structure clear and predictable, with no hidden costs for standard services?
• Do they provide itemized quotes and explain additional costs for optional add-ons?

Omni guarantees transparent pricing that includes everything you need to compliantly employ in Hong Kong, with no hidden fees or unexpected surprises. 

Scalable services to grow with your business

• Can the EOR provider Hong Kong support you as you expand your headcount across Hong Kong and other markets?
• Do they have the capacity and infrastructure to adapt to your enterprise’s changing workforce needs?

Whether you’re hiring your first employee in Hong Kong or building a distributed team across the globe, Omni’s platform grows with you, so you never outgrow your EOR partner.

Take a free tour of Omni!

Frequently Asked Questions

1. Can foreign companies legally employ workers in HK via EOR?

Yes, foreign companies can legally employ workers in Hong Kong through an EOR. An EOR provider Hong Kong acts as the legal employer, handling payroll, taxes, benefits administration, and compliance. This allows businesses to focus on other strategic activities without worrying about international recruitment demands.

2. What’s included in a typical EOR package?

An EOR package includes services designed to manage the legal and administrative aspects of employment during international expansion. They typically include onboarding, payroll processing, tax withholding and filings, benefits administration, legal compliance, and offboarding support. 

3. What are the risks of using an unlicensed EOR?

Using an unlicensed EOR can expose your business to serious legal, financial, and reputational risks, particularly during employee terminations. These EOR providers often issue ambiguous contracts that don’t clearly define termination rights, making it easier for employees to dispute dismissals or take legal action. This can result in costly settlement demands, government penalties, or lawsuits that affect both the client company and the EOR.

Additionally, unlicensed EORs may come with hidden costs, such as claims for unfair dismissal, resulting in expenses that far outweigh the initial costs. Many of these providers also lack HR expertise, often relying on their sales teams with limited knowledge of local labor laws. This lack of local expertise increases the risk of non-compliance.

4. Can an EOR provider Hong Kong help with visa and work permit applications?

Yes, many EOR providers offer visa and work permit applications as part of their service offerings.

5. Can I terminate an employee through EOR Hong Kong?

Yes, you can terminate an employee’s contract through an EOR. However, the process must be fair and compliant with Hong Kong’s labor laws.

Partner with Omni to Confidently Hire and Grow in Hong Kong

Expanding your business into Hong Kong can be an exciting opportunity, and with the right EOR provider Hong Kong, you can start hiring and expanding without the complications. 

Omni’s all-in-one EOR solution combines local expertise, compliant multi-country payroll, automated tax filing, benefits administration, and seamless onboarding, all backed by an award-winning, easy-to-use platform trusted by leading enterprises in Asia Pacific.

With Omni, you can hire top talent faster, stay compliant with local regulations, and scale your Hong Kong operations without hidden costs or administrative headaches. 

‍Book a demo today to learn more about how Omni is the EOR provider Hong Kong you need to scale your workforce with confidence and efficiency.