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Asia expansion playbook / Hong Kong
Country guide
Hiring in Hong Kong
Hire with or without a local entity. MPF, work visas, leave, termination payments and tax for 2026, in one place.
- 01You can hire without your own entity.An Employer of Record (EOR) employs your hires for you from day one. Many companies start this way.
- 02Employer MPF adds 5%, capped at HK$1,500 a month.It applies to most employees, whatever their nationality, and is the only statutory employer contribution.
- 03Foreign hires need an approved work visa first.Most come through the General Employment Policy, sponsored by their employer.
Hong Kong at a glance
Three ways to hire in Hong Kong
Your first hire, step by step
Write the job description
Set out the skills, responsibilities and qualifications for the role, in a clear and consistent format.
Advertise the role
Post on job boards like JobsDB and CTgoodjobs, on LinkedIn, or work with a recruitment agency.
Screen and interview
Review applications, run screening interviews and assess candidates in a fair, transparent process.
Offer and work visa
Send an offer covering title, salary, benefits, start date and probation, usually 3 to 6 months.
Onboard
Add your hire to your employees' compensation insurance, enroll them in MPF within 60 days, and notify the IRD within 3 months.
What it costs to employ someone here
Where the cap kicks in. Employer MPF is 5% of relevant income up to HK$30,000 a month, so it never goes above HK$1,500. Above that, the extra cost is salary alone.
About HK$378,000 a year
Estimate on 2026 rates. Excludes employees' compensation insurance, bonuses and benefits.
What you're legally on the hook for
Work visas for foreign hires
- Your hire needs an approved work visa before they start work.
- Most professionals come through the General Employment Policy (GEP).
- The visa is tied to your company as sponsor, so a new employer means a new application.
Your role as sponsor: show that the role needs skills not readily available locally, and that the pay and benefits match market rates.
Leave you must provide
- Annual leave starts at 7 days and grows to 14 with service.
- Paid sick days accrue monthly and are paid at four-fifths of wages.
- Mothers get 14 weeks of maternity leave. Fathers get 5 days of paternity leave.
Who qualifies: most of these benefits apply to employees on a "continuous contract". From 18 January 2026, that means at least 4 weeks with you and at least 17 hours a week, or 68 hours across 4 weeks (the "468" rule).
Ending employment
- Notice is set by the contract, with a minimum of 7 days. If the contract is silent, it is 1 month.
- Either side can pay wages in lieu of notice.
- Long-serving or redundant employees may be owed a statutory payment.
Probation: in the first month, either side can end employment without notice, unless the contract says otherwise. After that, give at least 7 days.
How much: both are two-thirds of the last month's wages (capped at HK$15,000) for each year of service, up to HK$390,000 in total. Only one of the two is payable.
No more MPF offsetting: for service from 1 May 2025, you can no longer use your MPF contributions to reduce these payments.
Working hours and rest days
- There is no statutory limit on working hours.
- Employees get at least 1 rest day in every 7 days.
- Overtime pay is set by the employment contract.
Set hours in the contract: because the law sets no maximum, define working hours and overtime terms clearly in writing.
Rest days: employees on a continuous contract get at least 1 rest day in every 7 days. Failing to provide them can lead to a fine of up to HK$50,000.
Hours records: keep a record of hours worked for any employee paid less than HK$17,600 a month.
Contracts and records
- Set out key terms before employment starts, in writing if the employee asks.
- Pay wages within 7 days after the end of each wage period.
- Keep wage and employment records, and tax records for 7 years.
Contracts typically cover job title and duties, salary, benefits, working hours, leave, termination and resignation terms, and confidentiality clauses.
Late wages: wages paid after the 7-day deadline attract interest.
Records to keep: Employment Ordinance records for the past 12 months, kept for 6 months after an employee leaves. Payroll and tax records for at least 7 years.
Personal data: under the Personal Data (Privacy) Ordinance, collect employee data for clear purposes, keep it secure, and let employees access and correct it.
Insurance and work injury
- Employees' compensation insurance is mandatory for every employee.
- It covers injury or death from work-related accidents and occupational diseases.
- Report workplace injuries to the Labour Department.
Employees' compensation insurance: required for all employees, full-time or part-time, from their first day. Display the notice of insurance at your workplace.
Reporting: notify the Labour Department of work injuries that cause more than 3 days of incapacity, within 14 days of the accident.
Medical insurance: not required by law, but a common benefit, along with housing allowances and performance bonuses.
What non-compliance costs
How payroll actually runs
Contributions and filing
- MPF is shared: employer and employee each pay 5% of relevant income.
- Contributions are capped at HK$1,500 a month for each side.
- Pay MPF by the 10th of the following month.
Enrollment: enroll employees aged 18 to 64 in an MPF scheme within 60 days of their start date.
Exemptions: employees in Hong Kong for 13 months or less, or covered by an overseas retirement scheme, may be exempt.
Late payment: missed contributions attract a 5% surcharge.
Tax
- Employees pay their own salaries tax each year. There is no monthly withholding.
- Employers report each employee's annual income to the IRD.
- Notify the IRD when employees join, leave, or leave Hong Kong.
Salaries tax is the lower of two calculations: progressive rates from 2% to 17% on net chargeable income, or a standard rate of 15% on the first HK$5 million of net income and 16% above that.
Annual employer's return: file forms BIR56A and IR56B within 1 month of the IRD issuing them each April.
New hires: file form IR56E within 3 months of the start date.
Leavers: file form IR56F at least 1 month before an employee leaves. For employees leaving Hong Kong, file form IR56G and hold back money owed to them for 1 month.
What to have in place
- Take out employees' compensation insurance first. It must be in place before your first hire starts work.
- Register with the IRD and choose an MPF scheme. Hiring through an EOR? The EOR handles this.
- Hire fairly. Hong Kong's anti-discrimination laws cover sex, pregnancy, disability, family status and race.
Hong Kong hiring questions we get asked
Do I need a local director to register a company in Hong Kong?
No. A Hong Kong private limited company needs at least one director who is an individual, of any nationality or residence. Your company secretary must be a Hong Kong resident or a Hong Kong company.
Do foreign employees pay into MPF?
Usually, yes. MPF applies regardless of nationality. Employees in Hong Kong for 13 months or less, or covered by an overseas retirement scheme, may be exempt.
Is there a minimum wage in Hong Kong?
Yes, HK$43.1 an hour from 1 May 2026. It is now reviewed every year and covers most employees, including part-time and casual staff. Live-in domestic workers are exempt.
Can I move employees from an EOR onto my own entity later?
Yes. Your entity becomes the employer, so you issue new contracts, set up MPF and insurance, and apply for new visas for foreign staff. Agree up front how service length carries over, since it affects long service payments.
Do I have to withhold income tax every month?
No. Employees pay salaries tax directly to the IRD after each tax year. Your job is to report their income each year and notify the IRD when staff join or leave.
Can I hire contractors instead of employees?
Yes, for genuine project work. Contractors invoice you and handle their own tax. If the role looks like employment, with set hours, supervision and ongoing work, they can be treated as employees, with MPF, leave and termination payments owed.
Talk to us
Plan your first hire in Hong Kong
30 minutes with someone who has set up teams in Hong Kong. Bring your headcount and timeline. We only demo the product if you ask.
Sources: Labour Department · MPFA · Inland Revenue Department · Immigration Department. Rates checked September 2026. General guidance, not legal or tax advice.
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