Hong Kong is a unique independent city/state with low tax rates, high incomes, and very low unemployment. Hong Kong is growing rapidly and attracting companies from all over the world, with few barriers to entry.

Payroll and Tax Requirements

  • The minimum wage is HK 37.5 per hour
  • There is no statutory guidance on overtime pay, but it is recommended to state in the employment agreement
  • Income tax rates range from 2-17%, with the tax year April 1 – March 31
  • Contracts for employment must include wages, wage period and end of year payments. Agreements can be made orally or in writing
  • There are no standard working hours. If someone works 18 hours a week for 4 weeks they are considered a continuous employee. Continuous employees are entitled to rest days, paid annual leave, sick allowance, and severance

HR and Statutory Requirements

  • Employees who have worked under a continuous contract of at least 12 months are entitled to annual leave. Annual paid leave increases progressively from 7 to a maximum of 14 days based on length of service
  • Sick leave is provided after an employee has worked for 1 month
  • Female employees are entitled to 14 weeks maternity leave
  • 5 days of paternity leave are available to employees
  • Employees are eligible for severance pat if they have been employed for at least 24 months and are either dismissed by the employer due to economic redundancy or laid off
  • There is a Mandatory Provident Fund (MPF) pension scheme for employees who are 18 years old or over but below the retirement age of 65. The benefits are paid in either a lump sum or installments from the accrued amount
  • The amounts of monthly contributions are set by the MPF and vary by income

Holidays in Hong Kong

  • January 1 – New Year’s Day
  • February 1 – Chinese Lunar New Year’s Day
  • February 2 – Second day of Chinese Lunar New Year
  • February 3 – Third day of Chinese Lunar New Year
  • April 5 – Tomb Sweeping Day
  • April 15 – Good Friday
  • April 16 – Holy Saturday
  • April 18 – Easter Monday
  • May 1 – Labour Day
  • May 2 – Labour Day observed
  • May 8 – Buddha’s Birthday
  • May 9 – Day following Buddha’s Birthday
  • June 3 – Dragon Boat Festival
  • July 1 – Hong Kong Special Administrative Region Establishment Day
  • September 12 – Day after Mid-Autumn Festival
  • October 1 – National Day of the People’s Republic of China
  • October 4 – Chung Yeung Festival
  • December 26 – First Weekday after Christmas Day
  • December 27 – Second Weekday after Christmas Day

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