Hong Kong Country Resources
About Hong Kong
Hong Kong, which was a British territory until its handover in 1997, is now a special administrative region of China. Today, it stands as a prominent global financial centre, valued for its strategic location close to mainland China and East Asia. The region’s economy is distinguished by its emphasis on free trade, low taxes, and minimal government interference. As the eighth largest trading economy worldwide, Hong Kong draws significant foreign investment and benefits from a diverse and abundant workforce from neighbouring countries, making it an attractive location for business ventures and investment opportunities.
Hong Kong: Country Resources
Currency:
Hong Kong Dollar (HKD)
Capital:
Hong Kong, Tamar
Language:
Cantonese | English
Ease of doing Business
Very Easy
Population Size
7.346M
VAT
N/A
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FAQ's
Hong Kong observes several public holidays throughout the year. National holidays include:
- Lunar New Year (January/February) – Celebrated over several days, marking the start of the lunar calendar.
- Ching Ming Festival (April) – A day for honoring ancestors and tending to their graves.
- Labour Day (May 1) – Celebrating workers’ contributions.
- Buddha’s Birthday (April/May) – Observed to honor the birth of Buddha.
- Hong Kong Special Administrative Region Establishment Day (July 1) – Marking the anniversary of Hong Kong’s handover to China.
- Mid-Autumn Festival (September/October) – A festival celebrating the harvest and the full moon.
- National Day (October 1) – Celebrating the founding of the People’s Republic of China.
- Chung Yeung Festival (October) – A day for paying respects to ancestors and climbing hills.
- Christmas Day (December 25) – Celebrating Christmas.
- Boxing Day (December 26) – Observed as a public holiday following Christmas.
In addition to these, there are also statutory holidays for specific cultural or traditional observances.
Salary and compensation in Hong Kong are primarily regulated by the Employment Ordinance (Cap. 57). Key provisions include:
- Minimum Wage: Hong Kong has a Minimum Wage Ordinance, which mandates that employers must pay employees at least the specified minimum wage per hour. The rate is updated periodically.
- Payment of Wages: Employers are required to pay wages on a regular basis, at least once every month, and must provide a detailed pay statement showing the amount earned, deductions made, and the payment date.
- Rest Days and Overtime: Employees are entitled to rest days and must be compensated for overtime work if stipulated in their contracts or required by company policy.
- Annual Leave and Public Holidays: Employees are entitled to annual leave based on their length of service and paid public holidays as outlined by the Employment Ordinance.
- Severance and Long Service Payments: Employees who are dismissed without cause or have completed a long tenure are eligible for severance pay or long service payments, as specified by law.
Employers must adhere to these regulations to ensure fair and lawful compensation for their employees.
Employees in Hong Kong are entitled to several types of leave, including:
Annual Leave: Employees are entitled to paid annual leave, which increases with length of service. The minimum statutory entitlement is 7 days per year, but this can be higher depending on the employment contract.
Sick Leave: Employees are entitled to paid sick leave if they have been employed for at least 4 weeks. The statutory sick leave entitlement is 4 days per month for the first 12 months and 8 days per year thereafter, subject to medical certification.
Casual Leave: There is no statutory provision for casual leave; however, some employers may offer it based on company policy.
Maternity Leave: Female employees are entitled to 14 weeks of paid maternity leave if they have been employed for at least 40 weeks before the expected date of delivery. The first 10 weeks are paid at 80% of the employee’s average daily wages, and the remaining 4 weeks are unpaid.
Paternity Leave: Male employees are entitled to 5 days of paid paternity leave for each confinement if they have been employed for at least 40 weeks before the expected date of delivery.
Public Holidays: Employees are entitled to 12 statutory public holidays each year, with pay if they meet the eligibility criteria.
Other Leave: Includes leave for compassionate reasons (e.g., bereavement leave), and unpaid leave or leave as per specific company policies.
Employment in Hong Kong can be terminated for several reasons, including redundancy, underperformance, misconduct, and ill health. Notice or pay in lieu of notice is generally required unless termination is due to serious misconduct. In cases of serious misconduct, termination must follow a fair disciplinary process, including an opportunity for the employee to respond to the allegations. Employees on statutory maternity leave or those engaged in industrial disputes are protected from dismissal during their leave or the dispute process. Additionally, termination must adhere to the provisions of the Employment Ordinance and any applicable employment contract terms.
Mandatory insurance provisions for employees in Hong Kong include:
Employees’ Compensation Insurance: Employers are required to provide this insurance to cover employees who suffer injuries or diseases arising out of their work. It provides compensation for medical expenses, loss of earnings, and other related costs.
Mandatory Provident Fund (MPF): A retirement savings scheme that mandates both employer and employee contributions. Employers must make MPF contributions for their employees to help them save for retirement.
These insurance schemes are essential for protecting employees’ welfare and ensuring their financial security in the event of work-related injuries or for their retirement.
