Hiring, Payroll & Employment
in Hong Kong

Hire Employees and Contractors in Hong Kong

Project Global helps international businesses hire, onboard and manage employees and contractors in Hong Kong without needing to establish their own local entity. Through our established presence in Hong Kong and in-country expertise, we provide Employer of Record (EOR), contractor management, payroll, compliance, recruitment and workforce administration services.

Services available in Hong Kong:

Speak to our Experts
Hong Kong flag

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

7.5M

VAT

N/A

Hong Kong

Go Global in Hong Kong

Our multinational clients trust us to take care of international payments and compliance for employees, contractors and freelancers working in Hong Kong.

You can use our Employer of Record (EoR) service to employ your team via our legal entity – onboarding your Top Talent quickly and with ease. 

Experience our world class service – for your business and your team.

Explore Other APAC Employment Guides

Explore our country-specific guides covering employment, payroll, compliance and workforce management across APAC.

Australia

Australia

Source, onboard and manage workers in Australia

Hong Kong

India

Source, onboard and manage workers in India

Singapore

Singapore

Source, onboard and manage workers in Singapore

Thailand

Thailand

Source, onboard and manage workers in Thailand

The Philippines

The Philippines

Source, onboard and manage workers in the Philippines

Global flags

View all Country Guides

Explore employment, payroll and compliance requirements by country

Speak to our experts

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 accumulate paid sickness days at 2 days per month during the first 12 months of employment and 4 days per month thereafter, up to a maximum accumulation of 120 days. Eligible employees are entitled to sickness allowance at 80% of their average daily wages, subject to statutory requirements and medical certification. 

  • Casual Leave: There is no statutory provision for casual leave; however, some employers may offer it based on company policy.

  • Maternity Leave: Eligible employees are entitled to 14 weeks of paid maternity leave, payable at 80% of their average daily wages.

  • Paternity Leave: Eligible employees are entitled to 5 days of paid paternity leave, payable at 80% of their average daily wages.

  • Public Holidays: Employees are entitled to 15 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.

An Employer of Record, or EOR, can employ a worker in Hong Kong for an overseas organisation that does not have its own local employment infrastructure. The EOR acts as the legal employer, while the client manages the person’s day-to-day responsibilities.
 
Project Global has a registered Hong Kong entity. However, each requirement must be assessed before Project Global confirms that an EOR arrangement is available, particularly where employment-agency or labour-supply licensing rules may apply. 
 
Planning a Hong Kong hire? Ask us to assess the available employment route.

An EOR may be suitable when you want to employ someone in Hong Kong without creating and managing your own local employment operation. Establishing an entity may deserve consideration where the organisation is making a substantial or long-term commercial commitment to Hong Kong.
 
The decision should consider anticipated headcount, business activities, duration, visa requirements, operating costs and the level of local administration your organisation wants to manage. The existence of an entity alone may not resolve every employment or licensing requirement, so the proposed operating model should be reviewed before a decision is made.
 
Compare EOR with establishing your own Hong Kong entity.

The total cost of employing someone in Hong Kong includes more than salary. Depending on the employee and arrangement, it may include Mandatory Provident Fund contributions, employees’ compensation insurance, paid statutory entitlements, benefits and employment administration.
 
The cost will also depend on the employee’s age, immigration status, salary, working pattern and eligibility for particular statutory schemes. Current contribution limits, wage thresholds and statutory requirements should be applied when the estimate is prepared.
 
Get a Hong Kong employment cost estimate.

An EOR may be able to employ a foreign national in Hong Kong, but the proposed worker must have appropriate permission to live and work there. Holding a Hong Kong identity document or having permission to reside in Hong Kong does not necessarily mean that every type of work is permitted.

Evidence should be provided of the individual’s right to enter or remain in Hong Kong for the relevant contractual period. The proposed role, immigration status and employment structure should be checked before a start date is agreed.

Check the proposed Hong Kong employment and immigration route.

Before the person starts, the employer should confirm their right to work, agree the employment terms and identify the information needed for payroll, insurance and statutory administration.
 
The checks required will depend on whether the individual will be an employee or an independent contractor. For employees, the employer should also establish whether Mandatory Provident Fund enrolment and employees’ compensation insurance apply. For contractors, the organisation should check the person’s business-registration evidence, tax position and actual working arrangements.
 
Tell us about your proposed Hong Kong worker and target start date.

You can engage a genuinely independent contractor in Hong Kong, but the arrangement must operate as an independent business relationship in practice. Describing the person as a contractor in an agreement does not settle their status.
 
Hong Kong’s classification assessment considers factors including control over working methods and time, ownership of equipment, integration into the organisation, the ability to hire helpers, financial risk and responsibility for tax and insurance. The traditional practices of the person’s trade or profession may also be relevant.
 
No single factor should be considered in isolation. The complete working relationship should be reviewed before the engagement begins.
 
Review the proposed Hong Kong contractor engagement.

A person treated as self-employed may still be considered an employee if the real working relationship points towards employment. This can create exposure relating to statutory employment protections, leave, termination, insurance and other employer obligations.
 
Risk may be greater where the organisation controls how and when the work is performed, supplies the equipment, integrates the person into its operations and leaves the individual with little genuine opportunity to make a profit or suffer a loss. Responsibility for tax and insurance, the ability to engage helpers and the established practice of the profession may also affect the assessment.
 
A written contractor agreement is important, but it should accurately reflect how the arrangement operates.
 
Check the proposed worker classification.

Assess the proposed relationship before work begins and review it again if the role or working practices change. The assessment should examine control, working time, equipment, integration, delegation, financial risk and whether the individual is genuinely operating a business on their own account.
 
The contract should match the practical arrangement. For example, an agreement that describes the individual as independent will carry less weight if the client controls their schedule, methods, tools and daily activities.
 
The worker’s business registration, tax evidence and right-to-work position should also be checked. These checks do not prove that the individual is self-employed, but they help identify whether the proposed structure is credible and properly documented.
 
Request a Hong Kong workforce risk assessment.

A person carrying on a trade, profession or business as a self-employed individual in Hong Kong will generally need to complete business registration with the Inland Revenue Department. Registration should usually be completed within one month of beginning the activity.

The relevant evidence may be a Business Registration Certificate or, where applicable, a Business Exemption Certificate. Registration evidence supports the onboarding process, but it does not by itself determine whether the person is genuinely self-employed. Their actual working relationship must still be assessed.
 
Review a proposed Hong Kong freelancer engagement.

Hong Kong employers are required to maintain employees’ compensation insurance for employees falling within the applicable legislation. This requirement can apply regardless of whether employment is full-time, part-time, permanent or temporary.

Insurance should be arranged before employment begins and should reflect the organisation’s workforce and activities. A contractor’s position should be assessed separately because calling someone self-employed will not remove employer obligations if the relationship is employment in practice.
 
Check the insurance and employment requirements for your proposed hire.

Part-time, casual and short-hours workers may still be employees. Eligibility for certain statutory benefits can depend on whether the person is employed under a “continuous contract” under Hong Kong employment legislation.
 
The precise continuous-contract test and its consequences should be checked against the rules in force when the person is engaged. Employers should not assume that a worker has no statutory entitlements simply because they work irregularly, for limited hours or on a casual basis.
 
The safest approach is to review the expected work pattern, contractual arrangement and statutory eligibility before deciding how leave, benefits and termination provisions will be managed.
 
Review the proposed working pattern and employment structure.

The Mandatory Provident Fund, or MPF, is Hong Kong’s employment-based retirement savings system. Employer and employee obligations depend on factors including the person’s age, employment status, permitted exemptions and applicable income levels.
 
An employer should establish whether the employee must be enrolled, when enrolment is required and what contributions apply. Foreign nationals should not automatically be treated as exempt because exemption can depend on their circumstances and participation in an overseas retirement scheme.
 
MPF contribution limits and exemptions can change, so they should be checked for the particular employee when the employment cost is calculated.
 
Request a Hong Kong payroll and employment cost assessment.

Before terminating employment in Hong Kong, the employer should review the contract, applicable notice period, payment in lieu provisions, outstanding wages, accrued entitlements and whether any protected circumstances apply.
 
The employer should also consider whether severance or long-service payment may be relevant. The outcome can depend on the reason for termination, the employee’s length and continuity of service and the circumstances in which employment ends.
 
Termination should not be approached as a payroll step alone. The factual basis, documentation and statutory position should be reviewed before action is taken.
 
Speak to a Hong Kong specialist before beginning a termination process.

The process should combine talent sourcing with an early assessment of how the successful candidate can properly be engaged. Depending on the role and working arrangement, the person may require employment or may be suitable for a genuine independent-contractor structure.
 
This is particularly important for project-based media and technology roles. Industry practice or a short assignment does not override the practical classification factors, including control, integration, equipment, delegation and financial risk.
 
Job-placement activity is regulated in Hong Kong. An organisation providing job-placement services must hold an Employment Agency Licence or an applicable Certificate of Exemption before conducting regulated activity. The licensed delivery route should therefore be confirmed before accepting a recruitment requirement.
 

Project Global has a registered Hong Kong company and can help businesses explore options for engaging talent in Hong Kong.

The appropriate employment arrangement will depend on the proposed role, working practices and applicable local requirements. Project Global can assess your workforce needs and advise on the available engagement options to help ensure the proposed arrangement meets Hong Kong employment and compliance requirements.

Ask Project Global to assess your Hong Kong workforce requirement.

Our Entities: London | Frankfurt | Dublin | New York | Québec | Manila | Singapore | Hong Kong | Mumbai | Bangkok | Sydney

Grow Your Global Team Confidently!

We deliver high-quality onboarding, payroll and compliance services across 130+ countries, supporting both employees and contingent workers. Our premium solutions ensure you hire, manage and pay compliantly – without compromise.

Resources

About

Policies

Copyright © 2024 Project Global

project global logo
Global Payroll Association
payroll org no background
Project Global
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.