Facts & Stats
- Capital City
Hong Kong dollar ($, HKD)
Cantonese and English
- Population size
- Ease of doing business
- Cost of living index
$$$$ (39 of 139 nations)
- Payroll frequency
- VAT - standard rate
- GDP - real growth rate
Hong Kong is a special administrative region of the People’s Republic of China, nestled just off its southeastern coast.
For a territory of less than eight million, Hong Kong hosts a vibrant economy built on one of the world’s strongest financial services labor markets, a robust tourism sector, and a leading professional services sector.
Combined with its 4th place ranking on the human development index and a GDP that is several times the size of comparative nations, Hong Kong offers an attractive option for companies looking to build a presence in Asia with strong global connections.
Grow your team in Hong Kong with Remote
Looking to employ workers in Hong Kong? Companies hiring in Hong Kong must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Hong Kong on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Hong Kong team. You can also pay contractors now in Hong Kong with Remote.
Risks of misclassification
Hong Kong, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Hong Kong may lead to fines and penalties for the offending company.
Employing in Hong Kong
Since its enactment in 1968, the Employment Ordinance has served as the comprehensive body of statutes guiding employment relationships in Hong Kong, covering everything from wage protections to union privileges.
Common questions during the hiring process may be regarding minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Hong Kong.
Effective since the last increase in May 2019, the Hong Kongese minimum wage has been fixed at HK$ 37.5 per hour or around $4.83 per hour.
For customers of Remote, all employee payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.
We can help you get a new employee started in Hong Kong fast. The minimum onboarding time we need is only 6 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
13 Public holidays
Competitive benefits package in Hong Kong
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Hong Kong are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Hong Kong
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Hong Kong.
Less than $7,100 - relevant income x 5%
$7,100 to $30,000 - relevant income x 5%
more than $30,000 - $1,500
Types of leave
Hong Kongese employees are entitled to at least seven vacation days after working with an employer for a year. This increases and caps out at 14 paid days off annually after nine years with an employer.
An employee can be terminated for misconduct, negligence, disobedience of reasonable regulations, and generally, violating the employment.
An employee cannot be terminated for pregnancy, taking maternity leave, getting injured at work, joining a union, exercising their sick leave, or taking time off work to fulfill civil responsibilities like jury duty, etc.
The employment contract spells out the notice period an employer should provide before laying off an employee and should be at least seven days.
If there’s no notice period specified in the employment contract, an employer must inform an employer at least 30 days before their employment is terminated.
Notice period required during the probation period
within the first month, no notice period is required
after the first month where a contract makes provision for a required length of notice, the period is as per agreement
after the first month where a contract does not make provision, the notice period should not be less than seven days
Notice period for a continuous contract / after the probation period
where the contract makes provision, the notice period is as per agreement, not less than seven days
where the contract does not make provision, the notice period should not be less than one month
According to the Hong Kong Employment Ordinance, an exiting employee is entitled to a severance package equal to 2/3 of the last full month’s salary or HK$ 22,500 multiplied by the number of years of employment with the employer.
The calculation for an employee that is paid on a monthly basis:
(the previous full month’s wages * 2/3) * reckonable years of service
the sum should not exceed 2/3 of $22,500 (i.e. $15,000)
Probation periods in Hong Kong last anywhere from one to three months and should be clearly defined in the employment contract.