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Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

 

Payroll services in Hong Kong

Hong Kong has a thriving economy with key industries in finance, technology, and logistics. With specific labor laws and tax regulations, employers in Hong Kong must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Hong Kong

Employers in Hong Kong must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

  • Minimum wage: Hong Kong’s minimum wage is HKD 40 per hour.
  • Payroll frequency: Salaries are generally paid monthly.
  • Standard working hours: There is no statutory limit on working hours in Hong Kong, though employment contracts typically specify terms.
  • Overtime: Overtime pay is not legally required unless specified in employment contracts.

Taxation and social security contributions

  • Personal income tax: Hong Kong has a progressive income tax system with rates ranging from 2% to 17% depending on income levels.
  • Employer contributions:
    • Mandatory Provident Fund (MPF): 5% of the gross salary (capped at HKD 1,500 per month).
  • Employee contributions:
    • Mandatory Provident Fund (MPF): 5% of the gross salary (capped at HKD 1,500 per month).
  • Corporate tax: The corporate income tax rate in Hong Kong is 16.5%.
  • Tax reporting: Employers must file payroll taxes and contributions with the Hong Kong Inland Revenue Department regularly.

Payroll compliance in Hong Kong

  • Employment contracts must be provided in writing and specify terms such as salary, working hours, and job responsibilities.
  • Payroll deductions: Employers must ensure accurate deductions for MPF and income tax.
  • Employers must stay updated on changes to Hong Kong’s labor laws and tax regulations to avoid penalties.

Run payroll in Hong Kong with Remote

Managing payroll in Hong Kong requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.