Payroll  Information

Employers in Hong Kong are required to comply with the requirements of the EO, including providing written employment contracts, contributing to the MPF scheme, and complying with minimum wage requirements. Employers must also ensure that their payroll cycle is monthly and provide their employees with a monthly payslip.

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Payroll  Cycle  

In Hong Kong, the standard payroll cycle is monthly. Employers are required to pay their employees' salaries on or before the last day of the month. Employers are also required to provide their employees with a monthly payslip that includes details of their salary, tax deductions, and any other deductions.

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Employment  Law

The employment law in Hong Kong is governed by the Employment Ordinance (EO). The EO sets out the minimum standards of employment conditions for employees, including working hours, annual leave, sick leave, and termination of employment. The EO also requires employers to contribute to the Mandatory Provident Fund (MPF) scheme for their employees.

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Employment Contract  

Employers in Hong Kong are required to provide their employees with a written employment contract within the first 14 days of employment. The employment contract must include details of the employee's job title, salary, working hours, annual leave entitlement, and termination of employment.

The contract must also include information on any additional benefits or allowances, such as housing allowances, medical insurance, or travel allowances. Employers must ensure that the terms of the employment contract comply with the requirements of the EO.

Employers in Hong Kong must also comply with minimum wage requirements. As of 2023, the minimum wage is HKD 39 per hour. The minimum wage rate is reviewed annually and adjusted based on the prevailing economic conditions.

Probation Period / Trial  Period  

Employers in Hong Kong can implement a probation period for new employees. The maximum length of the probation period is usually 6 months, although this may be longer for managerial or professional roles. During the probation period, employers can terminate the employment contract with shorter notice periods or no notice period, depending on the terms of the employment contract.

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Working  Hours  

The standard working hours in Hong Kong are 8 hours per day, with a maximum of 48 hours per week. Employers must provide their employees with at least 1 day off per week. Employers must also ensure that their employees are entitled to rest breaks during their working day.

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Overtime  

Employees in Hong Kong who work beyond their standard working hours are entitled to overtime pay. Overtime pay is calculated as 1.5 times the employee's hourly rate for the first 2 hours of overtime and double the employee's hourly rate for any additional hours of overtime.

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Bonus

Employers in Hong Kong may provide their employees with a discretionary bonus. The amount of the bonus is usually based on the employee's performance and the financial performance of the company.

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Termination  

Employers in Hong Kong can terminate an employee's employment contract for a variety of reasons, including poor performance, misconduct, or redundancy. Employers must provide employees with written notice of termination, which must comply with the notice periods specified in the employment contract or the EO.

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The Notice Period

The notice period for termination of employment in Hong Kong is usually 1 month, although this may be longer for managerial or professional roles. During the notice period, the employee is entitled to continue working and receiving their salary, or the employer may choose to pay the employee in lieu of notice.

Redundancy / Severance Pay  

If an employer needs to make an employee redundant, they must follow a fair and transparent process. The employer must provide the employee with written notice of the redundancy, and the employee is entitled to a severance payment. The amount of the severance payment is usually based on the employee's length of service and salary.

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Maternity  Leaves  

Female employees in Hong Kong are entitled to 14 weeks of maternity leave if they have been employed continuously for at least 40 weeks. During the maternity leave, the employer must pay the employee at the rate of 4/ of her average daily wage, subject to a daily maximum payment.

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Paternity Leaves  

Male employees in Hong Kong are entitled to 5 days of paternity leave if they have been employed continuously for at least 40 weeks. During the paternity leave, the employer must pay the employee at the rate of 4/5 of his average daily wage, subject to a daily maximum payment.

Parental Leaves

Parents in Hong Kong are entitled to 14 weeks of parental leave, which can be taken by either the mother or father, or shared between them. The parental leave can be taken at any time during the first year after the child's birth or adoption. During the parental leave, the employer is not required to pay the employee.  

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Sick Leaves

Employees in Hong Kong are entitled to paid sick leave if they have been employed continuously for at least 4 weeks. The entitlement is 80% of the employee's average daily wage, subject to a daily maximum payment, for up to 36 days per year.

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Paid Outpatient Leaves

Employees in Hong Kong are entitled to paid annual leave after they have completed 12 months of continuous employment. The minimum annual leave entitlement is 7 days per year, and this increases by 1 day per year of service, up to a maximum of 14 days per year.

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Other Leaves  

Employees in Hong Kong may be entitled to other types of leave, including marriage leave, compassionate leave, and jury service leave. The entitlements to these types of leave vary depending on the terms of the employment contract or the company policy.

Other Benefits

In addition to the above leave entitlements, employers in Hong Kong may also provide their employees with other benefits, such as medical insurance, dental insurance, life insurance, and retirement benefits. The terms of these benefits vary depending on the employer's policy.

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Holidays

Hong Kong has 17 public holidays per year, which include both fixed and floating holidays. The fixed holidays include New Year's Day, Chinese New Year, Good Friday, and Christmas Day, among others. The floating holidays can be taken at the employee's discretion, subject to the employer's approval.

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Taxation

Taxation in Hong Kong is relatively simple compared to many other countries, with a low and competitive tax regime that has helped to establish the city as a major international financial center.

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Personal  Income Tax  

Hong Kong does not have a comprehensive personal income tax system. Instead, it operates a territorial tax system, which means that only income that is earned in or derived from Hong Kong is subject to taxation. The tax rates for individuals are progressive, ranging from 2% to 17%. However, there are many exemptions and deductions available to taxpayers, including allowances for dependents, charitable donations, and certain types of expenses. As a result, many people in Hong Kong are not required to pay any income tax at all.

Social Security  

Hong Kong does not have a social security system in the traditional sense. Instead, the government operates a system of mandatory provident funds (MPFs), which are private retirement savings plans that are managed by approved financial institutions. Both employers and employees are required to contribute to an employee's MPF account, with the total contribution rate set at 15% of the employee's relevant income, subject to a cap of HKD 50,000 per month. The MPF system is intended to provide retirement benefits to employees, but it does not provide any other forms of social security, such as unemployment benefits or disability insurance.

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Others

In addition to personal income tax, Hong Kong also imposes other taxes, such as profits tax on businesses, property tax on property owners, and stamp duty on certain transactions, such as property sales and share transfers. These taxes are generally low compared to other countries, and there are many exemptions and deductions available to taxpayers.

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Visas  and Foreign Workers

Obtaining a work visa in Hong Kong requires a job offer from a Hong Kong employer, relevant skills and experience, and meeting certain other eligibility criteria. The visa application process is relatively straightforward, and the processing time is typically 4 to 6 weeks. Work visas are issued for a maximum period of 2 years, and dependents can also apply for visas. If a work visa holder wishes to change employers, they must apply for a new visa.

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General  Information  

Visa Requirements

Foreign nationals who wish to work in Hong Kong must obtain a valid employment visa before they can start working. To be eligible for an employment visa, applicants must have a job offer from a Hong Kong employer, possess the required skills, knowledge, or experience relevant to the job, and meet certain other eligibility criteria.

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Visa Application

The application process for a work visa in Hong Kong is relatively straightforward. The employer must sponsor the visa application and submit the necessary documents, including a completed application form, a copy of the applicant's passport, a letter of employment, and proof of the applicant's qualifications and work experience. The applicant may also be required to attend an interview with immigration authorities.

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Processing Time

The processing time for a work visa in Hong Kong is typically around four to six weeks. However, this may vary depending on the complexity of the application and the workload of the immigration authorities.

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Visa Duration

The duration of a work visa in Hong Kong depends on the length of the employment contract. In general, visas are issued for a maximum period of two years, but they can be renewed if the applicant continues to meet the eligibility criteria.

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Dependents

Spouses and unmarried children under the age of 18 of the work visa holder are eligible to apply for a dependent visa to live and work in Hong Kong. The dependent visa is valid for the same duration as the work visa.

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Changing Employers

If a work visa holder wishes to change employers in Hong Kong, they must apply for a new employment visa. The new employer must sponsor the visa application, and the applicant must meet the same eligibility criteria as for the original visa.

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