Employment agreements

Employment contracts in Hong Kong should be in writing and clearly indicate salary, job responsibilities, hours, leave entitlements, and termination clauses. Fixed-term and open-ended contracts are both common. Under the Employment Ordinance, contracts exceeding one month must provide at least seven days' notice for termination.

Probationary periods

Probation periods are typically 1-3 months. During this time, either party can terminate the agreement with short notice—usually seven days. After probation, statutory notice periods apply.

Average working hours

There’s no statutory limit on working hours in Hong Kong, but the standard is around 40–48 hours per week. Overtime pay is not mandated by law unless stipulated in the contract.

How an employer of record helps businesses hire in Hong Kong

An EOR in Hong Kong allows employers to hire talent compliantly without setting up a local entity. Companies can secure local talent while saving time and operational costs from setting up a legal entity. Velocity Global’s EOR solution manages onboarding, contracts, benefits, and payroll—freeing companies to focus on performance, not paperwork.

Payroll cycles

Monthly payroll is standard in Hong Kong. Salaries are usually paid on the last working day of the month.

Wages

According to the Labour Department, the statutory minimum wage in Hong Kong is HK$40 per hour as of May 2023. Most white-collar roles earn significantly more.

Bonus payments

Many employers offer a “13th-month salary” or year-end bonus as part of the compensation package. While not legally required, it’s customary in specific sectors.

How an EOR helps run payroll in Hong Kong

With Velocity Global’s EOR solutions in Hong Kong, businesses can access automated, compliant payroll processes. That includes tax deductions, payslips, social security contributions, and timely salary disbursement. All of it is managed in one place—the Global Work Platform™.

Tax due dates

Employers must file annual employer returns (Form IR56B) by early April. New joiners and leavers must be reported within one month using forms IR56E and IR56F, respectively.

Tax thresholds

Hong Kong follows a progressive tax system. The first HK$50,000 of income is taxed at 2%, scaling up to a maximum of 17%. The Inland Revenue Department (IRD) outlines the current salary tax rates.

Health insurance

Employers aren’t legally required to provide health insurance, but many offer it as a supplemental benefit. Hong Kong has a public healthcare system, but private coverage is often preferred for shorter wait times and greater flexibility.

Pensions

The Mandatory Provident Fund (MPF) is a compulsory pension system. Both employer and employee must contribute 5% of monthly income (capped at HK$1,500 each per month) to an MPF account.

How an EOR helps with taxes and compliance

Velocity Global ensures accurate filings, timely contributions, and local tax compliance. Its EOR services in Hong Kong take the burden off your team and help avoid costly penalties.

Annual leave

Employees are entitled to seven days of paid annual leave after one year of service, increasing progressively to 14 days depending on tenure.

Parental leave

As of 2023, Hong Kong mandates 14 weeks of maternity leave and five days of paternity leave. Employers must pay at least 80% of wages during maternity leave.

Sick leave

Employees accumulate paid sick leave at a rate of two days per month. After 24 months, they’re entitled to 120 days of paid sick leave.

Regional and national holidays

Hong Kong recognizes 17 statutory and public holidays. These include Lunar New Year, National Day, and Christmas. A full calendar is available on GovHK.

How an EOR helps manage leave and time off in Hong Kong

Velocity Global simplifies leave tracking, accruals, and statutory compliance—all through one platform. Our EOR solution ensures paid time off is accurately managed and aligned with local labor laws.

Statutory benefits

Statutory benefits include MPF contributions, paid holidays, sick leave, and parental leave. These form the baseline for all employment agreements.

Supplemental benefits

Many employers offer extras like private health insurance, dental coverage, wellness stipends, and annual bonuses to stay competitive. Companies hiring top-tier talent will find these supplemental benefits especially valuable.

How an EOR helps administer benefits in Hong Kong

Velocity Global helps employers offer locally competitive total rewards packages, including statutory and supplemental benefits. Our EOR solutions in Hong Kong differentiate businesses in a crowded hiring market.

Notice periods

Standard notice periods are seven days during probation and one month thereafter, unless otherwise specified in the employment contract.

Severance pay

Employees with at least 24 months of continuous service are entitled to severance pay if dismissed due to redundancy. The amount equals two-thirds of the employee’s last monthly salary multiplied by years of service (capped at HK$390,000).

How an EOR helps organizations process terminations

Velocity Global ensures all termination processes—notifications, final payments, and MPF account closures—are handled compliantly and respectfully.