Payroll and Benefits Guide Hong Kong
Last updated: Mar 03, 2026
Contribution
| Employer Payroll Contributions | |
|
5.00%
|
Mandatory Provident Fund (MPF), applied on salary between 7,000 – 30,000 HK$ monthly. Employees earning more than HK$ 30,000 per month contribute a fixed amount of HK$ 1,500 each. |
| Up to 2.00% | Employment Insurance – the rate varies depending on the industry. |
| 7.00% |
Total Employment Cost |
| Employee Payroll Contributions | |
|
5.00%
|
Mandatory Provident Fund (MPF), applied on salary between 7,000 – 30,000 HK$ monthly. Employees earning more than HK$ 30,000 per month contribute a fixed amount of HK$ 1,500 each.
|
| 5.00% |
Total Employee Cost |
| Employee Income Tax | Annually |
|
2.00%
|
On the first HK$ 50,000 |
|
6.00%
|
On the next HK$ 50,000 |
|
10.00%
|
On the next HK$ 50,000 |
|
14.00%
|
On the next HK$ 50,000 |
| 17.00% | On the remainder of salary above HK$ 200,000 |
Employer taxes
Employee taxes
Minimum Wage
General
The hourly minimum wage is 40.00 HKD.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Hong Kong is monthly with payments usually being made on the last working day of the month.
13th Salary
In Hong Kong, it is customary to pay a 13th salary before the Chinese Lunar New Year or at the end of the year.
Authority Payments
| Authority Payment | Dates | Methods |
| MPF trustee (depending on the MPF provider selected by the Company) | Monthly; 10th of the following month | Payments can be made from ICP’s trust account or local account owned by client. Direct debit can be set up by using local account owned by client. |
Working Hours
General
Working hours are typically 9 am to 6 pm Monday to Friday, however, there are no legislative requirements or limits on the maximum working hours except for a young person (age 15 to 18) in industrial settings who is limited to an 8 hour working day between the hours of 7 am to 7 pm with a maximum of 48 hours per week.
Overtime
-
No Statutory Maximum Hours: The Employment Ordinance does not stipulate a maximum number of daily, weekly, or annual working hours for adult employees. It also does not define a standard work week (though 40 to 48 hours is common practice).
-
Overtime Cap: There is no statutory maximum cap on the total amount of overtime an adult employee may work.
-
Rest Days (Statutory): The law only mandates that employees under a continuous contract (working at least 18 hours a week for four weeks) are entitled to one rest day of at least 24 continuous hours in every seven days. It is an offense for an employer to fail to grant this rest day.
-
Mandatory Contract Term: While the hours themselves are not legally capped, the employer must inform the employee of the normal hours of work and any overtime rate before employment begins.
Overtime Compensation (Contractual Obligation)
There is no statutory minimum premium pay rate (e.g., 150% or 200%) for standard overtime. Compensation is determined entirely by agreement.
| Compensation Detail | Formal Governmental Requirement (Employment Ordinance) | Notes |
| Minimum Pay Rate | No statutory minimum premium rate is set. | The rate is determined by the employment contract. If the contract specifies an overtime rate, the employer is legally obligated to pay it. |
| Source of Rates | Determined entirely by the Individual Employment Contract. | Overtime compensation can be paid in cash or compensated by time off in lieu (TOIL), if agreed upon in the contract. |
| Enforcement | If the contract includes overtime pay, the payment is considered wages. Failure to pay is a breach of the Employment Ordinance and is subject to penalties. | Overtime pay must also be included in calculating entitlements like holiday pay and severance pay if it is constant or exceeds 20% of the average monthly wages over 12 months. |
Protection for Young Persons
The law does set clear limits for young persons (ages 15 to 18) employed in industrial undertakings:
-
Daily Max: 8 hours per day.
-
Weekly Max: 48 hours per week.
-
Prohibition: Overtime work, night work, and working on rest days/statutory holidays are prohibited for young persons in industrial undertakings.
Leave
Annual Leave (vacation)
Employees who have been employed for at least 12 months are entitled to 7 days of paid annual leave. This increases by one day per additional year of employment until the total annual leave entitlement of 14 days is reached in the 9th year of employment.
PTO carryover
In Hong Kong, statutory annual leave cannot be forfeited. Unused leave may be carried forward by agreement, but it must generally be granted within 12 months after the end of the leave year. A blanket “use-it-or-lose-it” policy is not lawful for statutory leave; unused days must be taken later or paid out on termination.
Public Holidays
Public holidays that fall on a Sunday are moved to a weekday as a day off in lieu. Public holidays that fall on a Saturday are usually lost.
The number of statutory holidays under the employment ordinance will increase from 13 days to 17 days by 2030, with one additional statutory holiday added every 2 years.
The new statutory holidays will be: Easter Monday (starting from 1 January 2026) , Good Friday (starting from 1 January 2028), The day following Good Friday (starting from 1 January 2030).
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | The First Day of January (New Year’s Day) | Standard holiday |
| 17 February 2026 | Tuesday | Chinese New Year Day 1 | Standard holiday |
| 18 February 2026 | Wednesday | Chinese New Year Day 2 | Standard holiday |
| 19 February 2026 | Thursday | Chinese New Year Day 3 | Standard holiday |
| 3 April 2026 | Friday | Good Friday | |
| 4 April 2026 | Saturday | The Day Following Good Friday | |
| 6 April 2026 | Monday | The Day Following Ching Ming Festival | Standard holiday |
| 7 April 2026 | Tuesday | The Day Following Easter Monday | |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 25 May 2026 | Monday | The Day Following the Birthday of the Buddha | Standard holiday |
| 19 June 2026 | Friday | Tuen Ng Festival (Dragon Boat Festival) | Standard holiday |
| 1 July 2026 | Wednesday | HKSAR Establishment Day | Standard holiday |
| 26 September 2026 | Saturday | The Day Following the Mid-Autumn Festival | Standard holiday |
| 1 October 2026 | Thursday | National Day | Standard holiday |
| 19 October 2026 | Monday | The Day Following Chung Yeung Festival | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | The First Weekday after Christmas Day | Standard holiday |
Sick Days
During the first 12 months of employment employees accrue 2 paid sick days per month, increasing to 4 paid sick days per month after reaching one year of service, up to a maximum of 120 paid sickness days.
Sick pay is calculated at 80% of the average daily earnings earnt in the preceding 12-month period, prior to the first day of sickness. For employees with less than 12 months service, the calculation is based on the average earnings received since the employment start date.
A medical certificate must be issued by a medical practitioner or registered dentist as proof of any sickness day the worker is claiming.
Maternity Leave
A pregnant employee who has been employed under a continuous contract for at least 40 weeks immediately before the commencement of scheduled maternity leave is entitled to 14 weeks of paid maternity leave. An additional 14 weeks of leave might be available for cases of complicated or multiple births . Maternity leave should commence between two to four weeks before the due date.
The employer pays the maternity leave period based on a calculation of four-fifths of their average daily wages earned in the 12-month period preceding the first day of the maternity leave (for those with less than 12 months service the shorter calculation period will be used). The 11 to 14 weeks of maternity leave is capped at 80,000 HKD and the employer can apply to the Government for reimbursement of these 4 weeks.
Paternity Leave
Male employees are entitled to 5 days of paternity leave providing they have been employed under a continuous contract for no less than 40 weeks before the first day of Paternity leave. Leave may be taken in one go or on separate days, within the period of four weeks prior to the expected date of delivery and 10 weeks following the actual birth of the child.
Paternity pay is at a rate of four-fifths of the average daily wages earned in the 12-month period preceding the first day of paternity leave (for those with less than 12 months service the shorter calculation period will be used).
Advance notice must be given before taking paternity leave. Where at least 3 months notice before the expected date of delivery has been given the father may take paternity leave immediately after informing his employer of the actual leave dates. However, if 3 months advance notice was not given, the employee must notify the employer of his dates of paternity leave at least 5 days before taking leave.
Parental Leave
A male employee is entitled to 5 days’ paternity leave for each confinement of his spouse/partner if he:
1. is the father of a new-born child or a father-to-be
2. has been employed under a continuous contract
3. has given the required notification to the employer.
Other Leave
There is no additional statutory other leave e.g. Marriage or Bereavement in Hong Kong, though some companies choose to create their own policy.
Termination
Termination Process
Under the Employment Ordinance, (Cap. 57) grounds for termination include: va; the conduct of the employee; the capability or qualifications of the employee to perform their job (a PIP process will usually be required first); and any other reason of substance which in the opinion of the court or the Labour Tribunal would be sufficient cause to warrant the dismissal of the employee or a variation to the terms of that contract of employment. Please note redundancy is NOT a valid reason for termination under the EOR model. An MTA must be agreed upon between the legal employer, the end client, and the worker.
It is considered best practice for the employer to document performance or operational reasons internally to mitigate the risk of disputes or claims of unlawful dismissal.
Termination is prohibited for the following workers: workers on maternity leave, certified medical leave, workers on annual leave or other statutory leave
Dismissals that appear discriminatory, retaliatory, or violate statutory protections (e,g termination of a pregnant employee without proper procedure) may be challenged at the Labor Tribunal or under the Equal Opportunities Commission.
| Salary payment interval / date | Final payment on termination | Bank account payment requirement |
|---|---|---|
| The law does not specify a universal fixed interval (e.g., “monthly on X-day”) for salary payments in all cases; pay frequency is typically set by the employment contract or employer. | Under the Employment Ordinance (Cap. 57): termination payments (other than severance/long-service payment) must be made not later than 7 days after the date of termination or expiry of contract. For severance/long-service payment the deadline is not later than 2 months from the employee’s claim. | There is no statute that mandates all salary payments must be paid into a bank account only. Payment may be by other means, subject to agreement between employer and employee. |
Notice Period
Notice periods within Hong Kong are generally 30 days, although employers can specify longer notice periods within the employment contract.
Severance Pay
SThe statutory formula for severance pay is: (Last full month’s wages × 2/3 × years of service), with the monthly wage capped at HK$22,500. Any period of employment over 3 months within a year is rounded up to a full year for calculation purposes. For example, if an employee earns HK$30,000 per month and has 5.5 years of service, the calculation would use the capped amount (HK$22,500) and treat the service as 6 full years, resulting in a severance pay of HK$90,000.
While employers are only required to comply with the statutory minimum when valid reasons to terminate; it is recommended that employers provide workers with an enhanced severance package, A common market practice is to offer one month’s salary per year of service, uncapped, especially for long-serving or senior employees. Some employers also provide ex gratia payments as a gesture of goodwill to maintain a positive relationship and mitigate the risk of post-termination disputes or reputational damage.
Severance pay is not required when an employee resigns voluntarily.
Probation Period
During the first month of probation, no notice required by either party (unless the contract states otherwise) After the first month of probation, the minimum statutory notice is 7 days unless the contract states a longer period.
Minimal Statutory Termination Costs
Final wages
Severance and MPF contributions up to the end date,
Unused annual leave pay upon termination
If company policy or the employment contract provides additional benefits (e.g., bonuses, allowances), those must also be honored.
Notice Period during Probation:
During the first month of probation, no notice required by either party (unless the contract states otherwise). After first month of probation, the minimum statutory notice is 7 days (unless the contract states a longer period).
Notice Period after Probation: 1 month’s notice
Severance:
The statutory formula for severance pay is: (Last full month’s wages × 2/3 × years of service), with the monthly wage capped at HK$22,500. Any period of employment over 3 months within a year is rounded up to a full year for calculation purposes. For example, if an employee earns HK$30,000 per month and has 5.5 years of service, the calculation would use the capped amount (HK$22,500) and treat the service as 6 full years, resulting in a severance pay of HK$90,000.
Disclaimer: Please note redundancy is not a valid ground for termination under Employer of Record/Consulting Employment Model.
An MTA must be agreed upon between the legal employer and the employee.
Common Benefits
- Private medical insurance
- Bonus
- Additional annual leave
- Housing/Rental allowance
- Company Car
- Holiday Journey Allowance (vacation allowance)
- Equity options
Immigration
Foreign nationals normally require a visa before entering Hong Kong to take up employment. A local sponsor, usually the employing company, is required to support the employment visa application.
Under the existing immigration policy, a person seeking to enter Hong Kong for employment should possess a particular skill, knowledge, or value experience, which is not readily available in Hong Kong.
Applicants who wish to possess a working visa for Hong Kong need a graduate degree unless they are considerably experienced in a specialized field or have relevant experience in the position they are applying for.
If the person’s spouse and dependent family also decide to relocate to Hong Kong, they will require dependent visas. A spouse entering Hong Kong on a dependent visa can now take up employment in Hong Kong and no longer requires a separate employment visa if they wish to work in Hong Kong.
VAT
General
The standard rate of VAT in Hong Kong is 0%.
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Payroll and Benefits Guide
in Hong Kong
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | The First Day of January (New Year’s Day) | Standard holiday |
| 17 February 2026 | Tuesday | Chinese New Year Day 1 | Standard holiday |
| 18 February 2026 | Wednesday | Chinese New Year Day 2 | Standard holiday |
| 19 February 2026 | Thursday | Chinese New Year Day 3 | Standard holiday |
| 3 April 2026 | Friday | Good Friday | |
| 4 April 2026 | Saturday | The Day Following Good Friday | |
| 6 April 2026 | Monday | The Day Following Ching Ming Festival | Standard holiday |
| 7 April 2026 | Tuesday | The Day Following Easter Monday | |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 25 May 2026 | Monday | The Day Following the Birthday of the Buddha | Standard holiday |
| 19 June 2026 | Friday | Tuen Ng Festival (Dragon Boat Festival) | Standard holiday |
| 1 July 2026 | Wednesday | HKSAR Establishment Day | Standard holiday |
| 26 September 2026 | Saturday | The Day Following the Mid-Autumn Festival | Standard holiday |
| 1 October 2026 | Thursday | National Day | Standard holiday |
| 19 October 2026 | Monday | The Day Following Chung Yeung Festival | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
| 26 December 2026 | Saturday | The First Weekday after Christmas Day | Standard holiday |
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