Hire compliantly in Hong Kong. Compare providers, understand MPF obligations and navigate one of the most business-friendly employment environments in Asia.
Capital
Hong Kong
Language
Cantonese
Average Salary
HKD 20,000
Payroll Cycle
Monthly
Employer Cost
5%
Paid Leave
7-14 days
Public Holidays
17 days
Tax Rates
2-17%
Detailed guides on the employment topics that matter most when hiring in Hong Kong. Independently researched, updated for 2026.
Hong Kong's minimum wage rises to HK$43.1/hour from May 1, 2026: the first increase under a new annual review mechanism. With 5% MPF contributions (capped at HK$1,500/month) and no social security tax, Hong Kong has the lowest employer-side statutory costs in Asia. But two major changes hit in 2025-26: the "468" continuous contract rule expands part-time worker protections, and the MPF offset abolition means you can no longer reduce severance payments with pension contributions.
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We independently review and rank providers based on their actual performance in Hong Kong, covering pricing transparency, onboarding speed, in-country support and contract compliance.
Hong Kong’s MPF offset abolition in 2025 changed how severance costs work. A provider that hasn’t updated its termination cost calculations since the reform will underestimate your exit liability.
When you hire in Hong Kong, the 5% capped MPF contribution and absence of social security, health insurance or unemployment levies make it one of the cheapest statutory employment markets globally. The complexity lies in the MPF offset abolition, the absence of statutory working hours and the slow-accruing annual leave structure.
| Key Employment Facts | |
| Minimum Wage |
HK$43.1/hour from May 1, 2026 |
| Probation Period | No statutory limit (typically 1-3 months) |
| Standard Working Hours | No statutory limit (typically 40-44 hours) |
| Paid Annual Leave | 7-14 days (increases by 1/year of service) |
| Notice Period | 1 month (or as per contract, min 7 days) |
| 13th Salary | Not statutory (common in finance sector) |
| Sick Leave | 2 paid days/month accrued, 80% of daily wage |
| Maternity Leave | 14 weeks at 80% of average wages |
Good to Know: Hong Kong has no statutory working hours or overtime rate. Hours and overtime compensation are entirely governed by the employment contract. Annual leave starts at just 7 days after the first year and increases by 1 day per year to a maximum of 14 days, well below regional peers like Singapore (14 days) or Japan (10-20 days). The MPF offset abolition (May 2025) means employers can no longer use accrued MPF contributions to reduce severance or long service payments, significantly increasing termination costs for long-tenured employees. From 2026, Easter Monday is added as a statutory holiday, bringing the total to 15. Hong Kong distinguishes between 15 statutory holidays (required for all employees) and 17 general holidays (observed by banks, government and most white-collar employers).
When you hire in Hong Kong, employer costs of just 5% (capped at HKD 1,500/month) make it the lowest mandatory payroll burden in developed Asia. There is no employer-withheld income tax, no social security and no health insurance levy.
| Employer Contributions | |
| Contribution | Employer Rate |
| MPF (Mandatory Provident Fund) | 5% (capped at HKD 1,500/month) |
| Social Security | None |
| Health Insurance | None (private, often provided voluntarily) |
| Unemployment Insurance | None |
| Total Employer Cost | ~5% of relevant income (capped) |
| Employee Taxes | |
| Tax / Contribution | Employee Rate |
| Salaries Tax (progressive) | 2-17% (or 15% standard rate, whichever is lower) |
| MPF (employee share) | 5% (capped at HKD 1,500/month) |
| Social Security | None |
| Health Insurance | None |
Total employer cost in Hong Kong runs at just 1.05x of gross salary up to the MPF cap (HKD 30,000/month). Above that, the employer’s MPF contribution stays flat at HKD 1,500/month regardless of salary. For a senior hire earning HKD 80,000/month, the effective employer contribution rate drops below 2%.
Hong Kong has 17 general holidays per year. If a general holiday falls on a Sunday, the following Monday is observed.
|
Date |
Holiday |
|
January 1 |
New Year’s Day |
|
February 17 |
Lunar New Year’s Day |
|
February 18 |
Second Day of Lunar New Year |
|
February 19 |
Third Day of Lunar New Year |
|
April 3 |
Good Friday |
|
April 4 |
Day following Good Friday |
|
April 6 |
Easter Monday |
|
April 7 |
Ching Ming Festival (substitute, original April 5 falls on Sunday) |
|
May 1 |
Labour Day |
|
May 25 |
Birthday of the Buddha (substitute, original May 24 falls on Sunday) |
|
June 19 |
Tuen Ng Festival (Dragon Boat) |
|
July 1 |
HKSAR Establishment Day |
|
September 26 |
Day following the Chinese Mid-Autumn Festival |
|
October 1 |
National Day |
|
October 19 |
Chung Yeung Festival (substitute, original October 18 falls on Sunday) |
|
December 25 |
Christmas Day |
|
December 26 |
First weekday after Christmas Day |
Good to Know: Hong Kong distinguishes between 17 general holidays (observed by banks, government and most offices) and 15 statutory holidays (minimum legal requirement under the Employment Ordinance). From 2026, Easter Monday is newly added as a statutory holiday. The two general holidays not yet statutory are Good Friday and the day following Good Friday. In 2026, three holidays fall on Sundays (Ching Ming April 5, Birthday of the Buddha May 24, Chung Yeung October 18), with substitutes granted on the next available weekday. Unlike mainland China, Hong Kong does not use makeup working days to create extended breaks. Employers must choose between Winter Solstice (December 22) or Christmas Day (December 25) as one of the statutory holidays.
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