🇭🇰 Hiring in Hong Kong

💡 Everything you need to know to hire and manage employees in Hong Kong through Toku. Toku handles payroll processing, tax withholding, social contributions, and statutory compliance. This guide covers what you need to plan costs and manage your team.

At a Glance

Onboarding a New Hire

Plan for 5-7 business days between submitting a new hire and their start date. The employment contract is signed before day one, and your new hire just needs to provide their HKID or a valid work visa. Toku enrolls the employee in a Mandatory Provident Fund (MPF) scheme within the statutory 60-day window.

Submit the new hire through the Toku platform for the employment agreement, statutory registrations and payroll setup. See Onboard Contributors as a Client Admin in Toku for the steps. Toku will confirm the expected onboarding timing for your hire.

Employer Costs

Hong Kong has one of the lowest employer cost burdens of any major market. On top of each employee's gross salary, you pay:

Employers must also carry employees' compensation (work injury) insurance, which Toku arranges. As a rule of thumb, total cost of employment is roughly 105% of gross salary, and even less in percentage terms for higher earners because of the MPF cap. There is no required 13th month salary, though discretionary year-end bonuses are common practice.

Employees contribute their own 5% to MPF (also capped at HKD 1,500 per month), deducted from gross salary rather than added to your costs. Salaries tax is low (progressive rates from 2% to 17%, or a 15% standard rate) and is assessed annually by the Inland Revenue Department rather than withheld each month; Toku handles the MPF remittances and all employer tax filings.

Compensation & Payroll

Toku runs one payroll per month in Hong Kong, and employees receive a payslip each cycle. The statutory minimum wage is HKD 43.1 per hour from 1 May 2026. There is no mandatory 13th month payment or statutory bonus.

Employment Contracts & Probation

• Toku issues a compliant local employment agreement for every hire, with written terms provided as the Employment Ordinance requires.
• Contracts can be indefinite or fixed-term; fixed-term contracts that renew or continue are treated as continuous employment.
• Probation is 3 months under Toku's employment agreement. During the first month of probation, either party may end employment without notice; after that, at least 7 days' notice applies.

Working Hours

Hong Kong has no statutory standard working hours or overtime pay requirements for most employees; hours are set by the employment contract, typically 40-48 per week. Any overtime arrangements are contractual, so agree them clearly up front. Employees are entitled to at least one rest day per week.

Leave Entitlements

Sick leave beyond four consecutive days requires a medical certificate. Employees are protected from dismissal from the date they give notice of pregnancy until the end of maternity leave.

Public Holidays (2026)

Hong Kong observes 17 general holidays in 2026, of which 15 are statutory paid holidays under the Employment Ordinance (Easter Monday joins the statutory list from 2026). When a statutory holiday falls on a Sunday, the next weekday is observed instead.

Benefits

Hong Kong has two mandatory schemes, the Mandatory Provident Fund (MPF) and Employees' Compensation insurance, both handled by Toku and included in Employer Costs above. Hong Kong does not require employer-provided medical insurance, but Toku offers supplemental health cover through Remote Health by SafetyWing on the dedicated Hong Kong & Singapore plan.

Benefits at a Glance

Mandatory Provident Fund (MPF)

Hong Kong's retirement scheme requires contributions of 5% from the employer and 5% from the employee on relevant income (see Employer Costs above for the cap). Toku enrolls each employee with Manulife at onboarding, within the statutory 60-day window, and contributions are submitted monthly through payroll. The employer contribution is a cost to plan on every Hong Kong hire.

Employees' Compensation Insurance

Under the Employees' Compensation Ordinance, it is illegal to employ anyone in Hong Kong without an active policy. The requirement covers full-time, part-time, and temporary staff, and extends to employees working outside Hong Kong under a Hong Kong contract. Minimum coverage is HK$100 million per event (HK$200 million for employers with more than 200 employees). The policy covers medical expenses, wages during incapacity, permanent incapacity compensation, and death benefits.

The employer bears the full premium: deducting any part from employee wages is strictly prohibited. Toku arranges the policy, which renews annually; the premium is based on declared employee earnings, and Toku informs you of the annual charge each year.

Supplemental Health: Remote Health by SafetyWing

Hong Kong employees can opt into Remote Health by SafetyWing on the Hong Kong & Singapore plan (includes up to 6 months of full USA coverage), with Toku sponsoring 100% of the employee premium, billed to you. For coverage, age-banded premiums and enrollment, see 🌍 Global Coverage: Remote Health by SafetyWing. For the employee-facing detail, see Remote Health, Your Global Insurance Plan.

What You Need to Know About Benefits

• MPF and employees' compensation insurance are mandatory; budget the 5% MPF employer contribution (capped) and the annual EC premium for every Hong Kong hire.
• The EC premium is billed annually and can't be passed on to the employee.
• Remote Health is opt-in. Hong Kong uses the higher-priced Hong Kong & Singapore plan rather than the Worldwide plan, so check the premium for your employee's age band before you make an offer.

Common Extras

Common extras in the Hong Kong market include medical and dental insurance, life and disability cover, housing and transportation allowances, education allowances for dependents, and voluntary top-up MPF contributions. Toku can advise on the cost impact of any extras you want to offer.

Ending Employment

Hong Kong is comparatively flexible: either party can terminate with notice or payment in lieu, and no reason is required for termination with notice, though protected situations (pregnancy, paid sick leave, work injury) still apply, so loop in Toku before acting. For the process, see How to Terminate an Employee or Contractor.

Severance applies after 24 months of continuous service where the dismissal is for redundancy: two thirds of the last month's wages (capped at HKD 15,000) per year of service, up to a maximum of HKD 390,000. A long service payment on the same formula applies after 5 years of service for most non-redundancy terminations. An employee receives one or the other, never both.

Annual Leave at Termination

This section describes statutory annual leave. Any additional contractual or company-provided leave above the statutory minimum may follow different carryover, expiry, or payout rules under the employee's agreement or applicable policy, subject to local law.

Statutory leave termination payout: Generally required for accrued statutory annual leave that remains payable under the Employment Ordinance.

Statutory carryover / look-back: Statutory annual leave follows the employee's 12-month leave year. Pro-rata and payout treatment can depend on service and termination circumstances.

Admin responsibility: Keep statutory annual leave separate from any additional company leave and track the employee's leave year accurately.

Important exceptions: Termination circumstances can affect pro-rata statutory entitlement, while additional company leave may follow separate contractual rules. Toku should confirm the final balance before amounts are communicated.

See the Annual Leave / PTO Carryover & Termination Payout Guide for the cross-country framework.

Hiring Someone from Overseas?

Hong Kong permanent residents and HKID holders with work rights need no sponsorship. Other candidates need an employment visa, most commonly under the General Employment Policy, which requires showing the role cannot be filled locally; specialist schemes exist for mainland Chinese talent, technology roles, and top-tier graduates and earners. Processing typically takes 4 to 8 weeks. Talk to Toku before extending an offer to a candidate who needs sponsorship.

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Last updated November 5, 2026 (onboarding link only). Last verified October 2026. This guide is for general information and doesn't constitute legal or tax advice. Your Toku account manager can confirm specifics for your situation.