Employer of Record Hong Kong
Hire staff and expand your business in Hong Kong with our fully-managed EOR Service
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Unrivalled Employer of Record Service in Hong Kong designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Hong Kong. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
Employer of Record in Hong Kong
A Brief Guide to Hong Kong
Hong Kong, officially known as the Hong Kong Special Administrative Region of the People’s Republic of China, is a vibrant, bustling metropolitan city-state located on China’s southeastern coast. A cosmopolitan melting pot of East meets West, Hong Kong is renowned for its towering skyline, bustling ports, and vibrant economic landscape. Its open market policies have made it a premier global hub for international trade and finance.
NA (Hong Kong is a city-state)
Chinese (Cantonese), English
Area in Kilometers
About 7.5 million
Hong Kong Dollar (HKD)
Kowloon, Tsuen Wan
$372 billion (2022)
Finance, trading, logistics, tourism
Business Culture in Hong Kong
Business etiquette in Hong Kong reflects its British colonial past and its Chinese traditions. Punctuality is highly valued, and it’s customary to exchange business cards at first meetings. In business circles, relationships are essential, with much emphasis on the concept of ‘guanxi’ or personal connections. People often address each other by their titles and surnames to maintain a level of formality. Communication style is indirect and nuanced, ensuring harmony and respect are preserved in all interactions.
Payroll and Taxes
Payroll and Taxes in Hong Kong
In Hong Kong, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (HKD)
0 – 50,000
50,001 – 100,000
100,001 – 150,000
150,001 – 200,000
Employers in Hong Kong are also responsible contributions to the Mandatory Provident Fund (MFP). Contributions are 5% up to a maximum taxable salary of 30,000 HKD.
Pension and Healthcare
Hong Kong Pensions
Hong Kong’s pension system is overseen by the Mandatory Provident Fund Schemes Authority. Employers and employees must each contribute 5% of the employee’s income to the Mandatory Provident Fund (MPF). The MPF is a compulsory saving scheme for retirement, designed to provide financial security to citizens in their old age. There are also voluntary schemes, like the Occupational Retirement Schemes, where employers may offer additional benefits to employees.
Healthcare in Hong Kong
Hong Kong’s healthcare system is a mixed-model, comprising a public sector, funded by taxes, and a private sector. The public healthcare system, administered by the Hospital Authority, provides comprehensive and affordable services for all residents. However, due to its high demand, it often comes with long wait times.
On the other hand, the private healthcare sector is known for its high-quality services and shorter wait times. It’s generally more expensive and commonly used by those with private health insurance.
Quality of care is consistently high in both sectors, with healthcare professionals in Hong Kong being well-trained and hospitals being well-equipped. The city’s healthcare system is also renowned for its strong regulatory standards and effective disease control measures.
Employment Law in Hong Kong
Relevant Legislation: Key pieces of legislation governing employment law in Hong Kong include the Employment Ordinance, the Employees’ Compensation Ordinance, the Minimum Wage Ordinance, and the Occupational Safety and Health Ordinance.
Employment Contracts: Employment contracts in Hong Kong can be either written or oral, but it’s preferable to have a written agreement to avoid disputes. These contracts typically include details such as job title, salary, working hours, and leave entitlements.
Working Hours: There’s no statutory standard working week in Hong Kong, but it typically revolves around 40 to 48 hours per week. The exact working hours are generally decided between the employer and the employee in their contract.
Leave: Hong Kong’s law mandates a minimum of 7 to 14 days of annual leave, depending on the length of service. Additionally, employees are entitled to 12 statutory holidays.
Overtime: Overtime regulations are not codified by Hong Kong law, and are generally subject to agreement between employer and employee. However, the Employment Ordinance stipulates that wages for any work over the agreed hours should not be less than the agreed wages.
Termination: Employment contracts in Hong Kong can be terminated for a variety of reasons, including misconduct, redundancy, or mutual agreement. The employer must not terminate an employee unfairly or discriminate in any way.
Notice: Both employers and employees are typically required to give notice when terminating a contract. The notice period is generally one month, but it may be different if agreed upon in the contract.
Severance Pay: Employees made redundant, or who have been employed continuously for not less than 24 months, are entitled to a severance payment.
Work Permits in Hong Kong
Administered by the Immigration Department of the Hong Kong Special Administrative Region, Hong Kong’s immigration system is designed to draw talent from around the world, particularly in areas that can contribute to the economic growth of the city. The system is clearly structured and designed to be both efficient and fair. It follows a points-based system for certain types of visas, and emphasizes attracting talent in sectors where there are skills shortages.
In terms of work visas, the General Employment Policy (GEP) is widely used. This requires the applicant to possess special skills, knowledge or experience of value to and not readily available in Hong Kong. Furthermore, the job must be a legitimate job vacancy and pay a salary commensurate with prevailing market rates. It should be noted that a job offer from a legitimate Hong Kong employer is a prerequisite for the GEP.
Another option is the Admission Scheme for Mainland Talents and Professionals (ASMTP), which is applicable to Chinese residents of the mainland who possess special skills, knowledge or experience of value to and not readily available in Hong Kong.
The Quality Migrant Admission Scheme (QMAS) is another route, aimed at attracting highly skilled or talented people who have not yet secured an offer of local employment. Applicants are required to fulfill a set of prerequisites before they can be awarded points under one of the two points-based tests: the General Points Test and the Achievement-based Points Test.
For entrepreneurs, the Entrepreneur Visa is an option. It is for foreign entrepreneurs who wish to operate their own business in Hong Kong. Applicants should have a good business plan, be able to make a substantial contribution to the economy of Hong Kong, and their business should have a significant benefit to the local workforce.
In addition to work visas, Hong Kong also offers visas for training, investment, study, and dependents. Immigration policies also account for individuals seeking to enter Hong Kong for non-employment reasons, such as tourism or visiting family.
Hong Kong Public Holidays
New Year’s Day
Lunar New Year
Between January 21 and February 20
Ching Ming Festival
April 4 or 5
Between April 8 and May 7
Dragon Boat Festival
Between May 5 and June 3
Hong Kong SAR Establishment Day
Chung Yeung Festival
Between September 28 and October 27
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Hong Kong Employer of Record Benefits
When you choose Agility EOR to expand in Hong Kong, we guarantee an Employer of Record Service tailored to the needs of your business