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Employer of Record Hong Kong
Hire staff and expand your business in Hong Kong with our fully-managed EOR Service
How we can help
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.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Hong Kong takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
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.
Category | Information |
Location | Southeastern China |
Capital City | NA (Hong Kong is a city-state) |
Official Languages | Chinese (Cantonese), English |
Area in Kilometers | 1,106 km² |
Population | About 7.5 million |
Currency | Hong Kong Dollar (HKD) |
Major Cities | Kowloon, Tsuen Wan |
GDP | $372 billion (2022) |
Major Industries | Finance, trading, logistics, tourism |
Business Culture
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
Although not legally required, it is customary for employees in Hong Kong to receive a 13th month salary payment. The exact amount and timing will depend on the employment contract, but a months pay at the time of Lunar New Year is common
Employee Taxation
In Hong Kong, income tax rates are progressive, with higher income levels subject to higher tax rates.
Taxable Income (HKD) | Tax Rate |
0 – 50,000 | 2% |
50,001 – 100,000 | 6% |
100,001 – 150,000 | 10% |
150,001 – 200,000 | 14% |
200,001 + | 17% |
Employer Taxation
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
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.
IMMIGRATION
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.
Public Holidays
Hong Kong Public Holidays
Holiday | Date |
New Year’s Day | January 1 |
Lunar New Year | Between January 21 and February 20 |
Ching Ming Festival | April 4 or 5 |
Labour Day | May 1 |
Buddha’s Birthday | Between April 8 and May 7 |
Dragon Boat Festival | Between May 5 and June 3 |
Hong Kong SAR Establishment Day | July 1 |
National Day | October 1 |
Chung Yeung Festival | Between September 28 and October 27 |
Christmas Day | December 25 |
Boxing Day | December 26 |
Wondering if expanding
in Hong Kong is right for you?
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The Benefits
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
Compliance
We are on top of regulatory changes in Hong Kong so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Hong Kong authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Hong Kong payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.