Hong Kong is a global financial hub powered by a highly skilled, multilingual workforce. Its strategic location gives you a competitive edge when expanding your operations in Asia. But only if you can navigate local labor ordinances, mandatory benefits, and compliance requirements.  

A Hong Kong employer of record (EOR) makes this process seamless and stress-free. As a global EOR, G-P hires and manages talent on your behalf so you stay compliant. We handle employment contracts, payroll, and everything in between. With G-P, you can hire top talent in 180+ countries, including Hong Kong, quickly and easily — without setting up a local entity.

Simplify hiring in Hong Kong with an employer of record

A Hong Kong EOR, like G-P, manages all local HR responsibilities, including compliance with the country’s complex Employment Ordinance (Cap. 57). This legislation governs employment relationships in the country.

An EOR acts as the legal employer for your team members, so you can hire quickly and compliantly. 

The EOR hiring process in Hong Kong:

  1. Partner with a global employment expert. Choose an EOR with deep expertise in Hong Kong as they’ll guide you through the local legal landscape.

  2. Source your ideal candidate. You find the best talent, and the EOR handles the rest.

  3. Generate a compliant employment contract. Your EOR drafts a locally compliant contract in line with Hong Kong’s labor laws, including salary, working hours, and notice periods.

  4. Onboard and manage your team. The EOR manages the entire employment lifecycle. This includes managing your team members’ payroll and administering benefits. 

Employment contracts in Hong Kong

While it’s not a legal requirement, we recommend that contracts are written in English and Chinese. The contract should outline all core terms, including compensation, benefits, and termination requirements. Write amounts in Hong Kong dollars (HKD).

Many Employment Ordinance entitlements, such as rest days, paid annual leave, and sick leave, only apply to employees working under a "continuous contract.” 

An employee is covered by a continuous contract when they work for the same employer for four or more weeks in a row, and work at least 68 hours over those four weeks.

In the case of disputes, the employer must prove that the employment arrangement doesn’t qualify as a continuous contract. 

As your EOR in Hong Kong, G-P drafts compliant contracts, protecting your business from legal risks and your team members from misunderstandings. 

Leave entitlements in Hong Kong

Working hours in Hong Kong

Hong Kong's Employment Ordinance generally doesn’t set maximum working hours or daily rest breaks. However, it’s standard to state expected working hours in the employment contract. 

Employees on a continuous contract get at least one rest day for every seven days worked.

Public holidays in Hong Kong

Employees in Hong Kong get 15 paid public holidays. This will increase to 17 days by 2030. Current national holidays are:

  • The first day of January

  • Lunar New Year's Day

  • The second day of Lunar New Year

  • The third day of Lunar New Year

  • Ching Ming Festival

  • Easter Monday

  • Labor Day

  • The Birthday of the Buddha

  • Tuen Ng Festival (Dragon Boat Festival)

  • Hong Kong Special Administrative Region Establishment Day

  • The day following the Chinese Mid-Autumn Festival

  • National Day

  • Chung Yeung Festival

  • The first weekday after Christmas Day

  • Winter Solstice Festival or Christmas Day (the employer chooses which day)

When an employee works on a public holiday, an alternative day off must be arranged within 60 days before or after the original holiday.

Vacation days in Hong Kong

Employees under a continuous contract get 7–14 days’ paid annual leave after 12 months’ service. 

The minimum number of paid annual leave days increases based on how long an employee has worked for the same employer:

  • Years one and two: Seven days

  • Year three: Eight days

  • Year four: Nine days

  • Year five: 10 days

  • Year six: 11 days

  • Year seven: 12 days

  • Year eight: 13 days

  • Nine years or more: 14 days

Many employers offer more generous leave to attract top talent, typically 15–20 days in total. 

Employees must take their first 10 days of annual leave as time off. After that, they can choose to be paid instead of taking any remaining days off. Leave that’s accrued in one 12-month period must be taken within the next 12-month leave period.

Sick leave in Hong Kong

Employees on a continuous contract accumulate paid sick days. They get two days per month for the first year and four days per month after that, up to 120 days. 

To get sick pay, sick leave needs to last at least four days in a row and be supported by a medical certificate. Employers pay sick pay, which is 80% of the employee's average daily wages.

Maternity and paternity leave in Hong Kong

Qualifying pregnant employees get 14 weeks’ paid maternity leave. Maternity pay is 80% of average daily wages. 

Employers pay the 14 weeks of maternity leave upfront. The government’s Reimbursement of Maternity Leave Pay Scheme reimburses employers for weeks 11–14, up to HKD 80,000 per employee. Employers apply for reimbursement after they’ve paid the employee.

Qualifying fathers get five days’ paid paternity leave, also paid by employers at 80% of their average daily wages. There’s no government reimbursement for paternity leave.

How an employer of record in Hong Kong helps manage leave entitlements

A Hong Kong EOR ensures you comply with local leave laws by managing entitlements like annual and sick leave. With an EOR handling the admin, you have the space to focus on your team and business goals. 

Health insurance and supplementary benefits in Hong Kong

Hong Kong has a high-quality public healthcare system, but long waits are common. That’s why supplementary private medical and dental insurance benefits are widely used to attract and retain top talent. 

We suggest you budget an extra 15–25% on top of gross salary for benefits, including mandatory contributions, although this varies by company, industry, and benefit level.

Bonuses in Hong Kong

A 13th-month or end-of-year bonus isn’t a legal requirement, but employees with a continuous contract often get one. 

The Employment Ordinance sets rules for payment and calculation of contractually agreed bonuses. For example, the employment contract must state the entitlement, calculation method, and payment timing for the bonus. 

For sales employees, a commission plan can replace a bonus. This can be as much as 2–3 months’ salary when a business does well.

How an employer of record helps with benefits in Hong Kong

A Hong Kong employer of record manages and administers mandatory and supplementary benefits on your behalf. Using a Hong Kong EOR ensures you offer competitive benefits while complying with local regulations.

Termination and severance in Hong Kong

The Employment Ordinance sets different notice periods for probationary and post-probation employees.

  • During probation: During the first month of probation, the employer or employee can terminate the contract without notice. After the first month of probation, the minimum notice period is seven days, unless the employment contract specifies a longer period. 

  • After probation: Employees and employers must give one month’s notice if the contract doesn’t mention a notice period.

Employees may get a severance payment (SP) or long service payment (LSP), depending on the circumstances and length of service. 

These payments are two-thirds of the employee’s last full month’s wages — or the average over the last 12 months, whichever is higher — for each year of service, capped at HKD 390,000.

Employers and employees pay into the employee’s Mandatory Provident Fund (MPF) — Hong Kong’s compulsory retirement savings scheme. Some employers used to use the money they paid into an employee’s MPF to reduce or cover the amount they owe for a SP or LSP, but this is now illegal. Employers must pay the full SP or LSP directly to the employee.

A Hong Kong EOR simplifies employee offboarding. EORs ensure your business complies with the Employment Ordinance notice periods, severance, and more.  

Payroll and taxes in Hong Kong

Employers and employees each contribute 5% of the employee's salary to the MPF. Contributions for each are capped at HKD 1,500 per month. 

Hong Kong has a progressive tax system. There’s no automatic payroll withholding, so employees pay their own salary tax. Employers must file annual returns (IR56B) for each employee with the Inland Revenue Department (IRD). 

A Hong Kong employer of record takes care of employer tax filings, saving you time and making sure you stay on the right side of the law. They handle all aspects of payroll management, including mandatory withholdings. 

Choosing the right EOR in Hong Kong

When choosing an employer of record Hong Kong, consider the following:

  • Compliance expertise: The right EOR has in-depth knowledge of Hong Kong's labor laws and tax regulations. 

  • Comprehensive EOR solutions: Choose an EOR that manages all aspects of employment, including payroll processing, tax remittances, benefits administration, leave management, and offboarding.

  • Scalability and flexibility: The EOR should accommodate your needs, whether you're hiring a single employee or a global team, and grow with your business.

  • Technology and integration: An AI-powered EOR simplifies onboarding, management, and employee payment. Look for an EOR that integrates with existing HCM, PEO, or payroll systems to streamline operations.

  • Transparency and communication: Choose an EOR that offers clear communication channels, transparent pricing, and regular updates on compliance changes.

  • Reputation and references: Research the EOR's reputation, customer testimonials, and industry recognition to ensure they have a track record of reliability and success. As the #1 EOR according to all industry analyst reports, G-P has a solid reputation and extensive global employment experience.

  • Data security and compliance. Ensure your EOR follows strict data security protocols like GDPR. This is critical for protecting sensitive employee information and maintaining compliance.

Use G-P EOR for global hiring in Hong Kong

G-P EOR is the award-winning, AI-enabled global hiring solution that empowers startups, SMBs, and enterprise businesses to build global teams with ease. Onboard, manage, and pay top talent in over 180 countries in minutes, without the complexity of entity setup. 

G-P EOR is the preferred partner for leading HCM, PEO, and payroll platforms. Bring your workforce data together in one place to maintain existing workflows while keeping consistent and accurate data across your integrated systems.

Request a proposal to start hiring in Hong Kong today.