Employer of Record (EOR) in Hong Kong

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” if they work for the same employer for at least four weeks and work at least 68 hours in each four-week period.

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 doesn't set maximum hours or daily rest breaks for adult employees. Separate limits apply to under 18s in industrial jobs. However, it’s standard to state expected working hours in the employment contract. 

Employees on continuous contracts get one rest day every seven days.

Public holidays in Hong Kong

Employees in Hong Kong get 15 (due to increase to 17 by 2030) statutory holidays which are generally included within Hong Kong's 17 public holidays. The 17 public 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
• Good Friday
• The day following Good Friday 
• The day following Ching Ming Festival 
• The day following Easter Monday 
• Labour Day
• The day following the Birthday of the Buddha 
• Tuen Ng Festival 
• Hong Kong SAR Establishment Day
• The day following the Mid-Autumn Festival 
• National Day 
• The day following Chung Yeung Festival
• Christmas Day
• The first weekday after Christmas Day 

When an employee works on a statutory holiday, an alternative holiday must be arranged within 60 days before or after that 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 at least 10 days of annual leave as time off. If agreed, they can accept payment for any entitlement exceeding 10 days. Accrued leave must be taken within 12 months after the leave year ends. Different payment rules apply when employment ends.

Sick leave in Hong Kong

Employees on continuous contracts accrue two paid sick days per completed month for the first 12 months then four per completed month after that, up to 120 days.  

To get sick pay, the absence needs to last at least four consecutive days and be supported by a medical certificate. This doesn't apply to absences for pregnancy examinations, post-confinement treatment, or miscarriage. Eligible employees get 80% of their average daily wages.

Maternity and paternity leave in Hong Kong

Pregnant employees get 14 continuous weeks of paid maternity leave. Pay is 80% of average daily wages and pay for weeks 11–14 is capped at HKD 80,000 total. 

Employers pay the 14 weeks of maternity leave upfront. The government's Reimbursement of Maternity Leave Pay Scheme then reimburses employers for weeks 11–14, up to HKD 80,000 per employee. Employers must pay the employee before claiming reimbursement. 

The non-birthing parent gets 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, either party can terminate without notice. After the first month, notice is at least seven days.
• After probation: The contractual notice period applies but cannot be less than seven days. If unspecified, the minimum is one month.

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

Monthly-rated employees receive two-thirds of relevant monthly wages per year of service. Daily-rated or piece-rated employees receive 18 days’ wages per year. The total payment is capped at HKD 390,000.

Employers and employees pay into the employee’s Mandatory Provident Fund (MPF) — Hong Kong’s compulsory retirement savings scheme. Since May 1, 2025, employers can't use benefits from mandatory MPF contributions to offset SP or LSP for service from that date. Mandatory-contribution benefits may still offset payments for earlier service. Benefits from voluntary employer MPF contributions may also qualify for offsetting.

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 income to the MPF, capped at HKD 1,500 per month each. Employees below the minimum threshold don't contribute, but employers still contribute 5%. 

Hong Kong has a progressive tax system. There's no automatic payroll withholding, so employees file their own tax returns and pay salaries tax directly. The exception is if an employee will leave Hong Kong for more than one month. In this case, the employer needs to withhold payments for up to one month pending tax clearance. You'll need to file BIR56A and an IR56B for each employee within one month after the Inland Revenue Department issues the annual return. 

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. 
• Service scope: 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.
• Transparent, flat-rate pricing: Evaluate total cost predictability rather than low base rates. Look for standard, clear pricing models. Compare pricing structures carefully, as some EORs use percentage-of-payroll models that penalize high earners. Flat-rate pricing ensures long-term operating budget accuracy. The G-P EOR starting price of USD $599 monthly gives you full access to the G-P Global Employment Platform. We use a flat platform fee rather than charging a percentage of payroll.
• 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.

Simplify global hiring with G-P EOR

With G-P EOR, startups, SMBs, and enterprises can hire, manage, and pay professionals in 180+ countries, without setting up local entities. Our platform combines vetted employment expertise with intuitive AI and human support – so you can operate globally with ease.

G-P EOR is engineered to adapt entirely to you. Bring your workforce data together in one place to maintain existing workflows while keeping consistent and accurate data across your integrated systems.

Book a demo to hire globally without the delays, risks, or overhead of local entities.

 

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