--- title: "Hiring in Hong Kong 2026 | Employer of Record Guide" description: "Hire in Hong Kong through Teamed's EOR. 5% MPF employer contribution, 7 days statutory leave, 15 statutory holidays, and salaries tax capped at 17%. The Hong Kong guides, one per layer." canonical: https://www.teamed.global/country-hiring-guides/hong-kong --- Hong Kong · Country overview Served by Teamed via a Hong Kong-licensed EOR entity # What do you need to know to hire in *Hong Kong*? Hong Kong's Mandatory Provident Fund costs just 5% each side. Salaries tax tops out at 17% under a personal assessment cap. Statutory annual leave starts at 7 days and severance protection kicks in after two years of service. Each guide below takes one layer. Last reviewed 13 June 2026 · Hong Kong guide ## How does Teamed handle Hong Kong hiring for you? Teamed becomes your legal [employer of record](/lp/employer-of-record) in Hong Kong for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, MPF contributions, and the full Hong Kong employment law stack run on **one platform**. **Real HR and legal experts** manage every Hong Kong hire, from the first offer letter to the final termination payment. **An actual person**, not a chatbot or a pooled queue, handles your Hong Kong team alongside EOR, contractor onboarding, and entity payroll on **one platform**. There is **no setup fee** and **no exit fee**. Employer cost **passes through at cost, itemised** on every invoice. A Hong Kong contractor who converts to a continuous contract keeps their record, and that same employee can **graduate** from EOR to your own Hong Kong entity without re-onboarding. Run the [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator) to see the month the model flips. EOR is the right model for a first Hong Kong hire, **until it isn't**. Three things you won't find on any other Hong Kong EOR guide - **Hong Kong has no collective redundancy rules.** There is no legal obligation to notify any government body or follow a special process when making multiple employees redundant at once. Each termination is handled individually under the Employment Ordinance. [The termination guide](/country-hiring-guides/hong-kong/termination-and-severance) explains how severance and notice work per employee. - **The MPF is both the pension scheme and the only mandatory social security contribution.** Employer and employee each contribute 5% of relevant income up to the income cap. There is no separate health insurance, unemployment insurance, or national insurance levy on top. That keeps the employer on-cost well below most other developed markets. - **The minimum wage rose to HK$ 43.10/hour on 1 May 2026.** Hong Kong sets its Statutory Minimum Wage every two years. The previous rate was HKD 40 per hour. The new rate covers all employees on continuous contracts regardless of industry, including part-time workers. Answer.cite this Hiring in Hong Kong adds roughly 105 to 106 percent of gross salary in total employer cost. The Mandatory Provident Fund contribution is 5% of relevant income, up to a monthly income cap. There is no employer health insurance levy or unemployment contribution. Salaries tax is assessed individually on each employee. The top progressive rate is 17% on net chargeable income above HKD 200,000, or the standard rate, whichever is lower. The basic personal allowance is HK$ 132,000/year. Teamed runs Hong Kong payroll, contracts, and compliance through an EOR entity holding the required Hong Kong registrations. This page is the map. Each guide below is the detail. At a glance · Hong Kong HKD · English / Chinese · Monthly payroll Currency HKD HK$ Employer MPF 5% on relevant income up to monthly cap Employee MPF 5% matched employer rate Annual leave 7 days after 1 year of service; rises with tenure Statutory holidays 15 separate from annual leave Minimum wage HK$ 43.10/hour from 1 May 2026 Minimum notice 1 week statutory floor; monthly notice common by contract Top salaries tax 17% progressive or standard rate, whichever is lower ![A wide illustration of Hong Kong at golden hour: Victoria Harbour in the foreground, the Central skyline rising behind it with the International Commerce Centre and Bank of China Tower, and the green hills of the New Territories in the distance under a clear amber sky.](/images/country-guides/hong-kong-hiring.webp) Hong Kong · per employee · per month · flat $ 599 Zero FX. No setup fees. 48-hour onboarding. The price your finance team can forecast against without an asterisk. Zero FX Fixed No setup fee No exit fee 48-hour onboard ## How much does it cost to hire an employee in Hong Kong in 2026? A Hong Kong hire costs roughly 105 to 106 percent of gross salary once the MPF is added. Employer MPF is 5% on relevant income. There is no employer health, unemployment, or social insurance on top of that. Hong Kong's employer on-cost is among the lowest of any major financial centre. The Mandatory Provident Fund contribution is 5% of the employee's relevant income, up to a monthly income cap. Beyond that, employers face no mandatory health insurance levy, no unemployment contribution, and no social insurance levy on top. Statutory sick pay, maternity pay, and paternity pay are all employer-funded obligations but are modest relative to most OECD markets. Teamed's Hong Kong price is a starting rate, with zero FX in any currency pairing. No setup fees. No exit fees. Salaries, MPF, and benefits are passed through at cost on every invoice. The full breakdown, with worked examples at current statutory rates, is in the cost guide. [Read the full Hong Kong cost breakdown](/country-hiring-guides/hong-kong/cost-breakdown) ## Do you need a Hong Kong entity to hire employees in Hong Kong? No. An Employer of Record runs Hong Kong payroll and contracts from day one. Your own Hong Kong limited company becomes cheaper than EOR somewhere around 5 to 8 employees, depending on salary. Incorporating a Hong Kong private limited company is relatively fast, typically one to two weeks, and formation costs are low compared to most other jurisdictions. But ongoing accounting, audit, and Companies Registry filings add cost once the company is live. An [Employer of Record](/lp/employer-of-record) is faster and cheaper at low headcount. Teamed runs Hong Kong payroll, contracts, and MPF compliance from day one. The crossover point depends on local salary levels and your administrative costs. For most professional roles it lands around 5 to 8 employees. At that headcount your own entity's total cost crosses below the EOR fee plus MPF on the same gross salary. The EOR vs entity guide runs those numbers. Most EOR providers will not tell you when you have crossed it. We do, and we help you move. You progress from contractor to EOR to your own Hong Kong entity on **one platform** under Teamed's Graduation Model, with tenure preserved. [Read the full Hong Kong EOR vs entity guide](/country-hiring-guides/hong-kong/eor-vs-entity) ## What are the key employment law rules in Hong Kong in 2026? The Statutory Minimum Wage rose to HK$ 43.10/hour on 1 May 2026. Continuous contract status, which unlocks most employment protections, requires working at least 18 hours per week for four weeks or more. Hong Kong employment law centres on the Employment Ordinance (Cap. 57). Most statutory protections, including sick pay, annual leave, maternity leave, and severance rights, apply only to employees on a continuous contract. A continuous contract requires 18 or more hours per week over four consecutive weeks. Employees who do not meet this threshold have limited statutory rights. The minimum wage is reviewed every two years by the Minimum Wage Commission. The rate rose to HK$ 43.10/hour on 1 May 2026, up from HKD 40 per hour. Unreasonable dismissal protection applies after 24 months of continuous service. The hiring guide covers the continuous contract rules, the day-one obligations, and how the Employment Ordinance applies to your first Hong Kong hire. [Read the full Hong Kong hiring guide](/country-hiring-guides/hong-kong/hiring-guide) ## What benefits must you provide Hong Kong employees in 2026? The statutory floor is 7 days of paid annual leave after one year and 15 statutory holidays. Maternity leave is 14 weeks at 80 percent of average daily wages. Paternity leave is 5 days. Paid annual leave under the Employment Ordinance starts at 7 days after the first year of continuous service and rises with tenure up to a maximum of 14 days. Statutory holidays, all 15 of them, are in addition to annual leave and must be granted to continuous-contract employees. Hong Kong's total statutory paid time off is lower than most European markets but the two counts are separate. Maternity leave runs 14 weeks at 80 percent of average daily wages (Employment Ordinance s.12B). Paternity leave is 5 days at the same 80 percent rate. Sick pay accrues at a rate of two paid days per month up to a maximum bank of 120 days. The benefits guide covers each entitlement and the employer obligations in detail. Read the full Hong Kong benefits guide ## What are payroll taxes in Hong Kong in 2026? Employer MPF contribution is 5% of the employee's relevant income, up to a monthly income cap. Employees pay a matching 5% MPF plus salaries tax on a progressive scale starting at 2% above the HK$ 132,000/year basic allowance. Hong Kong's payroll tax architecture is simple by design. The Mandatory Provident Fund requires 5% from the employer and 5% from the employee on relevant income up to the monthly cap. There is no employer contribution to health insurance, unemployment insurance, or any other social scheme. The employer's annual return to the Inland Revenue Department is due within 30 days of the annual issue date each April. Salaries tax is assessed on the employee independently. The progressive scale starts at 2% on the first HKD 50,000 of net chargeable income, rising through 6% to a top rate of 17%. The basic personal allowance is HK$ 132,000/year. If the standard rate of 15 percent on assessable income produces a lower bill than the progressive calculation, the lower amount applies. The tax and payroll guide sets out every band and threshold. [Read the full Hong Kong tax and payroll guide](/country-hiring-guides/hong-kong/tax-and-payroll) ## How do you terminate an employee in Hong Kong? Statutory minimum notice is 1 week. Most employment contracts set monthly notice as standard. Severance payment applies after 2 years of continuous service on redundancy or lay-off. Under the Employment Ordinance, the statutory notice floor is 1 week where agreed in writing, but the default for continuous contracts without an agreed notice clause is one month. Employers can pay wages instead of working through the notice period. Final wages and terminal payments must be made within 7 days of the termination date. Severance payment applies on redundancy or lay-off after 2 years of continuous service. The accrual rate is two-thirds of one month's capped wages per year of service. The monthly wage ceiling for the calculation is HKD 22,500 and the total statutory payout is capped at HK$ 390,000. Unreasonable dismissal protection applies after 24 months of service, with compensation capped at HK$ 150,000. Hong Kong has no collective redundancy regime. The termination guide covers the full process. [Read the full Hong Kong termination and severance guide](/country-hiring-guides/hong-kong/termination-and-severance) ## What should you know before hiring in Hong Kong? Two things catch US buyers out. The first is the continuous contract threshold. The second is that Hong Kong's annual leave and statutory holidays are two separate counts, not bundled. **The continuous contract threshold determines almost every statutory right.** An employee working fewer than 18 hours per week over four consecutive weeks is not on a continuous contract and has no right to statutory annual leave, sick pay, maternity pay, or severance. Most professional hires clear this threshold easily, but part-time and flexible arrangements need a careful review before the contract is signed. The hiring guide covers how to structure continuous contracts correctly. **Annual leave and statutory holidays are counted separately.** Unlike the UK, where bank holidays count toward the annual leave total, Hong Kong employees are entitled to 7 days of paid annual leave AND 15 statutory holidays as separate entitlements. Brief US buyers on this up front. Total paid days off is higher than the annual leave number alone suggests. [Read the full Hong Kong hiring guide](/country-hiring-guides/hong-kong/hiring-guide) ## Frequently asked questions How much does it cost to hire an employee in Hong Kong? Plan on roughly 105 to 106 percent of gross salary once the Mandatory Provident Fund contribution of 5% is added. There is no additional employer social insurance, health levy, or unemployment contribution in Hong Kong. Teamed's Hong Kong fee is one flat number per employee per month, with zero FX mark-up in any currency pairing. The cost breakdown guide has worked examples. Can a US company hire in Hong Kong without an entity? Yes. An Employer of Record like Teamed runs Hong Kong payroll, MPF contributions, and compliance through its own registered entity. You direct the work. Teamed becomes the legal employer of record. Setup takes 48 hours once terms are confirmed. Incorporating your own Hong Kong limited company typically takes one to two weeks. What is the Hong Kong Mandatory Provident Fund (MPF)? The MPF is Hong Kong's mandatory pension scheme under the Mandatory Provident Fund Schemes Ordinance (Cap. 485). Both the employer and the employee contribute 5% of the employee's relevant income, up to a monthly income cap. The MPF is the only mandatory social contribution in Hong Kong. There is no separate employer health insurance or unemployment levy. What are the statutory notice periods in Hong Kong? The statutory minimum notice period is 1 week where agreed in writing under the Employment Ordinance (Cap. 57) s.6. If the contract does not specify a notice period, the default for continuous contracts is one month. During probation, after the first month, either side can give 7 days notice. Final wages must be paid within 7 days of termination. When does Hong Kong severance payment apply? Severance payment is triggered by redundancy or lay-off after 2 years of continuous service. The formula is two-thirds of one month's capped wages per year of service. The monthly wage ceiling for the calculation is HKD 22,500. Total statutory severance is capped at HK$ 390,000. Unreasonable dismissal compensation is capped separately at HK$ 150,000 and applies after 24 months of service. What is the minimum annual leave for a Hong Kong employee? Minimum paid annual leave starts at 7 days after the first year of continuous service under the Employment Ordinance. This rises with tenure to a maximum of 14 days. Statutory holidays, all 15 of them, are a separate entitlement on top. Hong Kong counts annual leave and statutory holidays independently, unlike the UK where they are bundled. Teamed Legal Operations Hong Kong reads as the easy Asia-Pacific hire: low tax, simple MPF, no collective redundancy rules, fast incorporation. The catch is the continuous contract threshold and what falls away below it. Getting that classification wrong on a flexible or part-time hire is where the liability lands. These guides exist so the first Hong Kong hire is set up correctly, not corrected at the tribunal stage. A note from Tom Price-Daniel Hong Kong has low employer costs and a clean tax system. MPF at 5 percent. Salaries tax capped at 17 percent. No social insurance stack on top. The complexity lands on the Employment Ordinance side, where continuous contract status determines almost every statutory right your employee holds. Read the right Hong Kong guide before the first hire, not after the first dispute. Tom Price-Daniel · Co-founder, Teamed ## Keep reading - [Hong Kong hiring guide, offer to payslip](/country-hiring-guides/hong-kong/hiring-guide)guide - [Hong Kong employer cost breakdown 2026](/country-hiring-guides/hong-kong/cost-breakdown)guide - [EOR vs entity in Hong Kong](/country-hiring-guides/hong-kong/eor-vs-entity)guide - [Hong Kong termination and severance](/country-hiring-guides/hong-kong/termination-and-severance)guide - [Hong Kong tax and payroll](/country-hiring-guides/hong-kong/tax-and-payroll)guide - [Employer of Record overview](/lp/employer-of-record)core - The Graduation Modelcore - [Teamed pricing, Zero FX Fixed](/pricing)core - [Crossover Calculator](https://www.teamed.global/tools/crossover-calculator/hong-kong)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the Hong Kong Labour Department, the Inland Revenue Department, and the Mandatory Provident Fund Schemes Authority, or speak to a qualified professional, before relying on any specific framework.