Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Hong Kong

Your quick guide on talent and labor compliance norms in Hong Kong
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Capital
Victoria
Currency
Hong Kong Dollar (HKD)
Languages
English (Official), Chinese (Official), Cantonese
Payroll Frequency
Monthly
GDP per Capita
$46,232
Employer Tax
5% or 1500 HKD

Supplementary Guide for Employment and Expansion in Hong Kong

Talent Overview

Hong Kong has a service-oriented, free-market economy. The country is one of the world’s largest exporters of merchandise trade, ranking 6th place at the World Trade Organization (WTO). This is due to Hong Kong adopting modern British and western business practices, maximizing their trade opportunities with other countries.

Major economic hubs:

Hong Kong

Skills in demand:

IT and Telecommunications, Banking and Finance, Pharmaceuticals, Insurance

Local Universities

The top local universities in Hong Kong are as follows:

Chinese University of Hong Kong

RANKING

Hong Kong : 1

World : 88

University of Hong Kong

RANKING

Hong Kong : 2

World : 91

City University of Hong Kong

RANKING

Hong Kong : 3

World : 137

Hong Kong Polytechnic University

RANKING

Hong Kong : 4

World : 201

Hong Kong Baptist University

RANKING

Hong Kong : 5

World : 549

Salary Data

Some of the jobs found in Hong Kong and their respective salaries are listed below:

No. Job Title Salary Range (in HKD) Salary Range (in USD)
1 Accounting Manager 45,000 – 70,000 5,804 – 9,028
2 Software Developer 20,000 – 35,000 2,579 – 4,514
3 Data scientist 30,000 – 45,000 3,869 – 5,804
4 UX/UI Designer 40,000 – 60,000 5,159 – 7,738
5 Project Manager 25,000 – 45,000 3,224 – 5,804
6 Sales Manager 58,333 – 83,333 7,523 – 10,748

Talent Sourcing Tips

Top Local Job Boards

JobsDB, Indeed, Neuvoo

Number of LinkedIn Users

2,570,000

Top Recruitment Agencies

Michael Page Hong Kong, Connected Group, Egon Zehnder

Employing in Hong Kong

Hong Kong offers an enterprising talent market for businesses that are expanding their business globally. However, employers must have a thorough understanding of the laws and regulations of the country. Some information to get started are stated below. 

Employee Contract

There is no stipulated language preference for written employment contracts in Hong Kong.

Probation Period

Newly hired employees can be under probation for up to 3 months.

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
1 Feb Lunar New Year's Day National holiday
2 Feb Second Day of Lunar New Year National holiday
3 Feb Third Day of Lunar New Year National holiday
5 Apr Tomb Sweeping Day National holiday
15 Apr Good Friday National holiday
16 Apr Holy Saturday National holiday
18 Apr Easter Monday National holiday
1 May Labor Day National holiday
2 May Labor Day observed National holiday
8 May Buddha's Birthday National holiday
9 May Day following Buddha's Birthday National holiday
3 Jun Dragon Boat Festival National holiday
1 Jul Hong Kong Special Administrative Region Establishment Day National holiday
12 Sep Day after Mid-Autumn Festival National holiday
1 Oct National Day of the People's Republic of China National holiday
4 Oct Chung Yeung Festival National holiday
26 Dec First Weekday After Christmas Day National holiday
27 Dec Second Weekday After Christmas Day National holiday

Payroll

Payroll Cycle

Salaries are paid monthly in Hong Kong. It is due on the last day of the wage period. If the employer fails to release it on the required day, a grace period of 7 days is given after which they are subjected to pay interest on top of the wages.

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Minimum Wage

The National minimum wage in Hong Kong is HKD 37.50 per hour.

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Overtime pay

There are no laws indicating the overtime rate for employees. However, employers may outline an overtime rate in the employee contract

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Health Examination Clause

Bonus

13th Month Pay

A 13th month pay is not mandatory for Hong Kong employees. However, most employers in the country pay their employees an extra month each year as a bonus incentive. It is usually released during Lunar New year or at the end of the year.

Employee Benefits

Below are some benefits that workers in Hong Kong often receives:

  • ~Sickness allowance
  • ~Health Insurance
  • ~Pension
  • ~Long service payments
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Taxes

Employer Payroll Tax

Type of Tax Salary Range Rate
Mandatory Provident Fund ≤ 30,000 5%
> 30,000 HKD 1,500

Employee Income Tax

Type of Tax Salary Range Rate
Mandatory Provident Fund < 7,100 0%
≤ 30,000 5%
> 30,000 HKD 1,500

Employee Income Tax

Net Chargeable Income (in HKD currency) Rate
0– 50,000 HKD 2%
50,001– 100,000 HKD 6%
100,001– 150,000 HKD 10%
150,001– 200,000 HKD 14%
Above 200,001 HKD 17%

VAT

Hong Kong has no Sales Tax nor VAT. Their Goods and Services Tax is at 5%.

Offboarding & Termination

Termination Process

Contract termination in Hong Kong may be initiated by either the employer or employee. It may take place with adequate notice from the party or through payment in lieu of notice. Notice period and pay in-lieu are dependent on whether the employee is on probation as well as contractual considerations.

Notice Period

The notice period for Hong Kong employees depends on whether they are in their probation period or not. Those under probation period will have up to 30 days of notice period while those outside have up to 3 months.

Severance Pay

Below is the calculation for severance pay in Hong Kong:

Salary Type Severance Pay Calculation
Paid monthly 2/3 of last month’s pay x reckonable years of service, or it can be 2/3 of HK$22,500 for each month’s pay x years of service; whichever is less
Paid daily 18 days’ wage x reckonable years of service

Visa and Immigration

In Hong Kong, foreign employees are encouraged to work in the country via a special work permit scheme called Employment for Professionals. The work permit is issued for a year and can be renewed.

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