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Global Expansion Guide

Hong Kong

Manage and pay your employees easily with BIPO in Hong Kong and 170+ other markets. Build your international teams today with our global Employer of Record service!

employment guide_currency

Currency

Hong Kong Dollar (HKD)

employment guide_language

Language

Chinese (Cantonese,
Mandarin),
English

employment guide_capital

Capital

Hong Kong

Employer of Record Hong Kong

Employment Contract

Statutory Contributions

Minimum Wage

Public Holidays

Working Hours

Leave

Termination and Compensation

BIPO as your Employer of Record

Benefits of BIPO EOR Service in Hong Kong

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Employer of Record Hong Kong

Embark on your business expansion in Hong Kong with BIPO’s Employer of Record (EOR) services. Designed to assist you in navigating the intricacies of local employment laws and regulations, we can help ensure a smooth transition for your business and workforce.

As an Employer of Record (EOR), we act as your legal employment entity, streamlining the process of business expansion. Allowing businesses to focus on their core business operations while the EOR manages all aspects of compliance, payroll, HR, and employee benefits when venturing into the Hong Kong market. An EOR provider addresses the common challenges associated with local employment laws, payroll regulations, and work permit requirements.

This guide was last updated on 11 February 2026. The content in this guide is current as of this date and based on common business practices.

Employment Contract

  • Employment contracts are classified as continuous contracts or non-continuous contracts.

    • A continuous contract is generally deemed to be for a term of one month and is renewable on a monthly basis, unless otherwise agreed by both parties.

  • An employment contract may be made in writing or orally, and may be express or implied.

    • Where the contract is in writing, the employer must provide the employee with a copy for reference and retention.
    • Where the contract is not in writing and the employee makes a written request, the employer must provide a written notice setting out the terms of employment.

  • Before employment commences, the employer must clearly explain the terms and conditions of employment to the employee, including:

    1. Wages — including the wage rate, overtime rate, and any allowances, whether calculated on a piece-rate, job-rate, time-rate, daily, weekly, or other basis.
    2. The wage period.
    3. The notice period required for termination of the contract.
    4. Where applicable, details of any annual bonus entitlement, including the bonus period and arrangements for pro-rated payment.

Statutory Contributions

Scope of Application: Applicable to employees of private enterprises.

Type of Social Insurance Employee Type Contribution Floor / Ceiling Employee Contribution Employer Contribution
Mandatory Provident Fund (MPF) Scheme Monthly-paid employees

HKD 7,100/month

HKD 30,000/month

5%

No contribution if income is below contribution floor

 5%
Non-monthly-paid employees

HKD 280/day

HKD 1,000/day
Employees’ Compensation Insurance – – –

Minimum insured amount:

  • HKD 100 million for enterprises with ≤ 200 employees
  • HKD 200 million for enterprises with > 200 employees

Minimum Wage

With effect from 1 May 2025, the statutory minimum wage in Hong Kong has been increased to HKD 42.10 per hour.

Public Holidays

The public holidays listed below are national public holidays observed across the Hong Kong Special Administrative Region. Please refer to official government announcements for the latest updates.

  • New Year’s Day
  • Lunar New Year Holiday (3 Days)
  • Easter Monday
  • Ching Ming Festival
  • Labour Day
  • The Birthday of the Buddha
  • Tuen Ng Festival
  • Hong Kong Special Administrative Region Establishment Day
  • The Day following the Chinese Mid-Autumn Festival
  • National Day
  • Chung Yeung Festival
  • Chinese Winter Solstice
  • Festival or Christmas Day (at the option of the employer)
  • The First Weekday after Christmas Day

Notes:

  • If a statutory holiday falls on an employee’s rest day, the employer must grant a compensatory holiday on the day following the rest day. The compensatory holiday must not be a statutory holiday, alternative holiday, substituted holiday, or rest day.

Work on Statutory Holidays

If an employer requires an employee to work on a statutory holiday, the employer must make one of the following arrangements:

  • Grant an alternative holiday within 60 days before the statutory holiday and notify the employee at least 48 hours in advance; or
  • Grant an alternative holiday within 60 days after the statutory holiday and notify the employee at least 48 hours before the statutory holiday; or
  • By mutual agreement, grant a substituted holiday within 30 days before or after the statutory holiday or the alternative holiday.

Regardless of whether the employee is entitled to statutory holiday pay, the employer must allow the employee to take the statutory holiday or grant an alternative or substituted holiday. Monetary payment in lieu of the holiday (commonly referred to as “buying out” the holiday) is not permitted.

Statutory Holiday Pay

  • An employee employed under a continuous contract for at least three months immediately preceding the statutory holiday is entitled to holiday pay.
  • Holiday pay must be paid on or before the first wage payment day after the statutory holiday.
  • The daily rate of holiday pay is calculated based on the employee’s average daily wages earned in the 12 months preceding the “specified date”.
  • If the employee has been employed for less than 12 months, the calculation is based on the actual period of employment.

Exemptions

For exemptions from overtime compensation on public holidays, please refer to the section on exemptions from overtime compensation below.

Working Hours

Normal Working Hours

  • There are no statutory provisions; this is determined by mutual agreement between the employer and the employee.

Rest Time

  • Definition: An employee is entitled to a continuous rest period of not less than 24 hours during which they are not required to work.
  • Eligibility: An employee engaged under a continuous contract is entitled to at least one rest day in every seven-day period.

  • Designation of Rest Days: Rest days are designated by the employer and may be:

    • Fixed rest days: The employer notifies the employee of the arrangement once, and it remains unchanged.
    • Non-fixed rest days: The employer must notify the employee of each month’s rest days before the start of that month. Notification may be given orally, in writing, or through a posted monthly roster.
  • Alternative Rest Day: With the employee’s consent, the employer may substitute the originally designated rest day. The alternative rest day must be taken either within the same month before the original rest day or within 30 days after it.

Overtime and Work on Rest Days

  • Compulsory Work

    • An employer must not require an employee to work on a rest day, except in cases of machinery breakdown or other emergencies.
    • If an employee is required to work on a rest day, the employer must provide an alternative rest day within 30 days after the original rest day and notify the employee of the replacement date within 48 hours of the original rest day.

  • Voluntary Work

    • Except for young persons under 18 employed in industrial undertakings, employees may choose to work on a rest day voluntarily.
    • Any contractual term requiring an employee to work on a rest day as a condition for receiving an annual bonus or year-end gratuity is void.
  • Payment: Whether work performed on a rest day is paid or unpaid must be mutually agreed between employer and employee.

Exemptions

The following individuals are exempt from overtime compensation provisions:

  • Family members residing with the employer.
  • Employees covered under the Contracts for Employment Outside Hong Kong Ordinance.
  • Persons serving under a seaman’s agreement under the Merchant Shipping (Seamen) Ordinance, or on ships not registered in Hong Kong.
  • Registered apprentices under the Apprenticeship Ordinance (subject to applicable provisions of the Employment Ordinance).

Leave

Annual Leave

  • Type of Employer: Single employer.
  • Eligibility: Continuous contract of 12 months or more.
  • Duration
Length of Service Duration of Annual Leave
1 Year 7 Days
2 Years 7 Days
3 Years 8 Days
4 Years 9 Days
5 Years 10 Days
6 Years 11 Days
7 Years 12 Days
8 Years 13 Days
≥ 9 Years 14 Days
  • Allowance: 100% of average daily wage, payable by employer.

  • Cash-out

    • If employed ≥ 12 months and contract ends, employer must pay wages in lieu of untaken leave.
    • If employed ≥ 3 months but < 12 months, employer must pay pro-rated wages, unless dismissed for serious misconduct.

Sick Leave

  • Eligibility: Continuous contract and valid medical certificate.

  • Entitlement:

    • First 12 months: 2 days per completed month.
    • After 12 months: 4 days per completed month.
    • Cumulative maximum: 120 days.
  • Allowance: 80% of average daily wage, payable by employer.

Maternity Leave

  • Eligibility: Continuous contract and valid medical certificate.

  • Duration

    • Statutory maternity leave is 14 consecutive weeks.
    • With the employer’s consent, maternity leave may commence 2 to 4 weeks before the expected date of confinement (EDC).
    • If the employee does not request an earlier start date, or where employer consent is not obtained, maternity leave will commence 4 weeks before the expected date of confinement.
    • If childbirth occurs before the agreed leave commencement date, the actual date of confinement will be deemed the start date of maternity leave. The employee must notify the employer within 7 days after confinement and confirm her intention to take 14 weeks of maternity leave.

  • Allowance

    • Length of Service: Less than 40 weeks

      • The employee is entitled to maternity leave.
      • Statutory maternity leave pay is not applicable.

    • Length of Service: 40 weeks or more

      • The employee is entitled to statutory maternity leave pay as follows:

        • Weeks 1 – 10:

          • 80% of the employee’s average daily wages.
          • Paid by the employer.

        • Weeks 11 – 14:

          • 80% of the employee’s average daily wages.
          • The total payment for these four weeks is capped at HKD 80,000.
          • Paid by the employer, who may apply for reimbursement from the Government under the Reimbursement of Maternity Leave Pay Scheme.

  • Additional Maternity Leave

    • If the actual date of birth falls after the expected date of confinement, the employee is entitled to additional maternity leave equal to the number of days between the day after the expected date of confinement and the actual date of birth.
    • Where the employee is unable to work due to illness or disability arising from pregnancy or childbirth, she is entitled to up to an additional 4 weeks of maternity leave.

Paternity Leave

  • Eligibility: Continuous contract and relevant supporting documents.
  • Duration: 5 days per childbirth, taken consecutively or separately, from 4 weeks before expected date of confinement to 14 weeks after birth.

  • Notification:

    • At least 3 months before expected birth.
    • If no prior notice, must notify 5 days in advance.
  • Employer Verification: May request written statement including child’s mother’s name, expected/actual birth date, and confirmation of fatherhood.

  • Allowance:

    • Unpaid if length of service is less than 40 weeks.
    • 80% of average daily wage payable by employer if length of service is 40 weeks or more.

Termination and Compensation

Termination Notice Period

Employment Status Notice Period Payment in Lieu of Notice
During probation period First month of probation No notice required No payment in lieu of notice is required
After the first month of probation
  • As stipulated in the employment contract (if applicable), but not less than 7 days
  • If the employment contract is silent on the notice period, a minimum of 7 days’ notice shall apply
 Payable
Continuous contract (without probation or upon completion of probation) Notice period stipulated in the contract (if any), but not less than 7 days As stipulated in the employment contract (if applicable), but not less than 7 days Payable
No specific stipulation in the contract Not less than 1 month Payable

Payment in Lieu of Notice – Calculation

  • Daily/weekly-paid employees: Average daily wages earned over the 12 months preceding the date on which the employer or employee gives notice of termination, multiplied by the number of days normally payable during the notice period.
  • Monthly-paid employees: Average monthly wages earned over the 12 months preceding the date on which the employer or employee gives notice of termination, multiplied by the number of months in the notice period.

Note: If no prior notice of termination is given, the calculation shall be based on the employee’s average daily or monthly wages earned during the 12 months preceding the termination date.

Compensation

Compensation Item Severance Payment Long Service Payment
Length of Service Employed under a continuous contract for ≥ 24 months* Employed under a continuous contract for ≥ 5 years
Eligibility Criteria Employee dismissal due to redundancy Employee’s dismissal is not due to: Summary dismissal for serious misconduct Redundancy
Non-renewal of a fixed-term contract upon expiry due to redundancy Non-renewal of a fixed-term contract upon expiry (not due to redundancy)
Employee layoff by the employer Employee’s death during employment
Employee resignation on grounds of health
Employee resignation at age 65 or above

*Note: Where an employee is dismissed due to redundancy, they are entitled to either severance payment or long service payment, but not both simultaneously.

Calculation of Severance Payment / Long Service Payment

If the employee’s period of employment does not include 1 May 2025 (the effective date of the abolition of the MPF offset mechanism, referred to as the “transition date”), or if the employee is not covered by the MPF scheme or other statutory retirement schemes, the severance payment or long service payment for the entire period of employment shall be calculated as follows:

Employee Type Calculation Formula
Monthly-paid employees (Full monthly wages in the last month × 2/3) × reckonable years of service
Daily/piece-rated employees (Wages for any 18 days selected by the employee from the last 30 normal working days) × reckonable years of service

If the employee’s period of employment spans 1 May 2025, the severance payment or long service payment shall be divided into two parts based on the transition date:

  • Pre-transition part: Reckonable years of service before 1 May 2025
  • Post-transition part: Reckonable years of service on and after 1 May 2025

Each part shall be calculated separately as follows:

Employee Type Pre-transition Part Post-transition Part
Monthly-paid employees (Full monthly wages in the last month before the transition date × 2/3) × reckonable years of service before the transition date (Full monthly wages in the last month before termination × 2/3) × reckonable years of service on and after the transition date
Daily/piece-rated employees (Wages for any 18 days selected by the employee from the last 30 normal working days before the transition date × 2/3) × reckonable years of service before the transition date (Wages for any 18 days selected by the employee from the last 30 normal working days before termination × 2/3) × reckonable years of service on and after the transition date

Notes:

  • Any incomplete year of service shall be calculated on a pro-rata basis.
  • The employee may elect to use their average wages over the 12 months immediately preceding the termination date for the calculation.
  • If the employment contract is terminated by payment in lieu of notice, the employee may elect to use their average wages over the 12 months immediately preceding the end date covered by the payment in lieu of notice.
  • The employee may alternatively elect to use their average wages over the 12 months immediately preceding the transition date.
  • Calculation base ceiling: Regardless of actual monthly salary, the maximum monthly wage used for calculating severance or long service payment is HKD 22,500.

  • Reckonable service for pre-1990 wages:

    • For all manual workers, and non-manual workers whose average monthly wages in the 12 months before 8 June 1990 did not exceed HKD 15,000, all years of service are reckonable if the employment terminates on or after 1 October 2004.
    • For non-manual workers whose average monthly wages in the 12 months before 8 June 1990 exceeded HKD 15,000, reckonable years of service shall date back to 1980.
  • Maximum payment: The maximum severance or long service payment is HKD 390,000.

BIPO as your Employer of Record

BIPO’s total HR solutions include our award-winning HR Management System, Global Payroll Outsourcing, Employer of Record service, and Athena BI.

As your EOR partner, our services are designed to provide a comprehensive, hassle-free experience:

  • Initial Consultation: The journey typically begins with an in-depth discussion to understand your specific business needs, ensuring our EOR services perfectly align with your objectives.
  • Payroll Management: We offer a streamlined payroll system that ensures timely and accurate salary disbursement, complete with statutory deductions and contributions in full compliance with Hong Kong’s regulations.
  • Contributions and Taxes: Our expertise in managing Mandatory Provident Fund (MPF) Scheme contributions and local income tax ensures your business complies with Hong Kong’s financial obligations.
  • Compliance with Working Hours: We guarantee that your employment practices adhere to Hong Kong’s working hours standards, safeguarding your business against potential legal issues.
  • Leave and Paid Time Off Management: Implement and manage leave policies that comply with Hong Kong’s laws, ensuring a fair and transparent leave management system for your employees.
  • Regulatory Compliance: Stay ahead of local labour laws and regulations with our up-to-date compliance services, minimising legal risks for your business.
  • Other services: Work visa, permit applications, termination procedures.

Services may vary across countries.

Benefits of BIPO Employer of Record Service in Hong Kong

Unlock your growth potential with BIPO’s Employer of Record service in Hong Kong. Our EOR service empowers businesses with seamless scalability while ensuring regulatory compliance.

From smooth onboarding to risk mitigation, BIPO handles the administrative HR tasks, enabling companies to concentrate on core business functions and accelerating growth. Our local expertise and global reach ensure efficient operations, enhancing flexibility and reducing operational complexities.

Stay up to date with the latest employment regulations.

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Frequently Asked Questions

An Employer of Record (EOR) is a partner company that acts as the official employer for your employees. 

An EOR company handles all the HR aspects and processes, including the legal complexities associated with regulatory and tax compliance.

As your EOR, BIPO supports your organisation by providing a comprehensive range of HR, payroll and advisory services to ensure your business stays compliant. These include end-to-end on/offboarding services for your employees (e.g.: payroll processing, HR and benefits administration, labour contracts, visa applications, payroll/tax compliance, and more).

By engaging BIPO as your EOR, your business benefits from: 

  • Compliance in the global markets where you operate
  • Reduced costs and risk mitigation
  • Overall workforce productivity, effectiveness, and efficiencies

A global EOR benefits organisations regardless of size or industry. It is especially useful for organisations that want to:

  • Scale their global business and be fully operational in foreign markets quickly
  • Reduce financial and HR complexities while expanding internationally
  • Minimise time spent trying to understand local labour laws and foreign tax systems
  • Stay compliant across global markets while reducing HR and administrative workflows
  • Benefit from a centralised and intuitive cloud HR platform to manage international teams

A global EOR enables businesses to fast-track their market entry into international market, and reduce the complexities of setting up multiple foreign entities.

When you partner with BIPO, we take on the the day-to-day administrative tasks, while you maintain full control of the business and delegate HR workflows and hiring needs.

Our vast network of business partners across 170+ markets globally supports your business expansion plans, with in-country HR experts providing localised support. Going global has never been easier!

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