Talent Wiki - Hong Kong
Your quick guide on talent and labor compliance norms in Hong Kong
Capital
Victoria
Currency
Hong Kong Dollar (HKD)
Languages
English (Official), Chinese (Official), Cantonese
Payroll Frequency
Monthly
GDP per Capita
$49673.76
Employer Tax
5% or 1500 HKD
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, Sham Shui Po, Sai Wan Ho
Skills in demand:
IT and Telecommunications, Banking and Finance, Pharmaceuticals, Insurance
Local Universities
The top local universities in Hong Kong include the following:
University of Hong Kong
Ranking
Local: 1
World: 150
The Chinese University of Hong Kong
Ranking
Local: 2
World: 210
The Hong Kong University of Science and Technology
Ranking
Local: 3
World: 403
City University of Hong Kong
Ranking
Local: 4
World: 474
Hong Kong Polytechnic University
Ranking
Local: 5
World: 526
Salary Data
Some of the jobs found in Hong Kong and their respective salaries are listed below:
| Job Title | Average Salary (in HKD) | Average Salary (in USD) |
| Financial Manager | 70,600 | 9058.54 |
| General Manager | 59,900 | 7685.65 |
| Business Development Manager | 54,800 | 7031.27 |
| Business Analyst | 41,300 | 5299.12 |
| Financial Analyst | 44,700 | 5735.36 |
| Project Manager | 37,900 | 4862.87 |
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 2023
| Date | Name | Type |
| 2 Jan | New Year’s Day observed | National Holiday |
| 23 Jan | The second day of Lunar New Year | National Holiday |
| 24 Jan | The third day of Lunar New Year | National Holiday |
| 25 Jan | The fourth day of Lunar New Year | National Holiday |
| 5 Apr | Ching Ming Festival | National Holiday |
| 7 Apr | Good Friday | National Holiday |
| 8 Apr | The day following Good Friday | National Holiday |
| 10 Apr | Easter Monday | National Holiday |
| 1 May | Labour Day | National Holiday |
| 26 May | The Birthday of the Buddha | National Holiday |
| 22 Jun | Tuen Ng Festival | National Holiday |
| 1 Jul | Hong Kong Special Administrative Region Establishment Day | National Holiday |
| 30 Sep | The day following the Chinese Mid-Autumn Festival | National Holiday |
| 2 Oct | The day following National Day | National Holiday |
| 23 Oct | Chung Yeung Festival | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
| 26 Dec | The first weekday after Christmas Day | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 7 days’ annual leave with pay after serving every period of 12 months under a continuous contract | Yes |
| Sick Leave | 36 (Category 1) and 84 (Category 2) | Yes |
| Maternity Leave | 14 weeks | Yes |
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.
Minimum Wage
The National minimum wage in Hong Kong is HKD 37.50 per hour.
Overtime Pay
There are no laws in Hong Kong specifying the standard working hours and the overtime rate for employees. However, employers may outline an overtime rate in the employment contract.
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
Taxes
Employer Payroll Tax
| Type of Contribution | Employee’s Salary | Rate |
| Mandatory Provident Fund | Less than HKD 7,100 | 5% |
| HKD 7,100 – HKD 30,000 | 5% | |
| More than HKD 30,000 | HKD 1,500 |
Employee Payroll Tax
| Type of Contribution | Monthly Salary Range | Rate |
| Mandatory Provident Fund | Less than HKD 7,100 | 0% |
| HKD 7,100 – HKD 30,000 | 5% | |
| More than HKD 30,000 | HKD 1,500 |
Employee Income Tax
| Net Chargeable Income (in HKD) | Tax amount (in HKD) | Percentage on excess |
| 0– 50,000 HKD | 0 | 2% |
| 50,001– 100,000 HKD | 1,000 | 6% |
| 100,001– 150,000 HKD | 4,000 | 10% |
| 150,001– 200,000 HKD | 9,000 | 14% |
| Above 200,000 HKD | 16,000 | 17% |
VAT
Hong Kong has no Sales Tax nor VAT.
Offboarding & Termination
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.
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 7 days of notice period while others at least 1 month.
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.
