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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

$54,494

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 are as follows:

University of Hong Kong

Ranking

Local: 1

World: 153

The Chinese University of Hong Kong

Ranking

Local: 2

World: 200

The Hong Kong University of Science and Technology

Ranking

Local: 3

World: 362

City University of Hong Kong

Ranking

Local: 4

World: 442

Hong Kong Polytechnic University

Ranking

Local: 5

World: 512

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 9,025
General Manager 59,900 7,657
Business Development Manager 54,800 7,005
Financial Analyst 44,700 5,714
Business Analyst 41,300 5,279
Project Manager 37,900 4,844

Talent Sourcing Tips

Top Local Job Boards

JobsDB, Indeed, Neuvoo

Number of LinkedIn users

2,989,000

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 2024

Date Name Type
1 Jan New Year’s Day National holiday
10 Feb Lunar New Year’s Day National holiday
12 Feb Third Day of Lunar New Year National holiday
13 Feb Fourth Day of Lunar New Year National holiday
29 Mar Good Friday National holiday
30 Mar Holy Saturday National holiday
1 Apr Easter Monday National holiday
4 Apr Tomb Sweeping Day National holiday
1 May Labour Day National holiday
15 May Buddha’s Birthday National holiday
10 Jun Dragon Boat Festival National holiday
1 Jul Hong Kong Special Administrative Region Establishment Day National holiday
18 Sep Day after Mid-Autumn Festival National holiday
1 Oct National Day of the People’s Republic of China National holiday
11 Oct Chung Yeung Festival National holiday
31 Oct Halloween Observance
25 Dec Christmas Day National holiday
26 Dec 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 40 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.

Streamline payroll and compliance for your international workforce

Payroll

Minimum Wage

Overtime Pay

Visa & Immigration