Employer of Record in Hong Kong

What is an Employer of Record in Hong Kong

An Employer of Record in Hong Kong is a company that legally hires employees on behalf of foreign employers who have no legal entity in the country. Foreign employers benefit from the model because it helps them expand into new markets without the administrative burden of navigating an unknown legal framework. The foreign company remains responsible for managing the employee’s work and performance.

Rivermate’s EOR services are built on three pillars:

• In-country HR experts with deep first-hand understanding of the local employment laws
• A network of local partners who help provide competitive benefits
• A Rivermate platform offering one-stop management of every aspect of employment

Hong Kong labor market: At a glance

The hiring market
Greatest hiring activity:	Generally acting as a strategic regional hub or coordination HQ location; greatest interest in financial services, technology, cross-border e-commerce.
Hiring timelines:	Locals (Hong Kong ID holders): within a week Mainland Chinese nationals: require a special work permit; 4-8 weeks Other foreign nationals: require a standard work permit; 8-12 weeks
In-demand sectors:	Financial services; hubs and HQs for companies active within mainland China (Shenzhen, Shanghai).
Recent legislation impacting trends	The 2020 National Security Law accelerated some expatriate talent drain but there has been a counterbalancing increase in skilled professionals arriving from mainland China.

The salary market
Employer tax contributions:	5% Mandatory Pension Fund (MPF)
Employee compensation insurance: variable
Minimum wage:	Statutory Minimum Wage (SMW) is set per hour, currently HKD 43.1 per hour as of May 2026. Applies to all employees with the exception of those with disabilities as well as live-in domestic help.
Median gross monthly wage:	HKD 21,200 / month median wage
Income tax brackets:	No PAYE system; tax on salaries is not deducted through payroll unless by instruction from IRD. Employees are liable for declaring and paying salaries tax.

Progressive tax rates applicable in 2026:

Net chargeable income	Tax rate
HKD 0-50,000	2%
HKD 50,000 - 100,000	6%
HKD 100,000 - 150,000	10%
HKD 150,000 - 200,000	14%
HKD 200,000 +	17%

A number of tax allowances and exemptions as well as tax liability ceilings apply. High-earners may be assessed differently (15% on net income with no allowances).

What will it cost to hire in Hong Kong?

Hong Kong salaries are generally higher than in other countries in the region, but employment costs are significantly lower.

The Hong Kong labor framework is mostly regulated by the Employment Ordinance, which, among other aspects, regulates wages, leave entitlements and benefits. Even though there is no regulation mandating it, the general market expectation is to also pay a 13th month salary bonus which is important for annual payroll budgeting purposes.

Standard payroll runs on a monthly cycle, and payments are typically made in the last days of the month or at the beginning of the following month, as specified in the individual employment contract.

Base salary

Hong Kong’s legislation does not define a statutory maximum of working hours either per day or per week. Therefore, what is considered to be “standard” varies for each employment relationship and is regulated either in the individual employment contract or - in case they exist - collective industry agreements. As a result, there is no statutory requirement for overtime pay which is another aspect regulated in contracts and agreement, including the premium due for any overtime payable.

Below are some indicative median monthly wages for various roles, according to research done in 2026:

• Full Stack Developer ~HKD 92,500
• DevOps Engineer ~HKD 85,000
• Application Architect ~HKD 100,000
• Cybersecurity Manager ~HKD 70,000
• Corporate Finance Analyst ~HKD 47,000
• Fund Accounting Manager ~HKD 55,000
• Human Resources Manager ~HKD 54,150
• Digital Marketing Manager ~HKD 55,000
• Legal & Compliance Manager ~HKD 150,000
• Supply Chain Manager ~HKD 60,000

Employer taxes and contributions

Employers contribute 5% of the employees’ gross pay to the Mandatory Pension Fund (MPF) which is the country’s primary retirement saving scheme. Participation is mandatory for employees aged 18-64 who have been employed for at least 60 days. In addition to the 5% employer contribution, employees also contribute 5% to the fund. A ceiling applies to gross earnings of HKD 30,000/month (effectively limiting the MPF payment to HKD 1,500 per employee per month), but contributions on salaries exceeding it can be made on a voluntary basis. A minimum is also applicable (currently HKD 7,100/month) but does not affect employers, as their contributions are mandatory even below that minimum level (only the employee contribution is waived). Deductions from the employee’s gross salary must be made through payroll and payment - along with the employer part - must be done by the 10th day of the following month.

Employee compensation insurance is another mandatory payment which employers should budget for and covers work-related injuries. Depending on the risk, rates range from 0.03% to 2.0%+ plus a 5.8% government levy on the calculated premium.

Statutory benefits

Certain other entitlements and benefits which are regulated in Hong Kong include:

• Annual leave: eligibility only starts after completing 12 months of continuous employment. Depending on years of service, annual leave ranges from 7 days per year to a maximum of 14 days per year.
• Statutory public holidays: currently 15 per year; if a holiday falls on a rest day, the employee should be granted a holiday day following the rest day.
• Substitute rest days if work is required on a planned rest day. Any payment in lieu of the substitute rest day must be regulated via the contract.
• Sick leave: paid but may be accumulated up to a certain maximum. Generally, an employee is entitled to 2 paid sick days for each completed month of service during the first year and 4 paid sick days for each month worked after the first year. A cumulative maximum of 120 days applies. The employer is liable to payment of approximately 80% of the employee’s average wage during sick leave.
• Maternity leave: paid leave of usually 14 weeks, subject to criteria (service and notice).
• Paternity leave: typically 5 days, subject to criteria

Additional benefits

With the exception of the 13th month payment - a frequently paid but non-mandatory extra salary usually paid at year-end and regulated by the contract - some other additional but common benefits include:

• Performance Bonus: particularly in roles in sales, finance and professional services
• Housing Allowance: usually for expats or senior roles
• Transport Allowance: offered by some employers for commuting costs
• Meal allowance: typically offered for positions involving travel
• Additional annual leave: especially for senior roles or employees in long service
• Medical insurance: a highly valued benefit even though no legal requirement
• Flexible work arrangements: increasingly valued in recent years

Calculate employment costs

What hiring in Hong Kong really looks like

Easier to navigate	More challenging to navigate
🟢 Skilled and educated workforce, fluent in English and Chinese	🔴 Some shortages in fintech, AI and cybersecurity
🟢 Moderate salary increases (~ 3.5% y-o-y)	🟡 Increasing demand for competitive compensation in talent shortage sectors
🟡 Employment framework present but more employer-friendly than rest of region	🔴 Salary market is sensitive to economic shifts and geopolitics

As a Special Administrative Region (SAR) of China, Hong Kong’s reality is impacted both by its own local framework as well as wider geopolitical trends and issues. Its laws, regulations and governance are distinct from mainland China but its business climate is connected to broader regional shifts. The local talent pool offers language skills and deep familiarity with Western corporate culture but in some talent-scarce sectors, compensation demands push employers toward increasingly competitive packages.

What you should know when hiring expats in Hong Kong

Managed by the Hong Kong Immigration Department, all work-related visas require a local employer sponsoring the individual applying for the visa. Working on a visitor visa (paid or unpaid) is not allowed.

The most common route is the General Employment Policy (GEP) which requires that the candidate is in possession of special skills, knowledge or experience which cannot be sourced from the local market. The odds of having a GEP application approved increase with higher salary and more extensive experience; junior or entry-level applicants are frequently rejected.
The GEP is not available to mainland Chinese nationals for whom a separate process applies: Admission Scheme for Mainland Talents and Professionals (ASMTP)

Additionally, the Top Talent Pass Scheme (TTPS) is available for high-income individuals or top university graduates. This route does not require a job offer.

Lastly, a third option (IANG) is available for graduates of Hong Kong universities who are not local and allows them to stay and work without initially receiving a job offer.

Staying compliant when hiring in Hong Kong

Probationary period

Common in Hong Kong, probationary periods usually range from one to three months. For more senior roles, they can be even longer. During the first month, no notice is required if either party terminates the contract. After the first month, a minimum of seven days’ notice is required.

Terminations and Notice Periods

Both terminations with and without cause are available in Hong Kong. Terminations without cause effectively require no specific “cause” to be disclosed, provided the appropriate notice or payment in lieu is given. However, discriminatory or illegal termination is not allowed. Terminations with cause (due to misconduct or similar) are generally serious actions and the employer must be able to prove the misconduct.

In terms of minimum notice periods required (after probation), they range from 0 days (if an employee has worked for less than a month) to at least one month (if not regulated in the contract), unless otherwise specified in the employment contract (in which case it cannot be less than seven days).

Terminations during maternity or sick leave are not allowed.

Severance and Long Service Payment

If an employee is under a continuous contract (including fixed-term beyond 24 months), they may be entitled to one of two payments upon termination: Severance Pay (SP) or Long Service Payment (LSP). Generally, SP is due in cases of redundancy or layoffs while LSP is paid when someone has worked for not less than 5 years and the termination is for any reason other than serious misconduct or redundancy.

Both payments are calculated in the same way, with the base being the higher of either the last month’s full wage or the last 12-month average wage x ⅔ x years spent in service. Incomplete years of service are pro-rated. The maximum amount payable is HKD 390,000 with the last month’s full wage capped at HKD 22,500.

Benefits of hiring employees through an EOR in Hong Kong

If you are thinking about hiring a candidate based in Hong Kong, you may have considered opening your own legal entity in the country. However, setting up a new legal entity in Hong Kong and getting it to a bank-ready and operational stage may take anywhere from 3 to 12 months.

An EOR, like Rivermate, is an alternative option. Rivermate can hire your employees in Hong Kong using its existing entity. With the use of local expert knowledge, Rivermate will manage the whole process compliantly, while you focus on your core business.

Ready to hire in Hong Kong?

Hiring in Hong Kong involves more than finding the right candidate. If you have already found your next employee in Hong Kong, talk to a Hong Kong Hiring Expert.

Sources:

PwC Tax Summaries Hong Kong
Census and Statistics Department Hong Kong: Report on Annual Earnings and Hours Survey
Employers Compensation Insurance Guide
HR Asia
Robert Half: 2026 Hong Kong Salary Guide