Easily Hire, Manage, and Pay Your Employees in Hong Kong
RecruitGo's Employer of Record service in Hong Kong enables employers to hire top talent quickly and compliantly — without the cost and delay of setting up a local entity. You focus on growth; we handle MPF, salaries tax, and Employment Ordinance compliance.
Why Foreign Companies Hire in Hong Kong
Hong Kong is one of the world's leading financial centers and Asia's premier business hub. The city offers a common law legal system, zero restrictions on capital flows, a simple and low tax regime, world-class infrastructure, and a highly skilled multilingual workforce fluent in English, Cantonese, and Mandarin.
For foreign companies, Hong Kong offers one of the lightest employer cost structures in Asia (only 5% MPF capped at HK$1,500/month), a territorial tax system, no VAT or sales tax, and efficient company incorporation. The main challenge is extremely high cost of living driving salary expectations above regional peers.
How RecruitGo Helps You Hire in Hong Kong
Whether you need to hire without a local entity, run payroll, manage benefits, or sponsor employment visas, RecruitGo has a service for each stage.
Employer of Record (EOR)
Hire employees in Hong Kong without incorporating. RecruitGo handles contracts, MPF enrollment, salaries tax filing, and full Employment Ordinance compliance.
Payroll Service
Already have an HK entity? We process monthly payroll in HKD, manage MPF, handle BIR56A annual employer returns, and ensure IRO compliance.
Employee Benefits
Design benefits that compete in Hong Kong's demanding talent market. We manage MPF, group medical, and supplementary coverage beyond statutory minimums.
Visa and Work Permits
Foreign nationals need an employment visa from Immigration. We guide through GEP applications, IANG visas, TTPS, and dependent visa processing.
Hong Kong Employment Snapshot
Essentials of hiring employees in Hong Kong.
| Currency | Hong Kong Dollar (HKD) |
| Minimum wage | HK$42.1/hr (current). HK$43.1/hr from May 2026. Annual review |
| Working hours | No statutory maximum. Market: 40-44 hrs/week. No statutory overtime rate |
| Probation | No statutory limit. Typically 1-3 months. First month: no notice needed |
| Continuous contract (468) | From Jan 2026: 17 hrs/week for 4 weeks, OR 68 hrs over 4 weeks. Replaces old 418 |
| Annual leave | 7 days after 1 year, +1/year to max 14 days after 9+ years |
| Sick leave | 2 days/month (yr 1), 4 days/month after, max 120 days. Paid at 4/5 |
| Maternity leave | 14 weeks at 4/5 of average daily wages. 40 weeks continuous service required |
| Paternity leave | 5 days at 4/5 of wages. Within 4 weeks before to 14 weeks after delivery |
| MPF (pension) | Employer 5% + Employee 5%. Capped at HK$30,000/mo. Max HK$1,500/party |
| Social security | None. No payroll tax. No mandatory health insurance |
| Salaries tax | Progressive 2-17% or standard 15% of net, whichever lower |
| Severance | After 24+ months, redundancy. 2/3 last month wages per year. Max HK$390K |
| Long service payment | After 5+ years. Same formula. Cannot receive both. MPF offset abolished May 2025 |
| Statutory holidays | 14 days (2025), increasing to 17 by 2030 |
| Language | English or Chinese. Both official. English standard in international business |
How to Hire in Hong Kong as a Foreign Company
Entity setup is fast in HK, but ongoing compliance and high operating costs make EOR attractive for smaller teams.
| EOR (RecruitGo) | HK Company (Ltd) | Contractor | |
|---|---|---|---|
| Time to first hire | 3-5 business days | 1-3 weeks (CR) | Immediate |
| Setup cost | None | HK$5K-15K+ plus annual compliance | None |
| Compliance | RecruitGo | You | Contractor's responsibility |
| MPF | Handled by RecruitGo | Your responsibility | N/A |
| Severance / LSP | Managed by RecruitGo | Your liability (higher since MPF offset abolished) | None (misclass risk) |
| Ideal for | 1-15 employees, testing | 15+, permanent HK ops | True project work |
MPF offset abolition (May 2025): Employers can no longer use mandatory MPF to offset severance/LSP for post-transition service. Government provides 25-year subsidy (max HK$500K/year per employer). Through EOR, RecruitGo manages all severance and LSP calculations.
New 468 continuous contract rule (Jan 18, 2026): Employees working 17 hrs/week for 4 weeks, or 68 hrs over 4 weeks, now qualify for full statutory benefits. Replaces the old 418 rule. Extends protections to more part-time and casual workers.
Key Employment Rules in Hong Kong
Mandatory Provident Fund (MPF)
Employer and employee each pay 5% of relevant income, capped at HK$30,000/mo (max HK$1,500/party). Below HK$7,100/mo: employee exempt but employer pays. 30-day contribution holiday at start. Foreign employees on <13 month contracts or approved overseas schemes may be exempt. eMPF platform rolling out from May 2025.
No social security or payroll tax
Hong Kong has zero social security tax, payroll tax, or mandatory health insurance. Only MPF (5%, capped). Lowest statutory employer cost in Asia. However, group medical insurance is virtually universal in professional roles — not legally required but a market standard.
Leave entitlements
7 days annual leave after 1 year, +1/year to 14 max. Sick leave: 2 days/month (yr 1), 4/month after, max 120, paid at 4/5. Maternity: 14 weeks at 4/5 (40 weeks service required). Paternity: 5 days at 4/5. Statutory holidays: 14 days (2025), rising to 17 by 2030.
Termination, severance, and LSP
Terminate with contractual notice (min 7 days in probation after month 1, or 1 month default). Severance: after 24+ months, redundancy, 2/3 last month wages per year, max HK$390K. LSP: after 5+ years. Cannot receive both. Since May 2025, MPF offset abolished for post-transition service.
Foreign worker requirements
Employment visa via Immigration Department. GEP: must show role cannot be filled locally, 4-6 weeks. TTPS: fast-track for HK$2.5M+ earners or top-100 uni grads. IANG: for HK uni graduates. No quota or foreign worker ratio requirements.
What It Costs to Employ Someone in Hong Kong
Statutory employer cost is ~105% of gross — the lowest in Asia. Only 5% MPF capped at HK$1,500/mo. With market-standard benefits, true cost is 110-120%.
| Component | Monthly (HK$) | Rate |
|---|---|---|
| Gross salary | 35,000 | — |
| MPF (employer, mandatory) | 1,500 | 5% capped at HK$30K base |
| Group medical (market standard) | ~500-1,500 | Not statutory but universal |
| Total (statutory only) | ~36,500 | ~104% of gross |
MPF capped at HK$1,500/mo regardless of salary. No social security or payroll tax. Most employers provide medical insurance (HK$500-3K/mo), annual bonus (1-3 months), sometimes housing allowance. With benefits: ~110-120%. Severance/LSP costs higher since May 2025 MPF offset abolition. EOR fee not included.
Common Questions
What companies ask most about hiring in Hong Kong.
Yes, through an EOR. RecruitGo is a locally registered HK company handling contracts, MPF, salaries tax (BIR56A/IR56B), and Employment Ordinance compliance. Hire in 3-5 days without CR registration.
Employer and employee each pay 5%, capped at HK$30K/mo (max HK$1,500/party). Below HK$7,100/mo: employee exempt. Foreign employees on <13 month contracts may be exempt. Voluntary contributions up to 15% of salary are tax-deductible.
From Jan 18, 2026: 17 hrs/week for 4 consecutive weeks, or 68 hrs over any 4-week period, qualifies for full statutory benefits. Replaces old 418 rule. Extends protections to more part-time/casual workers.
From May 2025: employers cannot offset mandatory MPF against severance/LSP for post-transition service. Pre-transition service can still be offset. Government provides 25-year subsidy (max HK$500K/year per employer).
No. Zero social security, payroll tax, or mandatory health insurance. Only MPF (5%, capped HK$1,500/mo). Lowest statutory employer cost in Asia. Workers' comp insurance is mandatory but typically 1-3% of payroll.
Contractual notice (min 7 days in probation after month 1, or 1 month). Payment in lieu OK. Severance: 24+ months, redundancy, 2/3 last wages per year, max HK$390K. LSP: 5+ years. Cannot receive both. Dismissal during pregnancy/sick leave is unlawful.
Employment visa from Immigration. GEP: show role cannot be filled locally, 4-6 weeks. TTPS: fast-track for HK$2.5M+ earners or top-100 uni grads. IANG: HK uni graduates. No quota or foreign worker ratio.
