Hong Kong, officially the Hong Kong Special Administrative Region of the People’s Republic of China, is a city and special administrative region of China on the eastern Pearl River Delta in South China. It borders the South China Sea to the south, west, and east, and shares a land border with mainland China to the north. The region has a total land area of 1,110 square kilometers. It has one of the world’s most thriving economies and is a hub for international trade and investment. Financial services, trading and logistics, tourism, and professional services are the four key industries in the Hong Kong economy.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in Hong Kong SAR.
Capital : City of Victoria | Currency : Hong Kong Dollar (HKD, $, HK$) | Languages spoken : Chinese, English |
Population : 7.41 million (2021 est.) | Minimum wage 2023 : HKD 40 (Hourly) | Cost of Living index : $$$ (10 of 139 nations) |
Payroll Frequency : Monthly/Biweekly | VAT - standard rate : No VAT | GDP - real growth rate : 6.4% (2021 est.) |
The holidays mentioned below are valid for the year 2023.
The approximate time for sharing the contract with an employee in Hong Kong SAR is 14 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.
NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.
There is no law in Hong Kong establishing a standard workday or workweek, setting a maximum number of work hours. Such matters may be negotiated between the employer and the employee.
There is no law in Hong Kong establishing the maximum number of work hours or requiring payment of overtime. Overtime conditions may be negotiated between the employer and the employee.
There is no restriction on the use of probationary periods, and they are common, typically ranging from one to three months.
A contract of employment may be terminated by the employer or employee by giving the other party due notice or payment in lieu of notice.
During Probation
A notice of not less than seven days is required if an employment contract is terminated after the first month of probation.
After Probation
Where the employment contract makes provision for a notice period, it must not be less than seven days. In employment contracts without agreement on the notice period, a notice period of not less than one month is required.
An employee is entitled to annual leave with pay after having been employed under a continuous contract for every 12 months. An employee’s entitlement to paid annual leave increases progressively from seven days to a maximum of 14 days according to their length of service
Employees under a continuous contract accumulate paid sickness days as follows:
There are no statutory provisions for parental leave.
A female employee employed under a continuous contract immediately before the commencement of her maternity leave and having given notice of pregnancy and her intention to take maternity leave to the employer is entitled to the following periods of leave:
A male employee is entitled to five days’ paternity leave for each confinement of his spouse/partner if:
The law does not specify other types of paid leave.
In Hong Kong, there is no statutory right that entitles an employer to instruct their employees to take unpaid leave.
Hong Kong (SAR) does not have a social security tax system. However, all employees over the age of 18 but below 65, normally residing and working in Hong Kong (SAR), are required to join a Mandatory Provident Fund (MPF) scheme. Exemption from the MPF requirements can be claimed where an individual is entering Hong Kong (SAR) for the purpose of being employed or self-employed (i.e. on a valid employment visa) for a limited period (13 months or less) or where one is a member of an overseas retirement scheme.
An employee or an employer may make voluntary contributions in addition to the mandatory contributions required.
An overview of the contributions to the MPF is presented below.
| Monthly Relevant Income | Employer’s Mandatory Contribution | Employee’s Mandatory Contribution |
| Less than HKD 7,100 | 5% | No contribution is required |
| HKD 7,100 to HKD 30,000 | 5% | 5% |
| More than HKD 30,000 | HKD 1,500 | HKD 1,500 |
There are no financial contributions to public health insurance in Hong Kong. The government simply provides healthcare for everyone at virtually no cost. This system includes not only Hong Kong citizens and permanent residents, but also non-permanent residents.
Accident insurance is an employer liability system that is administered through private carriers. The minimum coverage is HKD 100 million for employers with up to 200 employees or HKD 200 million for employers with more than 200 employees.
An employer is liable to pay compensation in respect of injuries sustained by the employees as a result of an accident arising out of and in the course of employment; or in respect of occupational diseases specified in the Employment Ordinance.
Hong Kong does not have an unemployment insurance system except for the Temporary Unemployment Program that was launched in February 2022 that provides a one-off lump sum of HKD 10,000 to eligible individuals who have temporarily lost their jobs due to the Covid pandemic, to alleviate some financial pressure before finding a new job.
Employers pay 5% of the monthly income to the Mandatory Provident Fund (MPF) for employees who earn up to HKD 30,000 per month. For any income above HKD 30,000, the employer pays HKD 1,500.
The MPF scheme is designed to provide a formal, compulsory system of retirement protection by way of a privately managed contribution scheme.
The retirement age is 65 years.
There are no other statutory benefits in Hong Kong SAR.
The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.
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