Hiring Guide
Hong Kong
Capital: Hong Kong
Currency: Hong Kong Dollar (HKD)
GDP growth rate: 6.3% annual change (2021)
Fiscal year: 1 April - 31 March
Languages: English, Cantonese, Mandarin
The Employment Ordinance is the governing law of employment in Hong Kong, which includes the influence of trade unions and work councils. However, this may vary depending on the industry and sector.
Work Contract
In Hong Kong, employment contracts are typically presented to employees in writing. English and Mandarin are the official languages in Hong Kong. English is used most frequently in legal, business, professional and financial sectors. There are two types of contract available - with the main differences being the length of contract and benefits offered.
Contract types
Employment contracts are governed by the Employment Ordinance and provide employees with a number of basic rights, including protection from unlawful deduction of wages, statutory leave and rest periods.
Drafting contract
In the event of an employment contract being in writing, the employee is to be provided with a copy of the signed contract, containing:
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wages/salary
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wage period
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length of notice for termination of employment, if applicable
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end-of-year payments, if applicable
Working hours
8-hour work days, typically 9am to 6pm
Lunch break
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1-hour rest break for every four hours - Can be rescheduled or rotated
Tax
Employer Payroll Contributions
5.00%
Mandatory Provident Fund (MPF)
+1,500.00 HKD
for income exceeding 30,001.00 HKD
5.00% + 1500.00 HKD
Total Employment Cost
Employee Payroll Contributions
5.00%
Mandatory Provident Fund (MPF)
+1,500.00 HKD
for income exceeding 30,001.00 HKD
5.00% + 1500.00 HKD
Total Employee Cost
Holidays and Breaks
Public Holiday
All employees are entitled to a minimum number of holidays. Most employers however also grant general holidays.
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The Employment Ordinance currently stipulates 12 public holidays. However, by 2030 the number of statutory holidays will be increased to 17 days, with one additional statutory holiday added every 2 years thereafter.
Paid time off
In Hong Kong, employees are entitled to 7 days of paid annual leave after they have been employed for at least 3 months. Annual leave increases by one day per year of employment until it reaches a maximum of 14 days after 9 years of employment.
Sick Leave
Employees under a definite contract are entitled to paid sick leave. During the first year of service, employees are granted 2 days of paid sick leave per month. This increases to 4 days after one year of service.
Sick pay is calculated based on 80% of your average daily earnings in the last 12 months. If you've been employed for less than 12 months, then the calculation is based on the average earnings since your employment start date.
Employees can accumulate up to 120 days of sick leave at any given time during their entire employment.
Termination
Termination Process
In Hong Kong, the termination process is governed by the Labor Law requirement unless an employer can prove sufficient cause for dismissal without notice (for example, misconduct).
A termination notice should be in writing and sent to the appropriate government parties.
Notice period
In Hong Kong, the statutory notice period for employers wishing to terminate an employee's contract is generally 30 days. However, the contract may specify a longer notice period.
Severance pay
In Hong Kong, severance pay is mandatory when applicable and is typically dictated by contract terms and length of service. The employer must calculate Severance pay according to the Employment Ordinance (Cap. 57). An employee who has been employed under a continuous contract for at least 2 years and whose employment is not dismissed before termination or has not resigned will be entitled to statutory severance pay.
The statutory severance pay is calculated as two-thirds of an employee's regular monthly salary rate or two-thirds of 22,500 HKD (whichever is less) for each year of service. This amount cannot exceed 390,000 HKD.
Probation period
The probation period in Hong Kong for permanent employees generally ranges from 3 to 6 months, but it must be stipulated in the employment contract.