Hong Kong Hiring Guide: All You Need to Know About Hiring Remote Employees in Hong Kong

hong kong hiring guide 1

Hong Kong, a bustling city and special administrative region of China, presents an attractive destination for businesses planning to scale globally.

With a thriving economy, a population with a high degree of bilingualism, and a strategic geographical location, hiring in Hong Kong can bring significant advantages.

This comprehensive guide will provide you with key insights into Hong Kong's labor market, payroll, statutory benefits, and more.

Hong Kong: A Powerhouse for Global Business Expansion.

Hong Kong is a coveted destination for business expansion due to its strategic location, robust legal system, and vibrant economy.

However, stepping into the international business arena, particularly in a region like Hong Kong, comes with intricate labor laws, tax systems, and cultural nuances.

This is where an Employer of Record (EOR) steps in, offering a reliable solution to navigate these complexities, empowering businesses to focus on growth rather than administrative hurdles.

Understanding Hong Kong EOR

Just like a skilled conductor coordinating an orchestra, an EOR conducts your business's administrative, legal, and HR responsibilities in Hong Kong.

This service is particularly beneficial for companies expanding in Hong Kong or managing a remote workforce in this region.

Before we discuss more about EOR in Hong Kong, let's look a little more at some basic facts about Hong Kong and its laws around hiring.

Basic Facts About Hong Kong

Hong Kong is an international hub for trade and investment with one of the world’s most flourishing economies.

The city's key industries include financial services, trading and logistics, tourism, and professional services.

Its capital is the City of Victoria, and it uses the Hong Kong Dollar (HKD, $, HK$) as its official currency.

Navigating Hong Kong Labor Laws

Hong Kong has a unique set of labor laws that require thorough understanding and expertise to navigate.

Non-compliance can result in legal disputes, hefty fines, and a tarnished reputation.

With an EOR, you get an ally that ensures your business's compliance with Hong Kong's labor laws, effectively mitigating risk and potential complications.

Currency and Payroll Frequency

The official currency of remuneration in Hong Kong is the Hong Kong Dollar (HKD, $, HK$).

Most companies in Hong Kong choose to pay their employees either monthly or biweekly.

Statutory Holidays in Hong Kong for 2023

Hong Kong has several statutory holidays that businesses must consider when drafting contracts.

Some of these include:

  • Lunar New Year’s Day
  • Ching Ming Festival
  • The Birthday of the Buddha
  • Hong Kong Special Administrative Region Establishment Day

Contract Sharing Time

It usually takes about 14 business days to share a contract with a new employee in Hong Kong.

This timeline may vary if there are special requests or changes to the standard employment contract.

Important Information for Employers

Employers must grant their employees rest days, with a potential fine of HKD 50,000 for violations.

Standard working hours and the 13th salary, which is mandatory, must be agreed upon in the employment contract.

Labor Conditions in Hong Kong

There are no set standards for a workday or workweek, nor is there a requirement for overtime pay.

The conditions for these are usually negotiated between the employer and the employee.

Probationary periods are common and typically range from one to three months.

Leave and Time Off Policies

Paid annual leave increases progressively from seven days to a maximum of 14 days based on the length of service.

Sick leave and paternity leave are also mandated by law, but there are no statutory provisions for parental leave.

Statutory Benefits in Hong Kong

All employees over the age of 18 and below 65 are required to join a Mandatory Provident Fund (MPF) scheme.

Contributions to the MPF are made by both the employer and the employee, based on the employee's income.

Health insurance is provided by the government at virtually no cost, and employers are also obligated to provide accident insurance.

Public Pension

The MPF scheme also serves as a retirement protection scheme with the retirement age set at 65 years.

Benefits of Hiring in Hong Kong

Hiring in Hong Kong with an EOR brings a plethora of benefits like:

  • Legal Compliance:

     EORs ensure your business stays compliant with Hong Kong's labor laws.
  • Payroll Management:

     EORs handle international payroll, ensuring accurate and timely payment to your Hong Kong-based employees.
  • Reduced Liability:

     EORs bear employment-related liabilities, mitigating potential risks.
  • HR Support:

     EORs offer comprehensive HR support, from managing employee benefits to handling HR-related queries.

Choosing an EOR for Your Hong Kong Operations

The process of selecting an EOR for your Hong Kong operations involves assessing their experience with Hong Kong labor laws, their familiarity with the region's culture, and their scalability to grow with your business.

Hong Kong EOR Services: Taking Your Business to New Heights

A Hong Kong EOR can offer a range of services that can be a game-changer for your business:

  1. HR Management
  2. Payroll Processing
  3. Tax Compliance
  4. Risk Management

Moreover, some EORs provide advisory services, assist in formulating compensation plans aligned with Hong Kong's standards, and help in managing international contractors.

Hong Kong EOR: Your Passport to Successful Business Expansion

Partnering with a Hong Kong EOR can be the catalyst that propels your business expansion efforts in the region.

It allows your business to thrive while handling the intricate labor laws, tax systems, and cultural idiosyncrasies of Hong Kong.

However, just like any international endeavor, it's essential to be aware of the potential challenges like language barriers and cultural differences.

EOR: The Future of International Business Operations in Hong Kong

Hong Kong's position as an international business hub is undisputed. If you're aiming to ride the wave of global expansion, a Hong Kong EOR can be your strongest ally.

By managing the region's unique administrative complexities, a Hong Kong EOR allows you to concentrate on your core operations and growth strategies.

So, if your business is looking to expand in Hong Kong or manage a remote workforce in the region, choosing an EOR could be the first step toward success.

How Parallel Can Help

Scaling your business globally and hiring remote employees in Hong Kong can be a complex process due to the different labor laws, regulations, and cultural practices. That's where Parallel comes in.

Parallel, with its deep understanding of Hong Kong's labor laws, tax systems, and cultural nuances, stands as your reliable EOR partner.

By managing your payroll, ensuring legal compliance, and handling HR tasks, Parallel allows you to focus on your expansion strategies and business growth.

We handle all the legal, HR, and administrative tasks so that you can focus on growing your business. This includes contract setup, statutory benefit administration, payroll, and more.

Ready to streamline your operations in Hong Kong, ensure legal compliance, and unlock your business's full potential? Schedule your Parallel demo today.

FAQs about Hiring in Hong Kong

What are the key labor laws to consider when hiring in Hong Kong?

The key labor laws in Hong Kong are governed by the Employment Ordinance. It covers provisions for wages, statutory holidays, sick leave, maternity protection, termination of employment contracts, and more. It's crucial to understand and comply with these laws when hiring.

How does the employment contract work in Hong Kong?

An employment contract in Hong Kong must be written and should specify terms such as the role of the employee, salary, benefits, working hours, and termination conditions. Not clearly defining these terms can lead to potential legal issues.

What are the standard working hours in Hong Kong?

Standard working hours in Hong Kong are typically 8 hours a day and 40 hours a week, but this can vary depending on the industry and role. It's important to adhere to these standards to ensure employee wellbeing and compliance with labor laws.

What is the minimum wage in Hong Kong?

As of my knowledge cutoff in September 2021, the minimum wage in Hong Kong was HKD 37.50 per hour. It's crucial to stay updated on changes to ensure fair compensation and compliance.

What are the cultural considerations when hiring in Hong Kong?

Hong Kong has a unique blend of Eastern and Western cultures, which influences workplace norms. Understanding these cultural nuances can help build a harmonious work environment and avoid potential misunderstandings.

How does taxation work for employees in Hong Kong?

In Hong Kong, employees pay salaries tax, which is a progressive tax with rates ranging from 2% to 17%. Employers are obligated to report the remuneration of their employees to the tax authorities.

How can a PEO or EOR help ease the hiring process in Hong Kong?

A PEO or EOR can manage the complex legal, administrative, and HR tasks associated with hiring, enabling businesses to focus on their core functions. This is particularly beneficial when navigating unfamiliar labor laws and cultural practices in Hong Kong.

What are the benefits for an employee when hired through an EOR in Hong Kong?

Employees hired through an EOR receive comprehensive HR support, streamlined payroll management, and assured legal compliance. This can contribute to increased job satisfaction and productivity.

What are the potential challenges of hiring employees in Hong Kong?

Potential challenges include understanding and complying with local labor laws, managing payroll and tax calculations, navigating cultural nuances, and providing employee benefits. An EOR can help mitigate these challenges by handling these responsibilities.

How does termination work in Hong Kong?

Termination of employment in Hong Kong must comply with the Employment Ordinance. This covers notice periods, severance pay, and unfair dismissal. Inadequate understanding of these provisions can lead to legal complications.


Hiring in Hong Kong presents an attractive opportunity for businesses aiming to expand globally.

Understanding the intricacies of employment regulations and benefits can be a daunting task, but with a partner like Parallel, it becomes significantly easier.

Start building your global team today with the right guidance and expertise.