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Hong Kong has MPF (employer 5%, capped HKD 1,500/month), no employer income tax withholding, and annual IR56B filing. One of the simplest and lowest-cost employer environments in Asia. Rippling EOR handles MPF, IR56 filings, and Employment Ordinance compliance.
Hong Kong is a global financial center and SAR of China with world-class infrastructure, common law rule of law, and no income tax withholding by employers. Hong Kong is a top-tier APAC EOR market for financial services, asset management, legal, technology, and regional headquarters functions. The Employment Ordinance provides clear statutory minimums. Payroll compliance is among the simplest in Asia: MPF is the only mandatory employer contribution; employers file annual IR56B Employer's Returns rather than monthly tax remittances.
Setting up a Hong Kong Ltd. is relatively straightforward (1–2 weeks) but requires Companies Registry registration, Business Registration Certificate, and MPF trustee enrollment. EOR is recommended for 1–5 employees, market testing, or where IR56 filing obligations (IR56B annual, IR56F/IR56G on departure) are managed more efficiently through an EOR platform. Hong Kong EOR is particularly valuable for companies that want Hong Kong employment contracts without the complexity of a local entity.
MPF employee: 5% capped at HKD 1,500/month (exempt below HKD 7,100/month). Salaries Tax: self-assessed by the employee via annual tax return — employer does NOT withhold. Total mandatory employee deductions: MPF only (maximum HKD 1,500/month).
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MPF employer: 5% capped at HKD 1,500/month per employee. No other mandatory employer social contributions (no health insurance mandate, no payroll tax, no unemployment insurance). Total employer on-cost: approximately 5% of salary up to the MPF cap — one of the lowest in Asia. Long service payment (after 5 years) and severance payment (after 24 months for redundancy) are additional termination liabilities.
Salaries Tax: self-assessed by employees. Progressive rates: 2% (up to HKD 50,000 net chargeable income); 6% (50,001–100,000); 10% (100,001–150,000); 14% (150,001–200,000); 17% (above 200,000). Or 15% standard rate on net income, whichever is lower. Employer files annual IR56B by April 30; no monthly remittance obligation.
Annual leave: 7 days (years 1–2); 8 days (year 3); scaling +1 day/year to 14 days (9+ years). Statutory holidays: 13 days. General holidays: 17 days (if contract specifies). Maternity: 14 weeks at 80% of wages. Paternity: 5 days paid. Sick leave: 2 days/month accrual; paid at 4/5 daily wages after 4 days.
Notice: per contract (statutory minimum 7 days or 1 month depending on service). LSP: after 5 years; SP: after 24 months for redundancy. Both: 2/3 month per year of service (capped HKD 22,500/year; max HKD 390,000). MPF offset currently applies but reform pending. Rippling EOR manages all termination requirements including IR56F filing.
Foreign nationals require a valid visa to work in Hong Kong: Employment Visa or Dependent Visa (with work rights). Processing time: 4–8 weeks. Rippling EOR supports visa applications through its Hong Kong entity. HKID registration required within 30 days of arrival.
Statutory: MPF (employer 5%, capped HKD 1,500/month), 7–14 days annual leave (by tenure), 13 statutory holidays, 14 weeks maternity at 80% salary, 5 days paternity, sick leave (2 days/month accrual, paid after 4 days).
Market-standard: Private medical insurance (near-universal for professional roles — public hospitals available but waiting times are long for non-emergency), annual discretionary bonus (1–3 months), transport allowance. Highly competitive compensation market benchmarking to international finance and law.
Rippling EOR Hong Kong operates through a local Hong Kong entity. Key HK-specific handling: MPF trustee enrollment and monthly contributions, IR56B annual filing, IR56F/IR56G on employee cessation/departure, long service and severance payment tracking, maternity leave government reimbursement claims, and Employment Ordinance compliance.
Hong Kong is unique: employers do NOT withhold Salaries Tax from employee pay. Instead, employers file an annual Employer's Return (IR56B) by April 30 listing all wages paid. The IRD then issues individual tax assessments to employees. Rippling EOR files IR56B automatically each April, and manages IR56F (cessation) and IR56G (departure from HK) forms as needed.
Hong Kong's MPF is the only mandatory employer contribution: 5% of relevant income, capped at HKD 1,500/month. Rippling EOR enrolls employees with an approved MPF trustee (HSBC MPF, Sun Life, Manulife, or similar) within 60 days of the employee's start date and remits contributions by the 10th of the following month.
Long service payment (LSP) applies after 5 years of continuous employment. Severance payment (SP) applies after 24 months for employees dismissed by reason of redundancy. Both: 2/3 of one month's wages per year of service (capped at HKD 22,500/year; maximum HKD 390,000). MPF accrued benefits are currently offset against LSP/SP — however, legislation to abolish this offset (the MPF-LSP/SP offset) is expected to take effect. Rippling EOR tracks LSP/SP accrual and manages calculations on termination.
Hong Kong's Employment Ordinance provides 14 weeks of paid maternity leave at 80% of the employee's average daily wages. The employer pays and can claim reimbursement from the government for the extended portion (from 10 to 14 weeks) up to HKD 80,000. Paternity leave: 5 days paid. Rippling EOR manages maternity and paternity leave administration and government reimbursement claims.
