.png)
Hong Kong has MPF (employer 5%, capped HKD 1,500/month), no employer income tax withholding (employees self-assess), and annual IR56B Employer's Return. One of the lowest employer payroll cost environments in Asia. Rippling handles MPF, IRD filings, and Employment Ordinance compliance.
Hong Kong is a global financial center and Special Administrative Region of China, with world-class infrastructure, rule of law, and a highly developed financial services, professional services, trade, and technology sector. Hong Kong uses the Hong Kong dollar (HKD), pegged to the USD. Payroll is among the simplest in Asia: MPF is the only mandatory employer contribution, there is no employer income tax withholding, and the Employment Ordinance sets clear minimum standards. Hong Kong is a key APAC hub for financial services, asset management, legal, and regional headquarters.
| Contribution | Rate | Notes |
|---|---|---|
| MPF (employer) | 5% | Capped at HKD 1,500/month per employee |
.svg)
| Contribution | Rate | Notes |
|---|---|---|
| MPF (employee) | 5% | Capped at HKD 1,500/month (on salary up to HKD 30,000/month) |
| Salaries Tax | 2–17% | Progressive rates; or 15% standard rate on net income (whichever is lower) |
| Net Chargeable Income (HKD) | Rate |
|---|---|
| Up to 50,000 | 2% |
| 50,001–100,000 | 6% |
| 100,001–150,000 | 10% |
| 150,001–200,000 | 14% |
| Above 200,000 | 17% |
Or 15% standard rate on net income after deductions, whichever is lower. Note: employers do NOT withhold salaries tax. Employees file own returns with IRD. Employer files annual IR56B by April 30.
Notice: as per contract (minimum 7 days or 1 month statutory). Long service payment: after 5 years. Severance payment: after 24 months, for redundancy. Both: 2/3 month per year (capped HKD 22,500/year; max HKD 390,000). MPF offset abolition reform pending — track legislative timeline.
Hong Kong's MPF (Mandatory Provident Fund) requires both employer and employee to each contribute 5% of the employee's relevant income, capped at HKD 1,500/month each (based on monthly income up to HKD 30,000). Employees earning less than HKD 7,100/month are exempt from employee contributions (but employer must still contribute). Contributions are remitted to the approved MPF trustee monthly. MPF is a defined contribution system with multiple fund options.
Hong Kong's Employment Ordinance requires long service payment (LSP) after 5 years and severance payment (SP) after 24 months of continuous employment for employees dismissed by reason of redundancy. LSP/SP: 2/3 of one month's wages per year of service (capped at HKD 22,500/year), with a maximum of HKD 390,000. MPF accrued benefits are offset against LSP/SP obligations — however, a 2025 legislative reform is set to abolish this offset.
Hong Kong's Statutory Minimum Wage (SMW) is HKD 40/hour (May 2023). There is no monthly minimum wage — only an hourly floor. Hong Kong reviews its SMW every two years. The rate has increased from HKD 34.50/hour (2019) to HKD 40/hour (2023).
Hong Kong has no corporate income tax on salaries from the employer's perspective (the employer withholds nothing for salaries tax — employees file their own tax returns). Employers must file an annual Employer's Return (IR56B) by April 30 for each employee, reporting wages paid. The IRD then issues tax assessments directly to employees. This is a key difference from most jurisdictions: Hong Kong employers do not withhold income tax.
