Powering Payroll, Compliance & Workforce Management in Hong Kong

Expand with confidence. Get local employment and payroll guidance backed by 30 years of experience.

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Hong Kong at a Glance

Whether you're hiring your first employee or expanding an existing team, understanding the local employment landscape is essential. From visa requirements and statutory benefits to payroll taxes and regulatory oversight, this section provides a practical overview of what employers need to know to stay compliant and operate effectively in 

Hong Kong
Work Permits & Visas

Foreign nationals require a valid employment visa before starting work.

  • Common Visa: General Employment Policy (GEP).
  • Sponsorship: Employer must demonstrate role relevance and market salary.
  • Validity: Usually 1–2 years, renewable.
  • No quota system, but approval is discretionary.
Payroll

Employers must register with the Inland Revenue Department (IRD).

  • Payroll Frequency: Monthly is standard.
  • Withholding: Hong Kong operates a self-assessment system — employers do not withhold salaries tax monthly.
  • Reporting:
    • Annual Employer’s Return (Form BIR56A)
    • Employee income statements (IR56B/F/G)
  • MPF Contributions: Mandatory provident fund contributions required.
Employment Contracts
  • Contracts may be continuous or fixed-term.
  • Probation: Commonly 3 months.
  • Working Hours: No statutory maximum; governed by contract.
  • Termination:
    • Notice typically 7–30 days
    • Pay in lieu permitted
  • Severance / Long Service Pay: Statutory in redundancy or long service cases.
Employee Benefits
  • Annual Leave: Starts at 7 days, increasing to 14 days with service.
  • Public Holidays: 13 statutory holidays.
  • Sick Leave: Accrues up to 120 days with medical certification (paid at 80%).
  • Maternity Leave: 14 weeks (paid).
  • Paternity Leave: 5 days paid.
  • MPF: Mandatory retirement savings scheme.
Tax Overview
  • Tax Residency: Based on territorial source, not residency.
  • Tax Year: April 1 – March 31.
  • System: Progressive or standard rate (whichever lower).
  • Double Tax Treaties: Expanding DTA network.
Personal Income Tax
Net Chargeable Income (HKD) Tax Rate
First 50,000 2%
Next 50,000 6%
Next 50,000 10%
Next 50,000 14%
Remainder 17%

Full Country Guide

How We Help You with Payroll & Compliance in Ghana

Want the complete PDF guide for

Hong Kong

? We share detailed country guides covering payroll, tax, and compliance — and we send new updates regularly. Just send an email to solutions@praxima.com, and we’ll send it straight to your inbox.

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Hong Kong

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Why Global Companies Trust Us for Hong Kong Payroll

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With over 30 years of experience managing payroll and compliance across continents, we’re a trusted partner to enterprises in

Hong Kong

and beyond.

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Support

Experts with deep local knowledge guide you through every step—onboarding, payroll, compliance—ensuring smooth operations in

Hong Kong
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Trust

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Scalable

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Compliance

Stay ahead of legal changes. We ensure your payroll and employment practices remain fully compliant with

Hong Kong

's laws

Let’s Talk Hong Kong

Whether you need Payroll Outsourcing, Employer of Record services, or advanced Payroll Software, our experts are here to help you find the right solution. Contact us today for support with payroll, compliance, and hiring in

Hong Kong