---
title: "Hong Kong"
id: "14785"
type: "employer-of-record"
slug: "hong-kong"
published_at: "2025-08-11T11:23:51+00:00"
modified_at: "2026-09-23T15:39:11+00:00"
url: "https://topsourceworldwide.com/employer-of-record/hong-kong/"
markdown_url: "https://topsourceworldwide.com/employer-of-record/hong-kong.md"
taxonomy_continent:
  - "Asia"
---

# Employer of Record in Hong Kong

Employ in Hong Kong without an entity — MPF contributions, Employment Ordinance compliance, work visas and severance handled by local specialists.

[Get Started](https://topsourceworldwide.com/contact-us/)

## Why hire in Hong Kong through an EOR

Hong Kong is one of Asia’s simplest and lowest-cost places to employ: employer MPF is capped at HKD 1,500 a month, there’s no payroll withholding, and personal tax tops out low. The compliance sits in the details — the Employment Ordinance, the ‘468’ continuous-contract rule, and MPF deadlines. Through an EOR, all of it is already running.

### No entity required

Employ staff in Hong Kong, one of 164 countries we cover, without registering a Hong Kong limited company or maintaining a local presence.

### MPF, capped and correct

Employer MPF is 5% of relevant income, capped at HKD 1,500 per month. We enrol new hires within 60 days and remit via the eMPF Platform by the 10th, every month.

### No payroll withholding to run

Hong Kong has no PAYE — employees file their own salary tax. Our obligations are the IR56 filings (IR56E/B/F/G), which we handle at hire, annually and on exit.

### Employment Ordinance compliance

The ‘468 rule’, statutory holidays, annual leave, sickness allowance and end-of-year payments all flow from the Employment Ordinance. We apply them correctly from day one.

### Working in days, not months

We register the employment before day one — your hire can be working in Hong Kong in days, while an entity setup would still be weeks away.

## Hire in Hong Kong without setting up an entity

Hong Kong is one of the most straightforward and tax-efficient places in Asia to employ people: the employer’s mandatory retirement contribution (MPF) is capped at just HKD 1,500 a month, there is no PAYE withholding to operate, and personal tax rates are low. But the simplicity has edges. The Employment Ordinance governs leave, statutory holidays, sickness allowance and end-of-year payments; the ‘468 rule’ decides who counts as a continuous employee with full entitlements; and since 1 May 2025 employers can no longer use MPF contributions to offset severance or long service payments — a real increase in the true cost of a departure.

An Employer of Record clears all of it: TopSource employs your Hong Kong hires with MPF enrolled and remitted on time, the IR56 filings handled, Employment Ordinance entitlements applied, and severance and long service liabilities tracked correctly. Hire into Hong Kong fast.

[Talk to our Hong Kong team](https://topsourceworldwide.com/contact-us/)

## Calculate Your Employee Costs in Hong Kong

Enter a gross salary to see the full monthly cost of a hire in Hong Kong — the capped MPF contribution and statutory entitlements included in your total spend per employee.

##### Employment Cost Calculator

*Indicative figures only and not definitive legal advice. Local regulations change frequently. [Consult an expert](/contact-us/)

##### Hong Kong

  Annually Monthly

|  | British Pound | Hong Kong |
| --- | --- | --- |
| Base Salary (per month) |  |  |
| Employer Contributions |  |  |
| Total Cost (Annual) |  |  |
| Total Cost (Monthly) |  |  |

Employer of Record services in [Learn more](#)
Payroll Outsourcing in [Learn more](#)

## How EOR in Hong Kong works: the process through TopSource

Step 1

### Confirm the role and structure

We agree the position, salary and benefits with you, confirm continuous-contract status under the ‘468 rule’, and check work visa requirements for non-resident hires.

Step 2

### Issue a compliant contract

Your new hire receives a written employment contract under the Employment Ordinance (Cap. 57), with probation, notice, leave, MPF and end-of-year payment terms clearly set out.

Step 3

### Sponsor the visa, if needed

For non-resident hires we manage the employment visa (such as the General Employment Policy route) as the sponsoring employer, building processing times into the start date.

Step 4

### Enrol MPF and run payroll

We enrol the employee in MPF within 60 days, then calculate salary, the 5% capped employer and employee MPF, and file IR56 forms — remitting MPF via the eMPF Platform by the 10th each month.

Step 5

### Support the relationship day to day

Your account manager and the employee both have a direct line for contract questions, leave, MPF, and — when needed — severance or long service payment calculated correctly.

## Know your Hong Kong hiring costs before you commit

Tell us the role and salary — we’ll send back the full Hong Kong employment cost, MPF and severance exposure included, within one business day.

[Get a Custom Employment Quote](https://topsourceworldwide.com/contact-us/)

## Employer Costs in Hong Kong at a Glance

HKD 1,500

Monthly cap on employer MPF contribution per employee

HKD 43.10/hr

Statutory minimum wage from 1 May 2026

5%

Employer MPF rate (on relevant income up to HKD 30,000)

## Employer Costs in Hong Kong Explained

Hong Kong is a low-cost employment market. Employers contribute 5% of an employee’s relevant income to the Mandatory Provident Fund (MPF), capped at HKD 1,500 per month for income above HKD 30,000, and employees contribute the same. There is no employer payroll tax and no PAYE withholding — employees file their own salary tax. The statutory minimum wage is HKD 43.10 per hour from May 2026. Here’s the breakdown.

#### MPF: the 5% capped contribution

The Mandatory Provident Fund is Hong Kong’s main employment cost. Both employer and employee contribute 5% of the employee’s relevant income, but each side is capped at HKD 1,500 per month once income exceeds HKD 30,000 — so the employer’s maximum mandatory contribution is HKD 1,500 regardless of how high the salary goes. Employees earning below HKD 7,100 a month are exempt from their own contribution, but the employer must still pay its 5% share. New employees must be enrolled within 60 days, and contributions are remitted through the eMPF Platform by the 10th of the following month. Employers may also make voluntary contributions for retention; a company’s MPF contributions are deductible for profits tax up to 15% of the employee’s total emoluments.

#### No PAYE: how Hong Kong salary tax works

Unlike almost every other market, Hong Kong does not operate a pay-as-you-earn withholding system. Employers do not deduct salary tax from wages; instead, each employee files their own annual salary tax return with the Inland Revenue Department (IRD). The employer’s tax obligations are limited to filing IR56 forms — IR56E when an employee joins, IR56B annually, and IR56F or IR56G when an employee leaves. This makes gross-to-net payroll simpler than most jurisdictions, but the IR56 deadlines are strict and getting them wrong on a departing employee causes problems for the leaver.

#### The Employment Ordinance and the '468 rule'

The Employment Ordinance (Cap. 57) governs core entitlements. The ‘468 rule’ (which replaced the former ‘418 rule’ on 18 January 2026) is central: an employee who works for the same employer for four or more consecutive weeks, at 17 or more hours a week or 68 or more hours in total across those weeks, is on a ‘continuous contract’ and gains full statutory entitlements — annual leave, statutory holidays, sickness allowance, severance and more. Statutory annual leave starts at 7 days and rises with service; there are statutory holidays on top; and wages must be paid within 7 days of the end of the wage period. Misjudging continuous-contract status is the most common way foreign employers underpay entitlements.

#### Severance, long service payment and the MPF offset abolition

Two end-of-employment payments matter: severance payment (after 24 months’ continuous service, on redundancy) and long service payment (after 5 years, on other qualifying exits). Both are calculated as two-thirds of a month’s wages per year of service, with monthly wages capped at HKD 22,500 (a maximum of HKD 15,000 per year of service, HKD 390,000 total). Critically, since 1 May 2025 employers can no longer use post-2025 MPF contributions to offset these payments — the long-standing offset is abolished, so severance and long service liabilities must now be budgeted as a genuine standalone cost. We accrue and track them within payroll.

## EOR or entity setup: which one fits your Hong Kong plan?

Registering a Hong Kong limited company is fast and inexpensive, but it creates ongoing MPF administration, IR56 filing, Employment Ordinance compliance and severance/long service liabilities that don’t disappear when plans change. An EOR makes sense while you’re testing the market or hiring a first small team; your own company usually makes sense once Hong Kong headcount and permanence are certain.

### Consider an EOR if you’re:

1. Hiring your first one to five people in Hong Kong
2. Testing the Hong Kong or wider APAC market before committing to a company
3. Sponsoring a non-resident hire who needs an employment visa
4. Working to a hiring deadline measured in weeks, not months

[Get a cost comparison](https://topsourceworldwide.com/contact-us/)

## Why TopSource for Employing in Hong Kong

TopSource for Employer of Record, global payroll or any other of our services represent a simpler, more reliable and transparent option.

We don’t hide fees or sneak price increases. We don’t lock you in for employees you don’t use. But we do give you a dedicated point of contact, available on the phone so you get answers fast — including on the questions Hong Kong raises, from the ‘468 rule’ to MPF deadlines and what the offset abolition means for severance. We blend HR advisory with in-market expertise, and we stay flexible around the needs of your business.

[EOR Services](https://topsourceworldwide.com/employer-of-record/)
[Hong Kong Payroll](https://topsourceworldwide.com/global-payroll/hong-kong/)

> “Their expertise and understanding of the unique hiring, payment, and human resource practices in each country has been nothing short of outstanding. Our Client Success Manager, has done just that … ensured our success. Her availability and willingness to engage on a personal level has made all the difference.”

Director of Research Operations,

> “Excellent service, especially from our account manager who has gone above and beyond to help us use the platform effectively. Our manager, significantly simplifies my workload. It is like having your own TopSource HR representative on your team.”

Chief Human Resources Officer,

> “TopSource has been our go-to resource for international hiring. They are responsive, thorough, respectful and knowledgeable. The Client Success team has provided us with the utmost customer service, and the more we use TopSource, the more, it gives us access to more resources and knowledge.”

Senior Manager, Human Resources ,

## More than an Employer of Record.

Employer of Record services are only one way that we help you accelerate your global growth goals. From talent advisory to entity management, we give you the tools you need to research, enter and expand into your key markets.

##### Market Selection Advisory

Compare available talent, compensation, additional costs and regulations across different countries

[Read more](https://topsourceworldwide.com/hr-advisory/market-selection-advisory/)

##### Salary Benchmarking

Identify and prioritize markets for growth based on talent, cost & regulations

[Read more](https://topsourceworldwide.com/hr-advisory/salary-benchmarking/)

##### Global Skills Analysis

Map skill availability by region to align talent strategies with business goals..

[Read more](https://topsourceworldwide.com/hr-advisory/global-skills-analysis/)

##### Talent Acquisition

Find, hire & onboard the highly skilled team members you need in each locality.

[Read more](https://topsourceworldwide.com/talent-acquisition/)

##### Talent Strategy Optimization

Optimize your talent strategy to enable your organization to achieve it’s global ambitions.

[Read more](https://topsourceworldwide.com/hr-advisory/talent-strategy-optimization/)

##### Global Benefits Review

Benchmark your global benefits to boost employee retention.

[Read more](https://topsourceworldwide.com/hr-advisory/global-benefits-review/)

## Frequently asked questions

### What does an employee in Hong Kong actually cost?

Hong Kong is low-cost: beyond gross salary, the main mandatory cost is the 5% employer MPF contribution, capped at HKD 1,500 per month. There is no employer payroll tax and no PAYE. The larger variable cost is end-of-employment — severance or long service payment — which, since the 2025 offset abolition, must be budgeted separately. We quote exact costs per hire before you commit.

### How does MPF work for employers?

Both employer and employee contribute 5% of relevant income, each capped at HKD 1,500 per month above HKD 30,000 income. Employees earning under HKD 7,100 a month don’t contribute, but the employer still pays its 5%. New hires must be enrolled within 60 days, and contributions are remitted via the eMPF Platform by the 10th of the following month. We handle enrolment and remittance.

### Does Hong Kong have payroll tax withholding (PAYE)?

No. Hong Kong has no PAYE system — employers don’t deduct salary tax from wages. Employees file their own annual salary tax return with the IRD. The employer’s obligations are the IR56 filings: IR56E at hire, IR56B annually, and IR56F/G on departure. This makes payroll simpler, but the IR56 deadlines are strict, and we manage them.

### What is the ‘468 rule’?

It’s the continuous-contract test in the Employment Ordinance, updated on 18 January 2026 (previously the ‘418 rule’): an employee working for the same employer for four or more consecutive weeks, at 17 or more hours a week or 68 or more hours in total across those weeks, is on a continuous contract and gains full statutory entitlements — annual leave, statutory holidays, sickness allowance, severance and more. Getting this classification right is essential, because it determines which entitlements apply, and we assess it for every hire.

### How do severance and long service payments work now?

Severance payment applies after 24 months of service on redundancy; long service payment applies after 5 years on other qualifying exits. Both are two-thirds of a month’s wages per year of service, wages capped at HKD 22,500 monthly (max HKD 390,000 total). Since 1 May 2025, employers can no longer use MPF contributions to offset these — so they’re now a genuine standalone cost we accrue and track.

### EOR or our own Hong Kong company — which should we choose?

EOR wins on speed and on carrying the Employment Ordinance and MPF machinery for you: employees working in days, filings handled, severance tracked. Your own company wins on scale once Hong Kong headcount and permanence are certain. Many clients run both in sequence — EOR to enter, company once proven — and we transfer the team when the time comes.

[Couldn’t find what you were looking for?](/contact-us/)

## Hire Anywhere with Our EOR Services

We help you legally employ and pay talent across 164 countries—so you can scale faster.

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[Papua New Guinea Capital: Port Moresby Currency: Papua New Guinean Kina](https://topsourceworldwide.com/employer-of-record/papua-new-guinea/)

[Paraguay Capital: Asunción Currency: Guaraní](https://topsourceworldwide.com/employer-of-record/paraguay/)

[Peru Capital: Lima Currency: Peruvian Sol](https://topsourceworldwide.com/employer-of-record/peru/)

[Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/employer-of-record/philippines/)

[Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/employer-of-record/portugal/)

[Puerto Rico Capital: San Juan Currency: Dollar](https://topsourceworldwide.com/employer-of-record/puerto-rico/)

[Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/employer-of-record/qatar/)

[Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/employer-of-record/romania/)

[Rwanda Capital: Kigali Currency: Rwandan Franc](https://topsourceworldwide.com/employer-of-record/rwanda/)

[Saint Kitts & Nevis Capital: Basseterre Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-kitts-nevis/)

[Saint Lucia Capital: Castries Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-lucia/)

[Saint Vincent & the Grenadines Capital: Kingstown Currency: Dollar](https://topsourceworldwide.com/employer-of-record/saint-vincent-the-grenadines/)

[Saipan Capital: Capitol Hill Currency: US Dollar](https://topsourceworldwide.com/employer-of-record/saipan/)

[San Marino Capital: City of San Marino Currency: Euro](https://topsourceworldwide.com/employer-of-record/san-marino/)

[Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/employer-of-record/saudi-arabia/)

[Senegal Capital: Dakar Currency: West African CFA Franc](https://topsourceworldwide.com/employer-of-record/senegal/)

[Serbia Capital: Belgrade Currency: Serbian Dinar](https://topsourceworldwide.com/employer-of-record/serbia/)

[Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/employer-of-record/seychelles/)

[Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovakia/)

[Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/employer-of-record/slovenia/)

[Solomon Island Capital: Honiara Currency: Solomon Islands Dollar](https://topsourceworldwide.com/employer-of-record/solomon-island/)

[South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/employer-of-record/south-korea/)

[South Sudan Capital: Juba Currency: South Sudanese Pound](https://topsourceworldwide.com/employer-of-record/south-sudan/)

[Sri Lanka Capital: Colombo Currency: Rupee](https://topsourceworldwide.com/employer-of-record/sri-lanka/)

[St-Maarten Capital: Philipsburg Currency: Caribbean Guilder](https://topsourceworldwide.com/employer-of-record/st-maarten/)

[Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/employer-of-record/sudan/)

[Suriname Capital: Paramaribo Currency: Surinamese Dollar](https://topsourceworldwide.com/employer-of-record/suriname/)

[Sweden Capital: Stockholm Currency: Swedish Krona](https://topsourceworldwide.com/employer-of-record/sweden/)

[Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/employer-of-record/taiwan/)

[Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/employer-of-record/thailand/)

[Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago Dollar](https://topsourceworldwide.com/employer-of-record/trinidad-tobago/)

[Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/employer-of-record/tunisia/)

[Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/employer-of-record/uganda/)

[United Kingdom Capital: London Currency: Pound Sterling](https://topsourceworldwide.com/employer-of-record/united-kingdom/)

[US Virgin Island Capital: Charlotte Amalie Currency: United States Dollar](https://topsourceworldwide.com/employer-of-record/us-virgin-island/)

[Venezuela Capital: Caracas Currency: Venezuelan Bolívar](https://topsourceworldwide.com/employer-of-record/venezuela/)

[Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/employer-of-record/zambia/)

[Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/employer-of-record/zimbabwe/)

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