Our Expertise
Managing a global workforce in Hong Kong
Managing a global workforce in Hong Kong requires a comprehensive understanding of local employment laws and payroll regulations. Companies must comply with the Employment Ordinance, adhere to the Mandatory Provident Fund (MPF) system, and ensure accurate reporting to the Inland Revenue Department. By partnering with TopSource, businesses can efficiently manage payroll, adhere to local compliance requirements, and focus on their core operations, making global expansion into Hong Kong smoother and more reliable.
Extensive expertise
Our team of experienced, knowledgeable staff collectively provide up-to-date employment information across 180 countries, so you can always get accurate advice.
Entity-free employment
Feel free to hire employees from all over the world without being weighed down by setting up entities, running complex payroll or recruiting a hiring team.
Payroll without hassle
Have the confidence that your staff will always be paid accurately and on time, so that you can focus on your core business activities and work towards your success.
Always-on support
Access helpful, relevant, personalised advice whenever you need it, along with expert-led recruitment policies and tried-and-tested HR best practices.
"With TopSource we were able to have employees hired or maintained in Nutreco without having to establish an entity in these countries for only 1-2 employees. I think most countries are covered by TopSource, so they can help us with almost all cases. Good advice on conditions and direct contact with employees. Invoicing done directly to the company. An easy process compared to hiring employees by ourselves."
Annette van Duijnhoven
”We searched the market for a local payroll vendor in 2014 and we chose TopSource as our partner. We were looking for error-free and timely payroll processing and TopSource Worldwide delivers this, saving us time and money. We have worked together for 8 years now and would recommend them to anyone."
Praveen Lihinar
Personalised Employer of Record services in Hong Kong
TopSource Worldwide offers personalised Employer of Record (EOR) services tailored to meet the specific needs of your business in Hong Kong. This includes handling employee onboarding, payroll processing, tax compliance, employee benefits management, and HR support. Our EOR services ensure that your business meets all legal and regulatory requirements, providing a hassle-free solution to manage your Hong Kong-based employees.
End-to-end Hong Kong payroll services
Looking to expand into Hong Kong? Our unparalleled expertise in global payroll services ensures that your business can seamlessly navigate the complexities of payroll on a global scale, supporting your Hong Kong expansion initiatives.
Global entity management
Venturing into the Hong Kongese market can be both exciting and challenging. With distinct business regulations, cultural nuances, and economic landscapes, it's essential to have a clear roadmap for your business establishment journey.
Accounting
Whether your goal is to process your purchase-to-pay transactions with minimum errors or manage your expense claim procedure, our team of experts can handle your accounting responsibilities, allowing you to focus on your core business and save time and money.
Global EOR services
Managing a diverse global workforce can be complex. This is where TopSource steps in as an invaluable employer of record services partner for companies seeking to expand their global reach while ensuring compliance with local employment laws and regulations.
Global Expansion Simplified
How to do business in Hong Kong
Entering the Hong Kongese market presents a mix of excitement and challenges. Given unique business regulations, cultural intricacies, and economic dynamics, a well-defined roadmap is crucial for a successful business establishment.
TopSource Worldwide is with you at every stage. Whether it's navigating local regulations or facilitating seamless operational transitions, our expertise ensures a swift and efficient process for establishing your business in Hong Kong. For more insights, explore our east asia insights on expanding into the East Asian market.
Hong Kong Insights
Key insights into Hong Kong's landscape
VAT rates: Hong Kong has no Value Added Tax (VAT) or Goods and Services Tax (GST), making it a tax-friendly jurisdiction.
Ease of Doing Business rank: Hong Kong consistently ranks high, currently 4th globally, in the World Bank's Ease of Doing Business Index.
Consumer Confidence Index: As of 2022, Hong Kong's Consumer Confidence Index was 90.8, reflecting stable economic sentiment.
Employee maternity/paternity leave: Maternity leave is 14 weeks, and paternity leave is 5 days, providing support for new parents in the workforce.
Employee termination period: Standard notice for termination varies but is typically 1 to 2 months, depending on employment contract terms and seniority.
Employee salary pay date: Wages are due on the last day of the wage period and should be paid no later than the 7th of the month following.
Bank holidays: Hong Kong observes public holidays like Lunar New Year, National Day, and Christmas, with a total of 17 public holidays in a year.
Salary information
The Minimum Wage Ordinance (MWO) states the minimum wage for employees in Hong Kong.
- Labour insurance — mandatory contribution based on the number of employees
- Mandatory Provident Funds (MPF) — 5%
- Medical insurance — optional
Bonus payments are not mandatory; however, it’s often customary to provide a 13th-month salary payment to employees between Christmas and Chinese New Year. Bonuses paid as an annual payment are considered an ‘end-of-year payment’ under the Employment Ordinance and must comply with relevant legislations. It’s important that this is clearly stipulated in the contract to avoid confusion with discretionary bonuses.
Contractual provisions
A probationary period isn’t mandatory, but if instated, it shouldn’t exceed 12 weeks. The probation clause in the contract of employment should state if there are any exemptions to other terms in the contract including salary, notice period prior to termination and access to other benefits. During the first month of probation, an employee is entitled to terminate the contract without notice.
There’s no statutory working hour legislation in place in Hong Kong; however, the Employment Ordinance stipulates that all employees must receive at least one rest day per week. Common practice is for employees to work between 40 to 50 hours per week.
The regulations for termination in Hong Kong are stipulated by the Employment Ordinance. The minimum notice period that may be stipulated in a contract is seven days. If, however, there’s no notice period specified in the contract of employment, a notice period of one month is required.
Any employee who has been made redundant after being in continuous employment for a minimum of two years is entitled to a severance payment.
This is equivalent to two-thirds of the employee’s monthly wage multiplied by the period of service in years. The maximum severance pay that can be given to an employee is HK$390,000 or $15,000 per year of service.
There are no social security taxes in Hong Kong. There’s a social security scheme in place (CSSA), which supports all residents who are unable to support themselves financially.
Hong Kong has a well-established, low-cost public healthcare system which is accessible to both permanent and non-permanent residents upon presentation of a valid visa and ID card.
It’s not uncommon for non-national employees to take out private medical insurance in order to benefit from Hong Kong’s private healthcare system.
If an employee is covered by the EO, the terms of the contract must meet the minimum regulations.
Taxes are not deductible by the employer and are the responsibility of the employee. Employees must file an annual tax return with the Inland Revenue Department (IND).
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