---
title: "Hong Kong"
id: "11840"
type: "global-payroll"
slug: "hong-kong"
published_at: "2025-08-05T09:10:52+00:00"
modified_at: "2026-09-24T12:45:15+00:00"
url: "https://topsourceworldwide.com/global-payroll/hong-kong/"
markdown_url: "https://topsourceworldwide.com/global-payroll/hong-kong.md"
taxonomy_continent:
  - "Asia"
---

# Payroll Services in Hong Kong

Fully managed Hong Kong payroll – MPF run on eMPF now that every trustee has moved onto it, every statutory payment calculated on the twelve-month average with the disregarding provisions applied properly, the IR56 series filed on the IRD’s calendar, and the post-May 2025 long service liability provisioned rather than discovered.

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

TopSource rated 5/5 by our customers

- 
- 
- 
- 
- 

[Read reviews](#testimonials)

## What Hong Kong payroll actually involves

Hong Kong payroll is simpler than most and distinctive in ways that catch foreign employers out. There is no PAYE at all – the employer withholds no tax and the employee is assessed directly and pays their own bill, so a Hong Kong payroll is really gross-pay administration plus MPF plus statutory reporting. The employer’s only mandatory contribution is 5% into the Mandatory Provident Fund, capped at HK$1,500 a month, so statutory cost falls away sharply as salary rises. Against that, almost every statutory payment is calculated on twelve months of average wages rather than on basic salary. And three structural things changed recently: MPF offsetting was abolished on 1 May 2025, the continuous contract test changed on 18 January 2026, and eMPF replaced the trustees’ separate platforms in May 2026. None of it is hard. Almost all of it is recent.

### Registering, and the platform that replaced twelve of them

MPF enrolment is due within 60 days of an employee starting, but the employer’s 5% liability begins on day one – the 60 days is a filing grace, not a liability holiday. Contributions are then due on the 10th of each month for the preceding month’s wages. Since May 2026 all twelve MPF trustees run on the eMPF Platform, so the trustee-by-trustee portals, file formats and cut-offs that used to define Hong Kong payroll administration are gone.

### Working out who is actually covered

Almost every Employment Ordinance entitlement – rest days, holiday pay, annual leave, sickness allowance, maternity and paternity leave, notice, severance and long service payment – depends on the employee being on a continuous contract. That test changed on 18 January 2026. The old rule required 18 hours in each of four consecutive weeks; the new one requires 17 hours in each of those weeks, or 68 hours in total across them. It widens the net, so any employer with part-time or shift staff needs to re-run its population against it.

### Running the monthly cycle, without withholding tax

Hong Kong has no PAYE. The employer does not deduct salaries tax and does not remit it – the employee is assessed directly by the Inland Revenue Department and pays their own bill, usually in two instalments. What the employer deducts is MPF, and what it does instead of withholding is report, through the IR56 series. A new hire’s first tax bill can arrive more than eighteen months after they start, for an amount nobody warned them about.

### Calculating everything on twelve months, not this month

Holiday pay, annual leave pay, sickness allowance, maternity and paternity leave pay, the end-of-year payment and payment in lieu of notice are all calculated on the employee’s average wages over the preceding twelve months – not on basic salary and not on this month’s pay. Commission counts. Overtime counts where it is constant or averages at least 20% of monthly wages. And periods paid at less than full wages must be removed from both sides of the average, which is the half most systems miss.

### Filing on the IRD’s calendar, and the one time you hold money back

The employer’s return cycle starts on the first working day of April, when the IRD issues the BIR56A, and the return with an IR56B for every employee is due within a month. A new employee needs an IR56E within three months of starting. A leaver needs an IR56F a month before they go. And an employee leaving Hong Kong needs an IR56G a month before departure – at which point the employer must withhold all money payable to them until the IRD releases it or a month has passed.

## Our Partners Globally

## Calculate Your Employee Costs in Hong Kong

Enter a gross annual salary to see the employer’s mandatory MPF contribution in Hong Kong for 2026: 5% of relevant income, capped at HK$1,500 a month or HK$18,000 a year. It is the only statutory employer contribution. Compulsory employees’ compensation insurance is priced by the insurer and is not included, and neither is the severance and long service liability that has accrued since 1 May 2025.

##### 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](#)

## Know your Hong Kong hiring costs before you commit

Tell us the role and the salary – we’ll send back the full Hong Kong employer cost, MPF, insurance and the long service provision included, within one business day.

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

> “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 ,

## Employer Costs in Hong Kong Explained

Employer statutory cost in Hong Kong is 5% of relevant income into the MPF, capped at HK$1,500 a month – so it falls from 5% of salary at the bottom of the range to 0.75% at HK$2.4 million, because the contribution stops rising while the salary does not. The maximum relevant income is HK$30,000 a month and has not changed since June 2014. There is no social security contribution beyond MPF, no employer health levy, no statutory thirteenth month and no tax withholding. The cost that did change is one nobody had before: since 1 May 2025 an employer can no longer offset severance or long service payment with its mandatory MPF contributions for service from that date, so an un-offsettable liability of up to HK$15,000 per year of service now accrues. Compulsory employees’ compensation insurance sits on top and is priced by the insurer, not by statute. Here’s the breakdown.

#### What the employer actually pays, and where it stops

Hong Kong’s mandatory employer cost is 5% of relevant income into the Mandatory Provident Fund, and it caps. The maximum relevant income is HK$30,000 a month, so employer and employee contributions each stop at HK$1,500 a month – HK$18,000 a year. That maximum has been unchanged since 1 June 2014 and the minimum of HK$7,100 since November 2013. Both are under statutory review, but no new figures have been adopted, and numbers circulating in the press are proposals rather than law.

Because the contribution caps, the employer’s MPF cost as a percentage of salary falls away above HK$360,000 a year: 5.00% up to that point, 3.75% at HK$480,000, 2.50% at HK$720,000, 1.50% at HK$1.2 million and 0.75% at HK$2.4 million. On statutory cash cost alone, Hong Kong is one of the cheapest places to employ a senior person.

One asymmetry catches small employers every time. Where relevant income is below HK$7,100 a month, the employee contributes nothing – but the employer still pays its 5%. The same shape applies at the start of employment: the employee makes no contribution for the first 30 days, and enrolment can wait 60 days, but the employer’s liability accrues from day one.

Two exemptions matter commercially. Employees aged under 18 or 65 and over are outside MPF, as are members of MPF-exempted ORSO schemes. And people who come to Hong Kong to work for not more than 13 months, or who are covered by an overseas retirement scheme, can be exempt – which is why many secondees sit outside MPF. That exemption has to be claimed rather than assumed.

#### The offsetting abolition, and the liability that did not exist before May 2025

On 1 May 2025 Hong Kong abolished the use of employer mandatory MPF contributions to offset severance payment and long service payment. It is the largest change to Hong Kong payroll economics in a generation, and it is not retrospective. It did not remove the employer’s existing offset entitlement – it froze it. Service before 1 May 2025 remains offsettable, indefinitely. Service from that date onward is not.

That produces a two-portion calculation with two different wage bases in the same sum. The pre-transition portion uses the last full month’s wages immediately before 1 May 2025 – the April 2025 figure – permanently frozen, times two-thirds, for years before the transition. The post-transition portion uses the last full month’s wages before termination, on the same two-thirds basis, for years from 1 May 2025. Both use a monthly wage ceiling of HK$22,500, giving HK$15,000 per year of service, and the two together are capped at HK$390,000.

The trap in the cap is which portion it squeezes. Where the two portions together exceed HK$390,000, the excess comes off the post-transition portion – the part the employer cannot offset. So the cap does not relieve the new exposure; it relieves the grandfathered one. What an employer now has to provision for is an accruing, un-offsettable liability of up to HK$15,000 for every post-transition year of service: ten years is HK$150,000 per employee at any salary above HK$270,000.

Two things make this harder in practice. The pre-transition portion cannot be calculated at all without the April 2025 monthly wage for every employee in service then, and employers who did not capture it have a data-recovery problem that gets harder every year. And the Government’s 25-year subsidy scheme shares part of the post-transition cost, most generously in its first years – but only if the employer claims it.

#### The 713 rule, and the half of it everyone misses

Every significant statutory payment in Hong Kong is calculated on the employee’s average wages over the preceding twelve months. Holiday pay and annual leave pay use the twelve-month average daily wage. Sickness allowance, maternity leave pay and paternity leave pay use four-fifths of it. The end-of-year payment and payment in lieu of notice use the twelve-month average. None of them uses basic salary, and none of them uses the current month.

What counts as wages is broader than most foreign employers assume: all remuneration, earnings, allowances, tips and service charges capable of expression in money, including commission and attendance allowances. Overtime counts where it is constant, or where its monthly average over the preceding twelve months is at least 20% of average monthly wages. Excluded are the employer’s MPF contributions, genuinely discretionary bonuses, the value of accommodation, food or medical care, and expense reimbursements.

The commission point is the classic Labour Tribunal claim. A salesperson’s annual leave pay and holiday pay must include twelve months of commission, and paying basic salary only is unlawful underpayment.

The disregarding provisions are the part that actually goes wrong. When computing the twelve-month average, the employer must exclude both the period and the wages paid for it for any time the employee was not paid, or was paid less than full wages – rest days, holidays, annual leave, sickness days, maternity and paternity leave and similar. Leave a part-paid sick month in the denominator and the average comes out too low, so every downstream entitlement is underpaid. Both halves have to come out.

#### Tax without withholding, and the one time you hold money back

Hong Kong has no pay-as-you-earn system. The employer does not deduct salaries tax and does not remit it. The employee is assessed directly and pays their own tax, normally in two instalments, on a year of assessment running 1 April to 31 March. What the employer does instead is report – and, in exactly one situation, withhold.

Salaries tax is charged at the lower of two calculations. The progressive rates run 2%, 6%, 10%, 14% and then 17% on the remainder, in bands of HK$50,000 of net chargeable income after allowances. The standard rate applies to net income with no allowances and has been two-tiered since 2024/25: 15% on the first HK$5 million and 16% above that. The basic allowance rose from HK$132,000 to HK$145,000 for 2026/27, so any source still showing HK$132,000 is out of date for the current year.

The reporting cycle is fixed. The IRD issues the BIR56A on the first working day of April and the employer files it with an IR56B for every employee within one month. An IR56E is due within three months of a new employee starting and an IR56F one month before an employee leaves. An IR56M covers payments to people who are not employees – consultants, freelancers and sub-contractors.

The departing-employee rule is the one withholding obligation and the most operationally dangerous item on this page. An employee leaving Hong Kong for more than a month requires an IR56G at least one month before departure – and from then the employer must withhold all money payable to that person, final pay and bonus included, for one month or until the IRD issues a letter of release, whichever is earlier. An employer that pays the leaver out anyway can be held liable for the unpaid tax.

#### Statutory entitlements, and two holiday systems that are not the same thing

The statutory floor in Hong Kong is low and the market rate is not. Annual leave starts at 7 days after a year of service and rises one day a year to 14 days at nine years, while market practice for a professional role is well above that. There is one rest day in every seven. Notice is one month where the contract is silent.

Holidays are where foreign employers make an expensive contractual error, because Hong Kong has two lists. General holidays are the bank-holiday list of 17 days, used by banks, schools and public offices – and granted by most white-collar contracts. Statutory holidays are the Employment Ordinance minimum: 15 in 2026, rising to 16 in 2028 and 17 in 2030, when the two lists converge. A payroll configured to the statutory list against a contract promising general holidays is underpaying.

Sickness allowance is not an annual allotment that resets. Employees accumulate paid sickness days at two a month in the first year and four a month after that, up to 120 days held at any time, and a sickness day qualifies only as part of an absence of four or more consecutive days. A payroll system with a resetting annual entitlement is structurally wrong for Hong Kong.

Maternity leave is 14 weeks at four-fifths of the twelve-month average daily wage for an employee with at least 40 weeks’ continuous employment. The employer pays all fourteen weeks and then reclaims weeks 11 to 14 from the Government, capped at HK$80,000 – so it is cash-flow negative first, and employers who never file the claim lose the money. Paternity leave is five days on the same four-fifths basis.

## Hong Kong employer contribution rates, 2026

| Contribution | Employer | Employee | 2026 detail |
| --- | --- | --- | --- |
| MPF mandatory contribution | 5% | 5% | Of relevant income. Maximum relevant income HK$30,000 a month |
| MPF – maximum per side | HK$1,500 a month | HK$1,500 a month | HK$18,000 a year each. Unchanged since 1 June 2014 |
| MPF – below the minimum | 5% still due | Nil | Below HK$7,100 a month the employee pays nothing; the employer still pays 5% |
| MPF – enrolment deadline | — | — | Within 60 days. Employer liability starts on day one |
| MPF – contribution day | — | — | The 10th of each month, for the previous month |
| MPF – employee contribution holiday | — | Nil for 30 days | First 30 days of employment |
| Salaries tax withholding | None | — | No PAYE. The employee is assessed directly by the IRD |
| Salaries tax – progressive rates | — | 2/6/10/14/17% | On net chargeable income, in bands of HK$50,000 |
| Salaries tax – standard rate | — | 15% / 16% | 15% on the first HK$5 million of net income, 16% above. The lower calculation applies |
| Basic allowance | — | HK$145,000 | From 2026/27, up from HK$132,000 |
| Employees’ compensation insurance | Market-priced | — | Compulsory. Minimum cover HK$100 million up to 200 employees, HK$200 million above |
| Statutory minimum wage | HK$43.1 an hour | — | From 1 May 2026, up from HK$42.1. Now reviewed every year |
| Severance / long service payment | 2/3 of monthly wage per year | — | Wage capped at HK$22,500, so HK$15,000 per year. Overall maximum HK$390,000 |
| SP/LSP – service from 1 May 2025 | Not offsettable | — | Cannot be offset by employer mandatory MPF contributions |
| SP/LSP – service before 1 May 2025 | Offsettable | — | At the frozen April 2025 wage. Grandfathered indefinitely |

### Severance and long service payment after 1 May 2025 – the two-portion calculation

| Element | Pre-transition portion | Post-transition portion | Why it matters |
| --- | --- | --- | --- |
| Service counted | Before 1 May 2025 | From 1 May 2025 onward | The split is by date, not by contract |
| Wage base | Last full month before 1 May 2025, frozen | Last full month before termination | Two different wage bases in one sum |
| Formula | 2/3 × wage × years | 2/3 × wage × years | Incomplete years pro-rated in both |
| Monthly wage ceiling | HK$22,500, so HK$15,000 a year | HK$22,500, so HK$15,000 a year | The same cap applies to both |
| Offsettable by employer mandatory MPF? | Yes, indefinitely | No | This is the whole reform |
| Offsettable by employer voluntary MPF or gratuities? | Yes | Yes | Unaffected, and routinely forgotten |
| Overall maximum HK$390,000 exceeded | Unaffected | The excess comes off here | The cap bites on the part the employer cannot offset |
| Government subsidy | None | 25-year scheme from 1 May 2025 | Post-transition portion only, and only if claimed |
| Record the employer must hold | The April 2025 wage for everyone in service then | Ordinary wage records | Without it the first portion cannot be computed |

### Employer MPF by salary, 2026

| Annual salary | Employer MPF | % of salary | SP/LSP accrual per year of service |
| --- | --- | --- | --- |
| HK$180,000 | HK$9,000 | 5.00% | HK$10,000 |
| HK$360,000 | HK$18,000 | 5.00% | HK$15,000 |
| HK$480,000 | HK$18,000 | 3.75% | HK$15,000 |
| HK$720,000 | HK$18,000 | 2.50% | HK$15,000 |
| HK$1,200,000 | HK$18,000 | 1.50% | HK$15,000 |
| HK$2,400,000 | HK$18,000 | 0.75% | HK$15,000 |

Relevant income for MPF includes wages, salary, leave pay, fees, commission, bonus, gratuity, perquisites and allowances, but excludes severance and long service payment. The salary table shows employer MPF at 5% of relevant income capped at HK$18,000 a year, and the severance or long service accrual for each post-transition year of service at two-thirds of monthly wages capped at HK$22,500. The accrual is a provision, payable only on qualifying termination. Employees’ compensation insurance is compulsory but priced by the insurer against the activity, so it is not included. These are TopSource calculations from the 2026 rates, not published figures.

Rates, thresholds and statutory amounts shown are for 2026 and, for tax, the 2026/27 year of assessment, and were verified on 24 September 2026. The statutory minimum wage now changes every 1 May, announced in February, and statutory holidays step up to 16 in 2028 and 17 in 2030. The MPF minimum and maximum relevant income levels are under statutory review. Employees’ compensation insurance is compulsory but market-priced. This page is general information, not tax or legal advice.

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

## How our Hong Kong payroll service works

1. Map your setup

We establish whether you need a Hong Kong entity, confirm which of your people are on a continuous contract under the test that replaced the old one on 18 January 2026, and identify anyone outside MPF – under-18s, over-65s, ORSO members, and secondees relying on the 13-month or overseas-scheme exemption, which has to be claimed. We also check what your contracts promise on holidays, because general and statutory holidays are two different lists.

2. Migrate or onboard

We enrol employees on eMPF within the 60-day window while funding the employer’s 5% from day one, set up employees’ compensation insurance at the statutory minimum cover, and register you for the employer’s return cycle. On a migration the first thing we look for is the April 2025 monthly wage for everyone in service before the transition date – without it the pre-transition portion of any future severance or long service payment cannot be calculated.

3. Run and review

Gross pay, MPF on relevant income within the HK$7,100 to HK$30,000 band, and no tax withheld – because there is none to withhold. Every statutory payment calculated on the twelve-month average with the disregarding provisions applied to both the days and the wages, commission and constant overtime included. Sickness days accumulated against the 120-day ceiling, not reset annually. Statutory holidays at the 2026 count of 15, or your contractual list if it is longer.

4. File and pay

MPF contributions by the 10th of each month through eMPF. The employer’s return within one month of the BIR56A, with an IR56B per employee. IR56E within three months of a new starter, IR56F a month before a leaver goes, and IR56G a month before anyone leaves Hong Kong – with all money withheld until the IRD releases it. Maternity weeks 11 to 14 reclaimed from Government, and subsidy claims on post-transition long service payments filed.

5. Stay current

The statutory minimum wage now moves every 1 May, so rate tables are an annual task. Statutory holidays step up to 16 in 2028 and 17 in 2030. The MPF minimum and maximum relevant income levels are under review. We track all of it and tell you before it lands.

## Why TopSource for Hong Kong Payroll

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

We don’t hide fees or sneak price increases. We run Hong Kong payroll in-house and file under your own employer’s file with the Inland Revenue Department rather than a pooled bureau registration, so the same team that submits your IR56B answers your calls. You get a named account manager, one consolidated monthly invoice covering salaries, MPF, insurance and fees, and one live Portico view of Hong Kong beside every other country we run for you. Portico syncs with your time-tracking, leave and HR systems via API – set up by our onboarding team, not left to yours. GDPR, SOC 2 and ISO 27001 certified.

[Global Payroll](https://topsourceworldwide.com/global-payroll/)
[Get Started](https://topsourceworldwide.com/contact-us/)

## Other services Accelerating your growth in Hong Kong and beyond

#### TopSource goes far beyond payroll, acting as your end-to-end partner in global workforce management. From Employer of Record (EOR) services and seamless entity setup to localized accountancy and fractional HR support, we cover every aspect of international employment.

### Global Employer of Record (EOR) services

With our Global EOR services, you can hire talent in any country without establishing a legal entity. We handle employment contracts, payroll, benefits, and compliance on your behalf, enabling fast, risk-free global expansion.

### Actionable HR Advisory

On demand access to our fractional and regional HR professionals who understand local laws, cultures, and best practices. Bespoke talent intelligence including salary, business and talent market benchmarking.

### Global entity management

Our global entity management team helps you establish and maintain your corporate entities worldwide. We ensure full compliance with local laws and regulations, streamline administrative processes, and minimize risk — so you can focus on growing your business.

### Accounting

We offer comprehensive accounting solutions tailored to meet your international needs. From bookkeeping and financial reporting to tax filings and audits, our services help you maintain transparency, accuracy, and compliance in every jurisdiction.

## Meet our experts for Hong Kong

Whether you’re entering the market or scaling operations, our specialists provide the insight and guidance you need to succeed in one of the world’s most dynamic and regulated employment landscapes. With TopSource, you’re backed by real experts, every step of the way.

[Our People](https://topsourceworldwide.com/our-people/)

## Beyond a payroll service **A globalization accelerator**

A payroll platform for your employees is just the beginning. We are constantly evaluating your entire organisation to identify compliance issues and ways to accelerate your global growth.

- [Payroll platform](#)
- [Audit](#)
- [Intelligence](#)
- [Advisory](#)

##### Payroll platform

###### Global payroll simplified

Your intuitive hub for paying global teams. Simple, powerful, and designed to scale with you — no complexity, just clarity.

##### Audit

###### Eliminate barriers to growth

Avoid compliance issues across your global workforce and uncover opportunities to improve profitability. On a quarterly basis we’ll help you audit your global talent strategy to ensure it aligns with your business goals.

##### Intelligence

###### Build a data-driven talent strategy

Grow confidently and profitably with access to the latest TopSource insights & data on hiring markets, salary benchmarking & benefits.

##### Advisory

###### Expert guidance that turns complexity into clarity.

Whether you’re managing a global acquisition or entering a new market, you get clear guidance to navigate complex decisions, avoid delays, and accelerate your global expansion.

## Hong Kong payroll FAQs

### How much does it cost an employer to employ someone in Hong Kong?

Employer statutory cost in Hong Kong is 5% of relevant income into the MPF, capped at HK$1,500 a month – HK$18,000 a year – because the maximum relevant income is HK$30,000 a month. So it falls from 5% of salary at the bottom of the range to 0.75% at HK$2.4 million, because the contribution stops rising while the salary does not. Compulsory employees’ compensation insurance sits on top, priced by the insurer. Since 1 May 2025 there is also an accruing severance and long service liability of up to HK$15,000 per year of service that can no longer be offset by employer MPF contributions, and it should be provisioned.

### Has the MPF maximum relevant income changed?

No. The maximum relevant income is still HK$30,000 a month, unchanged since 1 June 2014, and the minimum is HK$7,100, unchanged since November 2013 – so mandatory contributions still cap at HK$1,500 a month on each side. Both levels are under statutory review, but no new figures have been adopted. Figures circulating in the press are proposals, not law, and should not be used for budgeting.

### What changed when MPF offsetting was abolished?

From 1 May 2025 an employer can no longer use its mandatory MPF contributions to offset severance or long service payment for service from that date – but the change is not retrospective. Service before 1 May 2025 remains offsettable, indefinitely, calculated on the last full month’s wages before the transition date, permanently frozen. Service from 1 May 2025 uses the wage at termination and cannot be offset. Employer voluntary contributions and gratuities still offset both portions. Where the two together exceed the HK$390,000 maximum, the excess comes off the post-transition portion – the part the employer cannot offset.

### Does Hong Kong have PAYE?

No. Hong Kong has no pay-as-you-earn system: the employer does not deduct salaries tax and does not remit it to the Inland Revenue Department. The employee is assessed directly and pays their own tax, normally in two instalments, on a year of assessment running 1 April to 31 March. The employer reports through the IR56 series and deducts MPF rather than tax. A new hire’s first tax bill can arrive more than eighteen months after they start, so telling employees what is coming is part of running Hong Kong payroll properly.

### What is the 713 rule?

The 713 rule is the requirement, in force since 13 July 2007, that statutory entitlements in Hong Kong are calculated on the employee’s average wages over the preceding twelve months rather than on basic salary or current pay. It covers holiday pay, annual leave pay, sickness allowance, maternity and paternity leave pay, the end-of-year payment and payment in lieu of notice. Wages include commission and overtime that is constant or averages at least 20% of monthly pay. Any period paid at less than full wages must be excluded – both the days and the wages paid for them.

### What are the IR56 forms and when are they due?

The IR56 series is how a Hong Kong employer reports remuneration, since there is no tax withholding. The IRD issues the BIR56A on the first working day of April and the employer files it within one month with an IR56B for every employee. An IR56E is due within three months of a new employee starting, an IR56F one month before an employee leaves, and an IR56G one month before an employee leaves Hong Kong for more than a month – which also triggers a duty to withhold money payable to them. An IR56M reports payments to people who are not employees.

### Is employees’ compensation insurance compulsory in Hong Kong?

Yes, and the minimum cover is high. Every employer must hold employees’ compensation insurance covering its liability under the Employees’ Compensation Ordinance and at common law, with minimum cover of HK$100 million per event for up to 200 employees and HK$200 million above that. Employing anyone without it is an offence carrying a fine of HK$100,000 and up to two years’ imprisonment. It is bought from a commercial insurer and priced against the activity, so there is no generic rate.

### How many public holidays are there in Hong Kong?

It depends which list applies, and Hong Kong has two. Statutory holidays are the Employment Ordinance minimum and there are 15 in 2026, rising to 16 in 2028 and 17 in 2030, when the two lists converge. General holidays are the bank-holiday list of 17 days, used by banks, schools and public offices, and they are what most white-collar contracts grant. A contract that promises public holidays has almost certainly granted the longer list, and a payroll configured to the statutory 15 against such a contract is underpaying.

### What is the minimum wage in Hong Kong?

The statutory minimum wage is HK$43.1 an hour from 1 May 2026, up from HK$42.1. The more important change is structural: Hong Kong has moved from a two-yearly review to an annual formula-based one, and the 2026 rate was the first set under it. Employers can now expect a change every 1 May, announced in February. The monthly wage above which an employer need not keep total-hours records also rose, to HK$17,600.

### How does maternity leave work in Hong Kong?

Maternity leave is 14 weeks, with up to four further unpaid weeks for illness arising from pregnancy. An employee with at least 40 weeks of continuous employment before the leave is paid at four-fifths of her twelve-month average daily wage. The employer pays all fourteen weeks and then reclaims weeks 11 to 14 from the Government, capped at HK$80,000 – so it is a cash-flow event before it is a cost, and employers who never file the claim lose the money. Dismissing an employee from confirmation of pregnancy to the end of maternity leave is an offence carrying a fine of HK$100,000 plus compensation.

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

## Looking at other markets too?

We help organizations employ and pay teams in 164 countries.

All Continents  Asia   Europe   North America   South America   Africa   Oceania   Middle East

Reset

[Australia Capital: Canberra Currency: Australian Dollar](https://topsourceworldwide.com/global-payroll/australia/)

[Brazil Capital: Brasília Currency: Real](https://topsourceworldwide.com/global-payroll/brazil/)

[Canada Capital: Ottawa Currency: Canadian dollar](https://topsourceworldwide.com/global-payroll/canada/)

[France Capital: Paris Currency: Euro](https://topsourceworldwide.com/global-payroll/france/)

[Germany Capital: Berlin Currency: Euro](https://topsourceworldwide.com/global-payroll/germany/)

[India Capital: New Delhi Currency: Rupee](https://topsourceworldwide.com/global-payroll/india/)

[Italy Capital: Rome Currency: Euro](https://topsourceworldwide.com/global-payroll/italy/)

[Mexico Capital: Mexico City Currency: Mexican Peso](https://topsourceworldwide.com/global-payroll/mexico/)

[Netherlands Capital: Amsterdam Currency: Euro](https://topsourceworldwide.com/global-payroll/netherlands/)

[Poland Capital: Warsaw Currency: Polish Zloty](https://topsourceworldwide.com/global-payroll/poland/)

[Singapore Capital: Singapore Currency: Dollar](https://topsourceworldwide.com/global-payroll/singapore/)

[South Africa Capital: Pretoria Currency: South African Rand](https://topsourceworldwide.com/global-payroll/south-africa/)

[Spain Capital: Madrid Currency: Euro](https://topsourceworldwide.com/global-payroll/spain/)

[Switzerland Capital: Bern Currency: Swiss franc](https://topsourceworldwide.com/global-payroll/switzerland/)

[Turkey Capital: Ankara Currency: lira](https://topsourceworldwide.com/global-payroll/turkey/)

[United Arab Emirates Capital: Abu Dhabi Currency: Emirati Dirham](https://topsourceworldwide.com/global-payroll/united-arab-emirates/)

[United Kingdom Capital: London Currency: British pound sterling](https://topsourceworldwide.com/global-payroll/united-kingdom/)

[United States Capital: Washington, D.C. Currency: U.S. dollar](https://topsourceworldwide.com/global-payroll/united-states/)

[Vietnam Capital: Hanoi Currency: Vietnamese Dong](https://topsourceworldwide.com/global-payroll/vietnam/)

[Algeria Capital: Algiers Currency: Algerian Dinar](https://topsourceworldwide.com/global-payroll/algeria/)

[Andorra Capital: Andorra la Vella Currency: Euro](https://topsourceworldwide.com/global-payroll/andorra/)

[Angola Capital: Luanda Currency: Angolan kwanza](https://topsourceworldwide.com/global-payroll/angola/)

[Antigua & Barbuda Capital: St. John’s Currency: East Caribbean dollar (EC$)](https://topsourceworldwide.com/global-payroll/antigua-barbuda/)

[Argentina Capital: Buenos Aires Currency: Peso](https://topsourceworldwide.com/global-payroll/argentina/)

[Armenia Capital: Yerevan Currency: Dram](https://topsourceworldwide.com/global-payroll/armenia/)

[Austria Capital: Vienna Currency: Euro](https://topsourceworldwide.com/global-payroll/austria/)

[Azerbaijan Capital: Baku Currency: Manat](https://topsourceworldwide.com/global-payroll/azerbaijan/)

[Bahamas Capital: Nassau Currency: Bahamian dollar](https://topsourceworldwide.com/global-payroll/bahamas/)

[Bahrain Capital: Manama Currency: Bahraini Dinar](https://topsourceworldwide.com/global-payroll/bahrain/)

[Bangladesh Capital: Dhaka Currency: Taka](https://topsourceworldwide.com/global-payroll/bangladesh/)

[Barbados Capital: Bridgetown Currency: Barbadian dollar](https://topsourceworldwide.com/global-payroll/barbados/)

[Belgium Capital: Brussels Currency: Euro](https://topsourceworldwide.com/global-payroll/belgium/)

[Belize Capital: Belmopan Currency: Belize dollar](https://topsourceworldwide.com/global-payroll/belize/)

[Bhutan Capital: Thimphu Currency: Ngultrum](https://topsourceworldwide.com/global-payroll/bhutan/)

[Bolivia Capital: Sucre & La Paz Currency: Boliviano](https://topsourceworldwide.com/global-payroll/bolivia/)

[Bosnia & Herzegovina Capital: Sarajevo Currency: Convertible Mark](https://topsourceworldwide.com/global-payroll/bosnia-herzegovina/)

[Brunei Capital: Bandar Seri Begawan Currency: Bruneian Dollar](https://topsourceworldwide.com/global-payroll/brunei/)

[Bulgaria Capital: Sofia Currency: Euro](https://topsourceworldwide.com/global-payroll/bulgaria/)

[Burundi Capital: Gitega Currency: Burundian Franc](https://topsourceworldwide.com/global-payroll/burundi/)

[Cambodia Capital: Phnom Penh Currency: Cambodian Riel](https://topsourceworldwide.com/global-payroll/cambodia/)

[Cameroon Capital: Yaoundé Currency: Central African CFA Franc](https://topsourceworldwide.com/global-payroll/cameroon/)

[Chile Capital: Santiago Currency: Chilean Peso](https://topsourceworldwide.com/global-payroll/chile/)

[China Capital: Beijing Currency: Yuan](https://topsourceworldwide.com/global-payroll/china/)

[Colombia Capital: Bogotá Currency: Colombian peso](https://topsourceworldwide.com/global-payroll/colombia/)

[Costa Rica Capital: San José Currency: Costa Rican colón](https://topsourceworldwide.com/global-payroll/costa-rica/)

[Croatia Capital: Zagreb Currency: Euro](https://topsourceworldwide.com/global-payroll/croatia/)

[Cyprus Capital: Nicosia Currency: Euro](https://topsourceworldwide.com/global-payroll/cyprus/)

[Czech Republic Capital: Prague Currency: Czech Republic Koruna (CZK)](https://topsourceworldwide.com/global-payroll/czech-republic/)

[Denmark Capital: Copenhagen Currency: Danish krone](https://topsourceworldwide.com/global-payroll/denmark/)

[Dominica Capital: Roseau Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/dominica/)

[Dominican Republic Capital: Santo Domingo Currency: Dominican peso](https://topsourceworldwide.com/global-payroll/dominican-republic/)

[Ecuador Capital: Quito Currency: United States dollar](https://topsourceworldwide.com/global-payroll/ecuador/)

[Egypt Capital: Cairo Currency: Egyptian pound](https://topsourceworldwide.com/global-payroll/egypt/)

[El Salvador Capital: San Salvador Currency: United States dollar](https://topsourceworldwide.com/global-payroll/el-salvador/)

[Estonia Capital: Tallinn Currency: Euro](https://topsourceworldwide.com/global-payroll/estonia/)

[Eswatini Capital: Mbabane Currency: Swazi lilangeni](https://topsourceworldwide.com/global-payroll/eswatini/)

[Falkland Islands Capital: Stanley Currency: Falkland Islands pound](https://topsourceworldwide.com/global-payroll/fakland-island/)

[Fiji Capital: Suva Currency: Fijian Dollar](https://topsourceworldwide.com/global-payroll/fiji/)

[Finland Capital: Helsinki Currency: Euro](https://topsourceworldwide.com/global-payroll/finland/)

[Georgia Capital: Tbilisi Currency: Lari](https://topsourceworldwide.com/global-payroll/georgia/)

[Ghana Capital: Accra Currency: Ghanaian Cedi](https://topsourceworldwide.com/global-payroll/ghana/)

[Gibraltar Capital: Gibraltar Currency: Gibraltar pound (£)](https://topsourceworldwide.com/global-payroll/gibraltar/)

[Greece Capital: Athens Currency: Euro](https://topsourceworldwide.com/global-payroll/greece/)

[Guam Capital: Hagåtña Currency: United States Dollar](https://topsourceworldwide.com/global-payroll/guam/)

[Guatemala Capital: Guatemala City Currency: Guatemalan quetzal](https://topsourceworldwide.com/global-payroll/guatemala/)

[Guernsey Capital: Saint Peter Port Currency: Guernsey Pound](https://topsourceworldwide.com/global-payroll/guernsey/)

[Guyana Capital: Georgetown Currency: Guyanese dollar](https://topsourceworldwide.com/global-payroll/guyana/)

[Haiti Capital: Port-au-Prince Currency: Haitian gourde](https://topsourceworldwide.com/global-payroll/haiti/)

[Honduras Capital: Tegucigalpa Currency: Honduran lempira](https://topsourceworldwide.com/global-payroll/honduras/)

[Hong Kong Capital: Victoria Currency: Hong Kong Dollar](https://topsourceworldwide.com/global-payroll/hong-kong/)

[Hungary Capital: Budapest Currency: Hungarian Forint](https://topsourceworldwide.com/global-payroll/hungary/)

[Iceland Capital: Reykjavik Currency: Icelandic krona](https://topsourceworldwide.com/global-payroll/iceland/)

[Indonesia Capital: Jakarta Currency: rupiah](https://topsourceworldwide.com/global-payroll/indonesia/)

[Ireland Capital: Dublin Currency: Euro](https://topsourceworldwide.com/global-payroll/ireland/)

[Israel Capital: Jerusalem Currency: New shekel](https://topsourceworldwide.com/global-payroll/israel/)

[Ivory Coast Capital: Yamoussoukro Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/ivory-coast/)

[Japan Capital: Tokyo Currency: Yen](https://topsourceworldwide.com/global-payroll/japan/)

[Jersey Capital: Saint Helier Currency: Jersey Pound](https://topsourceworldwide.com/global-payroll/jersey/)

[Jordan Capital: Amman Currency: Dinar](https://topsourceworldwide.com/global-payroll/jordan/)

[Kazakhstan Capital: Astana Currency: Tenge](https://topsourceworldwide.com/global-payroll/kazakhstan/)

[Kenya Capital: Nairobi Currency: Kenyan Shilling](https://topsourceworldwide.com/global-payroll/kenya/)

[Kuwait Capital: Kuwait City Currency: Kuwaiti Dinar](https://topsourceworldwide.com/global-payroll/kuwait/)

[Latvia Capital: Riga Currency: Euro](https://topsourceworldwide.com/global-payroll/latvia/)

[Lesotho Capital: Maseru Currency: Lesotho Loti](https://topsourceworldwide.com/global-payroll/lesotho/)

[Liberia Capital: Monrovia Currency: Liberian Dollar](https://topsourceworldwide.com/global-payroll/liberia/)

[Libya Capital: Tripoli Currency: Libyan Dinar](https://topsourceworldwide.com/global-payroll/libya/)

[Liechtenstein Capital: Vaduz Currency: Swiss franc](https://topsourceworldwide.com/global-payroll/liechtenstein/)

[Lithuania Capital: Vilnius Currency: Euro](https://topsourceworldwide.com/global-payroll/lithuania/)

[Luxembourg Capital: Luxembourg Currency: Euro](https://topsourceworldwide.com/global-payroll/luxembourg/)

[Madagascar Capital: Antananarivo Currency: Malagasy Ariary](https://topsourceworldwide.com/global-payroll/madagascar/)

[Malawi Capital: Lilongwe Currency: Malawian Kwacha](https://topsourceworldwide.com/global-payroll/malawi/)

[Malaysia Capital: Kuala Lumpur Currency: Ringgit](https://topsourceworldwide.com/global-payroll/malaysia/)

[Maldives Capital: Male Currency: Rufiyaa](https://topsourceworldwide.com/global-payroll/maldives/)

[Mali Capital: Bamako Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/mali/)

[Malta Capital: Valletta Currency: Euro](https://topsourceworldwide.com/global-payroll/malta/)

[Mauritania Capital: Nouakchott Currency: Mauritanian Ouguiya](https://topsourceworldwide.com/global-payroll/mauritania/)

[Mauritius Capital: Port Louis Currency: Mauritian Rupee](https://topsourceworldwide.com/global-payroll/mauritius/)

[Monaco Capital: Monaco Currency: Euro](https://topsourceworldwide.com/global-payroll/monaco/)

[Mongolia Capital: Ulaanbaatar Currency: Tögrög](https://topsourceworldwide.com/global-payroll/mongolia/)

[Montenegro Capital: Podgorica Currency: Euro](https://topsourceworldwide.com/global-payroll/montenegro/)

[Morocco Capital: Rabat Currency: Moroccan Dirham](https://topsourceworldwide.com/global-payroll/morocco/)

[Mozambique Capital: Maputo Currency: Mozambique metical](https://topsourceworldwide.com/global-payroll/mozambique/)

[Namibia Capital: Windhoek Currency: Namibian Dollar](https://topsourceworldwide.com/global-payroll/namibia/)

[Nepal Capital: Kathmandu Currency: Rupee](https://topsourceworldwide.com/global-payroll/nepal/)

[New Zealand Capital: Wellington Currency: New Zealand Dollar](https://topsourceworldwide.com/global-payroll/new-zealand/)

[Nicaragua Capital: Managua Currency: Nicaraguan córdoba](https://topsourceworldwide.com/global-payroll/nicaragua/)

[Nigeria Capital: Abuja Currency: Nigerian Naira](https://topsourceworldwide.com/global-payroll/nigeria/)

[Norway Capital: Oslo Currency: Norwegian krone](https://topsourceworldwide.com/global-payroll/norway/)

[Oman Capital: Muscat Currency: Rial](https://topsourceworldwide.com/global-payroll/oman/)

[Pakistan Capital: Islamabad Currency: Pakistani Rupee](https://topsourceworldwide.com/global-payroll/pakistan/)

[Panama Capital: Panama City Currency: Balboa (PAB) and United States dollar (USD)](https://topsourceworldwide.com/global-payroll/panama/)

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

[Paraguay Capital: Asunción Currency: Paraguayan guaraní](https://topsourceworldwide.com/global-payroll/paraguay/)

[Peru Capital: Lima Currency: Peruvian sol](https://topsourceworldwide.com/global-payroll/peru/)

[Philippines Capital: Manila Currency: Peso](https://topsourceworldwide.com/global-payroll/philippines/)

[Portugal Capital: Lisbon Currency: Euro](https://topsourceworldwide.com/global-payroll/portugal/)

[Puerto Rico Capital: San Juan Currency: United States dollar](https://topsourceworldwide.com/global-payroll/puerto-rico/)

[Qatar Capital: Doha Currency: Riyal](https://topsourceworldwide.com/global-payroll/qatar/)

[Romania Capital: Bucharest Currency: Romanian Leu](https://topsourceworldwide.com/global-payroll/romania/)

[Rwanda Capital: Kigali Currency: Rwandan franc](https://topsourceworldwide.com/global-payroll/rwanda/)

[Saint Kitts & Nevis Capital: Basseterre Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-kitts-nevis/)

[Saint Lucia Capital: Castries Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-lucia/)

[Saint Maarten Capital: Philipsburg Currency: Caribbean guilder (Cg)](https://topsourceworldwide.com/global-payroll/st-maarten/)

[Saint Vincent & the Grenadines Capital: Kingstown Currency: East Caribbean dollar](https://topsourceworldwide.com/global-payroll/saint-vincent-the-grenadines/)

[Saipan Capital: Capitol Hill Currency: U.S. Dollar](https://topsourceworldwide.com/global-payroll/saipan/)

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

[Saudi Arabia Capital: Riyadh Currency: Riyal](https://topsourceworldwide.com/global-payroll/saudi-arabia/)

[Senegal Capital: Dakar Currency: West African CFA franc](https://topsourceworldwide.com/global-payroll/senegal/)

[Serbia Capital: Belgrade Currency: Serbian dinar](https://topsourceworldwide.com/global-payroll/serbia/)

[Seychelles Capital: Victoria Currency: Seychellois Rupee](https://topsourceworldwide.com/global-payroll/seychelles/)

[Slovakia Capital: Bratislava Currency: Euro](https://topsourceworldwide.com/global-payroll/slovakia/)

[Slovenia Capital: Ljubljana Currency: Euro](https://topsourceworldwide.com/global-payroll/slovenia/)

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

[South Korea Capital: Seoul Currency: Won](https://topsourceworldwide.com/global-payroll/south-korea/)

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

[Sri Lanka Capital: Colombo Currency: Sri Lankan Rupee](https://topsourceworldwide.com/global-payroll/sri-lanka/)

[Sudan Capital: Khartoum Currency: Sudanese Pound](https://topsourceworldwide.com/global-payroll/sudan/)

[Sweden Capital: Stockholm Currency: Swedish krona](https://topsourceworldwide.com/global-payroll/sweden/)

[Taiwan Capital: Taipei Currency: Dollar](https://topsourceworldwide.com/global-payroll/taiwan/)

[Thailand Capital: Bangkok Currency: Thai Baht](https://topsourceworldwide.com/global-payroll/thailand/)

[Trinidad & Tobago Capital: Port of Spain Currency: Trinidad and Tobago dollar](https://topsourceworldwide.com/global-payroll/trinidad-tobago/)

[Tunisia Capital: Tunis Currency: Tunisian Dinar](https://topsourceworldwide.com/global-payroll/tunisia/)

[Uganda Capital: Kampala Currency: Ugandan Shilling](https://topsourceworldwide.com/global-payroll/uganda/)

[US Virgin Island Capital: Charlotte Amalie Currency: Dollar](https://topsourceworldwide.com/global-payroll/us-virgin-island/)

[Venezuela Capital: Caracas Currency: Venezuelan bolívar](https://topsourceworldwide.com/global-payroll/venezuela/)

[Zambia Capital: Lusaka Currency: Zambian Kwacha](https://topsourceworldwide.com/global-payroll/zambia/)

[Zimbabwe Capital: Harare Currency: Zimbabwe Gold (ZiG)](https://topsourceworldwide.com/global-payroll/zimbabwe/)

 Load more