If you’re expanding your business into Hong Kong for the first time, there are important legal requirements to be aware of. These norms and laws influence hiring practices in Hong Kong and many aspects of the employer-employee relationship, including compensation and benefits.
G-P Gia™, our AI-powered global HR agent, can answer your toughest compliance questions across 50 countries — including Hong Kong — and all 50 U.S. states. Reduce your reliance on outside counsel and cut the time and cost of compliance by up to 95% with Gia.
Here are five things to know about hiring in Hong Kong.
1. Languages in Hong Kong
English is one of the official languages of Hong Kong, alongside Mandarin Chinese, and is especially common in business settings. Cantonese, which differs from Mandarin Chinese, is the most commonly spoken language in Hong Kong.
Because of the western influence in Hong Kong and the wide use of English, you can find that some job applicants have both a Chinese name and a western name that is designed to be easier for global employers to pronounce and remember. Make sure you know which name a person prefers.
2. Payroll considerations in Hong Kong
The minimum wage in Hong Kong is reviewed every two years. It’s currently HKD 40 per hour (2025).
Payroll in Hong Kong is considered straightforward. Employers aren’t required to withhold income tax from employees’ salaries. Employees are responsible for filing and paying their own taxes to the Inland Revenue Department (IRD). However, employers have to prepare and provide annual tax forms (such as the IR56B) to both the IRD and the employee.
Both employers and employees contribute to the Mandatory Provident Fund (MPF). The standard contribution rate is 5%.
There’s no statutory requirement for employers to withhold funds for healthcare. Hong Kong’s public healthcare system is funded through general taxation, not payroll deductions.
3. Hong Kong workweek
Hong Kong doesn’t have any regulations on the maximum hours employees can work. The average employee works about 42 hours per week. While the government leaves working hours up to employers and employees, one rest day out of every seven is mandated. This rest day tends to fall on Sundays, but employers can choose a rest day that makes sense for their company. If an employer ignores this requirement, they can incur heavy fines.
4. Holidays and vacation leave in Hong Kong
There are 13 national holidays in Hong Kong. Employees on a continuous contract (at least 18 hours per week for four consecutive weeks) get holiday pay after three months. If a holiday falls on a rest day, the employer has to give a substitute holiday. This should be another day off within 60 days of the original holiday.
Employees get paid annual leave after completing 12 months of continuous service:
-
Seven days per year for the first two years of service
-
From the third year onward, annual leave increases by one day per year of service, up to a maximum of 14 days after nine years.
Unused annual leave can be carried forward, but the Employment Ordinance requires that annual leave be taken within the following 12 months after its earned, unless otherwise agreed between employer and employee.
5. Sick leave in Hong Kong
Employees get two paid sick days per month during their first 12 months of employment, and four paid sick days per month after. The maximum accumulation is 120 days. Employees get paid sick leave if they take at least four consecutive days off (unless the leave is for pregnancy-related care) and provide a medical certificate from a registered doctor or dentist.
The statutory rate for paid sick leave is 80% of the employee’s average daily wage. Paid sick leave is protected under the Employment Ordinance. Unused sick days can be carried forward up to the 120-day cap.