The Cost of Hiring a Full-Time Employee in Hong Kong

1. Introduction

Hong Kong is a strategic gateway to Asia with a highly skilled, cosmopolitan workforce. While it’s relatively employer-friendly compared to other APAC regions, businesses must account for salary expectations, MPF contributions, leave entitlements, and compliance costs. This guide outlines the true cost of hiring a full-time employee in Hong Kong.

2. Average Gross Monthly Salaries

Salary benchmarks in Hong Kong vary by sector:

• Admin/support staff: HKD 15,000 – 25,000
• Professionals (HR, Finance): HKD 30,000 – 60,000
• Tech and Legal: HKD 50,000 – 100,000+
• Executives: HKD 100,000 – 250,000+

As of 2025, the minimum wage is HKD 40 per hour.

3. Statutory Contributions and Employer Taxes

Employers are required to contribute:

• MPF (Mandatory Provident Fund): 5% of monthly income (capped at HKD 1,500/month)

No additional payroll taxes apply. There is no social insurance system like other countries, which simplifies monthly obligations.

4. Other Mandatory Costs

• Annual Leave: 7–14 days depending on years of service
• Public Holidays: 13 statutory days, or 17 general holidays if offered
• Maternity Leave: 14 weeks (80% pay, employer-funded)
• Paternity Leave: 5 days paid
• Sick Leave: Accrued at 2 days/month in first year, then 4 days/month

5. Optional & Market-Driven Benefits

Employers often provide:

• Group medical and dental insurance
• 13th-month or discretionary bonuses
• Meal and transportation allowances
• Flexi-hours or work-from-home arrangements

6. Hidden & Overlooked Costs

• End-of-year bonus expectations
• Contractual gratuities or long-service awards
• Termination notice payouts
• Cost of visa sponsorship for foreign hires

7. Advisory Notes for Employers

Contracts must clearly define wage, bonus, and leave terms. Employers must keep detailed employment records for 12 months. Failure to comply with MPF or leave regulations can lead to fines or labor disputes.

8. How AYP Helps You Manage Cost Efficiently

AYP supports your Hong Kong hiring strategy by managing MPF contributions, leave entitlements, and ensuring full compliance with labor ordinances.

9. Contact Us

Need guidance on hiring in Hong Kong? Contact AYP to stay cost-effective and compliant.