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Employer of Record (EOR) in Hong Kong

Discover how having an Employer of Record (EOR) Hong Kong helps businesses hire employees quickly & efficiently so you can expand your business smoothly without interruption

Employer of Record (EOR) in Hong Kong

Hong Kong’s position as a global financial hub makes it a prime location for international business expansion. Our Employer of Record (EOR) services in Hong Kong help you navigate the region’s complex employment regulations. By managing employee onboarding, payroll, and taxes, our EOR solutions allow you to establish a presence in Hong Kong without the necessity of setting up a legal entity.

Employment Benefits

Mandatory benefits

In Hong Kong, employers and employees are obligated to make several statutory contributions to ensure the welfare and security of the workforce. These contributions support retirement savings, compensation for work-related injuries, and other social protections essential for maintaining a fair and stable working environment.

Mandatory Provident Fund (MPF) Employers and employees are required to contribute to the Mandatory Provident Fund (MPF) scheme. 

Both parties must contribute 5% of the employee’s relevant income, subject to minimum and maximum income levels. This contribution helps employees save for their retirement.

Employees’ Compensation Insurance Employers must provide employees’ compensation insurance to cover work-related injuries and illnesses. 

The premium varies based on the nature of the business, industry risks, and the claims history of the employer – with the average cost typically between 0.5% to 3% of the employee’s salary.

Social Security Contributions Employers must make contributions to the Hong Kong government’s social security system, which includes various social insurance schemes. These contributions help fund benefits such as sickness allowances, maternity benefits, and unemployment protection.
Occupational Retirement Schemes Ordinance (ORSO) Contributions For employers who offer occupational retirement schemes, contributions must be made in accordance with the Occupational Retirement Schemes Ordinance (ORSO). These contributions provide additional retirement benefits for employees beyond the MPF.
Health and Safety Levies Employers are required to contribute to levies for occupational safety and health training and promotion. 

These contributions support initiatives and programs aimed at improving workplace safety and health standards, benefiting both employers and employees.

In Hong Kong, offering a competitive benefits package is crucial for attracting and retaining top talent in a dynamic job market. Alongside mandatory benefits such as Mandatory Provident Fund (MPF) contributions and statutory annual leave, many employers provide additional perks including private health insurance, performance-based bonuses, flexible working arrangements, and opportunities for career development. These supplementary benefits not only boost employee satisfaction but also drive higher productivity and foster greater loyalty.

Our Employer of Record Hong Kong solution can help you craft a benefits package that aligns with local expectations and regulatory requirements. We ensure that your offerings are both compliant and attractive, enhancing your ability to recruit and retain high-caliber talent. Let us assist you in designing a benefits package that supports your employees’ well-being and professional growth, giving you a competitive edge in the Hong Kong job market.

Additional perks and benefits

Beyond mandatory benefits, employers in Hong Kong frequently provide additional perks to attract and retain top talent. These extra benefits not only boost job satisfaction but also enhance overall well-being, making the workplace more appealing and supportive for employees.

Employee Assistance Programs (EAPs) EAPs provide confidential counselling and support services to help employees manage personal or work-related challenges, fostering a supportive workplace culture.
Extra Leave Days Some companies provide additional leave days for special occasions, such as birthdays, or for personal development, allowing employees to recharge or pursue personal interests.
Company Outings and Retreats Employers often organise team-building activities, company outings, or retreats to strengthen team cohesion and enhance employee engagement.
Family-Friendly Policies Many companies implement family-friendly benefits, such as childcare support, parental leave, and family health plans, to help employees balance their work and family responsibilities.
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Working Hours and Leave Policies

Standard working hours

  1. Statutory working hours

    Statutory working hours in Hong Kong are governed by the Employment Ordinance.

    • Standard working hours: Typically, employees work 8 hours a day, 5 days a week, totaling 40 hours per week.
    • Rest days: Employees are entitled to at least one rest day per week.
  2. Overtime regulations

    Overtime regulations in Hong Kong ensure employees are compensated for extra hours worked.

    • Employees must be compensated for overtime work, usually at a higher rate.
    • Overtime work should be voluntary and agreed upon by both parties.
    • There are limits on the maximum number of overtime hours an employee can work.
    • Employers must maintain accurate records of employees’ working hours and overtime.

Leave entitlements

Leave entitlements in Hong Kong encompass various types designed to support employees’ well-being and work-life balance, with specific regulations outlined in the Employment Ordinance. These provisions ensure employees have adequate time off for personal health, family responsibilities, and recreation, contributing to overall job satisfaction.

  1. Annual leave:

    Employees are entitled to a minimum of 7 days of annual leave after completing a full year of service, with the entitlement increasing to 14 days after 5 years of service and 21 days after 10 years. This leave can be taken consecutively or split into smaller segments, promoting flexibility in how employees manage their time off.

  2. Sick leave:

    Employees can avail themselves of paid sick leave at a rate of 4 days per month after 4 weeks of continuous service, up to a maximum of 120 days. To qualify for sick leave pay, employees must provide a medical certificate from a registered medical practitioner, ensuring they receive support during illness.

  3. Maternity leave:

    Female employees are entitled to 14 weeks of paid maternity leave, which includes 4 weeks of prenatal leave and 10 weeks of postnatal leave, provided they have been employed for at least 40 weeks. This benefit ensures new mothers can focus on their health and their newborns without financial strain.

  4. Paternity leave:

    Male employees are entitled to 5 days of paid paternity leave, which can be taken consecutively or separately within the first 14 weeks following the birth of their child. This policy acknowledges the importance of fathers’ involvement during the critical early days of their newborn’s life.

  5. Public holiday leave:

    Employees are entitled to 12 statutory public holidays each year, including the Lunar New Year, National Day, and Christmas Day, which are set by the government. If employees are required to work on these holidays, they are entitled to a day off in lieu or additional pay, ensuring fair compensation for their time.

Employee leave entitlements in Hong Kong are regulated by stringent local laws, making compliance crucial for your business. Navigating these regulations can be intricate, but with our solution, we ensure that all leave entitlements are managed accurately and fully compliant with Hong Kong regulations. Let us manage the complexities of local compliance, so you can concentrate on growing your core business.

Visa and Work Permits

Employment visas

Employment visas in Hong Kong are vital for non-local professionals aiming to work in the region. Governed by the Immigration Ordinance, the application process facilitates the entry of skilled workers while addressing local labour market needs, with various visa categories tailored to different employment situations.

  1. General Employment Policy (GEP)

    The General Employment Policy (GEP) allows skilled professionals with a confirmed job offer from a Hong Kong employer to apply for employment visas.

    Applicants must demonstrate their qualifications, relevant experience, and the employer’s efforts to recruit local talent, ensuring that the position cannot be filled by a local candidate.

  2. Technology Talent Admission Scheme (TechTAS)

    The Technology Talent Admission Scheme (TechTAS) facilitates the entry of technology sector professionals to support Hong Kong’s innovation and technology development.

    This streamlined process allows qualified applicants to obtain visas more quickly, promoting the growth of the local tech industry.

  3. Admission Scheme for Mainland Talents and Professionals (ASMTP)

    The Admission Scheme for Mainland Talents and Professionals (ASMTP) targets skilled professionals from mainland China who possess unique skills or qualifications needed in Hong Kong.

    This scheme encourages cross-border talent mobility and fosters collaboration between Hong Kong and mainland industries.

Business visas

Business visas enable foreign nationals to engage in various business activities in Hong Kong, facilitating international trade and investment. These visas are essential for entrepreneurs, professionals, and trainees seeking to leverage Hong Kong’s dynamic business environment.

  1. Business Investment Visa

    The Business Investment Visa is designed for entrepreneurs who wish to establish or invest in a business in Hong Kong. Applicants must demonstrate a viable business plan, sufficient capital investment, and the potential to create job opportunities for local residents.

  2. Training Visa

    The Training Visa allows individuals to participate in structured training programs within Hong Kong companies. This visa is aimed at enhancing professional skills and knowledge, requiring a training agreement and evidence of the training’s relevance to the individual’s career development.

Other relevant visa types

Besides employment and business visas, Hong Kong offers a range of visa types tailored to meet the diverse needs of employees and visitors. These visas facilitate family reunification, educational pursuits, and the entry of talented individuals and investors into the region.

  1. Dependent Visa

    The Dependent Visa allows family members of valid visa holders, such as spouses and children, to live and study in Hong Kong.

  2. Working Holiday Visa

    The Working Holiday Visa is designed for young people from participating countries, allowing them to travel and work in Hong Kong for up to 12 months.

  3. Top Talent Pass Scheme (TTPS):

    The Top Talent Pass Scheme (TTPS) is aimed at attracting highly skilled individuals with expertise in various sectors to contribute to Hong Kong’s development.

    Eligible applicants can enjoy a streamlined application process and greater flexibility in pursuing job opportunities within the city.

  4. Capital Investment Entrant Scheme (CIES):

    The Capital Investment Entrant Scheme (CIES) is intended for individuals wishing to invest in Hong Kong’s economy, requiring a minimum investment amount in permissible assets.

    Successful applicants can obtain residency in Hong Kong, fostering economic growth and encouraging foreign investment.

Navigating the complexities of employment visas and work permits in Hong Kong can be challenging, with stringent regulations and detailed requirements that must be met for successful applications. Our Employer of Record (EOR) solution streamlines this process, ensuring that all visa applications are handled efficiently and in full compliance with Hong Kong immigration laws. We take care of everything from documentation to approvals, enabling you to onboard international talent swiftly and smoothly without the usual hassles. Avoid the stress and potential delays—partner with us to ensure a smooth, compliant visa process.

Termination and Offboarding Procedure

In Hong Kong, offboarding and termination processes are governed by specific legal and contractual requirements to ensure smooth transitions and compliance with local regulations. For offboarding, which includes resignations and other employment transitions, employers must adhere to the notice period specified in the employment contract, typically one month. The offboarding process generally involves acknowledging the employee’s departure in writing, conducting an exit interview, arranging the return of company property, and settling any outstanding payments and benefits.

For termination, the procedure begins with providing the required notice period or payment in lieu of notice as stipulated in the contract or by statutory guidelines. Employers must issue a formal termination letter outlining the reasons for dismissal and ensure compliance with fair practice standards. The final settlement of salary, accrued leave, and any other entitlements must be managed promptly and accurately. Both offboarding and termination processes should be handled with careful attention to legal requirements and company policies to ensure a respectful and compliant conclusion of employment.

Navigating offboarding and termination procedures in Hong Kong requires careful attention to detail and a thorough understanding of local labor laws. An Employer of Record (EOR) like AYP can assist in managing these complex processes, ensuring that all terminations and transitions are handled smoothly and in full compliance with Hong Kong regulations. Let us take care of the legal intricacies so you can focus on your business.

Advantages of Using Employer of Record through AYP

Partnering with AYP’s Employer of Record Hong Kong provides significant benefits, especially when it comes to navigating the region’s employment laws and regulations. Our comprehensive service manages every aspect of employment—from payroll and benefits to tax compliance—protecting you from the complexities and potential risks associated with direct hiring.

With our HR expertise, your company can confidently navigate Hong Kong’s labor laws, ensuring full compliance with statutory requirements for wages, leave, and workplace safety. This proactive approach not only streamlines your administrative tasks but also safeguards you from costly penalties and legal disputes. By letting us handle these details, you can focus on what you do best: growing your business and achieving your strategic objectives. Allow us to be your trusted EOR Hong Kong partner in creating a seamless and compliant workplace!

FAQs

What is Employer of Record Hong Kong?

An Employer of Record (EOR) in Hong Kong simplifies hiring by assuming the legal responsibilities for employees within a company. This allows businesses to recruit in Hong Kong without needing to establish a new legal entity.

The cost of hiring employees in Hong Kong through EOR services typically ranges from USD 250 to USD 600 per employee per month.

Choosing an Employer of Record (EOR) in Hong Kong allows you to enter new markets and expand internationally with ease, focusing on your core business activities while outsourcing HR administration and compliance.

There are several EOR service providers in Hong Kong, including AYP. AYP offers comprehensive EOR solutions to help companies hire, manage, and pay employees while ensuring compliance with local regulations, with no hidden costs and peace of mind.

AYP’s onboarding process for employees in Hong Kong includes:

  • Conducting a detailed analysis of the client’s requirements
  • Performing a cost simulation for employee hiring
  • Applying for necessary work visas
  • Preparing the employment contract in compliance with local regulations
  • Enrolling employees in benefits programs
  • Sending a welcome email to new hires

Learn more about hiring in Hong Kong

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