Hong Kong

Employer of Record (EOR) in Hong Kong

Only 299 EUR per employee per month

Rivermate's Employer of Record (EOR) solution helps companies hire remote employees in Hong Kong . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our Employer of Record (EOR) solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Hong Kong.

Employer of Record people
A coin
Currency
Hong Kong Dollar
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Capital
-
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Region
Asia
Megaphone
Language
Chinese
Hire remote employees
Population
7496981
A pile of gold
GDP
$341 billion
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GDP growth
0.0379
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Ease of doing business
Planet earth
World GDP share
0.0042

1. Grow your team in Hong Kong with Rivermate as your Employer of Record (EOR) / PEO

Payroll, benefits, taxes, and compliance can be difficult to manage in Hong Kong , particularly if you don't have established local relationships. You can hire employees in Hong Kong effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Summary

Hong Kong, formally the Hong Kong Special Administrative Territory of the People's Republic of China (HKSAR), is a Chinese city and special administrative region in South China's Pearl River Delta. Hong Kong is one of the most densely populated locations in the world, with 7.5 million citizens of diverse nationalities living in a 1,104-square-kilometer (426-square-mile) area. Hong Kong is also one of the world's three major financial centers and one of the most developed cities.

Hong Kong became a British Empire territory when the Qing Empire surrendered Hong Kong Island to Xin'an County at the conclusion of the First Opium War in 1841, then again in 1842. Following the Second Opium War, the colony was expanded to the Kowloon Peninsula in 1860 and was further extended when Britain won a 99-year lease of the New Territories in 1898. During World War II, Imperial Japan controlled British Hong Kong from 1941 to 1945; British rule was restored after Japan's defeat. In 1997, China took over the whole area. Hong Kong, one of China's two special administrative areas (the other being Macau), maintains distinct governance and economic systems from mainland China in accordance with the premise of "one nation, two systems."

Originally a thinly inhabited region of agricultural and fishing towns, the territory has grown to become one of the world's most important financial and commercial hubs. It is the tenth-largest exporter and ninth-largest importer in the world. Hong Kong has a large capitalist service economy with minimal taxes and free trade, and its currency, the Hong Kong dollar, is the world's eighth most traded currency. Hong Kong has the world's third-highest concentration of billionaires, the second-highest concentration of billionaires in Asia, and the world's greatest concentration of ultra-high-net-worth people. Despite having one of the greatest per capita incomes in the world, the city has considerable income disparity among its residents.

Hong Kong is a developed territory that ranks fourth on the United Nations Human Development Index. The metropolis boasts the most skyscrapers of any city in the world, and its citizens enjoy among of the world's greatest life expectancies. The dense population has resulted in a highly developed transportation network, with public transit rates reaching 90%. The Global Financial Centres Index places Hong Kong third.

Hiring talented employees in a short span is not an easy task. Partnering with an Employer of Record (EOR) like Rivermate in Hong Kong is your best option, giving your organization enough time to focus on other aspects of international expansions like project management and inventory management. The EOR takes care of all the compliance and legal issues while helping you speed up hiring using their knowledge of domestic employment practices and virtual onboarding tools. Top EORs also have provisions for the e-signing of documents to enable faster onboarding.

3. Public holidays

4. Types of leave

There is no information about the types of leave for this country.

Paid time off

Every 12 months, an employee is entitled to paid annual leave if they have been working on a continuous contract. According to years of service, annual leave allowance grows from 7 days to a limit of 14 days:

1 year – 7 days

2 years – 7 days

3 years – 8 days

4 years – 9 days

5 years – 10 days

6 years – 11 days

7 years – 12 days

8 years – 13 days

9+ years – 14 days

Public holidays

Statutory vacations are available to all staff. Most bosses, on the other hand, offer employees access to all general holidays. There are 12 formal holidays and 5 non-statutory holidays in the year.

Sick days

Employees with a fixed contract have the right to paid sick leave. Employees are entitled to two paid sick days per month for the first 12 months of work, rising to four paid sick days per month after one year of service.

Sick pay is determined at 80% of the average daily wages in the previous 12-month period, prior to the first day of illness. If the employee has been with the company for less than a year, the computation is based on the employee's average earnings since the start date of employment.

Employees can accrue sick days for the duration of their employment, up to a maximum of 120 days at any given time.

Maternity leave

A pregnant employee is entitled to 14 weeks of maternity leave, which may be extended to 18 weeks for complex or multiple deliveries provided the employee has been working under a continuous contract for at least 40 weeks before to the start of planned maternity leave. Maternity leave should begin two to four weeks before the due date.

The employer pays the maternity payment based on a four-fifths calculation of their average daily income (from the previous 12-month period, up to a maximum of 80,000 HKD) and is repaid by the government.

Paternity leave

If a new father has been working under a continuous contract for at least 40 weeks prior to the first day of paternity leave, he is entitled to 5 days of paid paternity leave.

Prior to the first day of paternity leave, pay is determined as 80% of the average daily earnings in the previous 12-month period. If you have worked for less than a year, the computation is based on the shorter term. Non-working times, such as statutory vacations, annual leave, or sick leave, must be excluded from the computation.

Parental leave

There are currently no statutory laws or regulations regarding parental leave in Hong Kong.

Other leave

5. Employment termination

There is no information about employment information for this country.

Termination process

Employers or employees may terminate an employment contract by providing the other party with reasonable notice or money in lieu of notice.

Employers are not permitted to discharge an employee for the following reasons: maternity protection, paid sick leave, providing evidence or information to authorities, trade union activity, workplace injury, or employment protection.

Unreasonable dismissal, unreasonable change of the terms of the employment contract, and unreasonable and unlawful dismissal are all scenarios in which an employee may seek redress against an employer.

Notice period

The employer is not required to provide any notification to the employee during the first month of the probation period. The notice time is determined by an agreement between the employer and the employee after the first month, when the contract specifies the appropriate length of notice. After the first month, if the contract does not provide for it, the notice period should not be shorter than seven days. If the contract provides for a notice term of no less than 7 days after the employee's probation period, the notice period should be at least one month. If the contract does not provide for a notice period, the notice period should be at least one month.

Probation period

There is no statutory probationary period in Hong Kong.

Severance pay

Employees who meet the following criteria are eligible for severance pay or long service pay. The qualifying term for severance payments cannot be shorter than 24 months under a continuous payment. Severance payment criteria include the following: the basis for dismissal must be redundancy, the contract must end without renewal due to redundancy, and the employee is laid off. Additionally, the long service reward has a qualifying period of not less than five years on a continuous contract.


The following conditions apply to the long service payment: employee is terminated but not for serious misconduct; employee is terminated but not for redundancy; employee's employment contract expires without being renewed; employee dies; employee resigns due to ill health; and employee resigns due to old age. Employees will not be entitled to both long service and severance pay concurrently. The payout amount is determined by increasing the previous month's salary by two-thirds and then multiplying the result by the reckonable years of service. Additionally, an employee may elect to utilize his or her average wage for the twelve months preceding the termination of employment contract. The total amount should not exceed two-thirds of 22,500 Hong Kong dollars, or just 15,000. The maximum sum payable as severance or lengthy service is HK$ 390,000.

6. Working hours

There is no information about the working hours for this country.

General working schedule

In Hong Kong, there are no set working hours, and the number of hours worked by an employee varies according to position and industry. Employees, on the other hand, frequently work 44 hours per week. The employment contract should specify the number of working hours and days, as well as rest periods and overtime.

A continuous contract employee is entitled to at least one rest day every seven days. Employers and employees must agree on whether or not to pay for rest days. In general, Hong Kong pays for rest days.

There are no special restrictions on shift workers' working hours or rest breaks.

Regardless of their work hours, all employees covered by the Employment Ordinance are entitled to basic protection under the Ordinance. Employees who work for the same employer on a continuous contract for four weeks or more and work at least 18 hours per week are also entitled to additional benefits.

Overtime

Overtime work in Hong Kong is optional.

7. Minimum wage

There is no information about the minimum wage for this country.

The minimum wage in Hong Kong is set at 37.50 Hong Kong Dollars per hour.

8. Employee benefits

There is no information about the employee benefits for this country.

Hong Kong's health-care system is a mix of public and private providers. All Hong Kong residents have access to the public health-care system, and neither insurance nor payroll deductions are required. The public system offers excellent coverage at a low cost, but there are frequently long waits and few English-speaking providers.

Employees are frequently provided with health and life insurance as a supplemental benefit. Most executives request additional health and life insurance; smaller businesses may provide a stipend in lieu of arranging insurance.

9. Taxes

There is no information about the taxes for this country.

Corporate tax

Companies in Hong Kong are imposed a corporate tax rate that varies depending on the profit earned. A company with profits of more than 2 million Hong Kong dollars are imposed a 16.5 percent corporate tax rate. A company with profits less than 2 million Hong Kong dollars are imposed an 8.25 percent corporate tax rate.

Individual income tax

Unlike other nations, which utilize both residential and territorial jurisdiction to determine a person's tax obligation, Hong Kong solely employs territorial source jurisdiction and disregards the notion of residency. Thus, only earnings earned in Hong Kong are taxed, while a person's foreign income is not. Non-residents will be taxed on certain types of global considered trade receipts as an exemption.

Wages and income from work are subject to taxation. Generally, taxable persons in Hong Kong are imposed an income tax rate between 0 and 15 percent. The actual percentage depends on the income bracket the taxable person belongs to.

VAT, GST and sales tax

Hong Kong does not impose a value-added tax (VAT) or a goods and sales tax (GST).

10. VISA and work permits

There is no information about VISA and work permits for this country.

Before visiting Hong Kong to work, foreign people are usually required to get a visa. The employment visa application must be supported by a local sponsor, who is generally the employing firm.

According to the current immigration regulation, a person wishing to enter Hong Kong for work must have a specific skill, knowledge, or valuable experience that is not widely accessible in Hong Kong.

Applicants seeking a Hong Kong working visa must have a graduate degree unless they have significant expertise in a specialized area or relevant experience in the job they are looking for.

Dependant visas are required if the person's spouse and dependent family decide to migrate to Hong Kong. A spouse entering Hong Kong on a dependant visa may now work in Hong Kong and does not need a separate employment visa if they want to work there.

11. Employer Of Record service terms

There is no information about the Employer of Record (EoR) service terms for this country.

Employment contracts

The name of the employer and employee

Location of the employer and where the work is to be performed

The amount of salary, payment intervals and any bonuses

Vacation and other leave entitlements

Duration of contract (if for a fixed term)

Probation period (if applicable)

With Rivermate being your Employer of Record (EoR) in Hong Kong, you do not have to worry about the employment contracts, as we take care of that.

Minimum assignment length

There is no set length for assignments. This is usually indicated in the employment contract for fixed-term employments.

Payment currency

Chinese Yuan Renminbi (CNY)

Hong Kong Dollar (HKD)

Euro (EUR)

United States Dollar (USD)

13.Opening a subsidiary in Hong Kong

There is no information about the working hours for this country.

How to set up a subsidiary

When establishing a business in Hong Kong, you have three options: a representative office, a branch office, or a registered subsidiary company. All three demand that your firm have at least one permanent resident in Hong Kong to represent it. Setting up a Hong Kong subsidiary often takes longer than setting up a representative or branch office, but it enables you to gain tax advantages and other trading possibilities that the other two alternatives do not provide.

Preparing a signed and completed application form is the first step in registering a subsidiary. You'll also need incorporation paperwork, the memorandum of your parent business, articles of association, and a certificate of incorporation. Identification credentials, evidence of domicile, and a bank letter are also required in Hong Kong for people functioning as your company's officers.

Fees are often included in Hong Kong subsidiary legislation. You'll have to pay a registration and capital charge up front before getting your certificate of incorporation, which will arrive in four to seven days. You must next apply to the Inland Revenue Department for a business registration certificate. You may need to apply for extra licenses depending on your sector.

Subsidiary laws

Subsidiaries are considered as independent legal entities from their parent businesses and function as private limited liability firms. As a result, the parent company is not accountable for whatever the subsidiary business conducts under Hong Kong subsidiary legislation.

Your Hong Kong subsidiary is completely independent of your parent firm in the United States. You will not only be responsible for any compensation difficulties, but you will also work under various managerial elements that match the culture and will handle your own accounts while dealing with any compensation issues, litigation, or benefits management.

The regulations also stipulate that you may use the same name as your parent firm, or you may use a different name and describe distinct operations. The subsidiary name, however, must be authorized by the Companies Registry. Other regulations for Hong Kong subsidiaries include:

1. You must have at least one director.

2. Every subsidiary must have at least one stakeholder and no more than 50 shareholders.

3. You need the services of a corporate secretary.

4. The subsidiary must have an auditor who is a member of the Hong Kong Society of Accountants and has a practice certificate.

13. Why choose Rivermate as your Employer of Record / PEO in Hong Kong

Establishing an entity in Hong Kong to hire a team takes time, money, and effort. The labor law in Hong Kong has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into Hong Kong simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in Hong Kong give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in Hong Kong via our Employer of Record (EOR) / PEO solution.

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