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Overview
Hong Kong dollar (HKD)
CURRENCY
Victoria
CAPITAL
monthly
PAYROLL FRECUENCY
20
PUBLIC HOLIDAYS
0 to 5.00
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Hong Kong
Employer
Company Payroll Contributions
**For earnings over HKD 30,001.00 it will be 5% + HKD1500.00
0% - 5.00%
Mandatory Provident Fund (MPF) (Maximum taxable income is HKD 30,000.00)
0% - 5%
Total Employment Cost
Employee
Worker Payroll Contributions
**For earnings over HKD 30,001.00 it will be 5% + HKD1500.00
0%- 5.00%
Provident Fund (MPF) (taxable income from HKD 7,000.00 to HKD 30,000.00)
0% - 5%
Total Employee Cost
Employee Income Tax in Hong Kong
2.00%
Up to HKD50,000.00
6.00%
HKD50,001.00 – HKD100,000.00
10.00%
HKD100,001.00 – HKD150,000.00
14.00%
HKD150,00.00 – HKD200,000.00
17.00%
HKD200,001.00 and up
Payroll Contributions in Hong Kong
Payroll Cycle
With the Employer of record in Hong Kong you can meet the monthly payroll cycle, with payments on the last of each month.
13th Salary
Hong Kong employees receive a 13th-month pay which commonly falls on Lunar New Year or at the end of the year.
Employee Benefit in Hong Kong
Visa and work permit in Hong Kong
Contractor management services can arrange the visas that foreign nationals need to enter Hong Kong. In addition, a foreigner needs a local sponsor to obtain a work visa. Also, immigration policy states that to enter Hong Kong, you must have a particular skill, knowledge, or experience. In this case, these abilities should not be readily available locally.
People wishing to apply for a Hong Kong work visa need the following:
- A postgraduate degree, extensive experience in a specialized field, or relevant experience in the field of application.
On the other hand, if the family or the spouse of the applicant wants to move to Hong Kong, they will need dependent visas. In addition, a spouse entering on a dependent visa will be able to work in Hong Kong. Thus, now the spouses do not need a separate work visa to work there.
VAT in Hong Kong
In Hong Kong, the standard VAT rate is 0%.
Working Hours in Hong Kong
General
Chinese employees commonly work from 9 am to 6 pm. Also, there is no legal requirement about maximum working hours, only for young people working in industries. In this case, young people comprise people between the ages of 15 and 18.
Thus, the working hours for them are limited to 8, between 7 am and 7 pm. In addition, the limit of weekly hours is 48.
Overtime
Employment laws do not establish payment for overtime but work contracts and collective agreements do.
Working Week
Monday to Saturday.
Employee Termination in Hong Kong
Termination Process
Properly manage the dismissal process with an Employer of Record in Hong Kong. Thus, this process is standard and the labor law establishes the requirements for it. However, an employer can fire an employee without notice for sufficient cause, such as misconduct and more.
However, notices of termination must be given in writing and forwarded to the appropriate authorities.
Notice Period
Although employers can set longer notice periods, in Hong Kong it is generally 30 days.
Severance Pay
Severance pay is mandatory and is determined by the work contract and length of service. In addition, you can calculate this payment with the EOR services and according to the Employment Ordinance (Cap. 57). Typically, this payment is for employees with a minimum of 2 years of service and who have not resigned or been summarily terminated.
In addition, this payment consists of 2/3 of the common monthly salary or 2/3 of HKD 22,500, whichever is less, per year of service. However, this final sum cannot exceed HKD 390,000.
Probation Period
The probationary period in Hong Kong for permanent employees is between one week and one month. However, the work contract must specify this time.
Employee Leaves in Hong Kong
Paid Time Offs
Workers with at least 3 months of service are entitled to 7 days of paid annual vacation. Additionally, this leave increases by 1 day for each additional year of service until they reach a maximum of 14 days in the ninth year.
Public Holidays
There are 20 national holidays throughout the year.
Vacation Holidays
There are 7 vacation holidays throughout the year.
Sick Days
The Employer of Record in Hong Kong manages the right of workers to paid sick leave. Thus, employees with at least 12 months of work are entitled to 2 days of leave for each month. In addition, they increase to 4 days of sick leave after 1 year of service with the company.
Thus, the payment is 80% of the average daily salary of the last year before the first day of sickness. However, if the employee has less than 12 months on the job, the calculation consists of the average salary from the start date.
Additionally, employees may accumulate sick days not taken during their service up to a maximum of 120 days.
Paternity Leave
In Hong Kong, new fathers are entitled to 5 days of paid paternity leave but only if they have been employed for 40 weeks.
PEO services can calculate the payment based on 80% of the regular salary of the worker in the previous 12 months. However, if the service time is less than 12 months, the calculation is made based on the shorter period. Also, this calculation does not include non-working periods, including vacations, or sick leave.
Paternal Leave
Chinese laws do not provide for parental leave.
Other Leave
Other licenses include:
- Private health insurance
- Bonuses
- Additional annual leave
- Housing allowance
- Company car
- Holiday Travel Allowance (Holiday Allowance)
- Stock options
Maternity Leave in Hong Kong
Employees are entitled to receive 14 days of maternity leave, which can be increased to 18 for complicated or multiple births. However, you can only receive the leave if you have been under a continuous contract for more than 40 weeks before the start of the leave. Additionally, the leave must begin 2-4 weeks before the due date.
An Employer of Record in Hong Kong can make the payment for this maternity leave. In this case, it consists of 4/5 parts of the average daily salary during the last 12 months up to a maximum of 80,000 HKD. However, the employer receives reimbursement from the government.
There are 98 leave throughout the year.