Planning to hire in Hong Kong? Here’s a quick guide

Hong Kong is a great choice of location for U.S. businesses looking to expand their international workforce. The country is widely known as a global financial hub, and boasts a highly-skilled labor market along with excellent legal protection for businesses.

If you’re an employer looking to hire in Hong Kong, it’s important that you understand and comply with local labor and employment legislation. This guide covers the legal considerations for recruitment in Hong Kong, as well as how an Employer of Record (EOR) like Payoneer Workforce Management can help you hire employees in Hong Kong.

How to hire employees in Hong Kong: Options for U.S. companies

American companies hiring in Hong Kong can choose to set up a local entity, hire contractors, or partner with an EOR.

1) Set up a legal entity in Hong Kong

If you’re already an established business, you may decide to set up a local entity in Hong Kong. 

When you register your business within the country, you can hire employees in Hong Kong directly. Payroll, taxes, and benefits schemes can also be efficiently managed within the country. This is a good option if you’re planning to hire extensively within Hong Kong, but it’s likely to be time-consuming and expensive. It’s therefore not the best choice if you’re looking to hire quickly and flexibly in Hong Kong.

2) Hire contractors in Hong Kong

You may also choose to hire contractors in Hong Kong. This is a flexible solution that allows you to benefit from Hong Kong’s skilled workforce, without needing to fully onboard employees to your company. It’s also a good choice if you are looking for affordable support for a limited-scope project.

But this method does involve unique legal risks. If your contractor begins to work like an employee, your company may face misclassification fines and penalties.

3) Use an Employer of Record

A Hong Kong EOR is a third-party entity that acts as the legal employer to your employees based in Hong Kong. This means they take care of the entire recruitment process, including onboarding employees, managing payroll and taxes, and staying compliant with local labor legislation. 

EORs offer a flexible and efficient solution for hiring employees in Hong Kong. They help streamline the process without setting up a local entity.

Find out more about using an Employer of Record in Hong Kong.

Where to find employees in Hong Kong

There are a number of methods for advertising jobs in Hong Kong. Here are some of the best ways to find your next remote talent.

Popular job boards in Hong Kong

Some of the most popular places to advertise jobs in Hong Kong include:

• LinkedIn: LinkedIn is one of the top platforms for hiring professionals in Hong Kong. Employers can post one job ad for free at a time.
• Indeed Hong Kong: Indeed allows employers to post job adverts for free. It’s a good choice if you’re looking to recruit for an entry or mid-level role.
• JobsDB Hong Kong: JobsDB is one of the most popular places to hire in Hong Kong. It’s a paid platform that connects you with top talent.
• CP Jobs: This paid job site is run by the South China Morning Post and is a reputable and popular job site. It’s a great choice if you’re recruiting in industries such as professional services, media, education, and finance.

Work with local recruitment agencies

You can also find employees in Hong Kong by working with a local recruitment agency.

Recruitment agencies help you source potential candidates quickly and effectively, which makes them a great choice if you’re looking to speed up the recruitment process. This is also a good option if you’d like to reduce any potential language barriers when advertising your role.

It’s important to keep in mind that using a recruitment agency may be costly.

Recruit with an EOR’s support

If you’d like support with the intricacies of recruitment in Hong Kong, an EOR may be able to help.

When you work with an EOR like Payoneer Workforce Management, you may get assistance with talent discovery as an additional service. This means you’re involved with the job advertisement specifications, as well as the final candidate selection. However, the EOR handles the trickier side of hiring employees in Hong Kong, like the onboarding process, the employment contract, benefits schemes, and payroll, and helps you to stay compliant with all local labor and employment laws.

Onboarding employees in Hong Kong

Here are some key steps to follow when onboarding an employee in Hong Kong.

• Obtain required documents: Make sure you’ve obtained a copy of the employee’s educational certificates if they’re required for the role. You’ll also need to gather details that are necessary for payroll, such as the employee’s address and bank details.
• Set up payroll, benefits, and leave systems: Before the employee starts work, make sure they’re set up on your company’s payroll, benefits, and leave systems, including the Mandatory Provident Fund (MPF) scheme. You’ll want to avoid any unnecessary delays, so make sure you do this as early as you can in the onboarding process.
• Share cultural tips: Send your new employee a welcome email on their first day. This is a great opportunity to introduce the team and help the new employee understand your company culture.
• Share bilingual materials and training: Hong Kong is a bilingual city, so it’s customary to provide any handbooks and training materials in both English and Chinese.

If you’re looking for support with streamlining your onboarding process when hiring in Hong Kong, Payoneer Workforce Management can help.

Key employment laws and requirements in Hong Kong

It’s crucial that you comply with local employment legislation when hiring in Hong Kong. Here are the key employment laws and requirements that affect Hong Kong employers.

Employment contracts

Employment contracts in Hong Kong are a legally binding agreement and must therefore include essential information as dictated by local legislation. Every employment contract in Hong Kong must include the following:

• Wage information, including overtime rate
• Wage period
• Notice period required in the event of employment termination
• End-of-year payment and the payment period (if the employee is entitled to one)

Employee benefits

Employees in Hong Kong are entitled to paid leave for vacation leave, parental leave, sick pay, and more. Some of the key leave policies in Hong Kong include:

• Vacation leave: Any employee in Hong Kong who has worked for 12 months under a continuous contract is entitled to 7 days of vacation per year. After 3 years of service, this allowance increases by 1 day for each extra year worked, up to 14 days.
• Public holidays: There are currently 14 statutory public holidays in Hong Kong, though 3 additional statutory holidays will be added from 2026 onwards.
• Maternity leave: If an employee has worked for 40 weeks or more under a continuous contract, they are entitled to 14 weeks of paid maternity leave.
• Sick leave: Hong Kong employees working under a continuous contract are entitled to paid sick leave, paid at 80% of their normal salary.

Working hours and overtime

In Hong Kong, there is no limit to the maximum number of hours an employee can work in a given week. This is usually defined in the employment contract. However, all employees in Hong Kong are entitled to 1 rest day per week.

A research study was carried out to recommend a working hours policy, but as of 2025, no legal policy has been written.

Income tax

Hong Kong employers are not responsible for withholding income tax. Instead, employees are sent a tax return from the Inland Revenue Department. They must then complete the tax return and return it by the due date.

In Hong Kong, net chargeable income is subject to progressive tax rates. These rates vary between 2% and 17%, depending on the net chargeable income. Alternatively, employees can choose to apply a flat 15% rate on their net income, before deduction of allowances. This gives employees in Hong Kong the ability to choose the option that is more favorable for their income.

Mandatory Provident Fund (MPF)

The Mandatory Provident Fund (MPF) is a mandatory retirement savings scheme in Hong Kong that has been in place since 2000. Both the employer’s and the employee’s contributions vary based on the employee’s income. 

Monthly relevant income	Employer’s contribution	Employee’s contribution
Less than HKD 7,100	Relevant income x 5%	No contribution is required
HKD 7,100 to HKD 30,000	Relevant income x 5%	Relevant income x 5%
More than HKD 30,000	HKD 1,500	HKD 1,500

Termination and severance

An employer can legally terminate employment in Hong Kong in one of two ways.

1. In cases of gross misconduct or fraud, an employee may be dismissed without notice or pay. 
2. However, if the employer needs to make the employee redundant, and they have already passed their probation period, the employer must give at least 7 days’ notice. In this situation, the employee may also be eligible for severance pay and/or long service payment.

Payoneer Workforce Management helps hire employees in Hong Kong

If you’re a U.S. business looking to hire in Hong Kong, it’s important to know where to find highly skilled candidates and how to stay compliant with local labor laws.

If you’re finding it difficult to understand the intricacies of Hong Kong employment laws, an EOR like Payoneer Workforce Management may offer support. 

Payoneer Workforce Management supports your company with employing independent contractors and full-time employees in 160+ countries, including Hong Kong, without the complexities of setting up a local legal entity. 

From onboarding new hires quickly and compliantly to running global payroll securely in a few clicks, our unified platform helps businesses hire, pay, and manage a global team.

Book a demo today.

FAQs

1) Can a U.S. company employ someone living in Hong Kong?

Yes, a U.S. business can hire someone living in Hong Kong. This process does come with some challenges, such as compliance with local labor and employment laws. An EOR may support your business with this.

2) How do I hire Hong Kong talent for a U.S. company?

If you’re a U.S. employer wondering how to hire employees in Hong Kong, there are a few options to choose from. The three main methods are setting up a legal entity, hiring contractors, or working with an EOR.

3) How can an EOR help American companies hiring in Hong Kong?

An EOR will support your business with the recruitment and onboarding process. This includes managing contracts, payroll, taxes, and more.