Overview

Capital
Hong Kong
Currency
Hong Kong Dollar
Date Format
dd/mm/yyyy

Taxes

Employer

Employer Payroll Tax

5.0%
Mandatory Provident Fund (less than HK$7,100
5.0%
Mandatory Provident Fund (lHK$7,100 - 30,000)
HK$ 1,500 Max
Mandatory Provident Fund (lHK$30,000 +)
5.00% Total Employment Cost
Employee

Employee Payroll Taxes

0%
Mandatory Provident Fund (less than HK$7,000)
5.0%
Mandatory Provident Fund (lHK$7,100 - 30,000)
HK$ 1,500 Max
Mandatory Provident Fund (lHK$30,000 +)
5.00% Total Employee Cost

Employee Income Tax

2.00%
Up to $50,000
6.00%
50,000 - 100,000
10.00%
100,000 - 150,000
14.00%
150,000 - 200,000
17.00%
Over 200,000
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Belarus
Hong Kong
Cambodia
South Africa
Georgia
87.39%
44.5%
34%
5%
2.1%
2%
2%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Netherlands
Montenegro
Hong Kong
Georgia
Belarus
Ukraine
45%
27.65%
24%
5%
2%
1%
0%

Minimum Wage

General

The minimum wage is HK$37.50 hourly

Minimum wage (per month)
$2391
$2255.28
$1996
$774
$36.80
$22
$2.33
Luxembourg
Italy
Australia
Hong Kong
Angola
Uzbekistan
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

Employees are paid on monthly basis. The wages must be no later 7 days after they are due. The due date is decided between the employer and employee.

13th Salary

End of year payment (including double pay, 13th month payment, bonus) of a contractual nature. It applies to an employee employed under a continuous contract in accordance with a term of his contract (including agreement made orally or in writing, in express or implied term). It does not include any payment which is of a gratuitous nature or which is payable at the discretion of the employer.

Working Hours

General

There are generally no restrictions on working hours, except in relation to young persons (under 18 years of age) for whom the maximum working period is usually eight hours per day or 48 hours per week.

Rest Day: An employee employed under a continuous contract is entitled to no less than one rest day in every period of seven days. Whether rest day is paid or not is to be agreed by employers and employees. In general, the rest day is paid in Hong Kong

There are no special restrictions applicable to the working hours or rest breaks for shift workers.

All employees covered by the Employment Ordinance, irrespective of their hours of work, are entitled to basic protection under the Ordinance. Employees who are employed under a continuous contract by the same employer for four weeks or more, with at least 18 hours worked in each week are further entitled to additional benefits.

Overtime

Optional (as long as minimum wages are respected overall)

Leave

Paid Time Off

An employee is entitled to annual leave with pay after having been employed under a continuous contract for every 12 months. Annual leave entitlement increases progressively from 7 days to a maximum of 14 days according to years of service:

  • 1 year, 7 days leave
  • 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+, 14 days
Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Brazil
Peru
Georgia
Hong Kong
Mexico
Malaysia
Federal
30
13
43
30
12
42
24
17
41
7
12
19
6
8
14
8
6
14
10
10
Public Holidays

All employees are entitled to statutory holidays. Most employers however extend entitlement to all general holidays. There are 12 statutory holidays and 5 general holidays

Sick Days

Eligibility for sickness allowance by employer

An employee employed under a continuous contract is entitled to sickness allowance if (1)the sick leave taken is not less than four consecutive days and (2) sick leave is supported by an appropriate medical certificate and (3) the employee has accumulated sufficient number of paid sickness days

Accumulation of paid sickness days

An employee can accumulate paid sickness days after having been employed under a continuous contract. Paid sickness days are accumulated at the rate of two paid sickness days for each completed month during the first 12 months, and four paid sickness days for each completed month thereafter

Paid sickness days can be accumulated throughout the whole employment period but shall not exceed 120 days at any one time

Sickness allowance

The daily rate of sickness allowance is a sum equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the sickness day.

Maternity Leave

Length

14 weeks and can begin at any time between two and four weeks before the expected date of birth of the child.

Payment by employer

The employee is eligible for maternity leave pay if she has been employed under a continuous contract for not less than 40 weeks immediately before the commencement of scheduled maternity leave.

The daily rate of maternity leave pay is a sum equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the first day of maternity leave.

PAID MATERNITY LEAVE (DAYS)
410
365
365
98
45
30
0
Bulgaria
Serbia
Albania
Hong Kong
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

Length

Male employees are entitled to 5 days’ paternity leave

Payment by employer

The employee is eligible for paternity leave pay if he has been employed under a continuous contract for not less than 40 weeks immediately before the day of paternity leave

Payment by employer

The daily rate of paternity leave pay is a sum equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the day of paternity leave

Parental Leave

No statutory laws or regulations

Termination

Termination Process

A contract of employment may be terminated by the employer or employee through giving the other party due notice or payment in lieu of notice.

Statutory restrictions on termination

An employer shall not dismiss an employee under the following circumstances:

  • Maternity protection
  • Paid sick leave
  • Giving evidence or information to the authorities
  • Trade Union activities
  • Injury at Work
  • Employment protection

An employee may claim for remedies against an employer under the following situations:

  • Unreasonable dismissal
  • Unreasonable variation of the terms of the employment contract
  • Unreasonable and unlawful dismissal
Notice Period

During Probation Period

  1. Within first month: not required
  2. After first month where contract makes provision for required length of notice: as per agreement
  3. After first month where contract doesn’t make provision: not less than 7 days notice

For continuous contract / After probation period

  1. Where contract makes provision: as per agreement, no less than 7 days
  2. Where contract doesn’t make provision: not less than 1 month
Severance Pay

An employee is eligible for severance payment or long service payment subject to the following conditions

Severance Payment
Qualifying Period:
not less than 24 months under a continuous payment
Requirements:
a) employee is dismissed by reason of redundancy
b) Contract expires without being renewed by reason of redundancy
c) The employee is laid off

Long Service Payment
Qualifying Period:
not less than 5 years under a continuous contract

Requirements:
a) employee is dismissed but not due to serious misconduct
b) dismissal is not due to reason of redundancy
c) employment contract expired without being renewed
d) employee dies
e) employee reigns on ill health
f) employee resigns on grounds of old age

An employee will not be simultaneously entitled to both long service payment and severance payment

Amount of payment

(last month wages* x 2/3)# x reckonable years of services

* An employee may also elect to use his average wages in the 12 months immediately preceding the termination of employment contract

# The sum should not exceed 2/3 of HK$ 22,500 (i.e. HK$ 15,000)

Maximum Amount

The maximum amount of severance payment or long service payment is HK$ 390,000

VAT

General

VAT is 0%

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