Global coverage
Available in +150 countries
Employer costs, taxes, minimum wage and leave rules for hiring here, plus the faster route: hire a contractor with Ontop, no local entity needed.
2026
Currency
HKD $ (Hong Kong Dollar)
Employer contributions
5% MPF employer (capped at HKD 1,500/month)
Minimum wage
HKD 40/hour (Statutory Minimum Wage 2024)
Payment frequency
Monthly
April 1 - March 31 (Salaries Tax year)
Capital
Hong Kong
Timezone
HKT (GMT+8)
Employee or contractor
If the work is project-based or you need to move fast, a contractor gets you the same talent with a fraction of the paperwork.
Employee
~HKD 31,500 total
/month
For a gross salary of
HKD 30,000 gross/month
Setup
Local entity or employer of record, plus tax and social security registration
Employer contributions
5% MPF employer (capped at HKD 1,500/month)
Mandatory extras
Discretionary Bonus
Monthly admin
Monthly payroll - MPF by 10th - Salaries Tax withholding - IR56B annual April
Contractor with Ontop
No local entity
$49
/contractor/month
The agreed rate, plus Ontop from $49 per contractor per month.
Sign a contract, yours or an Ontop template. No local registration on your side.
No employer contributions: the contractor handles their own taxes and social security.
One payment per invoice, in one payroll run.
Paid into their Ontop Global Account in USD.
See the full side-by-side comparison
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A contractor's rate usually covers their own taxes, so compare total cost, not just gross pay. Run your numbers in the contractor vs employee calculator.
Hiring here: the full breakdown
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Payroll guide
Employer costs come on top of gross pay. Use these figures to budget a hire and to compare it with a contractor rate.
Total monthly cost
~HKD 31,500 total
Example gross salary
HKD 30,000 gross/month
~HKD 24,100 net
Net pay to the employee
Tax and employee contributions
Withheld from gross pay
~HKD 1,500 MPF
Employer contributions on that salary
Employer contributions
5% MPF employer (capped at HKD 1,500/month)
Employee contributions
5% MPF employee + salaries tax
Total cost above gross
~5% above gross (MPF)
Figures are estimates for planning. Rates change with each budget and can vary by sector, so confirm them before you make an offer.
What people earn here, from the legal floor to the main cities, plus the extra pay most employers budget for.
National average
~HKD 30,000
Per month
Hong Kong Central
HKD 30,000 - 80,000
~30%
Kowloon
HKD 25,000 - 65,000
~15%
Monthly gross. National average salary per year:
~HKD 360,000
Minimum wage
HKD 40/hour (Statutory Minimum Wage 2024)
Paid:
Hourly
Extra pay
Discretionary Bonus
Common in finance; often 1-3 months
December/January
Collective agreements can set sector minimums above the national one. Check whether one applies to the role before you set the salary. Next step: estimate the full cost of an employee.
Who collects what, how often, and what happens when a payment is late.
Income tax brackets
2% up to HKD 50,000 / 6% / 10% / 14% / 17% (or 15% standard rate)
Tax year:
April 1 - March 31 (Salaries Tax year)
Filing calendar
Monthly MPF contributions by 10th of following month
Social security payments
April 30 (BIR60 individual return)
Income tax
By April 1
Employee tax certificate
Employer's Return of Remuneration (IR56B)
April 30
Annual return
Salaries Tax Return (BIR60)
Late payment penalties
Late MPF: HKD 5,000 fine per late contribution; late Salaries Tax: 5% surcharge + interest
Who collects what
Inland Revenue Department (IRD)
Salaries tax
MPFA (Mandatory Provident Fund Schemes Authority)
MPF compliance
Labour Department
Employment Ordinance enforcement
The time off and paid leave every employee is entitled to by law. Budget for it when you compare an employee with a contractor.
Annual leave
Annual Leave
7-14 days (scaling with tenure after year 1)
Public holidays
~17 public holidays
Sick leave
Sick Leave (Sickness Allowance)
4/5 of daily wages for each sick day (after 4 days)
Maternity leave
10 weeks (14 weeks with 4/5 pay from employer)
4/5 wages from employer
The contracts you can use, and what ending an employment relationship costs.
Permanent
Permanent Employment Contract
Fixed term
Fixed-Term Contract
Independent contractor
Self-Employed Person
Collective agreements
No general CBA (some sector agreements)
Ending employment
Long Service Payment / Severance Payment
How it is calculated
2/3 month per year (capped at 2/3 x HKD 22,500)
Calling someone a contractor does not make them one. If the role works like employment in practice, local authorities can reclassify it, with back contributions and penalties.
The errors that most often trigger back payments and penalties here, and what to do instead.
MPF Offsetting Arrangement Phase-Out
Risk Level: HIGH
Hong Kong abolished the MPF offsetting arrangement in May 2025. Employers can no longer use employees' MPF accruals to offset severance or long service payments. Employers must now fund severance separately. Many companies have not updated their financial provisioning for this change.
Continuous Contract Threshold Miscalculation
Risk Level: HIGH
Employees working 18+ hours per week for 4+ consecutive weeks qualify as continuous contract employees with full Employment Ordinance rights including paid leave, sick leave, and MPF. Misclassifying part-time workers as below the threshold to avoid these obligations is a Labour Department enforcement priority.
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Next topicOntop is the Global Workforce Engine for contractor teams: contracts, compliance documents and payments in 150+ countries.
150+
countries
$49
per contractor per month
1 run
to pay your whole team
USD
Global Account for every contractor
FAQ
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Ontop works with contractors, not employees. As Contractor of Record, Ontop handles contracts, compliance documents and payments for contractors in 150+ countries. To employ someone, you need a local entity or an employer of record. Ontop doesn't act as your employer of record.
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Employers pay contributions on top of gross salary. The cost table on this page shows the rates that apply here and a worked monthly example. A contractor with Ontop costs the agreed rate plus Ontop from $49 per contractor per month.
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Many countries require an extra month or an annual bonus for employees. The salaries section on this page shows the one that applies here and when it is usually paid. Contractors are paid what you agree in the contract.
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Employers withhold income tax and the employee's social security share every pay run, then pay them to the local authorities. The taxes section on this page lists the brackets, rates and filing deadlines that apply here.
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Yes. The contractor vs employee calculator compares the full cost of an employee, employer contributions included, with a contractor rate plus Ontop's monthly fee.
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When the work is project-based, you need to start fast or you don't have a local entity. If the person will work fixed hours, under your direction and only for you, local law may treat them as an employee, so hire them as one.
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Misclassifying employees as contractors, missing tax and social security deadlines, and ignoring collective agreements that set higher wage floors. The mistakes section on this page covers the ones that come up most often here.
Compare employer costs, taxes and contractor rules in nearby countries:
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.
Ready to hire? See Ontop pricing or learn how to build a global team without an employer of record.