Economic Overview, Global Financial Super-Connector & GBA Gateway
Hong Kong is the world's top wealth management and IPO hub, providing free capital flow, common law certainty, and direct access to the Greater Bay Area.
Key Economic Sectors
- Banking & Financial Markets: Global investment banking, asset management, hedge funds, and insurance.
- FinTech & Virtual Assets: Licensed cryptocurrency exchanges, digital banking, and cross-border payment tech (Cyberport & HKSTP).
- Logistics & Regional Headquarters: World-leading air cargo hub (HKIA) and corporate headquarters for multinational enterprises.
Employment Contracts, Employment Ordinance (Cap. 57) & Probation
Regulated by the Employment Ordinance (Cap. 57).
- Contract Types: Continuous Contract of Employment ("418 Rule" – working 18+ hours per week for 4+ consecutive weeks).
- Probation Period: Typically 3 to 6 months. During the 1st month of probation, either party may terminate without notice; after the 1st month, notice must be at least 7 days.
Working Hours, Overtime & Rest Days
- Standard Hours: 40 to 48 hours per week (typically 40–44 hours/week).
- Rest Days: At least 1 continuous rest day in every period of 7 days.
Annual Leave, General Holidays & Maternity Protections
- Annual Paid Vacation: Statutory minimum scales from 7 working days (year 1) up to 14 working days (year 9+), with 15 to 20 working days being standard commercial practice in professional sectors.
- General Holidays: 17 statutory and general public holidays.
- Maternity Leave: 14 weeks paid maternity leave (paid at 80% of average daily wages, with employer eligible for government reimbursement up to HKD $80,000).
- Paternity Leave: 5 working days paid paternity leave.
Mandatory Provident Fund (MPF), ECI Insurance & Low Tax
Mandatory Provident Fund (MPF)
| Statutory Scheme | Employer Share | Employee Share | Description |
|---|---|---|---|
| Mandatory Provident Fund (MPF) | 5.0% | 5.0% | Capped at HKD $1,500/mo each (for salary >= HKD 30,000) |
| Employees' Compensation Insurance (ECI) | Policy premium | 0.0% | Mandatory employer workplace liability policy |
Salaries Tax: Progressive rates (2% to 17%) or a flat standard rate of 15.0% maximum on net income.
Termination, Notice & Severance / Long Service Payment
- Notice Periods: 7 days to 1 month (or payment in lieu) as specified in contract.
- Severance Payment (SP) / Long Service Payment (LSP): Calculated as 2/3 of the last monthly salary per year of service (capped at HKD $390,000 total).
Why Use an Employer of Record (EOR) in Hong Kong
- Fast Market Entry: Onboard finance professionals and software engineers in days.
- MPF & ECI Compliance: Automated management of MPF trustee accounts, IRD tax returns, and mandatory ECI insurance.
- Employment Visa (GEP / Top Talent Pass) Sponsorship: EOR manages Immigration Department visa sponsorships for international specialists.
