Hong Kong

Contract Types 

In Hong Kong, employment contracts can be Fixed Term or Indefinite.

Probation          

Probation is typically 1 to 3 months but can be 6 months or longer.

Working Hours 

Working hours are between 40 and 48 per week. Employment contracts will lay down the terms for working hours as there is no statutory maximum. There is also no statutory requirement to pay overtime, but it would be usual for overtime to be paid in accordance with the contract terms.

Other

There is no mandatory requirement for a 13th month salary but a bonus before Chinese New Year is often given.

Tax rates valid for 2025

Corporation Tax              

16.5%

Employers’ Costs            

5% Mandatory Provident Fund

c.2% employment insurance

Employees’ Cost

5% Mandatory Provident Fund

Income Tax Rates

0-50,000 HK$                                   2%

50,000-100,000 HK$                      6%

100,000-150,000 HK$                    10%

150,000-200,000 HK$                    14%

Over 200,000 HK$                           17%

The Hong Kong Employment Ordinance provides several valid reasons for termination including poor performance (though a PIP will be required first).

Notice  

Typical notice period is 30 days but the contract may specify more.  No notice is required during probation.

Severance Pay

Severance pay is payable when employees are made redundant if they have more than 2 years’ service or when the cause for termination is not redundancy and one of the following conditions are met:

Termination is not due to misconduct;

• The employee dies;
• The employee resigns on health grounds;
• The employee is aged 65 or over and resigns.

Payment is 2/3 of the average wage earned in the previous 12 months, per year of service, capped at a total of HKD 390,000.

 Annual Leave 2025

Paid Entitlement: 16 days

New Year’s Day – 1st January     

Day off in Lieu: Yes

Chinese New Year – 29th – 31stJanuary 

Day off in Lieu: Yes

Tomb Sweeping Day – 4th April 

Day off in Lieu: Yes

Good Friday – 18th April              

Day off in Lieu:  NA

Easter Monday – 21st April         

Day off in Lieu: NA

Labour Day – 1st May    

Day off in Lieu: Yes

Buddha’s Birthday – 5th May     

Day off in Lieu: Yes

Dragon Boat Festival – 31st May              

Day off in Lieu: Yes

Hong Kong SAR Day – 1st July    

Day off in Lieu: Yes

National Day – 1st October         

Day off in Lieu: Yes

Day after Chinese mid Autumn Festival – 7th October    

Day off in Lieu:  Yes

Chung Yeung Festival – 29th October     

Day off in Lieu: Yes

Christmas Day – 25th December              

Day off in Lieu: Yes

First weekday after Christmas – 26th December

Day off in Lieu: NA

*A day in lieu must be provided within 60 days

After one year of service employees are entitled to 7 days’ annual leave. This rises by 1 day per year for each year of service up to an entitlement of 14 days.

Carry over permitted     

Carry over is permitted by mutual agreement for one year but not beyond this.

Sick       

Employees accrue entitlement to paid sick leave at the rate of 2 days for each month worked during the first year and 4 days per month thereafter. The maximum which can be accrued is 120 days whether on a fixed term or permanent contract. 36 days can be used with a valid medical certificate; and the remaining 84 days may be used once the 36 days are exhausted. After one month’s service, employees are entitled to payment during sick leave at 80% of the average wage in the preceding 12 months (or since the beginning of employment if they have worked for less than 12 months. Sick leave is payable after 4 days of absence.

Maternity          

New mothers in Hong Kong are entitled to 14 weeks of maternity leave paid at 80% by the employer (capped between weeks 11 and 14 at HKD 80,000). Payment for weeks 11 to 14 are reimbursed by the government. Between 2 and 4 weeks may be taken before the birth, the remainder being taken after. Employees are entitled to maternity leave and pay after 40 weeks of employment so long as they work a minimum of 18 hours per week. Maternity leave can be taken in separate blocks. More leave is available if there are medical complications.

Paternity            

New fathers are entitled to 5 days’ paternity leave with the same payment and conditions as for maternity leave.

Other   

There is no statutory requirement to give any other paid leave, though many employers will give bereavement and marriage leave. Employees must be allowed leave for jury service, though there is no stipulation to provide payment.

Medical Insurance         

Public healthcare in Hong Kong is very good, though some employers will offer private medical insurance.

Life Insurance   

Life insurance is not commonly offered as a benefit.

Pensions            

This is not a usual benefit but is provided under the government’s Mandatory Provident Fund.