Hire staff in Hong Kong fast and without a local entity.
Employment in Hong Kong
Monthly Mandatory Provident Fund (MPF)
A compulsory saving scheme for the retirement of residents in Hong Kong. Generally, it is 5% on salary, with a maximum contribution of HKD 1,500 / month. Detailed information can be found on the official government site.
In Hong Kong, there are two ways for tax calculation: using the standard tax rate and the progressive rate. The annual taxation will be calculated in these two ways and the employee will pay the smaller amount. In practice, there are different deductible allowances (not only MPF) and tax rebate. Further details on taxes in HK.
Hong Kong Labor Law
Any clause (non-disclosure clause and training fee clause) can be included in the employment agreement. But any fixed commission, bonus, incentive or KPI driven clause need to be provided in a separate addendum.
On-boarding Timeline & Procedure
For locals, the on-boarding can be accomplished within days. Once the client company confirms the employment conditions for its staff in Hong Kong, New Horizons will prepare the employment contract accordingly.
Upon approval, New Horizons will arrange the logistics for the labor contract signing with the employee to get him ready and working as soon as possible.
For foreign nationals, it usually takes around 1 month to receive the immigration authorities’ approval. The official commencement date will be the date when the visa, sponsored by the new employer, is activated. The contract with estimated date is to be submitted to the immigration bureau.
Upon completion of the immigration process and reception of the authorities approval, the on-boarding process usually can be done in 1 week for foreign employees working in Hong Kong.