Hire staff in Hong Kong: Fast, without a local entity and in 100% compliance with local laws
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
Usually it takes around 1 month for foreigners 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 commencement date is to be submitted to the immigration bureau. The on-boarding process normally takes about only 1 week for employees from HK.
Once the foreign 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 candidate to come into our office in order to sign the on-boarding documents.