As your business grows, expanding your workforce becomes a crucial step. Whether you’re hiring local talent or bringing in professionals from overseas, it’s essential to understand employment regulations, taxation, MPF contributions, and insurance requirements to ensure compliance.

This guide provides a comprehensive overview of the hiring process in Hong Kong, covering everything from employment contracts to foreign worker regulations.

Who is Eligible for Employment in Hong Kong?

Employers in Hong Kong can hire individuals aged 18 and above. Under specific conditions, young people between 13 and 17 years old may also be employed.

Employment Contracts: What Should Be Included?

While verbal employment agreements are legally valid in Hong Kong, having a written employment contract ensures clarity and protection for both employer and employee.

Key elements to include:

 Position & Job Title – Clearly define the role.
Start Date & Contract Duration – Indicate whether it’s permanent or fixed-term.
Probation Period – Specify if applicable, including duration and terms.
Salary & Compensation – Outline payment frequency, method, and benefits.
Working Hours & Leave Entitlement – Specify standard hours, rest days, and types of leave (annual, sick, public holidays).
Termination & Notice Period – Detail conditions for contract termination and required notice periods.
Confidentiality & Non-Compete Clauses – Protect sensitive business information.
Intellectual Property – Define ownership of work created during employment.
Code of Conduct & Workplace Policies – Establish expectations for behavior.
Applicable Law & Jurisdiction – Specify the governing legal framework.

Mandatory Provident Fund (MPF) Contributions

Before hiring, employers must consider MPF contributions, a mandatory retirement scheme in Hong Kong.

 Employer & Employee Contributions: Each contributes 5% of the employee’s salary, capped at HK$1,500 per month for salaries above HK$30,000.
Enrollment: Must be completed within 60 days of employment.
Monthly Contributions: Due on the 10th of each month, deducted from the employee’s salary.

Who is Exempt from MPF?

Certain individuals are not required to contribute:

Domestic workers
Self-employed hawkers
Government employees with statutory pension plans
Foreign employees working in Hong Kong for less than 13 months
Employees covered by overseas retirement schemes
Employees earning below HK$7,000 per month (not required to contribute, but employers must still contribute)

Employers must provide pay records to employees within seven working days after making MPF contributions.

Employee Compensation Insurance (ECI) & Other Insurance

Employers are legally required to provide Employee’s Compensation Insurance (ECI), covering work-related injuries or illnesses.

 Covers: Medical expenses, lost wages due to workplace injuries, rehabilitation costs.
Applies to: Full-time, part-time, contract, and freelance employees.

In addition to ECI, many employers offer optional insurance plans:

 Health Insurance
Life Insurance
Accident Insurance
Medical Coverage

Hiring Students in Hong Kong

Hong Kong citizen and permanent resident students can work full-time or part-time without restrictions.

 Interns: Must receive MPF contributions.
Foreign students: Can take up internships if they are:
Course-related and endorsed by their institution.
Limited to one academic year or one-third of their total study duration.
No restrictions on salary, work hours, or location.

Hiring Foreign Employees in Hong Kong

While the Hong Kong government prioritizes local hiring, employers can hire foreign professionals if they possess specialized skills not readily available in Hong Kong.

 Visa Requirement: A foreign worker must have a valid work visa before starting employment. The employer must sponsor the visa application.

Two main categories of foreign workers:

1️Skilled Professionals – Engineers, doctors, IT specialists (Employment Visa).
2️Semi-Skilled Workers – Technicians (Supplementary Labor Scheme).

Can a Hong Kong Company Hire Employees Abroad?

Yes! Hiring remote employees can expand business reach, but it comes with key taxation and legal considerations:

Taxation – Remote employees may be subject to taxation in their home country. Hong Kong has Double Taxation Agreements (DTAs) to prevent duplicate taxation.
MPF Requirements – Employees working abroad for a Hong Kong company may not be required to contribute to MPF.
Employment Laws – The employment laws of the employee’s home country typically apply.
Insurance Coverage – Employers may need to provide international health insurance or liability coverage.

Final Thoughts

Hiring employees in Hong Kong requires careful planning to comply with employment laws, tax regulations, and MPF requirements. Whether hiring local staff, students, or foreign employees, employers must ensure proper documentation and compliance.

Need help with hiring, taxation, or employment contracts? Contact our team today for expert assistance!