Employment in Hong Kong is governed mainly by the Employment Ordinance, with retirement savings through the Mandatory Provident Fund (MPF). Most statutory benefits depend on the employee having a continuous contract. Here is what employers need to know about leave, pay, tax and ending employment.
Leave rights under the Employment Ordinance apply to employees on a continuous contract. Since 18 January 2026 this means 4 weeks or more with the same employer and at least 17 hours of work a week, or 68 hours over 4 weeks (the “468 rule”, which replaced the earlier 418 rule).
7 days after each of the first 2 years of service, rising by 1 day a year from the third year to a maximum of 14 days.
Sick days accrue at 2 a month in the first year and 4 a month after, up to 120. Paid for 4 or more consecutive days with a medical certificate.
Paid at 4/5 of average daily wages after 40 weeks of service. Pay for weeks 11–14 is capped and reimbursable by the government.
Paid at 4/5 of average daily wages after 40 weeks of service, taken within the period around the birth.
Employees on a continuous contract are entitled to at least 1 rest day in every 7 days. Rest days are unpaid unless the contract says otherwise, and an employer cannot compel an employee to work on one.
Set up each Hong Kong leave type in IceHrm with its own accrual, carry forward and approval rules, including service-based annual leave and accumulated sick days. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The Statutory Minimum Wage is now reviewed every year and applies to almost all employees, whether full-time, part-time, permanent or casual. Live-in domestic workers are excluded.
From 1 May 2026. Employers must keep a record of hours worked for employees earning under HK$17,600 a month.
Hong Kong has no general cap on hours. Working hours are set by the employment contract.
Wages must be paid as soon as possible, and no later than 7 days after the end of each wage period.
There is no statutory overtime premium. Whether overtime is paid, and at what rate, depends on the employment contract. Overtime pay does count towards hours for minimum wage purposes.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so you have the hours records minimum wage rules require and overtime reflects what was actually worked. Time & attendance →
Salaries tax is charged on employment income arising in or derived from Hong Kong. There is no withholding by employers: employees pay the tax themselves, usually through provisional tax.
| Net chargeable income | Rate |
|---|---|
| First HK$50,000 | 2% |
| Next HK$50,000 | 6% |
| Next HK$50,000 | 10% |
| Next HK$50,000 | 14% |
| Remainder | 17% |
Hong Kong has no general social security tax. The main statutory employer costs are MPF contributions and employees’ compensation insurance.
Of relevant income, capped at HK$1,500 a month (relevant income above HK$30,000 is not counted).
Same cap. Employees earning less than HK$7,100 a month do not contribute, but the employer still pays 5%.
Compulsory for all employees under the Employees’ Compensation Ordinance. Premiums depend on the insurer and type of work.
The MPF Schemes Authority reviewed the minimum and maximum relevant income levels in 2026. Check the MPFA site for any change before relying on the HK$7,100 and HK$30,000 figures.
Build Hong Kong pay the way you already structure it, with your own salary components, deductions and formula columns, such as a capped MPF contribution column. Want to know how well IceHrm handles payroll calculations for Hong Kong? Contact us or see Payroll →
Either party can end a contract by giving notice or paying wages in lieu. Employees with at least 24 months of continuous service are protected against dismissal without a valid reason, such as conduct, capability, redundancy or a legal requirement.
| Situation | Notice |
|---|---|
| Probation, first month | None |
| Probation, after the first month | As agreed, at least 7 days |
| Contract specifies a notice period | As agreed, at least 7 days |
| Contract is silent | 1 month |
| Payment | When it applies | Amount |
|---|---|---|
| Severance payment | Dismissal for redundancy or lay-off after at least 24 months’ service | 2/3 of last month’s wages (capped at HK$22,500) per year of service, up to HK$390,000 |
| Long service payment | Dismissal for other reasons (not serious misconduct), and some cases of death, ill health or retirement, after at least 5 years’ service | Same formula as severance payment |
Final pay also includes outstanding wages, unused annual leave, any pro-rata end-of-year payment due under the contract, and must be paid within 7 days of termination.
Hong Kong has 15 statutory holidays in 2026, which all employees are entitled to regardless of length of service, rising gradually to 17 by 2030. General holidays (bank holidays) such as Good Friday and Boxing Day are more numerous, but employers only have to give statutory holidays.
Employees with 3 months of continuous service before a statutory holiday receive holiday pay. Good Friday becomes a statutory holiday from 2028 and the day after Good Friday from 2030.
Leave groups give each office its own holiday calendar, so you can give one team statutory holidays only and another the full general holiday list, and each gets the right days off automatically. Holiday calendars →
Contracts can be written or oral, but the employer must tell the employee the key terms, including wages, the wage period and the notice needed to end the contract, before employment starts.
Probation is not regulated in length, but it is commonly 1 to 3 months, and the notice rules above apply during it. Hong Kong has no statutory limit on the length or renewal of fixed-term contracts.
Send contracts for e-signing, store them on the employee’s record, and track onboarding steps like MPF enrolment and the IR56E filing with task lists so nothing is missed. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Hong Kong, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Hong Kong? Talk to us.
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