Hong Kong Payroll Guide

Hong Kong employers must contribute to the Mandatory Provident Fund (MPF), which is regulated by the Hong Kong Government. Employees and Employers contribute into the MPF, subject to earnings. Employers must contribute 5% of their monthly gross salary (to a maximum contribution of HKD 1,500) per month. Employees must also contribute 5% on earnings higher than HKD 7,100 per month, up to a maximum contribution of HKD 1,500.

Employees become eligible for paid annual leave on completing a full year of service. At this point, they become eligible for 7 days entitlement. The entitlement remains the same in their second year but increases by 1 day per year thereafter up to a maximum of 14 days at 9 years of service.

Maternity Leave of 14 weeks is due if the employee has been employed for at least 40 weeks before the planned Maternity Leave start date. Maternity Pay currently sits at 80% of the average earnings from the 12 months prior.

The appropriate procedure must be taken in order to dismiss an employee correctly. This includes providing the appropriate notice and ensuring the employee does not fall within a select number of scenarios. Please consult one of our Employment Law Specialists prior to commencing a contract termination.