Hong Kong (Administrative Region of China)

• New Year Holiday
• Lunar New Year's Day
• The second day of Lunar New Year
• The fourth day of Lunar New Year
• Ching Ming Festival
• Good Friday
• Easter Monday
• Labour Day
• Birthday of the Buddha
• Dragon Boat Festival (Tuen Ng Festival)
• HKSAR Day
• Day after mid-Autumn Festival
• National Day Holiday
• Chung Yeung Festival
• Christmas Day Holiday
• Boxing Day

Working Hours

Hong Kong is at present implementing laws to establish standard working hours.

Minimum Wage

Minimum salary: HK $37.5 per hour, as of January 2023. An increase is expected to be HK $40 per hour from May 2023.

Employee Tax

Annual income	Tax rate
Up to HKD 50,000	2%
HKD 50,001 - 100,000	6%
HKD 100,001 - 150,000	10%
HKD 150,001 - 200,000	14%
More than HKD 200,001	17%
Mandatory provident fund (MPF) contribution*	5% or HKD 1,500 per month, whichever is lower

*Not applicable to employees with an income of less than HKD 7,100 per month.

Bonuses

There are currently no statutory laws regarding bonuses, but many businesses pay a one-month 13th salary bonus on Chinese New Year.

Employment contracts in Hong Kong do not have to be in writing, and an oral agreement will suffice. Agreements classifications are either 'continuous' or 'non-continuous' employment. Employees with the same employer, who have completed 18 hours of continuous work for every previous four weeks of employment, are considered 'continuous.' 'Continuous' or 'non-continuous' employees are entitled to the same protection in Hong Kong and include the below:

• Salary
• Statutory holidays
• Protection against discrimination
• Working hours

Continuous employees are also entitled to the below:

• Annual leave entitlement (paid)
• Rest days entitlement
• Sick leave
• Severance pay or long-service pay (according to the conditions)

Hong Kong also has specific labour and common law conditions that need to be adhered to by the employer and the employee.

Annual Leave

Leave entitlement depends on the employee's length of service. Employees that have completed 12 months are entitled to 7 working days' leave.

Sick Leave

In the first 12 months, employees receive two sick days for each month worked. After 12 months, employees receive four sick days for each month up to a maximum of 120 paid sick days.

Parental Leave

• Maternity leave: 10 weeks, if worked continuously for 40 weeks and provided notice.
• Paternity leave: 3 days, if worked continuously for 40 weeks.

Termination Process

In Hong Kong, an employer can terminate a contract without cause. However, if an employee has worked for the same employer for over two years, a valid reason has to be provided as indicated below:

• Redundancy
• Misconduct
• Qualifications

The notice period depends on the Employment Ordinance, and employment contracts usually require written notice. The notice period depends on the requirements of the Employment Ordinance, but may also be mutually agreed upon.

Severance Pay

In Hong Kong, an employee is entitled to severance pay if employed over two years, is dismissed for redundancy, or if there is insufficient work for the employee.

The severance pay calculation is according to the statutory formula.

The long-service payment is for employees who have worked for five years or more. Retiring employees may also be entitled to a long-service payment.

The calculation is the same as the severance payment.

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

• Employer’s Liability and Public Liability - £10,000,000 combined limit.
• Professional Indemnity - £5,000,000 limit.
• Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.