Employer of Record
Hong Kong runs no monthly payroll-tax withholding: employers notify the Inland Revenue Department within three months of hiring anyone likely chargeable to Salaries Tax and file an annual employer's return, while employer Mandatory Provident Fund contributions apply from the employee's first day. Share the role and your intended start date, and PIO confirms the available arrangement, then coordinates the paperwork, MPF enrollment and payroll reporting around it.
Practical points to line up before you hire in Hong Kong.
Hong Kong has no monthly payroll withholding system. Employers must notify the Inland Revenue Department within three months of hiring anyone likely chargeable to Salaries Tax, and file an annual employer's return, so plan your reporting cadence around IRD filings rather than payslip deductions.
If the employee is staying in Hong Kong, the employer normally files Form IR56F at least a month before their last day. If they're chargeable to Salaries Tax and leaving for over a month, the employer instead files Form IR56G a month before departure and withholds final pay until a month passes or a clearance letter arrives, whichever is earlier. Frequent business travelers are exempt.
Source:What tax obligation do I have as an Employer?You or your employee is going to leave Hong Kong (Pamphlet PAM 46(e))
Employees generally must be enrolled in a Mandatory Provident Fund scheme within the first 60 days of employment, with employer and employee each contributing 5% of relevant income between set monthly thresholds. The employer's own 5% accrues from the employee's first day — the 60-day figure governs enrollment timing and the employee's own new-hire contribution holiday, not when the employer's contribution obligation begins.
Source:Employees - MPFA
Employees accumulate paid sickness days the longer they stay employed, and once enough are banked, a qualifying sick leave of several consecutive days is paid at a set fraction of average daily wages. Factor this accrual into leave and payroll planning.
Once your hire is confirmed, here's what we help you coordinate.
You stay in control of the decisions that are yours to make.
A straightforward path from sign-up to your employee's first day.
Share the role, the work location and your target start date, and we'll confirm the available arrangement for that hire.
Once confirmed, we help coordinate the information, contract and payroll setup needed within your arrangement.
You manage the day-to-day relationship; we help coordinate the recurring administration within your arrangement.
There's no PAYE-style deduction from each paycheck. Employers instead file Form IR56E with the Inland Revenue Department within three months of hiring anyone likely chargeable to Salaries Tax, then lodge an annual employer's return (BIR56A) covering the whole payroll — so the tax rhythm follows IRD filing deadlines rather than payslip line items.
Yes, on the employee's side. Below HK$7,100 a month in relevant income, only the employer contributes 5%; from HK$7,100 up to HK$30,000, both employer and employee contribute 5% each. The employer's 5% accrues from the employee's very first day regardless of salary level — it's only the employee's own contribution that carries a 30-day new-hire holiday, and that's separate again from the 60-day window employers have to complete MPF enrollment.
Source:Employees - MPFA
Yes — sign up and share the role details, and we'll confirm the available arrangement for hiring in Hong Kong, then coordinate the paperwork, MPF enrollment and payroll setup around it.
No — the Employment Ordinance blocks ending a contract on a day covered by paid sickness allowance, with the narrow exception of summary dismissal for serious misconduct. Doing it anyway carries a fine of up to HK$100,000, on top of payment in lieu of notice, seven days' wages as compensation and any sickness allowance already earned.
It depends on whether they're leaving Hong Kong. If they're staying in Hong Kong, the employer normally just files Form IR56F at least a month before their last day. If they're chargeable to Salaries Tax and leaving Hong Kong for more than a month, the employer instead files Form IR56G at least a month before departure and withholds the employee's outstanding pay until one month passes or a tax clearance letter of release is issued, whichever is earlier — employees who leave Hong Kong frequently for work are exempt from this notice-and-withholding step altogether.
Source:What tax obligation do I have as an Employer?You or your employee is going to leave Hong Kong (Pamphlet PAM 46(e))
You share the role, compensation and any company-specific policies; we use that to coordinate the local paperwork, MPF setup and payroll reporting needed to bring your Hong Kong hire on board.
Practical guidance is grounded in these official references, but local law and public requirements can change and should be reconfirmed. Your PIO contract and quote govern only PIO's service scope, terms and fees.
Sign up to start an EOR hire in Hong Kong. Share the role, the work location and your target start date, and we'll confirm the available arrangement — or book a demo first to talk it through with our team.
