payroll-guides
Published on 14 Mar 2023
OS HRS takes care of your multi-country payroll with local regulatory expertise. From Hong Kong, across Asia Pacific and beyond, we are the payroll partner of global leaders. Not sure where to start when it comes to multi-country payroll? Here’s our quick payroll guide for your Hong Kong business operations.
Currency | HKD |
Payroll cycle | Monthly, 13th salary paid on Lunar New Year |
Employer Contributions | Max 1500 HKD |
Minimum wage | 40 HKD per hour |
Payroll in Hong Kong involves a number of compliance requirements, including the calculation and withholding of taxes, social security contributions, and other deductions. Here is an overview of the key steps involved in processing payroll for employees in Hong Kong:
Register with the Hong Kong Inland Revenue Department (IRD): Before setting up payroll in Hong Kong, you must register with the IRD for an employer's tax file number (TIN). This TIN will be used to file your company's tax returns and to pay tax to the Hong Kong government.
Obtain a Business Registration Certificate: All companies operating in Hong Kong are required to obtain a Business Registration Certificate (BRC). This certificate serves as proof that your company is registered with the Hong Kong government and allows you to legally operate your business in Hong Kong.
Determine your employees' salaries: Once you have obtained your BRC and TIN, you can start determining your employees' salaries. You will need to consider factors such as the cost of living in Hong Kong, industry standards, and the skills and experience of your employees.
Set up a payroll system: You can either set up your own payroll system or outsource your payroll to a payroll service provider. If you decide to outsource, you should look for a reputable provider with experience in Hong Kong payroll regulations.
Obtain a Mandatory Provident Fund (MPF) account: All companies in Hong Kong are required to provide their employees with an MPF account, which is a retirement savings scheme. You will need to open an MPF account with an approved trustee and start making contributions to your employees' accounts.
Deduct and remit taxes and social security contributions: As an employer in Hong Kong, you are responsible for deducting and remitting taxes and social security contributions on behalf of your employees. You will need to calculate the amount of tax and social security contributions to be deducted from each employee's salary and remit the payments to the relevant authorities.
Prepare and file tax returns: You will need to prepare and file your company's tax returns with the IRD on an annual basis. You should keep accurate records of your employees' salaries, tax deductions, and social security contributions throughout the year to ensure that you are able to file your tax returns correctly.
What do you as an employer need to make in employer contributions?
Mandatory Provident Fund (MPF)
| Where Employee's Relevant Income is
|
1,500.00 HKD | For earnings over 30,000 HKD |
Max of 1500.00 HKD | Total Employment Contribution |
What do your employees need to set aside in contributions?
An employee is required to contribute 5% of their monthly income for earnings in between $7,100 to $30,000 | Where Employee's Relevant Income is
|
1,500.00 HKD | For earnings over 30,000 HKD |
Max of 1500.00 HKD | Total Employee Contribution |
What are the income tax rates in Hong Kong?
2.00% | Up to 50,000 HKD |
6.00% | 50,001 HKD – 100,000 HKD |
10.00% | 100,001 HKD – 150,000 HKD |
14.00% | 150,00 HKD – 200,000 HKD |
17.00% | 200,001 HKD and over |
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Last updated September 2024
