Quick Answer: A first hire in Hong Kong means enrolling the employee in an MPF scheme within 60 days and paying 5% of relevant income up to HK$1,500 a month, filing Form IR56E with the Inland Revenue Department within 3 months and the employer's return each April, taking out employees' compensation insurance before day one, and meeting Employment Ordinance minimums including the HK$43.1 hourly minimum wage from 1 May 2026, 15 statutory holidays in 2026 and 7 to 14 days' annual leave.
Your first hire in Hong Kong brings four sets of obligations at once: enrol the employee in an MPF scheme within 60 days and pay 5% of relevant income (capped at HK$1,500 a month), report the hire to the Inland Revenue Department on Form IR56E within 3 months and file the employer's return every April, take out employees' compensation insurance before the first day, and honour the Employment Ordinance on wages, holidays and leave. The statutory minimum wage is HK$43.1 an hour from 1 May 2026, and since 1 May 2025 MPF contributions can no longer offset severance or long service payments. Below: each obligation, its deadline and penalty, the visa routes for non-residents and what payroll providers charge. HR firms are under HR services, human resources and recruitment on Portal Hong Kong.
What are the MPF rules for a new employer?
Employers must enrol full-time and part-time staff aged 18 to 64 employed for 60 days or more in an MPF scheme within the first 60 days, via the eMPF Platform; failing to enrol on time carries a maximum fine of HK$350,000 and three years' imprisonment, per the MPFA's employer enrolment page. Both employer and employee contribute 5% of relevant income. For monthly-paid staff the relevant income floor is HK$7,100 (below it only the employer pays) and the ceiling HK$30,000, so the cap is HK$1,500 each; contributions are due by the 10th of the following month and new employees get a 30-day contribution holiday, per the MPFA's contribution page, checked September 2026.
The offsetting arrangement was abolished on 1 May 2025. From that date the accrued benefits of the employer's mandatory contributions cannot be used to offset severance payment or long service payment for the post-transition period; voluntary contributions and length-of-service gratuities still can, and for staff hired before 1 May 2025 the pre-transition portion can still be offset, per the Labour Department's abolition page. The Labour Department's guide to severance and long service payment caps the monthly wage used in the formula at HK$22,500 (two-thirds, so HK$15,000 per year of service) and the total at HK$390,000.
What does the IRD need from an employer?
The IRD's employer obligations sheet sets the timetable: Form IR56E within 3 months of a new employee starting; the annual Employer's Return (BIR56A with an IR56B for each employee) within 1 month of issue, and the 2025/26 returns were issued on 1 April 2026 per the IRD's employers page; Form IR56F not later than 1 month before an employee leaves; and Form IR56G not later than 1 month before an employee leaves Hong Kong, withholding all payments until the IRD issues a letter of release. Under the IRD's penalty policy, breaching section 52 carries a HK$10,000 fine and a court order to file. Accountants usually prepare the IR56 forms with the profits tax return; see profits tax filing in Hong Kong 2026 and how to choose a CPA firm.
What does the Employment Ordinance guarantee?
Most entitlements need a continuous contract: four weeks or more with the same employer, at least 18 hours a week, the 418 rule in the Labour Department's concise guide. Under that guide, checked September 2026:
- Statutory holidays: 15 in 2026, with Easter Monday (6 April) newly added; the full list is on the Labour Department's 2026 holidays page. Holiday pay applies after 3 months' continuous service.
- Annual leave: 7 days after the first year, rising one day a year from the third year to 14 days at 9 years (chapter 4).
- Sick leave: 2 paid sickness days accrue per completed month in the first 12 months, then 4, up to 120 days; sickness allowance is four-fifths of average daily wages (chapter 5).
- Maternity and paternity: 14 weeks' maternity leave at four-fifths pay, with the pay for weeks 11 to 14 capped at HK$80,000 and reimbursable by the government (chapter 6); 5 days' paternity leave at four-fifths pay (chapter 7).
- Wages: statutory minimum wage HK$43.1 an hour from 1 May 2026, with hours records required for staff earning under HK$17,600 a month (Labour Department); wages must be paid within 7 days of the end of the wage period, and wilful failure carries a fine of HK$350,000 and three years' imprisonment (chapter 3).
Which deadlines and penalties matter most?
| Obligation | Deadline | Penalty for non-compliance |
|---|---|---|
| Employees' compensation insurance (Employees' Compensation Ordinance s.40) | Before the employee starts; cover of at least HK$100 million per event for up to 200 staff | Fine up to HK$100,000 and 2 years' imprisonment |
| MPF enrolment | Within 60 days of employment | Fine up to HK$350,000 and 3 years' imprisonment |
| MPF contributions | 10th of the following month | Enforcement by the MPFA under the MPF Schemes Ordinance |
| IR56E for a new hire | Within 3 months of start | Fine HK$10,000 (Inland Revenue Ordinance s.80) |
| Employer's return BIR56A / IR56B | Within 1 month of issue (issued 1 April) | Fine HK$10,000 and order to file |
| IR56F / IR56G on leaving | 1 month before cessation or departure | Fine HK$10,000 |
| Payment of wages | Within 7 days of the wage period end | Fine HK$350,000 and 3 years' imprisonment |
The insurance requirement and penalty are on the Labour Department's employees' compensation insurance page.
What if the hire is not a Hong Kong resident?
The General Employment Policy needs a sponsoring employer, a job the local market cannot readily fill and a graduate-level or experienced applicant; the Immigration Department says processing normally takes four weeks after all documents and the fee are received. Under the ImmD's fee table a specified-scheme application costs HK$600 and the visa HK$1,300 if valid for more than 180 days. The Top Talent Pass Scheme needs no job offer: Category A is for people with annual income of HK$2.5 million or more (36 months' stay), Categories B and C for graduates of the eligible universities (24 months). Recruiters such as Links Recruitment and Talenx Human Resources handle sponsorship paperwork.
What do payroll providers charge?
Software is cheap: Talenox charges US$1 per employee a month for its payroll module, from US$5 for the first five staff. Outsourced payroll is bundled or priced per head: Sleek includes payroll in accounting plans from HK$5,880 a financial year with no per-employee charge, and FastLane's 2026 pricing guide puts the Hong Kong market at HK$100 to HK$300 per employee a month, or HK$500 to HK$1,500 a month for a team of up to ten. Whichever route you take, the employer stays liable for the deadlines above.
Frequently asked questions
- When must an employer enrol a new employee in MPF in Hong Kong?
- Within the first 60 days of employment, for full-time and part-time employees aged 18 to 64 who are employed for 60 days or more, through the eMPF Platform. The employee pays no contribution for the first 30 days, but the employer contributes from day one. Failing to enrol on time carries a maximum fine of HK$350,000 and three years' imprisonment. Contributions are then due on or before the 10th day of each month for the previous wage period.
- How much is the MPF contribution in Hong Kong in 2026?
- Employer and employee each contribute 5% of the employee's relevant income. For monthly-paid staff the minimum relevant income level is HK$7,100 and the maximum is HK$30,000, so each side's contribution is capped at HK$1,500 a month. An employee earning less than HK$7,100 makes no contribution but the employer still pays its 5%. These levels are set by the MPFA and were current in September 2026.
- What is the MPF offsetting abolition and what does it mean for employers?
- From 1 May 2025 employers can no longer use the accrued benefits of their mandatory MPF contributions to offset severance payment or long service payment for employment on or after that date. Voluntary contributions and length-of-service gratuities can still be used, and for staff hired before 1 May 2025 the pre-transition portion can still be offset. The practical effect is that severance and long service payments, capped at HK$390,000 per employee, now come out of the employer's own funds.
- When is the employer's return due in Hong Kong?
- The Inland Revenue Department issues Form BIR56A on the first working day of April each year; the 2025/26 returns went out on 1 April 2026 and must be filed within one month together with an IR56B for every employee. In addition, file IR56E within 3 months of a new employee starting, IR56F not later than one month before an employee leaves, and IR56G not later than one month before an employee leaves Hong Kong, withholding final payments until the IRD issues a letter of release.
- What is the minimum wage in Hong Kong in 2026?
- The statutory minimum wage is HK$43.1 per hour with effect from 1 May 2026, per the Labour Department. Employers must also keep records of total hours worked for employees whose monthly wages are below HK$17,600. Wages must be paid within seven days of the end of the wage period; wilful failure to pay is an offence with a maximum fine of HK$350,000 and three years' imprisonment.
- How many statutory holidays are there in Hong Kong in 2026?
- Fifteen. Easter Monday (6 April 2026) was added under the Employment (Amendment) Ordinance 2021, joining the first day of January, three days of Lunar New Year, Ching Ming, Labour Day, the Birthday of the Buddha, Tuen Ng, 1 July, the day after Mid-Autumn, National Day, Chung Yeung, the Winter Solstice or Christmas Day at the employer's option, and the first weekday after Christmas. Employees with three months' continuous service get holiday pay. Statutory holidays are separate from the general holidays banks observe.
- Do I need employees' compensation insurance for one employee in Hong Kong?
- Yes. Section 40 of the Employees' Compensation Ordinance requires every employer to insure its liability for work injuries for all employees, whatever the contract length or hours, with cover of at least HK$100 million per event for up to 200 employees and HK$200 million above that. Failing to insure is an offence with a maximum fine of HK$100,000 and two years' imprisonment. Insurers authorised to write the cover are listed by the Hong Kong Federation of Insurers.
