Last updated: October 27, 2026
Expanding into Hong Kong involves more than establishing a business presence. Employers need to plan how they will hire, structure employment terms, run payroll, administer Mandatory Provident Fund (MPF) contributions, and meet local employment requirements.
Several changes matter to employers in 2026. These include the revised continuous-contract test, the statutory minimum wage increase, Easter Monday joining the statutory holiday calendar, and a new minimum allowable wage for foreign domestic helpers.
This guide summarizes key Hong Kong employment requirements for foreign companies. The rules can depend on the employee’s role, working pattern, and circumstances, so confirm the requirements that apply before making employment or payroll decisions.
Companies building teams across Asia may also find it useful to compare local requirements in our guide to Thailand Employment Law 2026.
Key Hong Kong Employment Law 2026 Changes Employers Should Know
Foreign employers should take note of these current requirements:
- Continuous-contract test: From January 18, 2026, the revised test generally uses the “468 rule” for eligible employees.
- Statutory minimum wage: The minimum wage increased to HKD 43.1 per hour from May 1, 2026.
- Statutory holidays: Easter Monday became a statutory holiday in 2026, bringing the total to 15 statutory holidays.
- Foreign domestic helpers: The minimum allowable wage increased to HKD 5,220 per month for contracts signed on or after October 3, 2026. The food allowance remains at no less than HKD 1,236 per month.
- MPF offsetting: Employer mandatory MPF contributions can no longer offset severance or long service payment for service accrued from May 1, 2025 onward. Transitional rules apply to earlier service.
1. Employment Ordinance and Employment Contracts
The Employment Ordinance is Hong Kong’s main law governing employment conditions. Employers may also need to consider separate requirements under the Minimum Wage Ordinance, MPF legislation, and immigration rules.
An employment contract may be written or verbal, but employers must provide written information on important employment conditions before employment begins. A written agreement is generally the clearest way to record the arrangement.
Before hiring, review the contract’s terms on:
- Job title and duties
- Salary and wage period
- Working arrangements and place of work
- Leave and benefits
- Notice and termination
- Probation, where applicable
- End-of-year payment arrangements, if applicable
- Confidentiality and other relevant obligations
The contract, employee handbook, payroll settings, and HR records should describe the same employment arrangement. A global template may need to be adapted before it is used for a Hong Kong employee.
Probation and Notice
Hong Kong’s Employment Ordinance sets specific rules for termination during probation. In general, no notice is required during the first month of probation. After the first month, at least seven days’ notice is generally required, subject to the contract and applicable circumstances.
Employers should check the contract and statutory rules before ending employment. Notice, payment in lieu, and other termination obligations depend on the situation.
2. Continuous Contract and the 468 Rule
From January 18, 2026, an employee generally meets the working-hours test for a continuous contract if they have been employed continuously by the same employer for at least four weeks and satisfy either of these conditions:
- They work at least 17 hours in each week; or
- If they work fewer than 17 hours in a week, they work at least 68 hours over that week and the three immediately preceding weeks.
This second test is known as the “468 rule.” It does not apply during the first three weeks of employment because there are not yet four weeks of working hours to assess.
Continuous-contract status affects access to certain statutory benefits. Employers should record working hours accurately, including for part-time, casual, and irregular workers. The Labour Department’s guidance on the revised continuous-contract requirement explains the test and its effective date.
3. Minimum Wage and Working-Hour Records
Hong Kong’s statutory minimum wage is HKD 43.1 per hour from May 1, 2026.
For a wage period, wages payable must generally be no less than the statutory minimum wage calculated using the employee’s total hours worked during that period. The calculation is not simply a fixed monthly salary threshold.
The monthly monetary cap for the requirement to record total hours worked also increased to HKD 17,600 from May 1, 2026. This is a record-keeping threshold, not a monthly minimum salary.
Employers should:
- Record working hours where the statutory requirement applies.
- Check the minimum-wage calculation for each wage period.
- Use the correct rate for work performed before and after May 1, 2026, where a wage period crosses that date.
- Review any applicable exemptions under the law.
See the Labour Department’s 2026 minimum-wage reference for the rate and record-keeping threshold.
4. MPF Contributions
The Mandatory Provident Fund system is a core part of Hong Kong payroll administration. Employers should determine whether an employee must be enrolled and make contributions according to the MPF rules.
For eligible employees, the usual mandatory contribution rate is 5% of relevant income, subject to the statutory minimum and maximum relevant-income levels.
A contribution holiday applies to the employee’s mandatory contributions during the first 30 days of employment and the following incomplete contribution period. It does not apply to the employer: the employer’s contribution obligation generally starts from the employee’s first day of employment. Special rules may apply to casual employees in the construction and catering industries.
Before the first payroll, employers should establish processes for:
- MPF enrolment
- Employer contributions
- Employee deductions
- Contribution deadlines
- Payroll reconciliation
- Employee and contribution records
The MPFA’s employer guidance explains contribution obligations and related arrangements.
MPF Offsetting and Termination Payments
Since May 1, 2025, employers cannot use MPF derived from mandatory employer contributions to offset severance payment or long service payment for service accrued from that date onward.
For service accrued before May 1, 2025, transitional offsetting rules may continue to apply. Employer voluntary contributions may also be treated differently from mandatory contributions. Employers should calculate each employee’s entitlement and any potential offset by reference to the applicable transition rules.
See the MPFA’s explanation of the abolition of MPF offsetting.
5. Statutory Holidays and Leave
Hong Kong has 15 statutory holidays in 2026, including Easter Monday, which was added to the statutory holiday calendar from 2026.
Employees are entitled to statutory holidays. Holiday pay is subject to the statutory conditions, including the employee’s length of service. If a statutory holiday falls on a rest day, the employer must arrange a substitute holiday in accordance with the law.
Other key leave entitlements include:
- Annual leave: Employees under a continuous contract become entitled to paid annual leave after every 12 months of service. The entitlement increases with length of service from seven days to a maximum of 14 days.
- Sickness allowance: Eligible employees can accumulate paid sickness days under the statutory system, subject to its conditions and maximum accumulation. The sickness allowance is generally calculated at four-fifths of average daily wages.
- Maternity leave: Eligible employees may take 14 weeks of maternity leave, subject to the statutory requirements.
- Paternity leave: Eligible employees may take five days of paternity leave, subject to the statutory requirements.
Employers should set up leave records and payroll calculations to reflect the employee’s eligibility, service period, and statutory entitlements. The Labour Department’s 2026 statutory holiday calendar lists the relevant dates.
6. Severance Payment and Long Service Payment
Severance payment and long service payment (SP/LSP) are subject to statutory eligibility conditions.
In general:
- Severance payment may be payable to an eligible employee with at least 24 months of continuous service who is dismissed by reason of redundancy or laid off.
- Long service payment may be payable after at least five years of continuous service, where the statutory conditions are met.
The calculation depends on the employee’s wages and service. For monthly-rated employees, the statutory formula generally uses two-thirds of the relevant monthly wages, subject to a monthly wage ceiling and the overall statutory cap.
Employers should review potential SP/LSP liabilities when planning workforce changes. Calculations can be affected by the employee’s wage history, service dates, reason for termination, and the MPF offsetting transition rules.
7. Hiring Foreign Professionals
Employment compliance and immigration compliance are related, but they are separate processes. A foreign professional must have the appropriate permission to work in Hong Kong before starting employment.
Under the General Employment Policy, an application may be considered where the candidate has relevant skills, knowledge, or experience, a genuine job offer, and a role that cannot readily be filled by the local workforce. The remuneration package should generally be commensurate with the prevailing market level.
Employers should plan the immigration process alongside recruitment and confirm:
- The appropriate immigration route
- The employee’s qualifications and experience
- The job duties and offer terms
- The expected start date and required approvals
- Whether changes to role or employment require further action
The Hong Kong Immigration Department’s General Employment Policy provides the current eligibility criteria.
8. Foreign Domestic Helpers
Foreign domestic helpers (FDHs) are engaged under a separate framework and standard employment contract. Employers should not apply general professional-employment terms to an FDH arrangement.
For standard employment contracts signed on or after October 3, 2026:
- The minimum allowable wage is HKD 5,220 per month.
- The food allowance is at least HKD 1,236 per month if the employer does not provide food free of charge.
The live-in requirement and other FDH-specific conditions also apply. Employers should review the official contract and current requirements before hiring or renewing an FDH. See the Labour Department’s FDH guidance.
9. Hong Kong Employment Readiness Checklist
Before hiring, companies should:
- Choose an employment structure that fits the planned operation.
- Localise contracts and HR policies for Hong Kong.
- Apply the 468 rule when assessing continuous-contract status from January 18, 2026.
- Check the HKD 43.1 statutory minimum wage and relevant record-keeping requirements.
- Set up MPF enrolment, contribution, and record-keeping processes.
- Update the 2026 holiday calendar and leave administration.
- Review SP/LSP exposure and the MPF offsetting transition rules.
- Confirm immigration permission before a foreign employee starts work.
- Apply FDH-specific rules when hiring a domestic helper.
- Keep employment, payroll, working-hour, and leave records consistent.
How BigFish Global Consulting Can Help
BigFish Global Consulting supports international companies with workforce planning and HR administration across Asia. Depending on your needs, support may include:
- Employer of Record (EOR) services
- Payroll administration
- HR consulting and employment documentation
- Recruitment and executive search
- Regional expansion planning
Explore our Employer of Record services, Payroll services, HR services, or Head Hunter services. For broader regional planning, see our International Expansion Strategy.
Frequently Asked Questions
What changed in Hong Kong employment law in 2026?
Key changes include the revised continuous-contract test effective January 18, the HKD 43.1 statutory minimum wage effective May 1, and Easter Monday joining the statutory holiday calendar. The FDH minimum allowable wage also increased to HKD 5,220 for contracts signed from October 3, 2026.
What is the 468 rule?
From January 18, 2026, an employee employed continuously by the same employer for at least four weeks may meet the working-hours test for a continuous contract by working at least 17 hours each week or, in a week below 17 hours, at least 68 hours over that week and the three preceding weeks.
What is Hong Kong’s minimum wage in 2026?
The statutory minimum wage is HKD 43.1 per hour from May 1, 2026.
Does the MPF contribution holiday apply to employers?
No. The contribution holiday generally applies to the employee’s mandatory contribution. The employer’s contribution generally starts from the employee’s first day of employment.
How many statutory holidays are there in Hong Kong in 2026?
There are 15 statutory holidays in 2026, including Easter Monday.
Can employers use MPF to offset severance or long service payment?
Mandatory employer MPF contributions cannot offset SP/LSP for service accrued from May 1, 2025 onward. Transitional rules apply to earlier service, and voluntary contributions are treated separately.
What is the minimum allowable wage for foreign domestic helpers?
For FDH contracts signed on or after October 3, 2026, the minimum allowable wage is HKD 5,220 per month. The food allowance remains at no less than HKD 1,236 per month if food is not provided free of charge.
This article provides general information for business planning and is not legal advice. Hong Kong employment requirements may depend on the employee and circumstances. Confirm current requirements with the relevant authorities or a qualified local professional before acting.
