| Item | 2026 figure | Notes |
|---|---|---|
| MPF (employer) | 5% of relevant income | Up to HK$30,000 a month (max HK$1,500) |
| MPF minimum relevant income | HK$7,100 a month | Below it, only the employer contributes |
| Minimum wage | HK$43.1 an hour | From 1 May 2026 (HK$42.1 before) |
| Statutory holidays | 15 | 16 from 2028, 17 from 2030 |
| Annual leave | 7 to 14 days | By length of service |
| Sickness allowance | Four-fifths of average daily wages | Usually for 4+ consecutive days |
| Severance / long service payment | Max HK$390,000 | No MPF offsetting for service from 1 May 2025 |
Hong Kong's main statutory payroll cost is the Mandatory Provident Fund (MPF). Employer and employee each contribute 5% of the employee's relevant income, up to HK$30,000 a month. Below HK$7,100 a month, the employee doesn't contribute but the employer still pays 5%.
Employees' compensation insurance is compulsory but priced by insurers, so it isn't in the table.
| Contribution | Employer rate | Applies to |
|---|---|---|
| MPF employer contribution | 5% | Relevant income up to HK$30,000 a month |
| Total | 5% | Before any items that vary by employer |
The employer's MPF contribution for a full year:
| Annual gross salary | Employer contributions | Share of salary |
|---|---|---|
| HK$300,000 | HK$15,000.00 | 5% |
| HK$480,000 | HK$18,000.00 | 3.75% |
| HK$720,000 | HK$18,000.00 | 2.5% |
| HK$1,080,000 | HK$18,000.00 | 1.67% |
- The statutory minimum wage is HK$43.1 an hour from 1 May 2026 (HK$42.1 before), averaged over the hours worked in each wage period.
- 15 statutory holidays in 2026, including Easter Monday from 2026: 1 January, the first three days of Lunar New Year, Ching Ming, Easter Monday, Labour Day, the Birthday of the Buddha, Tuen Ng, HKSAR Establishment Day, the day after Mid-Autumn, National Day, Chung Yeung, Winter Solstice or Christmas Day (employer's choice) and the first weekday after Christmas. Good Friday is added from 2028 and the day after Good Friday from 2030.
- After each 12 months under a continuous contract, paid annual leave rises from 7 days (years 1 and 2) by one day a year to a maximum of 14 days from year 9.
- Employees under a continuous contract accumulate paid sickness days (2 a month in the first year, then 4 a month, up to 120). Sickness allowance is four-fifths of average daily wages, generally for sick leave of at least four consecutive days.
- No notice is needed in the first month of probation, and at least 7 days after it. After probation, under a continuous contract, notice is as agreed but at least 7 days, or at least 1 month if the contract is silent. Either side can pay wages in lieu of notice.
- Severance payment is due after 24 months' service on dismissal for redundancy; long service payment after 5 years on dismissal for other reasons (not serious misconduct) and in some other cases. Either is two-thirds of the last month's wages (capped at HK$22,500) per year of service, up to HK$390,000.
- For employment starting on or after 1 May 2025, accrued benefits from the employer's mandatory MPF contributions can no longer be used to offset severance or long service payments. Transitional rules apply to employment that straddles that date.
Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.
- From 1 January 2028: Hong Kong adds Good Friday as a statutory holiday. Good Friday becomes a statutory holiday from 2028, raising the total to 16. The day following Good Friday is added from 2030, making 17.
- From 1 May 2026: Hong Kong minimum wage rises to HK$43.1 an hour. The statutory minimum wage rose from HK$42.1 to HK$43.1 an hour on 1 May 2026, the first annual review under the new formula.
- From 18 January 2026: Hong Kong relaxes the 'continuous contract' test. From 18 January 2026, an employee is under a continuous contract after at least four weeks with the same employer and at least 17 hours in each week, or 68 hours in a four-week period, instead of 18 hours a week. Earlier periods still use the old test.
What is the MPF contribution for employers in 2026?
5% of the employee's relevant income, up to the maximum relevant income of HK$30,000 a month, so at most HK$1,500 a month.
What is Hong Kong's minimum wage in 2026?
HK$43.1 an hour from 1 May 2026, up from HK$42.1.
How are severance and long service payments calculated?
Two-thirds of the last full month's wages (capped at HK$22,500) for each year of service, up to HK$390,000. Severance needs 24 months' service and redundancy; long service payment needs 5 years.
Can employers still offset severance with MPF?
Not for employment starting on or after 1 May 2025: accrued benefits from mandatory MPF contributions can't be used. Transitional rules apply to earlier employment.
- 1MPF System – Mandatory Contributions (Employees)
Mandatory Provident Fund Schemes Authority
Employer and employee each contribute 5% of relevant income, with minimum and maximum relevant income levels of HK$7,100 and HK$30,000 a month.
- 2New Statutory Minimum Wage rate of $43.1 per hour takes effect today
Hong Kong Government (info.gov.hk)
Statutory minimum wage raised from HK$42.1 to HK$43.1 an hour on 1 May 2026.
- 3A Concise Guide to the Employment Ordinance
Labour Department
Continuous contract (from 18 January 2026), statutory holidays (15 from 2026, 16 from 2028, 17 from 2030), annual leave, sickness allowance, notice, severance and long service payment, and the abolition of MPF offsetting from 1 May 2025.
Related research
- Employer rates by countryAll our rates and thresholds pages, side by side.
- Employer of Record in Hong KongFull guide with a cost estimator and provider comparison.
- Employer Cost IndexHow Hong Kong's employer costs compare with the other 30 countries in the index.
- Cost to hire in Hong KongEmployer costs at four salary levels, explained line by line.