Hiring your first employee in Hong Kong triggers several obligations at once: an MPF scheme within 60 days, employees' compensation insurance before the person starts, payroll records, and an annual employer's return to the Inland Revenue Department.
None of it is difficult, but the deadlines are unforgiving and the penalties are per-employee. We run the whole cycle so it simply happens each month.
On this page
What is included
- Monthly payroll calculation, payslips and payment instructions
- MPF enrolment for new joiners and termination notifications
- Monthly MPF remittance statements and contribution reconciliation
- Annual employer's return BIR56A with IR56B for each employee
- IR56E on commencement, IR56F on cessation, IR56G on departure from Hong Kong
- Annual leave, sick leave and long service payment records
- Year-end payroll reconciliation into the accounts
MPF obligations
| Item | Requirement |
|---|---|
| Enrolment | Within 60 days of the start of employment, for employees aged 18–64 employed for 60 days or more |
| Mandatory contribution | 5% of relevant income from each of employer and employee |
| Minimum income level | Employee contribution not required below the statutory minimum |
| Maximum income level | Contributions capped at the statutory maximum relevant income |
| Payment deadline | On or before the 10th day of the following month |
Casual employees in the construction and catering industries may be covered by an industry scheme instead. We confirm the correct scheme type at enrolment.
Employer's returns
- BIR56A / IR56B — the annual employer's return, normally issued in April and due within one month
- IR56E — filed within three months of an employee commencing employment
- IR56F — filed one month before an employee ceases employment
- IR56G — filed one month before an employee leaves Hong Kong, with salary withheld until clearance
Other employment duties
- Employees' compensation insurance — compulsory before the first employee starts work
- Statutory minimum wage — currently HK$43.1 per hour from 1 May
- Written employment particulars — terms must be given to the employee
- Wage and leave records — retained for the statutory period and available for inspection
Fees
| Service | Fee |
|---|---|
| Monthly payroll, up to 5 employees | From HK$300 / month |
| Each additional employee | From HK$50 / month |
| MPF enrolment set-up | From HK$500 one-off |
| Employer's return BIR56A with IR56B forms | From HK$300 |
Common questions
I only have one part-time helper. Does MPF apply?
If the person is aged 18–64 and employed for 60 days or more, yes. Under 60 days of employment, the employer contribution requirement may not arise, but the record-keeping duty still does.
Do directors need MPF?
A director who is also an employee under a contract of employment is treated as an employee. A director drawing only director's fees is not.
Can you take over mid-year?
Yes. We reconcile contributions and IR56 filings already made, then continue from the current month.
Call 3687-1127 or tell us your headcount for a monthly quote.