Mandatory Employee Benefits in Hong Kong
The core statutory retirement benefit in Hong Kong is the Mandatory Provident Fund (MPF), administered by the Mandatory Provident Fund Schemes Authority (MPFA). Almost every employer must enrol employees aged 18 to 64 in a registered MPF scheme within the first 60 days of employment. Both the employer and the employee contribute 5% of the employee's relevant income, subject to a minimum and maximum income level. For monthly-paid staff the relevant income band runs from HK$7,100 to HK$30,000—so the maximum mandatory contribution is HK$1,500 per month from each party. Employees earning below HK$7,100 a month are exempt from their own contribution, but the employer must still contribute 5%.
Rate (each party)
Monthly maximum
MPF mandatory – employer
5% of relevant income
HK$1,500
MPF mandatory – employee
5% of relevant income
HK$1,500
Relevant income band (monthly)
HK$7,100 – HK$30,000
—
Contribution
MPF mandatory – employer
Rate (each party)
5% of relevant income
Monthly maximum
HK$1,500
Contribution
MPF mandatory – employee
Rate (each party)
5% of relevant income
Monthly maximum
HK$1,500
Contribution
Relevant income band (monthly)
Rate (each party)
HK$7,100 – HK$30,000
Monthly maximum
—
Statutory Minimum Wage
Every compensation package must sit above the Statutory Minimum Wage (SMW). From 1 May 2026 the SMW is HK$43.1 per hour (up from HK$42.1 effective May 2025 and HK$40 effective May 2023). The rate is now reviewed annually under a set formula, so employers should confirm the current figure each year. The monthly wage threshold above which detailed records of hours worked are not required also rose in step (to HK$17,600 from 1 May 2026, up from HK$17,200).
MPF Offsetting Abolished (from May 2025)
Since 1 May 2025 employers can no longer use their mandatory MPF contributions to offset an employee's severance payment or long service payment. This raises the effective cost of both MPF and end-of-service payments, and should be factored into total-reward budgeting for Hong Kong hires.
Statutory Leave & Holidays
The Employment Ordinance sets the paid-leave floor that every package must meet. Annual leave, statutory holidays, sickness allowance, and family leave are all defined entitlements—the key reference points are summarised below (see the Employment Law page for full detail).
Annual leave
7 days after 1 year of service, rising by 1 day per year to a maximum of 14 days
Statutory holidays
15 paid statutory holidays in 2026, rising to 17 by 2030 (separate from annual leave)
Sickness allowance
80% (four-fifths) of average daily wages; up to 120 accumulated paid sick days
Maternity leave
14 weeks at 80% of average daily wages (weeks 11–14 reimbursable by the government)
Paternity leave
5 days at 80% of average daily wages
Rest days
At least 1 rest day in every period of 7 days
Item
Statutory minimum
Annual leave
7 days after 1 year of service, rising by 1 day per year to a maximum of 14 days
Statutory holidays
15 paid statutory holidays in 2026, rising to 17 by 2030 (separate from annual leave)
Sickness allowance
80% (four-fifths) of average daily wages; up to 120 accumulated paid sick days
Maternity leave
14 weeks at 80% of average daily wages (weeks 11–14 reimbursable by the government)
Paternity leave
5 days at 80% of average daily wages
Rest days
At least 1 rest day in every period of 7 days
Sickness Allowance & Family Leave in Detail
Beyond the headline entitlements, employers need to understand how paid sick days accrue and how family-leave costs are shared with the government.
How Sickness Allowance Works
Employees accumulate paid sickness days—2 per month in the first year of employment and 4 per month thereafter, up to a maximum of 120 days. Sickness allowance is payable at four-fifths (80%) of average daily wages when a sick day is taken on 4 or more consecutive days and is supported by an appropriate medical certificate.
Maternity & Paternity Cost Sharing
Statutory maternity leave is 14 weeks at 80% of average daily wages. For weeks 11 to 14, employers can apply to the government under the Reimbursement of Maternity Leave Pay Scheme, capped at HK$80,000 per employee. Reimbursement offsets part of the cost after the employer has paid the employee on time. Fathers receive 5 days of paternity leave at 80% of average daily wages.
13th-Month Pay & Bonuses
Hong Kong has no statutory 13th-month salary, but an end-of-year payment—often called "double pay"—is a strong market norm and a key factor in attracting talent. It typically equals one month's salary and is commonly paid at the end of the calendar year or in time for Chinese New Year. Where a 13th-month or double-pay term is written into the employment contract, it becomes an enforceable end-of-year payment under the Employment Ordinance.
Discretionary & Performance Bonuses
In finance, professional services, and technology, discretionary performance bonuses often form a substantial part of total pay and can far exceed one month's salary for strong performers. Because bonuses beyond a contractual double pay are usually discretionary, employers should document the eligibility rules, performance criteria, and payment timing clearly in the contract or bonus policy to manage expectations.
Supplementary Retirement Schemes (ORSO)
Beyond the mandatory MPF, some employers offer an Occupational Retirement Scheme (ORSO) or make voluntary top-up contributions to boost retirement savings. ORSO schemes, regulated under the Occupational Retirement Schemes Ordinance, can offer enhanced benefits, faster vesting, or different investment options, and are a common differentiator in packages for senior and executive talent.
A common arrangement is a voluntary MPF top-up or an ORSO scheme with vesting that increases with length of service, encouraging retention. Employer voluntary contributions can be tax-deductible within legal limits, making supplementary retirement an efficient way to raise total reward.
Supplementary Benefits & Allowances
Beyond the statutory minimum, employers commonly enhance packages with the following non-mandatory benefits to stay competitive in Hong Kong's tight, high-cost labour market.
Private Medical & Dental Insurance
Group medical insurance is one of the most expected benefits in Hong Kong, giving staff faster access to private specialists and hospitals with inpatient, outpatient, and emergency cover. Supplementary dental and optical plans are widely valued, and cover often extends to dependents for senior roles. Group life and personal-accident insurance are frequently bundled in.
Housing & Education Allowances
Given Hong Kong's high cost of living, a housing or rental allowance is a valued benefit, particularly for relocated, expatriate, and senior staff. For employees with families, an education or school-fee allowance for children is a common addition to executive and international-assignment packages.
Additional Leave & Flexible Working
Employers often grant annual leave above the statutory floor (commonly 14–20 days from the outset), plus extras such as birthday leave, wellness days, and study leave. Hybrid and flexible-working arrangements are increasingly offered—particularly in technology, finance, and multinational firms—as a low-cost, high-value retention tool.
Allowances & Learning Support
Transport, meal, and mobile or communication allowances are common cash top-ups. Training budgets, professional-qualification sponsorship (such as CPA or CFA), and language courses are popular perks that support career growth and help employers retain skilled professionals in a competitive hiring market.
Conclusion
Ensure your compensation and benefits packages in Hong Kong are competitive, compliant, and aligned with local expectations. With Glints as your partner, you gain regional expertise that keeps your offerings attractive to top talent while adhering to Hong Kong's MPF system and Employment Ordinance.
Book a call with our team to explore how we can support your compensation and benefits strategy for a stronger, more compliant workforce in Hong Kong.
