Hong Kong Country Facts
We provide comprehensive information regarding, Culture, Work life, Taxation, Visa’s & immigration, Labour Law, recruiting in your country of choice and employment contracts.
Global Expansion Made Easy for You
Expanding into Hong Kong generally comes with challenges, however, partnering with us and using Employer of Record (EOR) eliminates the frustrations you could encounter.
Hong Kong Visas, Work Permits and Migration
With low costs in administration, labor and tax, attractive business incentives, and reputable scores in ease of business, Hong Kong is an appealing global business expansion option for foreign companies, entrepreneurs, and workers. Hong Kong visa and permit regulations require expert guidance as they vary according to the zones foreign nationals reside in – Mainland China, Asia, Europe, the US, and outside zones are all affected by these regulations.
What Types of Work Visas, and Permits for Hong Kong are there?
Hong Kong has several visas foreign nationals can apply for, depending on their work needs:
- Visa under the General Employment Policy (GEP) – A Professional Work Visa for expats that are highly qualified for their work.
- Visa under the Admission Scheme for Mainland Talents and Professionals (ASMTP).
- Visa under Immigration Arrangements for Non-Local Graduates (IANG) – This is a visa for foreign nations with a degree from Hong Kong. Within 6 months of graduation, individuals can apply for this visa to stay in Hong Kong for up to a year to look for local employment.
- Visa under the Technology Talent Admission Scheme (TTAS) – This work visa is for specialists in certain technology sectors, which include artificial intelligence and financial technologies.
- Training Visa – This visa option is for individuals who are looking to learn a skill or gain specific knowledge and want to live in Hong Kong for up to a year.
- Visa under Quality Migrant Admission Scheme (QMAS) – Expats from certain professions who want to work in Hong Kong, and has 1,000 slots for IT, financial, legal, and creative individuals who do not have an existing job offer.
Most foreign nationals who are moving to Hong Kong apply for a GEP Visa. Most work visas are only valid for a year, but they can be renewed.
Hong Kong Tax Laws
Hong Kong is a special administrative territory in China, which has a separate political and economic system to the rest of the country. An investment-friendly climate with low levels of state intervention and an attractive tax system has made Hong Kong become the world’s seventh-largest trading entity as well one of the world’s most prominent financial hubs.
Dealing with tax matters is a major issue for companies seeking to develop an international presence, particularly as disciplinary measures can apply for non-compliance. We have made it our goal to keep track of the latest changes in the tax policies of Hong Kong to always ensure complete compliance.
Overview of Taxes in Hong Kong
- Individual Income Tax – 2% – 17% (Progressive)
- VAT – 0%
- Corporate Income Tax – 16.5%
- Social Security Contributions (Mandatory Provident Fund) – 5% (employee), 5% (employer)
Hong Kong Individual Tax – Single, Married
Any individual earning an income from Hong Kong must pay local taxes, regardless of their residential status. Income tax is not imposed on an individual’s total income. Instead, there are 3 types of income tax an individual can contribute to:
- Salaries Tax – income from employment, office, or pensions
- Profits Tax – income from business or trading profits
- Property Tax – rental income from immovable property
All individuals are subject to pay Income Tax, the most common being salaries tax. Income tax is to be paid by the individual in an annual tax return. Hong Kong’s income tax rates are progressive, depending on one’s annual income. It starts at 2%, with a maximum of 17%:
- HK$ 0 – 50,000 – 2%
- HK$50,000 – 100,000 – 6%
- HK$100,001 – 150,000 – 10%
- HK$150,000 – 200,000 – 14%
- Over HK$200,000 – 17%
Besides income tax, individuals in Hong Kong are also subject to pay for social security, which amounts to about 5% of their monthly income. Any earnings from capital interests are not taxed.
Individual tax returns are issued on the first working day of May of the following year and must be filed within a month of the issue date. Income Tax can be done separately according to the type of income earned or done as a “personal assessment” – where income chargeable to all three types of income tax are aggregated in a single assessment.
If an individual is married, they may choose to be taxed separately, or jointly with their spouse.
Filing tax returns can be done online with the Inland Revenue Department’s website via eTax, or in person. For tax-filling in Hong Kong, it is mandatory for a taxpayer to have an identity number – this could be with a Hong Kong ID Card, or in some cases (especially non-residents), your national identity number, to use for local tax services.
Hong Kong Entity Set Up
Global expansion into Hong Kong generally means that you need to set up an in-country entity. However, by partnering with us, you create the possibility to bypass this process and utilize our Hong Kong entity. By using our PEO service we take care of the complicated paperwork.
Expanding into a new country is always an adventure, but we believe this adventure should be exciting instead of just frustrating and time-consuming. Therefore, we have been supporting companies in over a hundred countries with their expansion plans.
How to set up a Hong Kong Subsidiary
- Decide on the company type that suits the nature of your business, your business goals and matches your own capabilities to meet establishment requirements. Common company types include: The Private Limited Company, The Public Limited Company, The Company Limited by Guarantee, a branch office, or a representative office.
- Choose a company name – can be in English (end in Limited), traditional Chinese, or an English and Chinese name (but the combination of English and Chinese characters is prohibited).
- Appoint a company secretary.
- Obtain a business address in Hong Kong.
- Prepare the appropriate registration documents and have them translated to Chinese or English.
- Notarize and legalize the registration documents at a notary’s office.
- Confirm your company name and register your company at the Companies Registry.
- Receive a Certificate of Incorporation.
- Register with the Inland Revenue Department and obtain a Business Registration Certificate, which includes the company’s Tax Identification Number.
- Open a corporate bank account.
- Apply for any additional permits or licenses (if required), within a month of incorporation.
Benefits of setting up a Subsidiary in Hong Kong
Hong Kong is one of the top destinations for subsidiary establishment in the world, so it is easy to see why it is a popular destination for growing a business’ influence. There are also other significant benefits to establishing an entity in Hong Kong:
- Subsidiaries in Hong Kong are taxed the same as any other resident company.
- Subsidiary entities in Hong Kong also benefit from double tax treaties, in which there are significant reductions in tax payments on dividends, interests or royalties paid to the foreign country.
- Hong Kong ranks high at 3rd place in the Ease of Doing Business report by The World Bank (2020).
- Hong Kong boasts robust financial, tourism, logistics, and professional services sectors, as well as high-quality creative, medical and education services.
- Hong Kong entities also benefit from the lowest tax rates in Asia, as well as low workforce costs.
- In 2019, the Heritage Foundation recognized Hong Kong as the freest economy in the world, due to its focus on providing trade and monetary freedom to businesses, as well as integrity and transparency towards its governments.
- The workforce in Hong Kong is also highly trained, flexible, productive, and adaptable to international businesses, with English as the second official language alongside Chinese.
Hong Kong Market
Foreign companies who wish to expand into Hong Kong will be met with world-renowned financial sectors, a highly educated and multicultural workforce, competitive tax incentives, and exceptional ease of business in company registration.
However, setting up shop in an unfamiliar place comes with its own challenges. Foreign businesses must comply with employment, tax, payroll, and corporate legislation whilst ensuring that their employees are working productively and efficiently.
Starting a Business in Hong Kong
Hong Kong’s geographical position benefits from international access to diverse marketplaces in Asia. With a robust infrastructure, and reputable telecommunications systems, this creates an attractive environment for any business owner who seeks to expand their business.
To start a business in Hong Kong you must go through a company registration procedure, which is straightforward and designed to be executed easily. These steps can be done online or in person. The necessary steps to start a business in Hong Kong include:
- Decide on the company type that suits the nature of your business, your business goals and matches your own capabilities to meet establishment requirements. Common company types include:
– The Private Limited Company
– The Public Limited Company
– The Company Limited by Guarantee
– a branch office
– a representative office - Choose a company name – can be in English (must end in Limited), traditional Chinese, or an English and Chinese name (but the combination of English and Chinese characters is prohibited).
- Appoint a company secretary.
- Obtain a business address in Hong Kong.
- Prepare the appropriate registration documents and have them translated to Chinese or English.
- Notarize and legalize the registration documents at a notary’s office.
- Confirm your company name and register your company at the Company Registry.
- Receive a Certificate of Incorporation.
- Register with the Inland Revenue Department and obtain a Business Registration Certificate, which includes the company’s Tax Identification Number.
- Open a corporate bank account.
- Apply for any additional permits or licenses (if required), within a month of incorporation.
Expanding into Hong Kong
Foreign companies wishing to expand into Hong Kong will be swept into a formidable economy with a multinational and multilingual talent pool, and attractive administrative and labor costs – which is provided to all companies that enter their market.
The country’s position offers access to trade in the East, as well as a formidable infrastructure and a cultural mix of eastern and western-oriented business environments.
Hong Kong boasts a strong and well-regulated financial sector, as well as robust tourism, production, logistics, cultural, and creative industries. Hong Kong is a business hub of Asia, with the continent’s key markets less than four hours’ away. This ease of access and proximity to these major markets make Hong Kong an ideal place to set up a company’s base.
These industries are abundant for international expansion, but they can also be expanded locally into Mainland China.
Business strategy in China places significance on regional advantages, so it is important to be aware of every region’s benefit, and how they can be most beneficial for your business. A city’s economic classification, as well as access to infrastructure, are also important to take note of when considering business expansion in China.
Popular business locations and tourist destinations include Shanghai, Qingdao, Shenzhen, Guangzhou, Tianjin.
Hong Kong Business Facts
- Capital City – City of Victoria
- Population – 7.5 million
- Cities – Kowloon, Tsuen Wan New Town, Tuen Mun New Town, Tai Po New Town, Aberdeen Harbor, Peng Chau, Kwun Tong, Lei Yue Mun, Sok Kwu Wan
- Official language(s) – English, Chinese
- Economy/GDP (2020) – $341 billion (45th)
- World Ranking (Ease of Doing Business) – 3rd (2020)
- Leading sectors – textiles, clothing, tourism, banking, shipping, electronics, plastics, toys, watches, clocks
- Main exports – electrical machinery and appliances, textiles, apparel, watches, clocks, toys, jewelry, goldsmiths’ and silversmiths’ wares, other precious and semi-precious materials.
- Main imports – raw materials, semi-manufacturers, consumer goods, capital goods, foodstuffs, fuel (mostly re-exported)
- Main trading partners – China, United States, Japan, the United Kingdom, and Taiwan.
- Government – Devolved executive-led system within a socialist republic
- Currency – Hong Kong Dollar (HKD/HK$)
Advantages and Challenges of the Hong Kong Market
The Hong Kong market has a variety of significant advantages:
- Competitive tax system: Hong Kong benefits from business-friendly low-tax regimes, as well as one of the most competitive rates in Asia. Companies in Hong Kong may also benefit from tax exemptions from gains received from outside the country.
- Free economy and trade: In 2019, the Heritage Foundation recognized Hong Kong as the freest economy in the world, due to its trade and monetary freedoms combined with its government’s integrity and transparency.
- High-quality education: Hong Kong is home to 22 award-winning higher education institutions and has various admission schemes in place to attract world-wide talent and diversify the economy.
- Language: English is the favored language for doing business in Hong Kong, and most local are multilingual, with knowledge of Cantonese or Mandarin.
- Ease of Business: Hong Kong is currently ranked 3rd in the word for Ease of Business by the World Bank Report.
- Logistics: With high-quality infrastructure by air, sea and land, Hong Kong has access to trade in Asia, only taking 5 to 8 hours to get to any country in the area.
- Telecommunications: Hong Kong also has one of the fastest hotspots and broadband speeds worldwide.
Challenges:
The biggest challenge facing the Hong Kong market currently is the effects of COVID-19, like many other nations in Asia and around the world. Other challenges also include inequality, poverty levels, and unemployment levels due to COVID-19. But these challenges are being tackled by the government with necessary reforms.
Limited Company / Subsidiary or Branch in Hong Kong?
A subsidiary established in Hong Kong is considered a legal separate entity from the parent company, with independent administration and management, providing freedom explore the local market and create international credibility.
A branch, however, does not have any independence from the parent company, but it is taxed and reported similarly to resident entities, and is limited in its commercial activities.
Hong Kong Contracts
If a foreign company is looking to hire resident employees as part of their international expansion into Hong Kong, they must comply with recruitment regulations such as tax, social security contributions and local employment laws, as well as collaborate with or adhere to any collective bargaining, trade unions or work council agreements.
Labor law in Hong Kong is based on both employer and employee protection.
In Hong Kong, it is common practice for employment contracts to be presented to employees in writing. There are two contract types to choose from – with the main differences between them being the contract length and benefits entitlement.
The Employment Ordinance is the governing law of employment, and includes the influence of trade unions and work councils. However, this may vary according to the industry and sector.
To be fully aware of what you can and cannot apply to your employment practices in Hong Kong, it is important for the employer to know the existing labor laws and employee entitlements, as well as collaborate with the appropriate local employment organizations.
In Hong Kong, it is not required for an employment contract to be in writing, but it is strongly encouraged by the Labor Department and is common practice. However, upon the employee’s request, the employer must provide a written document with the terms and conditions of the employment in writing.
If an employment contract is to be in writing, the employee is to be provided with a copy of the signed employment contract, with the following information – wages, the wage period, the length of notice for termination of the employment contract, and end-of-year payments, if applicable.
There are two types of employment contracts:
- An employment contract – Employment contracts provide employees with basic protection under the Ordinance, which includes wage payments, wage deduction restrictions, statutory leave, etc. Every employment contract is implied to be valid for one month and is renewable from month to month until it is deemed a continuous contract.
- A continuous employment contract – Continuous employment contracts, however, entitle employees to all statutory benefits under the Employment Ordinance – rest days, paid annual leave, sickness allowance, severance payments, etc.
A continuous contract of employment is the standard contract for most employment cases and can be defined as a contract in which the employee works for the same employer for 4 weeks or more, and at least 18 hours every week. All benefits are offered to employees – including rest days, paid annual leave, sick allowance, severance payments, long service payments, and extra benefits.
Employee Benefits
Happy and satisfied employees make your business thrive and lead to even better profits. However, the specific benefits for employees in Hong Kong might not all be familiar to you yet. By using our PEO and Employer of Record (EOR) service we can provide compliant labor contracts for employees in Hong Kong including local benefits.
When expanding your company’s presence in a new country, you need to ensure compliance both in your employment contracts and benefit guarantees. These involve social security contributions, sick leave, health insurance, and unemployment, to name a few. In Hong Kong, benefits are mainly guaranteed by labor law and national legislation but may also include the influence of trade unions.
What Compensation Laws exist in Hong Kong?
In Hong Kong, compensation is regulated by The Employment Ordinance, and depends on the employee’s contract category. A continuous contract entitles an employee to more benefits, whereas an employment contract only guarantees basic protection (medical insurance, pension scheme payments, public holiday pay, overtime), and is valid for a shorter period.
Once an employee has worked for more than 4 weeks, they are in the continuous contract category and are subject to different compensation laws.
Employee compensation is due at the end of the last day of the wage period – and employees must be paid before or on the due date, or no later than 7 days afterward.
Also, is it best practice for employers to provide a 13th month salary payment as an end of year or Lunar New Year bonus payment. Other bonuses, commissions, awards, and other compensation can be included by employers in the employment contracts.
It is also important to note that there is no law in the Employment Ordinance that prescribes the maximum number of working hours in a workday, or the length of a work week – this is based on an agreement between the employer and employee. This is also the case for overtime payments.
Common practice, however, is 5 days a week of work, between 40-50 hours.
There are other benefits/compensation that are guaranteed by national legislation:
- National Minimum Wage: All employees must be paid at least the National Minimum Wage amount for their work, which currently stands at HK$37.50 an hour – the wage amount will vary according to the employee’s experience, qualifications, and sector.
- Rest Days: Even though there is no law for a standard work week, there is a law that employees must have at least one rest day in a seven-day period. In cases where the employee will need to be called in, the rest day will be granted after the work is done, and the work will be compensated.
- Social Insurance Contributions: There is only one social security contribution that must be paid by both employers and employees – a pension scheme known as a Mandatory Provident Fund.
- Redundancy, Termination and Severance: For termination, it is common practice for the employer or the employee to send in a one month’s notice. In the case of the employer enabling the termination contract, employees are entitled to a severance payment.
There are two kinds of severance payments – a severance payment, and a long service severance payment. However, both types only apply if a certain amount of time has passed. Employees are entitled to a severance payment after 24 months of work and are entitled to a long service payment after at least 5 years of work.
Other factors for eligibility include:
- Severance – the employee is dismissed due to redundancy, employment contract expires without being called for renewal either employer or employee, or the employee is laid off.
- Long Service – the employee is dismissed for reasons other than serious misconduct or redundancy, employment contract expires without being called for renewal either employer or employee, the employee dies, the employee resigns due to ill health, or the employee resigns due to old age.
- Sick Leave: Employees in Hong are entitled to both sick days, as well as a bonus sickness allowance (eligible under certain conditions). The amount of paid sick leave days an employee is entitled starts at 2 days for the first month of employment, and progressively increases according to the length of employment.The sickness allowance is granted according to an employees’ eligibility under certain conditions and must be compensated no later than the employee’s pay day.
- Holiday/Vacation Leave: Employees are granted 12 days of statutory holidays with full day pay, as well as paid annual leave. Annual leave starts at 7 days for the first year and increases progressively.
- Maternity/Paternity Leave: Female employees are entitled to a continuous period of 14 weeks of maternity leave, which also applies to miscarriages occurring at or before 24 weeks of pregnancy.
Employees on maternity leave are also entitled to maternity leave pay which amounts to about 80% of the average daily wages earned by the employee in the last 12 months. The 4 extra weeks of maternity leave (which were added from 10 weeks in late 2020) will be paid at the same rate as maternity leave but will be reimbursed by the government in an administrative scheme.
Paternity Leave is also granted to male employees for 5 days and is paid at the same rate as maternity leave – 80% of the average daily wages of the employee.
Social Security in Hong Kong
In Hong Kong, the only social security contributions that both the employer and employee must pay monthly are pension schemes, which is known as the Mandatory Provident Fund. The employer must withhold 5% of the employee’s wages, as well as make their own contributions of 5% of the employee’s wages, which is to be paid directly to the appropriate pension fund.
Employers oversee setting up funds for themselves and their employees to contribute to. Employees automatically join your company’s scheme after 60 days of work.
Contributors & Mandatory Provident Fund Percentages (%)
- Employee – 5%
- Employer – 5%
Statutory Employer Costs in Hong Kong
Most benefits and compensation depend on the type of contract an employee has – an employment contract only covers basic protection, whereas a continuous contract includes additional benefits and is subject to different compensation laws. Most employee benefits (besides pensions, holiday pay, and medical insurance) are only applicable if the employee is listed under a continuous contract.
Statutory costs concerning employment in Hong Kong include:
- the minimum wage requirements
- the Mandatory Provident Fund payments
- Income Tax
However, in case of employee benefits, it is common practice to add an additional 20% on top of an employee’s gross salary.
Hong Kong Top Talent
Hiring the right talent in Hong Kong to expand your company can result in a thriving business with numerous opportunities. However, the recruitment process can be complicated when you have no physical presence in Hong Kong yet. Our PEO and Employer of Record (EOR) services can be the solution for your company.
Recruitment can be a tricky business, especially when a company is venturing to unfamiliar countries and exploring new markets. This is where the services of a specialist, who can come in and oversee the process for you, comes in handy.
The Recruitment Process in Hong Kong
A foreign company expanding into Hong Kong does not require the assistance of a local entity to hire their employees. However, it is vital to your recruitment efforts to understand where you can find the right talent (both foreign and domestic), as well as which national employment organisations an employer can collaborate with to access the right talent pools. This, though, takes time. And once the employee is found, the employer must follow rigorous procedures, which include:
- Registering with the Inland Revenue Department (IRD) for a Tax Identification Number.
- Registering for a Mandatory Provident Fund (MPF) with the Social Welfare Department to pay social insurance contributions.
- Registering employees with the Inland Revenue Department (IRD).
- Registering employees for Hong Kong ID Cards, and the valid visas/residence permits.
- Creating employment contracts and translating them to Chinese and/or English.
- Sending in a sponsorship letter to the Hong Kong Immigration Department for overseas employees.
- Applying for employee’s visas or special expatriation status (if applicable).
- Calculating employees’ monthly salary and creating pay slips.
- Researching for any available tax-free allowances or benefits.
- Submitting wage tax returns and national insurance forms.
- Corresponding with the involved parties (organizations, trade unions, etc.).
- Creating annual accounts, financial administration, and year-end statements.
- Creating a payment schedule for wage tax, national and social insurances, and net wages.
Legal Checks on Employees in Hong Kong
When commencing the recruitment process in a foreign country, employers should consider their legal obligations.
In Hong Kong, employment law is stipulated by The Employment Ordinance, which highlights the individual rights, duties, and responsibilities of both the employer and employee. The Ordinance also governs the conditions of employment to ensure the protection of the employee.
This includes being able to ask prospective employees for background checks, which is governed under the Personal Data Ordinance. Personal data may only be collected for specific purposes, and requires that the data collected be adequate, but not excessive.
Applicants must be expressly informed to the data collection requirements, and before the check is done, must sign a Personal Information Collection Statement, stating their consent.
Checks and tests that can be requested are as follows:
- Criminal background check
- Medical examination – the employer can only be done to obtain necessary information regarding the candidate’s health that support a medical practitioner’s opinion that he or she is fit for employment.
- Drug and alcohol testing – needs the employee’s prior consent to carry out this test.
Basic Facts on Hiring in Hong Kong
Here are some basic facts, outlined by the Employment Ordinance, about hiring in Hong Kong that are important for every recruiter to know:
- Employers must use consistent selection criteria for the recruitment, promotion, transfer, training, dismissal, and redundancy for employees, as well as the employment contract terms and conditions.
- Ensure equal opportunities for employees based on their skills, experience, and ability to perform.
- Discrimination on age, gender, religion, race, marital status, or disability is prohibited.
- Recruiters must only ask questions related to the job requirements during a job interview.
- Employees handling job applications and interviews should be properly trained to avoid acts of discrimination.
- Employers must ensure all advertising materials and accompanying literature relating to employment does not list any attributes such as age, gender, marital status, race, religion, and language (unless justifiable).
- Candidates must be short-listed by employers on the basis of their skills and capabilities matching with the objective selection criteria.
- Tests used for selection purposes must be designed to relate to the job requirements and should measure an applicant’s actual or potential ability to do the job.
- Employment contracts can be written or verbal, but it is common to have contracts in writing, outlining all employment terms clearly.
- An employee is entitled to 7 days of annual leave during their first year of work, but this gradually increases according to employment length.
- Probation is between 1-6 months, depending on the terms of the employment contract.
- Payments to the Mandatory Provident Fund (pension scheme) are mandatory after the employee has spent over 60 days in employment with the employer.
Hong Kong Work Culture
To succeed in business in Hong Kong, it is vital to have a solid understanding of the country’s business culture. Hong Kong business culture reflects highly significant values of Asian culture – the significance of keeping face, a strong deference for seniority and age, and hierarchical relationships. This, however, is complemented by increasing modern-day and Western characteristics, such as an international mindset and an increase in value of foreign investors.
The high value placed on intellectual efforts, a person’s leave of education and proficiency in English can heavily influence an individual’s social standing in Hong Kong. Politeness and respect is also important in relationships with locals, so conservative manners are the norm.
There have been recent changes and awareness around the world concerning the importance of work-life balance and flexible working, but Hong Kong’s business culture places significant importance on business etiquette and face-to-face interaction. Here are some tips and tricks to use during your first few months:
- Punctuality: Punctuality is expected and respected – it is best to be on time for all appointments. It is also respectful to allow some courtesy time of up to 30 minutes if someone is late. If you are late, you must have an explanation as to why.
- Languages: Knowledge of English is prized in Hong Kong, but a knowledge of Cantonese or Mandarin can also go a long way.
- Hierarchy: Hierarchy is an influential part of business relations in Hong Kong. Senior members have a larger role in meetings and negotiations. They must also enter and leave the room first, as well as be addressed first or before junior members.
- Introductions/Greetings: The culture in Hong Kong has adopted the Western greeting style of a handshake as the norm – to be accompanied with a nod and direct contact. The handshake is to be light, and senior members might also lower their eyes during the greeting. A person is to be addressed by their title and surname.
- Gift-giving: When giving a gift to an associate or business partner, give the gift in the bag of the shop that it came from – brand names are important in Hong Kong. The gift might be refused at first, but it is best to keep offering, as it is considered rude to accept a gift on the first offer.There are also gifts to be avoided – blankets (believed to decline prosperity), clocks (connote death), handkerchiefs, sharp objects, and anything that contains the color black, blue and white, as well as anything that is not beautifully wrapped.
- Dress code: In Hong Kong, the dress code is conservative. In Chinese culture, colors have different meetings, so it is necessary so be aware of these meanings when choosing what to wear.Dark and neutral colors are preferred – and for any professional setting, formal attire is best as it connotes professionalism. The formality of the dress code depends on the industry, however. In industries such as marketing, advertising and fashion, more casual attire is acceptable.
- Relationships: It takes time to build relationships in Hong Kong. Calls and face-to-face meetings are vital to the success of your relationship-building with your associates. Showing interest in your business relationships is deemed considerate and is highly favored.
- Meetings: Make appointments for a meeting a month in advance. The meeting style is honest and quick, and it may take several business meetings to accomplish your goals.Tea is also served at meetings and plays an important role in meetings. Do not start drinking until your host takes the first sip. When the host leaves his teacup untouched, this signals the end of the meeting.
- Communication: Communication in Hong Kong focuses on politeness and saving face. Communication is more indirect, with underlying meanings in their speech. Laughter is soft, and direct refusals or disagreement are never given.Silence is a useful tool of communication in Asia. Pausing before a response indicates that they are applying an appropriate thought and consideration to what has been said, which signifies respect. Silence can also indicate hesitation, so it is best to look for other cues and implicit meanings in their speech to confirm this.Citizens of Hong Kong also tend to be reserved in physical touch, and do not tend to make intentional body contact such as hugging, kissing, or patting on the back.
Hong Kong Minimum Wage
In February 2021, the Hong Kong Government announced that the statutory minimum wage (SMW) rate will remain at HK$37.50 per hour from 2020, and will remain so until April 2023, pending the next wage review to be conducted in October 2022.
Probation Periods in Hong Kong
There is no set probation period in Hong Kong, as this depends on the employment contract, job type and company. A probationary period usually lasts from 1 to 3 months, and in some cases, even 6 months.
The termination notice for the probationary period is commonly no less than 7 days.
Working Hours in Hong Kong
Working Hours in Hong Kong vary according to the agreements in the contracts, but are commonly between 40-50 hours per week, with at least one rest day for every 7-day work period.
Overtime in Hong Kong
Hong Kong labor law does not have specific requirements concerning overtime work and payments. However, overtime is at the employer’s discretion. If the contract states that overtime payment will be provided, then employers are legally obliged to do so.
Overtime payments, however, are commonly paid at the same rate of normal pay.
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