PEO Services in Hong Kong

A co-employment model for companies that want to share the employer relationship in Hong Kong rather than hand it over entirely. Worth knowing up front: Hong Kong does not require a local entity to hire staff through an EOR, so true PEO co-employment fits a narrower set of structures here than EOR does. We advise honestly whether PEO or an EOR genuinely fits, and place you with the right vetted partner.

  • Independent advice
  • Vetted partners
  • Honest positioning

What a PEO does in Hong Kong

A Professional Employer Organisation works on a co-employment model. Hong Kong is a Special Administrative Region of China with its own common-law legal system, currency, and tax regime, distinct from mainland China’s. You and the PEO partner share the legal employer responsibilities for your Hong Kong staff: you keep direction and day-to-day control, while the partner administers MPF contributions, Salaries Tax obligations, statutory leave, and HR compliance under a shared arrangement.

01

Shared employer role

You and the PEO partner share the legal employer responsibilities. You keep direction and control; they handle MPF contributions, Salaries Tax administration, statutory leave, and HR administration.

02

More direct control

PEO suits companies that already have some presence in Hong Kong and want to retain more direct control of the employment relationship than a full EOR arrangement allows. Since no local entity is required to hire through an EOR here, PEO fits a narrower set of structures than in markets where EOR is the only route in.

03

Honest recommendation

For most companies hiring in Hong Kong, EOR is simpler. We advise whether the PEO model genuinely fits your structure, or whether EOR would suit you better.

How PEO works in Hong Kong, step by step

From assessing the fit to a compliant co-employment arrangement.

01 — Assess the fit

We map your structure, headcount, and how much control you want to keep, and tell you honestly whether PEO or EOR serves you better. No product push.

02 — Set up co-employment

If PEO fits, we place you with a vetted Hong Kong partner and structure the shared employer arrangement correctly.

03 — Onboard your people

Compliant Hong Kong employment terms under the Employment Ordinance (Cap. 57), with the administrative employer functions handled by the partner.

04 — Payroll & compliance

MPF contributions and Salaries Tax obligations administered accurately each month, while you keep day-to-day direction.

What PEO in Hong Kong costs

As with EOR, two parts: the statutory cost of employment (MPF employer contributions, capped and predictable) and the partner service fee.

Employer MPF contribution

5% of relevant income, capped at HKD 1,500 a month once relevant income exceeds HKD 30,000 a month — Hong Kong’s sole mandatory payroll contribution; there is no separate social security or health-insurance levy on top, all administered under the shared employer arrangement.

Minimum wage (2026)

HKD 43.10 per hour, current since 1 May 2026 under the Minimum Wage Ordinance (Cap. 608), one territory-wide rate with no regional variation to track.

Salaries Tax (employee)

Whichever is lower: progressive rates of 2/6/10/14/17% on net chargeable income, or a two-tiered standard rate of 15% on the first HKD 5,000,000 of net income and 16% above — the Inland Revenue Department applies whichever produces the smaller bill.

PEO partner fee

A service fee for the co-employment administration. Under a shared employer arrangement, Hong Kong’s MPF contributions and statutory leave entitlements still have to be administered correctly by someone. We benchmark across our vetted network, typically 15 to 25% below going direct.

Why arrange it through Bradford Jacobs

Why companies arrange Hong Kong PEO through us rather than going direct to a single provider.

We tell you if PEO fits your needs

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Hong Kong’s own employer cost is genuinely capped, not open-ended: once relevant income crosses the MPF ceiling, the employer contribution stops climbing, so we have a known figure to benchmark against rather than a moving target. We benchmark across our vetted network for rates typically 15 to 25% below going direct, and renegotiate for you at renewal.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades of placements

Two decades placing and managing employment arrangements across global markets, with the local knowledge that keeps Hong Kong’s continuous-contract status, MPF administration, and Employment Ordinance obligations correctly tracked from day one.

  • Co-employment expertise
  • Honest fit advice
  • Right structure

We flex as your structure changes

PEO, EOR, and your own entity sit on a spectrum, and the right point shifts as you grow. We advise on the path and manage the moves, EOR to PEO, or either to your own Hong Kong private company limited by shares, as your Hong Kong presence develops.

  • EOR, PEO or entity
  • Transitions managed
  • Right fit as you grow

How Hong Kong’s continuous-contract rule divides employer duties under PEO

Whichever model you use, the same Employment Ordinance rules apply underneath. Under a PEO arrangement, the administrative employer functions, including tracking each employee’s continuous-contract status, are handled for you.

Working time, leave & contracts

Hong Kong sets no statutory maximum working hours and no statutory overtime premium for the general workforce, but does mandate at least one rest day in every seven. Statutory annual leave starts at 7 days after year one, rising to a cap of 14 days from year nine onward — notably low by EU standards. MPF contributions calculated and remitted, and continuous-contract status tracked, throughout.

Statutory protections & exits

Hong Kong sets no statutory maximum probation period; market practice runs 1 to 3 months, up to 6 for senior roles. Either party may end employment without notice in the first month; after that, a minimum 7 days’ notice applies. Redundancy after 24 months’ service triggers a Severance Payment; dismissal after 5 years’ service, other than for misconduct or redundancy, triggers a Long Service Payment instead — two distinct statutory payments, both of which MPF employer-contribution accrued benefits may offset. The value is the same as with EOR: the compliance is handled by people who do it daily. The difference is simply how much of the employer role you keep.

What a PEO arrangement covers

The co-employment administration covers all of this, under one transparent fee.

Compliant contract

A compliant Hong Kong employment contract under the Employment Ordinance (Cap. 57), issued and maintained for you.

Payroll & filings

Monthly payroll run, with MPF employer and employee contributions calculated and remitted, and Salaries Tax obligations administered accurately.

Statutory benefits

All statutory benefits administered: annual leave, sick leave, maternity and paternity leave, notice, and Severance or Long Service Payment as applicable.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how PEO co-employment works in Hong Kong.

What is the difference between PEO and EOR in Hong Kong?

With an EOR, the partner is the sole legal employer of your Hong Kong staff. With a PEO, you and the partner share the employer relationship: you keep more direct control, they handle the administration. Hong Kong does not require a local entity to hire through an EOR, so PEO fits a narrower set of structures: companies that already have some registered presence and want outsourced HR and payroll administration with shared employer risk.

For most companies, EOR is simpler and faster, especially with no Hong Kong entity. PEO fits when you already have a registered presence and want to share rather than fully outsource the employer role. We advise whether the PEO model fits your structure, or whether EOR would suit you better.

Generally yes in practice. PEO co-employment normally assumes you already have some registered presence in Hong Kong; if you have no entity and want none, EOR is the cleaner route since it needs no local registration on your side. We will confirm which applies to you.

The administrative employer functions, MPF contributions, Salaries Tax administration, statutory leave, and statutory filings, are handled by the partner. We make sure the arrangement is structured so responsibilities are clear and the Employment Ordinance is met.

The statutory employer cost (5% MPF contribution, capped at HKD 1,500 a month once relevant income passes HKD 30,000) plus a partner service fee for the co-employment administration. We benchmark across our network for pricing typically 15 to 25% below going direct.

Yes. These models sit on a spectrum and the right one changes as you grow. We advise on the path and manage transitions, EOR to PEO, or either to your own Hong Kong private company limited by shares, as your Hong Kong presence develops.

Not sure whether PEO or EOR is right for Hong Kong?

Tell us your structure and headcount and we will give you an honest recommendation, usually within a day, plus pricing you will not get direct. No product push, just the right fit.

Tax and labour data verified July 2026 (Inland Revenue Department, MPFA, Labour Department). Figures change; we confirm the current position when we scope your hire.