Employer of Record in Hong Kong

How hiring through an employer of record works in Hong Kong

The local employer signs the Hong Kong contract, enrolls the employee in a Mandatory Provident Fund (MPF) scheme, insures against work injury and runs payroll. Section 44 of the Employment Ordinance (Cap. 57) requires the employer to state the wages, wage period and notice length before the start date and to give a copy of any written contract.

Employer costs and contributions in Hong Kong

Employer and employee each pay 5% of relevant income into the MPF. The MPFA defines it as monetary pay such as salary, bonuses and cash allowances; benefits in kind are outside it. The band is HK$7,100 to HK$30,000 a month, capping each side at HK$1,500, and the MPFA shows these as current. The employer's share counts from day one; new staff pay nothing for their first 30 days.

Since 1 May 2025, mandatory MPF contributions can no longer offset severance or long service payments for later service. Employers must also insure every employee against work injury under the Employees' Compensation Ordinance, with minimum cover of HK$100 million per event for up to 200 employees, and cannot deduct the premium from pay.

Pay, hours and leave rules in Hong Kong

• Minimum wage: HK$43.1 an hour from 1 May 2026, with student interns exempt.
• Hours: the Labour Department's policy study finds no general statutory maximum or overtime pay, so the contract sets them.
• Continuous contract: most benefits need one. From 18 January 2026 that is four weeks with the same employer and 17 hours a week, or 68 hours in a four-week window, instead of 18 hours a week.
• Holidays: one rest day in seven, 15 statutory holidays in 2026 (16 from 2028, 17 from 2030) and annual leave rising from 7 to 14 days.
• Sickness and family leave: sickness allowance at four-fifths of average daily wages for sick leave of at least four consecutive days, 14 weeks of maternity leave (paid at four-fifths after 40 weeks) and 5 days of paternity leave.
• End-of-year payment, a 13th month, is owed only if the contract says so.

Probation, notice and ending employment in Hong Kong

Where probation is expressly agreed, either side may end the contract in the first month without notice. After the first month of probation a contract silent on notice needs 7 days, and once probation ends a continuous contract silent on notice needs one month.

After 24 months of continuous service, redundancy brings severance payment. After five years, dismissal other than for redundancy or serious misconduct, or a lapsed fixed term, brings long service payment. Each is two thirds of monthly wages, capped at HK$15,000, per year of service, up to HK$390,000. After 24 months an employee may also claim for unreasonable dismissal unless the reason is conduct, capability, redundancy, a legal requirement or another substantial reason.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Hong Kong

Short answer: No. Section 26 of the Employment Ordinance requires wages to be paid in legal tender, with listed alternatives such as a cheque or a bank account in the employee's name, and the Inland Revenue Department says payment tokens are not legal tender, so a USDC payout cannot replace Hong Kong dollar pay.

What the law says about the form of pay

Section 26 of the Employment Ordinance requires wages to be paid on a working day directly to the employee in legal tender. With the employee's consent they may instead go by cheque, money order or postal order, into a bank account in the employee's name, or to an appointed agent. Article 111 of the Basic Law names the Hong Kong dollar as legal tender.

What it means for employee salary

The Inland Revenue Department states that payment tokens are not legal tender in Hong Kong, and no method in section 26 is a token transfer, so a Hong Kong salary stays in Hong Kong dollars and USDC or USDT cannot replace it. The HKMA and SFC pages reviewed cover issuers and trading platforms, not wages: the Stablecoins Ordinance, in force from 1 August 2025, requires an HKMA licence to issue fiat-referenced stablecoins in Hong Kong, and the SFC licenses virtual asset trading platforms. What applies to a specific hire is confirmed when Toku checks the arrangement.

Contractors

No official page reviewed addresses paying contractors in crypto. The Inland Revenue Department treats a freelancer outside a master and servant relationship as carrying on a business chargeable to profits tax.

Tax on crypto and tokens

The IRD's practice note DIPN 39 says salary paid in cryptocurrency gets the same salaries tax treatment as cash pay, reported at market value when it accrues. Profit on selling digital assets held as long-term investments is not chargeable to profits tax, but the note sets no separate rule for tokens first received as pay.

How Toku handles it

Employee salary in Hong Kong stays in local currency. Toku’s stablecoin payroll and its USDC or USDT payouts through contractor management are separate arrangements from employee salary, and token grants are administered through token grant administration. What applies to a specific hire in Hong Kong is confirmed before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Hong Kong

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Gather identification, proof of the right to work in Hong Kong, bank details for payment in Hong Kong dollars, any MPF scheme details and the agreed salary. Your quote confirms the onboarding timeline for Hong Kong.

What an employer of record costs in Hong Kong

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Hong Kong is confirmed before an offer. See the published pricing.

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