Hiring Your First Employee in Hong Kong: 2026 Employer Checklist

Your first Hong Kong hire needs employees' compensation insurance from day one and written terms before starting. Pay at least the statutory minimum wage of HK$43.1 an hour (from 1 May 2026). Enrol the employee in MPF within 60 days and contribute 5% of relevant income, and notify the IRD on an IR56E within 3 months of the start date. Then come recurring duties: a rest day in every 7, 15 statutory holidays in 2026, paid annual leave after 12 months, and wage records kept for the right period.

Last reviewed: September 2026 · Sources: Labour Department, MPFA, IRD

The first-hire checklist at a glance

Step by step: from offer to first payroll

1. Buy employees' compensation insurance before day one

Employees' compensation (EC) insurance is compulsory for every employee, full-time or part-time, whatever the length of the contract or the hours worked. The Labour Department's guidance on EC insurance sets the minimum cover:

• HK$100 million per event for businesses with 200 employees or fewer
• HK$200 million per event for more than 200

Employing anyone without a valid policy is an offence carrying a fine of up to HK$100,000 and 2 years' imprisonment. Arrange the policy before the start date, not after the first payroll, and keep it in force for as long as you employ anyone.

2. Put the terms in writing before the start date

The Employment Ordinance requires you to tell the employee, before employment begins, of the following:

• the wage rate, including any overtime rate and allowances
• the wage period
• the notice needed to end the contract
• any end-of-year payment and how it is calculated

If the contract is written, give the employee a copy. Changes later must also be communicated clearly, and in writing if the change is written or the employee asks. A term that cuts a right the Ordinance gives is void, so a contract cannot "opt out" of statutory holidays or leave.

The Labour Department's Concise Guide to the Employment Ordinance is the most practical single reference. Keep it bookmarked.

3. Set pay at or above the minimum wage

The statutory minimum wage is HK$43.1 an hour from 1 May 2026, up from HK$42.1. It applies to most employees whether paid monthly, daily or by piece. Student interns, work-experience students and live-in domestic workers are exempt.

Wages fall due at the end of each wage period and must be paid within 7 days after it. Late wages attract interest. Wilfully failing to pay carries a fine of up to HK$350,000 and 3 years' imprisonment, and directors can be personally liable where a company offends.

4. Check whether the job is a "continuous contract"

Most statutory benefits, including rest days, holiday pay, paid annual leave, sickness allowance, severance and long service payment, depend on the employee being on a continuous contract. The test changed on 18 January 2026 under the Employment (Amendment) Ordinance 2025, as the Labour Department's summary explains.

The new "468" rule means an employee is on a continuous contract after 4 weeks of continuous employment where, in each week, they either:

• worked at least 17 hours, or
• worked 68 hours or more over that week and the 3 weeks before it.

Periods before 18 January 2026 are still judged under the old "418" rule of 18 hours every week.

Worked example. A part-time retail assistant works 18, 17 and 19 hours, then 15 hours in week four.

• Week four is under 17 hours, so apply the 4-week test: 18 + 17 + 19 + 15 = 69 hours
• 69 is at least 68, so the continuous contract is not broken

Under the old rule, the 15-hour week would have broken it. If you employ part-timers, track their weekly hours from their first week.

5. Enrol the employee in MPF within 60 days

Employees aged 18 to 64 employed for 60 days or more, full-time or part-time, must be enrolled in an MPF scheme within the first 60 days of employment, according to the MPFA's enrolment rules. Probation makes no difference. The 60 days are calendar days, extended if the 60th day falls on a weekend, public holiday or severe-weather day. Enrolment now runs through the eMPF Platform: see our eMPF Platform checklist.

Failing to enrol an employee is an offence carrying a maximum fine of HK$350,000 and 3 years' imprisonment.

Dates for a 1 September 2026 start:

1. Day 60 falls on Friday 30 October 2026, the enrolment deadline.
2. The first contribution is due by the 10th of the month after the month in which day 60 falls, so by 10 November 2026. It covers the wage periods from the start date.
3. The IR56E is due within 3 months of the start date, so by 30 November 2026.

6. Calculate MPF contributions correctly

The MPFA's contribution rules set out the basics.

• The employer and employee each contribute 5% of relevant income.
• Below HK$7,100 a month, the employee contributes nothing but the employer still pays 5%.
• Above HK$30,000 a month, contributions are capped at HK$1,500 each.
• The employee has a contribution holiday for the first 30 days of employment and the first incomplete wage period after that. The employer does not: its 5% runs from day one.

Worked example: a normal month for three staff

Contributions are generally due by the 10th of the following month. Late payment triggers a 5% surcharge on the arrears. Give each employee a pay-record within 7 working days after contributions are made.

One record, not four spreadsheets. In JetFlow, the employee record you create at hiring is the same one payroll, MPF, leave and IR56 filing tracking work from, so the start date and pay are entered once. See how JetFlow handles payroll.

7. Notify the IRD with an IR56E

File an IR56E within 3 months of the start date for any employee who is likely to be reportable. The same person then appears on an IR56B in your employer's return the following April. Our BIR56A and IR56B guide covers the annual cycle. If this is your first hire, contact the IRD about an Employer's File Number, which appears on every IR56 form.

Time off your first employee is entitled to

Rest days and statutory holidays

An employee on a continuous contract gets at least one rest day in every 7 days, a continuous period of at least 24 hours. You appoint the rest days, and if they are irregular you tell the employee before each month begins.

There are 15 statutory holidays in 2026, following the Labour Department's 2026 list, which adds Easter Monday from this year. Good Friday is added in 2028 and the day after Good Friday in 2030, taking the total to 17. Holiday pay is due once the employee has been on a continuous contract for 3 months before the holiday. If you need someone to work on a statutory holiday, you must give an alternative holiday within 60 days, with at least 48 hours' notice.

Paid annual leave

Paid annual leave starts after each 12 months of continuous employment.

You set the timing after consultation and confirm it with at least 14 days' written notice, unless a shorter period is agreed. Someone who leaves with between 3 and 12 months' service in a leave year is generally owed pro-rata leave pay, unless summarily dismissed for serious misconduct.

Sick leave

Paid sickness days accumulate at 2 per completed month in the first 12 months and 4 per month after that. Sickness allowance is four-fifths of average daily wages. It is generally payable for absences of 4 or more consecutive days backed by a medical certificate, with some exceptions for shorter absences.

Records you must keep

The Employment Ordinance requires a record of wages and employment for the preceding 12 months. That covers pay, wage periods, and leave and holidays taken. Keep it for 6 months after the employee leaves. Failure is an offence with a fine of HK$10,000.

The IRD expects payroll records for tax purposes to be kept for at least 7 years. If the employee joined before 1 May 2025, there is an extra rule on the wage history around that date; see our MPF offsetting guide. Since you need the 7-year set anyway, the simplest policy is to keep everything for 7 years.

Common mistakes

• Starting before the insurance is bound. EC insurance must cover day one, including a first day that is "just training".
• Waiting for probation to end before enrolling in MPF. The 60-day clock starts on day one, and probation has no effect on it. The employer's 5% also runs from day one.
• Paying below minimum wage on paper. A monthly salary that looks fine can fall below HK$43.1 an hour once real hours, including unpaid overtime, are counted.
• Ignoring the new 468 rule. Part-timers who fell outside the old 18-hour test may now be on continuous contracts, with holiday pay and leave rights to match.
• Forgetting the IR56E. It is a small form with a 3-month deadline, and it is often missed because nothing prompts it.
• Verbal terms only. Without a written contract, disputes over notice, bonuses and overtime rates become one person's word against another's.

Frequently asked questions

Do I need to register as an employer in Hong Kong?

There is no separate employer licence. Your duties start with the first hire: EC insurance, MPF enrolment through a scheme on the eMPF Platform, and an IR56E to the IRD within 3 months. If this is your first hire, ask the IRD about an Employer's File Number.

What is the minimum wage in Hong Kong in 2026?

HK$43.1 an hour, effective from 1 May 2026, up from HK$42.1. It covers most employees, with exemptions for student interns, work-experience students and live-in domestic workers.

When must I enrol a new employee in MPF?

Within the first 60 days of employment, for employees aged 18 to 64 employed for 60 days or more. The first contribution is due by the 10th of the month after the month in which day 60 falls. Probation does not delay either date.

Do part-time employees get MPF, holidays and leave?

MPF applies to part-timers aged 18–64 employed for 60 days or more. Holiday pay, annual leave and sickness allowance depend on a continuous contract, which since 18 January 2026 means 17 hours a week or 68 hours over 4 weeks. EC insurance covers every employee regardless of hours.

How many statutory holidays are there in Hong Kong in 2026?

Fifteen, with Easter Monday added from 2026. The number rises to 16 in 2028 and 17 in 2030.

Key takeaways

• Insure first. EC insurance is compulsory for every employee from the first day, at HK$100 million per event for employers with 200 or fewer staff.
• Give written terms on wages, wage period, notice and any year-end payment before employment begins, and pay at least HK$43.1 an hour.
• Enrol in MPF within 60 days and contribute 5% each, on HK$7,100 to HK$30,000 of monthly relevant income.
• File an IR56E within 3 months of the start date.
• The 468 continuous-contract rule has applied since 18 January 2026, so track part-timers' weekly hours.
• Keep wage and leave records; 7 years satisfies both the Labour Department and the IRD.

Your first hire sets up the records every later hire will follow: an employee file, a payroll run, MPF, leave and tax forms. Build that once, correctly, and the next ten hires are routine. When you are ready, start free with JetFlow.

This article is general information, not legal or tax advice; check your own position with the Labour Department, MPFA, IRD or a qualified adviser.