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How does payroll operate in Hong Kong?

In Hong Kong, employers are required to contribute to the Mandatory Provident Fund (MPF), a scheme regulated by the Hong Kong Government. Both employers and employees make contributions to the MPF, based on their earnings. Employers must contribute 5% of their monthly gross salary, capped at HKD 1,500 per month. Employees also contribute 5% for earnings above HKD 7,100 per month, up to a maximum of HKD 1,500.

What are the key employment regulations?

Employees in Hong Kong are entitled to paid annual leave after completing a year of service, starting with 7 days. In the second year, the entitlement remains the same, increasing by one day per year thereafter, reaching a maximum of 14 days after nine years of service.

Maternity Leave is granted for 14 weeks if the employee has worked for at least 40 weeks before the anticipated start date of the leave. Maternity Pay is calculated at 80% of the average earnings from the previous 12 months.

What should be considered when dismissing an employee?

Proper procedures must be followed for correct employee dismissal in Hong Kong. This includes giving appropriate notice and ensuring the employee does not fall under certain protected categories. It is advisable to consult one of our employment law specialists before terminating a contract.