PAYROLL IN HONG KONG

Here’s what you need to know about payroll if your business is expanding into Hong Kong. Here, the high cost of living has a significant impact on employers’ tailored attraction strategies, and the rise in cross-border workers means that employers must understand different regulatory requirements depending on where an employee resides. Getting your payroll compliance right means a happy, engaged and motivated workforce. Getting it wrong can result in financial penalties, investigation by local authorities and reputational damage.

Payroll and HR regulations are similar in most developed nations; however, it's the ‘exceptions’ in each country that tend to cause challenges. While it is preferable to pay employees in Hong Kong dollars, expatriates may choose to be paid partially in foreign currencies, which requires employers to use the fixed exchange rate announced by the Hong Kong monetary authority. It is worth noting that the Hong Kong tax year runs from April to March, and there are two methods employers can use to calculate salary tax. Additionally, the Mandatory Providence Fund (retirement fund) is an authority responsible for regulating and supervising the operations of several financial trustees, from which employers can select to partner with.