Payroll and provident fund
Payroll & MPF Compliance in Hong Kong
Hong Kong payroll is straightforward until a termination. That is where entitlements are won or lost.
GCC business setup specialists
Simple monthly, complex on exit
Running Hong Kong payroll month to month is uncomplicated: salary, MPF contributions, records. Terminations are where it gets technical, because statutory entitlements and payments in lieu have specific calculations.
- MPF contributions calculated and remitted correctly
- Termination payments calculated properly
- Employer returns filed on time
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
Black Swan Business Setup Services•Black Swan Business Setup Services•Black Swan Business Setup Services
What we run
The Hong Kong payroll cycle
These apply from the first employee.
| Element | What it involves | Rhythm |
|---|---|---|
| Salary calculation | Salary, allowances, deductions and unpaid leave | Monthly |
| MPF contributions | Employer and employee contributions calculated and remitted | Monthly |
| Payslips and records | Itemised records retained for inspection | Monthly |
| Leave tracking | Annual, sickness and statutory holidays | Ongoing |
| Employer’s return | Annual remuneration reporting to the IRD | Annual |
| Termination payments | Notice, accrued leave and statutory entitlements | On exit |
MPF rules, contribution limits and statutory entitlements are set by Hong Kong law and change. What applies is confirmed in writing.
How it works
Setting payroll up and running it
The termination calculation is where expertise earns its keep.
01
Set up
Employees, contracts, salary structures and MPF scheme captured, with records established.
02
Run monthly
Salaries calculated, MPF remitted, payslips issued and leave tracked.
03
Handle exits
Notice, accrued entitlements and any statutory payments calculated correctly and documented.
- Business Registration and company details
- Employment contracts for all staff
- Salary and benefit breakdown
- Start dates for every employee
- MPF scheme details and enrolment status
- Bank details for salary payment
- Leave entitlements and balances
- Employees’ compensation insurance details
- Prior payroll records, if any
- Any ongoing employment dispute
- Termination plans, if any
- Statutory holiday arrangements
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Payroll setup and salary structures
- Monthly salary calculation
- MPF calculation and remittance support
- Itemised payslips
- Leave and absence tracking
- Employer’s return preparation
- Termination payment calculations
- Payroll records retained for inspection
Not included, quoted separately
- The salaries themselves and bank charges
- MPF contributions themselves
- Insurance premiums
- Government fees
- Employment law advice on disputes
- Recruitment and onboarding
- Visa applications, quoted separately
- Payroll outside Hong Kong
Verify independently
Official Hong Kong authorities
We file directly with these bodies on your behalf.
Inland Revenue DepartmentImmigration DepartmentLabour DepartmentMandatory Provident Fund Schemes AuthorityCustoms and Excise DepartmentFood and Environmental Hygiene Department
Questions
Hong Kong payroll — FAQs
How do MPF contributions work?
Both employer and employee contribute within prescribed limits, and the employer is responsible for enrolment and remittance from the first eligible employee.
What makes terminations complex?
Notice, payment in lieu, accrued leave and statutory entitlements each have their own calculation, and errors surface in disputes.
Do I need to issue payslips?
Itemised records should be kept and provided. In a dispute they establish what was paid and why.
What is the employer’s return?
An annual report of employee remuneration to the Inland Revenue Department, separate from the company’s own tax return.
Can you run payroll for one employee?
Yes. MPF and the employer’s return apply from the first hire.
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For founders and business decision-makers considering paid business services. Not for job applications, employment searches or personal visa-only requests.
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At Black Swan Business Setup Services, our mission is simple: to empower entrepreneurs and companies of all sizes to establish and expand their presence in the UAE, Oman, Saudi Arabia, Bahrain, and beyond.
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