Cost of an employee in Hong Kong (2026)
What an employee really costs an employer in Hong Kong: gross salary plus mandatory employer social contributions.
On a gross salary of HK$21,200 per month in Hong Kong, an employer pays about HK$22,260 in total once mandatory employer social contributions of 5% on top of the gross are included.
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How salary is taxed in Hong Kong
Income tax in Hong Kong is progressive: marginal rates rise from 2% to 17% as income grows.
Employees also pay social contributions of around 5% of gross salary.
A tax-free allowance of about HK$132,000 per year is deducted before income tax.
| Annual taxable income | Tax rate |
|---|---|
| Up to HK$50,000 | 2% |
| Up to HK$100,000 | 6% |
| Up to HK$150,000 | 10% |
| Up to HK$200,000 | 14% |
| HK$200,000 and above | 17% |
Frequently asked questions
What does it cost to employ someone in Hong Kong?
On top of the gross salary, an employer in Hong Kong pays mandatory social contributions. The total cost of employment is the gross salary plus those employer contributions.
Are employer contributions the same as salary deductions?
No. Employer contributions are paid by the company in addition to the gross salary, while employee deductions (income tax and social contributions) are taken out of the gross to leave the net take-home pay.
Employer-contribution rates are approximate and may be capped or vary by region and sector.
Approximate 2026 estimate. Simplified model, verify before relying on it. Not tax advice.
Rates updated June 2026