How Can Osome Handle Payroll for Your Hong Kong Employees?

Payroll refers to the total compensation an employer provides employees for their services over a specified period. At Osome, we make payroll simple and fully compliant with Hong Kong regulations.

Key Payroll Regulations

• Payroll is processed monthly.
• Salaries must be disbursed on the last working day of each month.
• A 7-day grace period is allowed if payment cannot be made on the agreed date.
• Hong Kong’s statutory minimum hourly wage is HK$42.10, effective from 1 May 2025. Employers must ensure all wages meet or exceed this threshold, based on total hours worked.

Salary Tax Reporting

• All staff remuneration must be reported annually via Employer’s Returns (BIR56A & IR56B) to the Inland Revenue Department (IRD).
• Employment changes such as new hires, terminations, deaths, or long-term leave must also be declared (via forms IR56E, IR56F, IR56G; SMEs may only file BIR56A & IR56B).
• Salary tax is progressive at 2–17% of net pay. Employees can opt for a flat 15% rate, but filing and payment to IRD is the employer’s responsibility.
• Terminated employees must have IR56F submitted within a month so they can receive a release letter.
• Payments to non-incorporated service providers must be reported via forms IR6036B and IR56M.

Mandatory Provident Fund (MPF)

• Employers must contribute to MPF on behalf of their employees.
• Both employer and employee contribute 5% of relevant salary for employees earning between HK$7,100 and HK$30,000 per month. Contributions are capped at HK$1,500 each.
• A one-time HK$550 fee applies for setting up an MPF account.

Osome Payroll Services

• If you use Osome Accounting, payroll services are HK$220 per employee per month, which covers access to Talenox software (excluding leave tracking), payroll calculations for salary, overtime, bonuses, and statutory contributions like MPF, and generation of payslips.
• Leave tracking in Talenox incurs an additional HK$220 per employee.
• Payroll and MPF services are only available to clients subscribed to Osome Accounting.