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$43.10, effective from 1 May 2026. 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 if those freelancers or contractors are based in HK.

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.

Osome Payroll Services

Updated arrangement (effective May 2026):
There will be two possible options for your consideration:

Option 1: Talenox Account Managed by Osome

• We will continue managing both the payroll processing and Talenox subscription on your behalf.
• Payroll service fee: HKD 220 per employee/month
• Talenox subscription fee: HKD 20 per employee/month
• Total: HKD 240 per employee/month
• We will handle the full setup, billing, and administration for you in one consolidated monthly invoice.

Option 2: Client-managed Talenox Account

• You may choose to subscribe to Talenox directly under your company account.
• You will manage and pay Talenox subscription directly to the provider
• We will continue providing payroll services as usual
• Payroll service fee remains: HKD 220 per employee/month

If you could kindly let us know which option you prefer, we will proceed with the necessary arrangements accordingly.

• If you use Osome Accounting, payroll services cover access to Talenox software (excluding leave tracking) if the client opts for option 1, payroll calculations for salary, overtime, bonuses, and statutory contributions like MPF, and the generation of payslips.
• Please note that this payroll service does not include payment settlement and MPF account set up. The employers are expected to settle the payments from their end.