Spotlight on Hong Kong: A guide to implementing employee benefits technology

Hong Kong’s employee benefits framework is built on a lean, employer-centric regulatory model featuring low social security burdens, a simple tax system, and the Mandatory Provident Fund (MPF) for retirement savings. Although less comprehensive than European or North American systems, this hybrid of basic statutory obligations and market-driven enhancements allows employers substantial flexibility to tailor competitive benefits packages – particularly vital in sectors such as finance, technology, and law.

For organizations hiring or expanding in Hong Kong, leveraging benefits technology to integrate compliance with customized perks can help reduce administrative friction, support retention, and enhance the employee experience.

Here is a breakdown of the employee benefits landscape in Hong Kong.

Mandatory benefits

The Employment Ordinance and the Mandatory Provident Fund Schemes Ordinance form the legal foundation for statutory benefits in Hong Kong. Unlike countries with expansive welfare systems, Hong Kong’s public support is limited and funded primarily through general taxation. Consequently, employers play a significant role in supplementing coverage, especially in competitive industries.

Statutory contributions

Mandatory Provident Fund (MPF)

Employers contribute 5% of an employee’s relevant income, capped at HKD 1,500/month (based on a monthly salary cap of HKD 30,000). Employees also contribute 5% of their relevant income, also capped at HKD 1,500/month, however employees earning less than HKD 7,100/month are not required to contribute.

Eligible employees are those aged 18–64 who are employed continuously for 60 days or more, but coverage begins immediately for casual employees in construction and catering sectors.

Employers typically select an MPF scheme from authorized providers, though employees may be given options. MPF benefits are defined contribution (DC) in nature and are fully funded. Both employer and employee mandatory contributions are immediately vested, giving employees full ownership of these funds from day one.

Additional retirement plans

Approximately 80% of multinational and leading local employers offer supplementary retirement benefits via:

• Voluntary top-up MPF contributions (typically 5–15% of an employee’s salary depending on tenure), or
• Occupational Retirement Schemes Ordinance (ORSO) plans, which can be either DC or DB. Around 85% of ORSO plans are MPF-exempt.

ORSO and MPF benefits may be used to offset statutory severance or long service payments, provided those contributions cover the same period of qualifying service. These payments are calculated as two-thirds of the employee’s monthly wages multiplied by their years of service,

Health and protection benefits

Public healthcare

Hong Kong’s public health system provides access to inpatient, outpatient, emergency, maternal and child health, and preventive services. Modest co-payments apply, such as HKD 180 for emergency care and HKD 75–120 per day for inpatient beds.

Private medical coverage

Most employers – particularly multinational organizations – offer private medical insurance to give employees access to Hong Kong’s extensive network of private hospitals. These plans typically include:

• Inpatient: HKD 750–2,500 per day (room level varies by seniority)
• Supplemental Major Medical: HKD 100,000–300,000/year
• Outpatient: 90% of plans include this; deductibles apply
• Dental/Optical: Often limited by seniority; annual dental caps around HKD 4,000
• Maternity: Optional with defined caps
• Wellness: Health checks, traditional Chinese medicine, fitness subsidies, and vaccinations

Premiums are usually 100% employer-funded, though dependent coverage may require employee contributions.

Death and disability benefits

• Group Life (GL) Insurance is often provided by large employers where the sum insured is typically 24 to 36 times an employee’s monthly salary.
• Total Permanent Disability (TPD) is commonly an add on to GL insurance. Benefits may be provided as a lump sum or spread over time, and the plan may also include critical illness or dread diseases payouts.
• MPF and ORSO are both schemes that provide benefits in the event of death or permanent disability based on accumulated value.

Workers compensation

Coverage is provided through mandatory Employees’ Compensation Insurance in Hong Kong, which includes several key benefits. Medical expenses are covered, ranging from HKD 300 per day to over HKD 137,000 for prosthetic repairs. In cases of temporary disability, employees receive 80% of the wage difference during their period of incapacity, typically for up to 24 to 36 months. For permanent disability or death, compensation can be as high as 96 months of earnings, subject to minimum and maximum limits. Additionally, funeral expenses of up to HKD 94,690 are covered. Employers fund 100% of the premium.

Market-driven & voluntary benefits

Given the modest statutory baseline, many employers offer personalized packages to stand out:

• Bonuses: 90% of employers offer performance-related incentives
• Flexible work: Work-from-home, compressed hours, or remote options
• Additional retirement contributions: Often based on seniority and service
• Wellness programs: Mental health apps, EAPs, and on-site facilities
• Transport, housing, meal allowances
• Club memberships, mobile phones, professional dues
• Flexible benefits platforms: Allow employees to choose from benefit options within a budget

Wellbeing allowances are becoming increasingly popular, often used to cover medical and health-related expenses not included in standard insurance plans. These flexible funds allow employers to support broader aspects of employee wellness, from preventive care to mental health and fitness.

It’s also important to consider culturally significant allowances that reflect local expectations. Many employers in Hong Kong provide a 13th-month salary, red envelopes for Chinese New Year, and gifts for personal milestones. Offering traditional treats—like mooncakes during the Mid-Autumn Festival—can go a long way in building engagement and cultural connection.

We’ve recently started to see supplemental pension plans emerge, although they remain relatively uncommon – appearing in less than 10% of our customer base. Some employers are also introducing allowances for technology, and even for travel or holidays, as a way to offer more flexible and lifestyle-focused benefits.

Key considerations for rolling out global benefits in Hong Kong

1. Support choice and clarity in health benefits. Hong Kong’s local health insurance plans can be complex, often involving multiple coverage tiers and claim processes. A centralized platform like Benifex helps employees navigate their options, access plan information, and download claims forms with ease. This not only enhances the employee experience but also reduces admin for HR teams through automated reporting and fewer queries.

2. Communicate in the local language. Language matters – particularly in a market with a diverse workforce. Benifex supports Chinese-language navigation, helping ensure all employees can understand, engage with, and take full advantage of their benefits.

3. Deliver flexibility in a talent-driven market. To compete for top talent in Hong Kong, employers need to move beyond compliance and offer modern, tech-enabled benefit experiences. Flexible benefits that support wellbeing, work-life balance, and financial security are increasingly expected and help position organizations as employers of choice in this fast-paced, global city.

If you’d like to understand more about the benefits landscape in Hong Kong – or you want to benchmark your offering – get in touch and speak to one of our global benefits experts.