Payroll in Hong Kong

Hong Kong is one of the world’s most dynamic business hubs. The special administrative region is famous for its buzzing economy, bustling street food scene, and its strategic position as a gateway to mainland China. The region’s robust service economy and its identity as a financial powerhouse have shaped everything from its workforce to its payroll processes. Multinationals looking to gain ground in the city and benefit from its role as a financial powerhouse need to contend with a payroll environment that is both highly regulated and constantly evolving.Hong Kong is densely populated and inhabitants must contend with housing shortages and a high cost of living. As a result, many employees have moved across the border to mainland China and commute into Hong Kong. The prevalence of cross-border workers also means that employers need to navigate different regulatory requirements for their employees depending on where they live. In this episode of Payroll Around the World, we’re joined by ADP experts Jenny Sun, the Local Service Director at ADP Hong Kong, and Harry Chen, Service Director for the Asia-Pacific Region at ADP, as they share insights on navigating Hong Kong’s evolving payroll landscape. We also speak to Edmond, a financial advisor who lives in Shenzhen but works in Hong Kong, to learn more about an employee’s perspective on commuting between borders.TimestampsIntro [00:07]Hong Kong’s labor market [04:18]The territorial tax system [08:23]The Mandatory Provident Fund [13:50]Cross-border employees [24:07]Edmond’s story [24:56]Compliance challenges for cross-border employees [31:14]How ADP can help [34:47]Credits Executive Producers for ADP: Nicola Smith and Kate Allen Executive Producer for Storythings: Matt Locke Lead Producer for Storythings: Chris Mitchell Scripted and hosted by: Luisa Rollenhagen Guest interview recorded by: Kelly Yu Project Manager: Aimee Perrinjaquet  Hosted on Acast. See acast.com/privacy for more information.