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Population
Hong Kong has a population of approximately 7.5 million people (as of 2023). It is one of the most densely populated metropolises in the world, with the majority of residents living in very compact spaces. The population is primarily composed of ethnic Chinese (around 92%), along with a significant number of expatriates working or living in the region.
Capital
Hong Kong does not have a capital, as it is a Special Administrative Region (SAR) of the People’s Republic of China. Historically, Victoria City on Hong Kong Island was regarded as the capital, but today, the entire territory is considered a unified city.
Economic Strength
Hong Kong is one of the world’s leading financial centers, with a free market economy and a significant international trading sector. Its economy is characterized by banking, financial services, trade, tourism, and one of the largest container ports in the world. Hong Kong is also known for its low taxes and its role as a hub for international businesses operating in Asia. Despite global economic fluctuations, Hong Kong remains one of the wealthiest cities in the world, with a high per capita GDP.
Culture
Hong Kong’s culture is a blend of Chinese traditions and Western influences, a legacy of its colonial past. Cultural events, religious festivals, and the Cantonese language shape daily life. Traditional festivals such as Chinese New Year, the Mid-Autumn Festival, and the Dragon Boat Festival are deeply rooted. At the same time, Western holidays like Christmas and New Year have gained importance due to the region’s British colonial history.
Currency
The official currency of Hong Kong is the Hong Kong Dollar (HKD), which has been pegged to the US Dollar since the 1980s.
Health Insurance and Social Security System
Hong Kong has a public healthcare system subsidized by the government, providing low-cost or free medical services for residents. Private health insurance is also common, particularly among wealthier citizens or expatriates. There is no formal social security system like in Western countries, but there is a pension system managed through the Mandatory Provident Fund (MPF), to which both employees and employers contribute.
Employer Costs
The main costs for employers in Hong Kong include salaries, bonuses, contributions to the Mandatory Provident Fund (MPF), and health insurance for employees. Employers are required to contribute 5% of an employee’s monthly salary to the MPF, up to a legal maximum. Additional costs may arise from statutory leave, sick pay, and other corporate benefits.
Salary and Bonuses
Hong Kong offers a competitive salary system, particularly in sectors such as finance, technology, and management. Bonuses are common across many industries and are typically paid at the end of the year or during Chinese holidays. The minimum wage is approximately 40 HKD per hour (as of 2023), though most professionals earn significantly more.
Payroll
Employers are legally required to provide their employees with monthly payroll statements detailing the base salary, bonuses, social security contributions, and other deductions. These payroll records must be clearly structured to meet tax and labor regulations.
Public Holidays
Hong Kong observes several public holidays, including:
- Chinese New Year (February, 3 days)
- Ching Ming Festival (April 5)
- Labor Day (May 1)
- Dragon Boat Festival (May/June)
- National Day (October 1)
- Mid-Autumn Festival (October)
- Christmas (December 25)
There are around 17 public holidays per year, many of which are rooted in Chinese traditions.
Working Hours
Working hours in Hong Kong vary by industry. Generally, employees work between 40 and 48 hours per week, with overtime being common in certain sectors like finance. A five-day workweek is the norm in most professions, although sectors like retail and hospitality may require employees to work on Saturdays.
Vacation
Employees in Hong Kong are entitled to at least 7 days of paid annual leave, which can increase to up to 14 days with longer tenure. Additionally, employees receive time off on public holidays. Many companies also offer additional leave as part of their benefits package.
Sick Leave
Employees are entitled to sick leave in Hong Kong. For the first 12 months of employment, workers accrue 2 sick days per month, and 4 days per month thereafter. Up to 120 sick days can be accumulated. During sick leave, employees generally receive sickness allowance, which is approximately 80% of their normal salary.
Termination/Severance
Employers and employees in Hong Kong are generally required to give one month’s notice for termination. In cases of involuntary termination, employees who have worked for a company for more than two years are entitled to severance pay, calculated based on the length of employment. The typical severance pay is two-thirds of the last month’s salary per year of service.