Cost of Salary to employer

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  1. #1

    Join Date
    Dec 2003
    Posts
    3,772

    Cost of Salary to employer

    Anybody knows how much an employer has to contribute when paying salaries. In Europe, where I come from, an employer has to pay around 13.8% of your salary to the government. So this increases the loan cost to the employer. How is this done in HK?

    Thx!


  2. #2

    Join Date
    Apr 2003
    Posts
    12,383

    There is a 5% MPF (Mandatory Provident Fund) which is capped at HK$2K/month.

    Not aware of any other employer related contributions.


  3. #3

    Join Date
    Feb 2005
    Posts
    104

    does the $2K cap apply to the mandatory 5% employee contribution too?


  4. #4

    Join Date
    May 2005
    Posts
    4,279

    I think it's capped at 1k for employee and 1k for employer.


  5. #5

    Join Date
    Apr 2003
    Posts
    12,383

    Yep, it is 1K for the employer. Sorry my brain is short circuited.


  6. #6

    For MPF
    5% of your total salary (your boss paid)) &
    5% from your salary (you paid)
    In other words, if your salary is $10,000, you will actually get $9,500 and your boss will submit $1,000 to MPF fund.


  7. #7

    Join Date
    Apr 2003
    Location
    Hong Kong
    Posts
    3,988

    hi,
    In addition to the pension scheme (MPF) dont forget that YOU will be responsible for paying your tax bill directly to government - you will get an annual bill about 15% after first 100K.

    However, if you are considered a flight risk (exiting without paying your tax) your boss (sponsor) may also withhold payment until you have paid your tax bill and have inland revenue letter proof.