Bestar Hong Kong Reply EOR Services Inquiry
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Bestar EOR Services Inquiry Response
Bestar Hong Kong Reply EOR Services Inquiry
Here is a professional, comprehensive email reply from Bestar Hong Kong to a client inquiring about Employer of Record (EOR) services.
Subject: Inquiry: Employer of Record (EOR) Services in Hong Kong – Bestar Consulting
Dear Client,
Thank you for reaching out to Bestar Consulting Limited regarding our Employer of Record (EOR) services in Hong Kong. We would be delighted to assist your organization with your expansion and hiring needs.
Through our local setup in Hong Kong, Bestar acts as the legal employer for your distributed workforce. This allows you to hire talent quickly and compliantly without the need to establish a local corporate entity. We manage all employment compliance, payroll, and HR administration, while your team maintains direct day-to-day management of the employee's work.
Our Hong Kong EOR Service Coverage
Our comprehensive EOR solution manages the entire employment lifecycle:
Compliant Onboarding: Drafting local employment contracts aligned with the Hong Kong Employment Ordinance, managing background checks, and structuring local benefits.
Payroll Administration: Processing monthly payroll in HKD, calculating statutory deductions, and issuing compliant payslips.
Statutory Compliance: Managing Mandatory Provident Fund (MPF) registrations, mandatory employer contributions, and statutory employee compensation insurance.
Tax Reporting: Preparing and filing annual employer's returns (Forms 56B/56F/56E) with the Inland Revenue Department (IRD).
Offboarding & Termination: Managing statutory notice periods, severance packages, and final payouts compliantly if an employment relationship ends.
1. Bestar EOR Management Fee
We charge a fixed, predictable monthly fee per employee. This covers contract generation, onboarding, recurring payroll processing, MPF administration, and annual IRD tax filings.
Standard EOR Management Fee: USD 400 – USD 600 / HKD 3,100 – HKD 4,700 per employee per month (Depending on headcount volume and complexity, such as visa requirements).
Setup/Onboarding Fee: Charge a one-time fee of USD 150 / HKD 1,150 per employee.
2. Statutory Pass-Through Costs (Hong Kong Law)
These are direct employment costs required by the Hong Kong government. Bestar pays these directly to the relevant authorities/insurers and invoices them back to the client at cost.
Mandatory Provident Fund (MPF):
Rate: 5% of the employee’s monthly relevant income.
Cap: Capped at HKD 1,500 per month for salaries of HKD 30,000 or above.
Employees’ Compensation Insurance:
Mandatory under Cap. 282 of Hong Kong law to cover workplace injuries.
Rate: Typically ranges from 0.2% to 1.5% of the gross monthly salary, depending on whether the role is office-based or involves field/physical work.
Hiring/Payroll Tax: 0%. Hong Kong does not have a monthly PAYE (Pay-As-You-Earn) tax withholding system. Employees file and pay their Salaries Tax directly to the Inland Revenue Department (IRD) annually.
3. Total Loaded Cost Example (For Client Clarity)
To give the client an idea of their total monthly budget for a mid-level employee earning HKD 35,000/month, the invoice breakdown would look like this:
Expense Component | Monthly Amount (HKD) | Notes |
|---|---|---|
Gross Employee Salary | HKD 35,000 | Paid to employee |
Employer MPF Contribution | HKD 1,500 | 5% (capped at HKD 30,000 threshold) |
Employees' Comp Insurance | ~HKD 175 | Estimated at 0.5% for an office role |
Bestar EOR Management Fee | ~HKD 3,900 | Our administrative service fee |
Total Monthly Invoice | ~HKD 40,575 | All-In Cost |
Following up on your inquiry, we are pleased to submit our formal service and fee proposal for Bestar’s Employer of Record (EOR) services in Hong Kong.
1. Fee Structure
Our pricing model is completely transparent, separating our fixed administrative management fee from the statutory employment costs required under Hong Kong law.
A. Bestar Service Fees
Fee Component | Amount | Frequency | Notes |
|---|---|---|---|
EOR Management Fee | HKD 3,900 (or USD 500) | Monthly, per employee | Fixed fee for ongoing payroll, compliance, and HR administration. |
Onboarding & Setup Fee | HKD 1,150 (or USD 150) | One-time, per employee | Covers initial contract drafting and system setup. |
B. Statutory Pass-Through Costs (Hong Kong Law)
These are mandatory employer obligations paid directly to local authorities/insurers and invoiced back to you at actual cost:
Mandatory Provident Fund (MPF): 5% of the employee’s monthly relevant income, capped strictly at HKD 1,500 per month (for gross salaries of HKD 30,000 or above).
Employees’ Compensation Insurance: Mandatory under Cap. 282 to cover workplace injuries. Typically ranges from 0.2% to 1.5% of the gross monthly salary depending on the job risk profile (estimated at ~0.5% for standard office-based roles).
Hiring/Payroll Tax: 0%. Hong Kong does not operate a monthly PAYE withholding tax system; employees file and pay their Salaries Tax directly to the IRD annually.
Next Steps & Onboarding Timeline
Once you decide to proceed, the onboarding process typically takes 3 to 5 business days, provided the candidate holds a valid right to work in Hong Kong:
Service Agreement: Execution of the Master EOR Services Agreement between your organization and Bestar.
Data Collection: Gathering employee details, compensation specifics, and local onboarding documents.
Employment Contract: Bestar issues the local employment contract to the candidate for signature.
Payroll Setup: Onboarding the employee into our payroll and MPF systems.
Please let us know if you would like to finalize the details and review the draft Master Services Agreement.
To Provide a Tailored Proposal
To help us prepare a precise fee proposal and service scope for your team, could you kindly share a few details regarding your immediate hiring plans?
Number of employees: How many talents are you looking to onboard initially?
Target start date: When would you like the employment to ideally commence?
Compensation structure: Will the remuneration consist of a fixed base salary only, or are there monthly/quarterly bonuses and commissions involved?
Visa requirements: Are the prospective candidates Hong Kong permanent residents/valid visa holders, or will they require employment visa sponsorship?
We look forward to partnering with you.
Best regards,
Bestar Consulting Limited (Hong Kong)
Bestar Hong Kong Reply EOR Services Inquiry
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