Hong Kong Payroll Service Agreement Sample

Hong Kong Payroll Service Agreement Sample | Bestar

Payroll Service Agreement Sample

This is a Comprehensive and Detailed Payroll Service Agreement specifically structured for the Hong Kong legal landscape in 2026.

It integrates all the specific clauses—including the 7-day payment rule, the 2025 MPF Offsetting Abolition compliance, detailed fee structures, and the mandatory 24-hour data breach notification.

PAYROLL SERVICES MASTER AGREEMENT

THIS AGREEMENT is made on January 30, 2026, BETWEEN:

1. [CLIENT NAME], a company incorporated in Hong Kong with its registered office at [Address] (the "Client"); and

   
   

2. BESTAR CONSULTING LIMITED, a company incorporated in Hong Kong with its registered office at Flat D, 20/F, Eton Building, 288 Des Voeux Road Central, Sheung Wan, Hong Kong (the "Provider").

1. SCOPE OF SERVICES

The Provider shall perform the following statutory and administrative functions:

• Monthly Processing: Calculation of gross-to-net salary, overtime, discretionary/non-discretionary bonuses, and commissions.

  
  

• Statutory Deductions: Management of MPF contributions (Mandatory 5% and Voluntary) and processing of Long Service Payment (LSP) or Severance Payment (SP) in accordance with the post-May 2025 "Abolition of MPF Offsetting" transition rules.

  
  

• Tax Compliance: Preparation of IR56B (Annual Return), IR56E (New Joinees), and IR56F/G (Cessation of Employment or Departure from HK).

  
  

• Disbursements: Generation of bank-compatible Autopay files (HSBC, BOC, etc.) and delivery of secure, encrypted electronic payslips.

  
  

• Leave Management: Maintenance of statutory records for Annual Leave, Sick Leave (Category 1 & 2), and Maternity/Paternity Leave.

2. STATUTORY COMPLIANCE & THE "7-DAY RULE"

• Employment Ordinance (Cap. 57): The Provider acknowledges that wages must be paid no later than 7 days after the end of the wage period.

  
  

• MPF Schemes Ordinance (Cap. 485): The Provider shall ensure that the Remittance Advice and contributions are finalized by the 10th day of the following month.

  
  

• Record Keeping: The Provider shall maintain all wage and employment records for a minimum of seven (7) years as required by the Inland Revenue Ordinance.

3. DETAILED FEES AND PAYMENT TERMS

3.1 Setup and Implementation

• Implementation Fee: A one-time fee of HKD [Amount] due upon execution. Covers system configuration, data migration of [Number] employees, and one (1) parallel run test.

3.2 Recurring and Event-Based Fees

Service Item	Fee Amount (HKD)	Frequency
Standard Monthly Processing	$[Amount] / headcount	Monthly (Min. $[Amount])
Annual Tax Filing (IR56B)	$[Amount] / headcount	Annually (April)
New Hire/Leaver Filing (IR56E/F/G)	$[Amount] / submission	Per Event
Final Payment Calculation	$[Amount] / headcount	Per Termination
Off-Cycle / Ad-hoc Run	$[Amount] / run	Per Request

3.3 Payment Terms

• Service Invoices: Payable within 14 days of receipt.

  
  

• Payroll Funding: The Client must ensure cleared funds for Net Pay and MPF are available in the designated account three (3) business days before the disbursement date.

4. SERVICE LEVEL AGREEMENT (SLA)

The Provider shall adhere to the following response and accuracy standards:

• Financial Accuracy: 100% (Zero tolerance for net pay errors).

  
  

• Severity 1 (Critical): 2-hour response / 8-hour resolution for total payroll failures.

  
  

• Severity 2 (Urgent): 4-hour response / 24-hour resolution for individual pay discrepancies.

5. INDEMNITY AND LIMITATION OF LIABILITY

• Statutory Indemnity: The Provider shall indemnify the Client against any 5% MPF surcharges or IRD late-filing penalties resulting solely from the Provider’s failure to process data within the agreed cycle.

  
  

• General Liability Cap: Total liability for non-statutory breaches is limited to the fees paid in the 12 months preceding the claim.

  
  

• Exclusions: The Provider is not liable for penalties caused by the Client's late submission of data (post-deadline) or insufficient account funding.

6. DATA PRIVACY & CYBERSECURITY (PDPO)

• Data Residency: All Personal Data shall be hosted on secure servers located physically within Hong Kong.

  
  

• Breach Notification: The Provider shall notify the Client within 24 hours of any suspected Personal Data Breach involving HKID, bank details, or salary information.

  
  

• Security Standards: Data must be encrypted using AES-256 at rest and TLS 1.3 in transit.

7. TERMINATION AND HANDOVER

• Notice Period: Either party may terminate with 90 days' written notice.

  
  

• Handover Obligation: Upon termination, the Provider shall export all historical data (7-year history) in CSV/Excel format and provide two (2) weeks of transition support to the new service provider at no additional cost.

8. GOVERNING LAW

This Agreement is governed by the laws of the Hong Kong Special Administrative Region.

SIGNATORIES

For and on behalf of [CLIENT NAME]:

Signature: ______________________

Name/Title: ______________________

Date: __________

For and on behalf of BESTAR CONSULTING LIMITED:

Signature: ______________________

Name/Title: ______________________

Date: __________

Would you like a "Checklist of Documents" (e.g., BR, MPF Trustee info, IRD Employer No.) that you need to provide to the agency to kick off the implementation?

How Bestar Hong Kong can Help

Hong Kong Payroll Service Agreement Sample

In 2026, navigating the Hong Kong business landscape requires a partner who can bridge the gap between rigorous regulatory compliance and modern digital growth strategies. Bestar Hong Kong serves as this strategic bridge.

Here is a breakdown of how Bestar can specifically help your business succeed through operational excellence and digital authority.

1. Statutory & Payroll Compliance (The "Backbone")

Bestar eliminates the risk of legal penalties in Hong Kong’s strict regulatory environment.

• 7-Day Wage Rule: They ensure your payroll cycle is optimized to meet the Employment Ordinance (Cap. 57) requirement of paying employees within 7 days.

  
  

• eMPF Integration: As of 2026, all MPF contributions are centralizing. Bestar manages the transition to the eMPF Platform, ensuring the 10th-of-the-month deadline is never missed.

  
  

• MPF Offsetting Abolition: They handle the complex "pre-transition" and "post-transition" calculations for Long Service Payments (LSP) that became mandatory after May 2025.

  
  

• Tax Filing (IR56 Series): Bestar prepares and files all IRD forms (IR56B, E, F, G), reducing your administrative burden during the April tax season.

2. Authority

Bestar provides the "Trust Infrastructure".

• By providing a Registered Office address in premium HK districts and maintaining your company in "Good Standing," Bestar boosts your local signals and domain authority.

  
  

• Conversion: We help you build trust with potential clients by verifying your professional credentials and financial health—crucial "trust signals" that turn visitors into signed contracts.

  
  

• Optimization: Bestar’s CPA-backed reports and consistent corporate filings provide the "expert data" needed to cite your brand as a "Standard Answer" in your industry.

3. Global Expansion & Market Entry

If you are an international firm entering Hong Kong, Bestar acts as your "One-Stop Shop":

• Company Incorporation: Fast-track setup for Limited Companies or Branch Offices.

  
  

• Employment Visas: Specialist support for Employment Pass and Top Talent Pass applications.

  
  

• Banking Support: Assistance with the often-difficult process of opening corporate bank accounts in Hong Kong.

Why Choose Bestar in 2026?

Benefit	How Bestar Delivers
Zero Penalties	Indemnity against MPF surcharges and IRD late fees.
Readiness	Structured corporate data that makes your brand "friendly."
Scalability	"Per headcount" pricing that grows only as you do.
Data Security	24-hour breach notification and AES-256 data residency in HK.