Managing payroll in Hong Kong is often more complex than it appears – especially for foreign and overseas-based companies. Beyond salary processing, employers must navigate MPF contributions, IRD tax filings, compliance with the Hong Kong Employment Ordinance, and strict employee record-keeping requirements. This is why you MUST need local help in doing your payroll.
To help foreign companies choose the right approach, this guide compares the top five payroll solutions in Hong Kong:
Growing SMEs, mid-sized companies, large teams (10–50+ staff)
Internal HR/payroll system (e.g., BambooHR, Workday, Zoho, or custom)
Full control and oversight
Immediate responsiveness
Deep company-specific knowledge
Scales with growing headcount
✅ FastLane is one of the few providers that shows pricing upfront — typically HK$300–500 per employee/month (est. USD $39-$64 per employees/month), with discounts for higher volume.
Other firms usually require custom proposals due to complexity or bundled services.
1. FastLane Group
FastLane Group, established in 2013, is a trusted provider of payroll and HR outsourcing solutions in Hong Kong and Southeast Asia. With over 1,000 businesses served, the company specializes in helping startups, SMEs, and multinational corporations expand their international brand into the Hong Kong market with customised payroll services.
Normally, international MNCs will required cross-border payroll solutions. FastLane’s payroll services start from HKD $280 per staff per month (USD $36), with customized quotes available for businesses requiring additional services or cross-border payroll solutions.
For more information or to get started, contact FastLane Group today!
2. FastLane Recruit – Best for Hiring + Payroll Onboarding
FastLane Recruit focuses on helping businesses hire and onboard new employees, then smoothly transition those employees into FastLane’s payroll ecosystem.
Key services include:
Talent recruitment and sourcing
Employment contract preparation
New hire documentation
Onboarding + payroll setup
HR workflow guidance
Why it stands out FastLane Recruit provides value far beyond payroll: it supports businesses from the moment they start hiring. For companies scaling quickly, this ensures that HR processes and payroll setup are not fragmented across different providers.
Best for: Companies hiring frequently or scaling headcount.
3. FastLane HR – Best for HR Administration + Compliance
FastLane HR provides essential HR support that many SMEs lack — especially those without an HR manager. It ensures that employee documentation, policies, and compliance processes are handled correctly.
Key services include:
HR advisory and compliance
Employee data management
Attendance and leave management
HR policy development
Integration with payroll (FastLane Group)
Why it stands out It centralises HR and payroll within the same ecosystem, reducing miscommunication and administrative burden. This helps businesses maintain compliance with Hong Kong labour laws while also supporting employees through structured HR processes.
Best for: SMEs without a dedicated HR team or those wanting to consolidate HR + payroll under one provider.
4. DIY Payroll – Best for Micro Teams and Cost-Sensitive Businesses
DIY payroll means handling payroll internally using tools like Excel, Xero, QuickBooks, or the official MPF contribution portal.
Typical tasks include:
Manual payroll calculations
MPF uploads/submissions
Preparing IR56 forms
Leave and holiday tracking
Compliance record-keeping
Why businesses choose DIY DIY is the cheapest option, making it attractive for solo founders or companies with fewer than 3 employees. However, it is time-consuming and significantly increases the risk of compliance errors, which can lead to penalties.
Best for: Very small businesses, freelancers, and cost-sensitive founders.
5. In-House Full-Time HR / Payroll Team
This approach involves building a dedicated local HR and payroll function in Hong Kong, with part-time or full-time staff responsible for payroll processing, MPF administration, Employment Ordinance compliance, tax reporting, HR records, leave management, benefits, and employee onboarding and offboarding.
This model is typically adopted after a company has an established and stable Hong Kong operation – rather than by new overseas companies entering the market.
When this makes sense
You have a large and permanent Hong Kong workforce (typically 30–50+ employees).
Payroll and HR operations are highly active, with frequent hiring, role changes, and terminations.
You require daily, hands-on HR involvement on the ground.
You already have strong internal compliance capability or regional HR leadership overseeing Hong Kong.
Strengths of In-House Team:
Full internal control over payroll and HR processes.
Deep familiarity with company culture, policies, and internal workflows.
Immediate internal responsiveness without reliance on external vendors.
Ability to expand beyond payroll into broader HR functions such as:
Performance management
Compensation and benefits design
Talent development
Policy governance and internal audits
Limitations:
High fixed costs, including salaries, benefits, training, and turnover risk.
Ongoing need to stay current with Hong Kong labour law, MPF rules, and IRD updates.
Management and supervision overhead.
Increased compliance risk if local expertise is limited or key staff leave.
Which Option Should You Choose?
👉 Choose In-House Team if
You already have a large, stable Hong Kong workforce (typically 30+ employees).
Payroll and HR activity is frequent, ongoing, and operationally complex.
You require day-to-day, on-site HR involvement.
You intend for HR to be a core internal function rather than an outsourced service.
This option is usually suitable for companies with an established Hong Kong presence, rather than overseas firms entering the market.
👉 Choose outsourced providers (FastLane Group / FastLane HR / FastLane Recruit) if
You are a foreign or multinational company operating in or expanding into Hong Kong.
You want to avoid the cost, risk, and management overhead of hiring local HR staff.
You prefer predictable monthly fees over fixed salaries and long-term commitments.
You need local compliance expertise, scalability, and operational reliability without building internal HR infrastructure.
This approach is commonly used by international companies, regional headquarters, and growing teams that want to stay lean while remaining fully compliant in Hong Kong.
👉 Choose DIY only if
You have a very small team (typically 1–2 employees).
Payroll and HR activity is minimal and infrequent.
You are comfortable managing MPF, tax filings, contracts, and compliance paperwork internally.
Cost minimisation is a higher priority than time savings or risk reduction.
For most foreign companies, DIY payroll is practical only in the very early stages and becomes inefficient as headcount grows.
Final Thoughts
Payroll and HR management in Hong Kong go far beyond routine administrative work, they form a critical part of your company’s operational and compliance infrastructure. For MNCs and small teams entering the Hong Kong market, outsourcing to a trusted local provider such as FastLane Group (or combining services with FastLane Recruit and FastLane HR) is often the most efficient, cost-effective, and low-risk approach.
As your Hong Kong presence expands, some organisations may choose to build an in-house HR or payroll function to gain greater control, customisation, and internal capability.
Ultimately, there is no one-size-fits-all solution. The right payroll and HR setup depends on your local headcount, growth trajectory, internal resources, and the level of oversight and flexibility your business requires.
Author
Ang Wee Chun
Wee Chun Ang is a seasoned professional with expertise in business expansion, global workforce solutions, accounting, and strategic marketing, backed by a strong foundation in financial markets. He began his career managing high-value FX transactions at Affin Moneybrokers, a subsidiary of Affin Group, and KAF Astley & Pearce, a subsidiary of KAF Investment Bank. During his tenure, he played a pivotal role in setting up FX options desks, achieving significant milestones, including a 300% increase in desk revenue.
