Hong Kong has about 400,000 foreign employees, mainly from the Philippines and Indonesia, who play a significant role in taking care of many families’ daily needs. How much does it cost to hire a worker in Hong Kong in 2024? Is it possible to employ directly (Direct Hire) bypassing the domestic helper agencies? This article helps you understand the expenses of hiring foreign domestic helpers for Hong Kong families and assess the risks of hiring without an agent.
Overview of Costs for Hiring Overseas Workers in 2024
Expense Item | Description |
Minimum Wage and Meal Allowance | From October 1, 2023, the minimum wage for overseas domestic workers is HK$ 4,870 per month. Additionally, if the employer does not provide meals, a minimum meal allowance of HK$ 1,236 is required. |
Agency Service Fees | The cost of hiring overseas domestic workers through an agency is about HK$ 10,000 to HK$ 15,000, depending on the range of services provided. |
Airfare and Transportation | Employers are responsible for the domestic worker’s round-trip airfare and transportation within Hong Kong. For Filipino and Indonesian workers, the cost of a one-way ticket to Hong Kong ranges from HK$ 1,500 to HK$ 2,000. |
Medical Examination Fees | The medical examination fees before and after the domestic helper arrives in Hong Kong are usually included in the agency service fees. If paid separately, the cost is about HK$ 1,000. |
Medical Insurance | The Labour Department requires employers to purchase medical insurance for domestic workers working in Hong Kong, with the cost around HK$ 1,200 to HK$ 1,500 every two years. |
Total Expenses | Combining the above expenses, the total cost of hiring an overseas worker for two years is approximately HK$130,000 – HK$150,000. |
Can You Directly Hire a Worker (DIRECT HIRE) Without an Agency?
Pros and Cons of Hiring Without an Agency
Pros:
- Cost Savings: Directly hiring overseas workers allows employers to save a significant amount on agency fees, which is a major reason for choosing Direct Hire.
- Flexible Interview Arrangements: Employers can set their own interview times, not restricted by the domestic helper agency’s business hours, and conduct as many interviews as they wish.
- In-depth Communication: Without an agency, employers have more opportunities to have in-depth conversations with the workers, assessing whether they meet the specific needs and expectations of the family.
- Potential Time Savings: Hiring directly without an agent can avoid the extra time needed for communication with the agency, making the recruitment process more efficient and quicker. However, if there are language barriers or other obstacles, it might be more time-consuming and problematic.
Cons:
- Limited Choices: The governments of the Philippines and Indonesia require that domestic helpers who have never worked in Hong Kong must be hired through an agency, limiting employers’ choices.
- Complex Procedures: The hiring process includes visa applications, health checks, and other tedious procedures, requiring a significant amount of time and effort from the employer.
- Lack of Quality Assurance: Without an agency as a third party to verify the domestic helper’s information, there’s an increased risk of fraud.
- No Mediation Mechanism: In case of conflicts with the domestic helper, the employer will lack the mediation services provided by agencies.
Although directly hiring foreign domestic helpers without an agent has many benefits, employers should also be aware of the related risks and challenges. Therefore, before hiring, employers should carefully consider their capabilities and preparation to ensure a smooth process and meet the family’s needs.