Payslip
A payslip is the document your employer gives you each payday, showing earnings, deductions and take-home pay.
Published Thursday 6 August 2026
Table of contents
Key takeaways
- A payslip is the document your employer gives you each pay period, setting out your earnings, deductions and take-home pay.
- It shows gross pay (what you earn before deductions) and net pay (what reaches your bank account after them).
- In Hong Kong the main statutory deduction is the Mandatory Provident Fund (MPF) contribution, not withheld income tax, because employers do not deduct salaries tax from pay.
- Payslips can be issued on paper or electronically, and payroll software can produce them automatically.
What is a payslip?
A payslip, also called a pay stub, pay advice, salary slip or wage slip, is a document an employer gives an employee each pay period that shows their earnings, any deductions and their take-home pay.
Beyond confirming what you have been paid, a payslip is a handy proof of income when you apply for a loan, a tenancy or a visa, and it lets you check that your pay and deductions are correct. For employers, issuing one for every worker they bring onto the team creates a clear record of what was paid and when.
What information is included on a payslip?
Payslips vary between employers, but most bring together the same categories of information so you can see how your final pay was worked out. A typical Hong Kong payslip includes the following.
- Pay period: the dates the payment covers, such as a calendar month or a fortnight
- Earnings: basic salary or wages, plus any overtime, allowances, bonuses and commission
- Deductions: amounts taken from your earnings, such as your MPF contribution
- Gross pay: total earnings before any deductions
- Net pay: the take-home amount paid into your bank account after deductions
- Employer and employee details: names, and often an employee number and job title
- Year-to-date totals: running totals of earnings and deductions for the current tax year
How much you earn in the first place depends on the rate you agree with each worker, and you can read more about setting fair pay in the guide to how much to pay employees.
Gross pay vs net pay
Gross pay and net pay are the two figures people most often confuse, so it helps to keep them distinct. Gross pay is your total earnings for the period before anything is taken out, including salary, overtime, allowances and bonuses.
Net pay is what is left after every deduction has been subtracted from gross pay, and it is the amount that actually reaches your bank account. On most payslips, gross pay sits near the top, deductions are listed in the middle, and net pay is shown at the bottom as the final total.
Common payslip deductions in Hong Kong
The deductions on a Hong Kong payslip look different from those in many other countries, so it is worth knowing what to expect. The main statutory deduction is the Mandatory Provident Fund (MPF) contribution.
Both you and your employer each contribute 5% of your relevant income to the MPF. For monthly-paid employees the minimum and maximum relevant income levels are HK$7,100 and HK$30,000, so the most either side contributes is HK$1,500 a month. If you earn below HK$7,100 in a month you make no employee contribution, but your employer still contributes 5% on your behalf.
Unlike many countries, Hong Kong has no pay-as-you-earn withholding of salaries tax. Your employer does not deduct income tax from your pay; instead you are assessed and pay the Inland Revenue Department directly, so income tax usually does not appear as a deduction on your payslip. Any other deduction, such as an agreed repayment, must be one you have authorised or one permitted under the Employment Ordinance. Handling these correctly is part of running online payroll.
Are payslips required by law in Hong Kong?
Hong Kong’s Employment Ordinance governs how and when employees are paid. Wages become due at the end of the wage period and must be paid no later than seven days after it ends, and employers must keep wage and employment records.
Issuing a clear, itemised payslip is good practice that helps you meet those record-keeping duties and gives employees a way to check their pay. A payslip also makes it easy to confirm that hourly staff are paid at least the statutory minimum wage, which is HK$43.1 per hour from 1 May 2026.
Paper vs electronic payslips
Payslips can be shared on paper or online, and the choice usually comes down to how a business runs its payroll. Traditionally a payslip was a paper document attached to a cheque or tucked into a pay envelope.
Today most employers issue electronic payslips by email or through online payroll software, which are quicker to send and easier to store and search. Keeping payslips organised, in either format, supports tidy bookkeeping and makes record-keeping far simpler at year end.
How to read and check your payslip
Reading your payslip carefully each period helps you spot errors early and understand exactly where your money goes. Work through these steps.
- Confirm the pay period and that your name and details are correct
- Check your gross earnings match your contract, and your hours or overtime match your recorded timesheets
- Review each deduction, especially your MPF contribution
- Confirm that net pay equals gross pay minus total deductions
- Query anything unclear with your employer or payroll team promptly
Simplify payroll and payslips with Xero
Producing payslips by hand takes time and invites mistakes, especially as your team grows. Xero connects with payroll apps so you can automate pay runs, generate accurate payslips, and keep your records organised in one place. See how it fits your Hong Kong business and get one month free to start.
FAQs on payslips
Here are answers to some common questions about payslips in Hong Kong.
Are payslips required by law in Hong Kong?
The Employment Ordinance requires wages to be paid within seven days of the end of the wage period and employers to keep wage records. Issuing an itemised payslip is the standard way to meet those duties and show employees how their pay was calculated.
What is the difference between gross pay and net pay?
Gross pay is your total earnings before any deductions, while net pay is what remains after deductions like MPF are taken out. Net pay is the amount that reaches your bank account.
How often should I receive a payslip?
You should receive a payslip each time you are paid, whether that is weekly, fortnightly or monthly. It should cover the same wage period as the payment it accompanies.
Is a payslip the same as a paycheck?
No, a payslip is a record of your earnings and deductions, whereas a paycheck (or bank transfer) is the actual payment. The payslip explains how the paid amount was worked out.
What deductions appear on a Hong Kong payslip?
The main statutory deduction is your 5% MPF contribution, and any other deduction must be one you have authorised or one allowed under the Employment Ordinance. Salaries tax is not withheld, because you pay the Inland Revenue Department directly.
Related terms
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.