2025 Research: Why outdated reimbursement processes are causing more harm than you think

In this article

• What are the most common types of employee expenses?

• How much are employees spending on expenses?

• What challenges are there for employees when it comes to expenses and reimbursement?

• How Airwallex offers a solution to solve the reimbursement pain for both employees and employers

For a lot of employees, handling work-related expenses isn’t just necessary work admin – it can be a hidden financial strain that quietly chips away at their personal finances. 

Whether it’s a last-minute train ticket to that crucial client meeting, a hotel stay after a long day of travel, or picking up the tab for a business lunch, these costs can really add up. And even though reimbursement is supposed to come through snappily, it often feels slow, confusing, or inconsistent, leaving employees out of pocket and stressed.

Today, and especially for businesses that are growing rapidly, traditional expense systems just don’t cut it anymore. What should be a simple and supportive process can quickly turn into a source of friction – not only affecting employee well-being but also chipping away at trust in their employer. 

For employers, this trust gap can undermine team morale, reduce engagement, and even lead to higher staff turnover. On top of that, inefficient reimbursement processes can create unnecessary administrative burdens, introduce compliance risks, and make it harder to track and control company spending (let alone forecasting!) — all of which can hinder a business’s ability to scale smoothly.

That’s why we decided to dive deep into the state of expense reimbursement in Hong Kong.

In this article, we’ll share our findings, highlight the most common expense challenges, and discuss how smarter spend management solutions, like those offered by Airwallex, can help businesses tackle this growing issue.

About the research

We surveyed 500 Hong Kong employees in 2025 to uncover the real-world impacts of outdated processes – from the emotional toll of fronting costs to the broader effects on productivity and morale.

What are the most common types of employee expenses?

Employee expenses are business-related costs accrued as part of an employee's role. Hong Kong’s Inland Revenue Department considers expenses to be anything incurred wholly and exclusively in the performance of the duties of the employment. Businesses often outline an expenses policy that explains to employees what they can and cannot claim. This helps them be tax-compliant but also minimises the risk of expense claims being rejected.

Of those surveyed, 43% of the workers admitted they are expected to cover business-related expenses out of their own pocket before being reimbursed. Employees who travel for work (24%) were the most likely to face this, followed middle managers (23%) and senior executives (20%). Even employees attending training or events (10%) reported having to pay the expenses upfront. 

When asked what types of expenses they most often cover out of their own pockets, travel costs such as flights, trains or cabs (51%) topped the list. Over four in 10 of the surveyed said they personally pay for office equipment and supplies (44%), while others pointed to everyday costs like food and drink (34%) and accommodation (33%).

How much are employees spending on expenses?

The amount an employee spends on expenses over the course of a year averages HK$7,537 (or an average of HK$628 per month). This rises to almost HK$9,000 per year for 11% of those who work in businesses with up to 49 staff members, according to our research.

According to the data, almost half (47%) of respondents spend up to HK$5,000 annually on business-related costs out of their own pocket. A further 33% report spending up to HK$15,000, while 5% say they exceed HK$20,000 in annual expenses. 

Among all the service sectors, the marketing/PR/advertising sector leads in high out-of-pocket spending for employees with half of employees in the industry reporting expenses of HK$20,000. This is followed by the legal services industry (33%) and financial services (23%) rounding out the top three sectors with the highest personal financial exposure. 

What challenges are there for employees when it comes to expenses and reimbursement?

Based on survey data, there are 10 key issues employees face when it comes to expenses and reimbursement.

1. 31% of people have faced financial difficulties while waiting to be reimbursed

Waiting for expenses to be paid back can have a number of ramifications for employees. One of which is the prospect of encountering financial difficulties. 31% of surveyed people have faced financial difficulties waiting to be reimbursed on a monthly basis, which increases to 40% for those who have to pay for their expenses on a weekly basis. 

 The frequency of financial hardships due to expenses cannot be understated, with 16% saying they have faced financial difficulty due to work event expenses on more than one occasion. Younger workers, in particular, are most acutely affected by the impact of work event expenses, with 43% of participants aged between 18 and 27 also experiencing financial strain from this.

2. Workers in large firms are also facing financial difficulties

Despite working in an established large firm with over 2,500 staff members, 30% of people said they faced financial difficulty when waiting for their reimbursements. With 16% accruing HK$2,999 in annual expenses, any delays in receiving high-value expenses can cause financial strain irrespective of the firm’s size. 

3. Only 19% of the people are reimbursed within a week

When it comes to reimbursing expenses, there's a disconnect between expectations and reality. 

44% of people surveyed agreed their company waits too long to pay back the expenses, with only 6% saying they are reimbursed on the same day. 

According to our research, over one-third (34%) of employees wait over 3 weeks to be reimbursed from their place of work, despite the majority (60%) saying they should be reimbursed within 5 days.

While for some (27%), the expenses are usually paid back within four to five working days, the majority (57%) have to wait longer. 

4. 54% of people have used credit cards to cover their expenses  

When it comes to how employees cover their expenses, 54% of surveyed employees stated that they use their credit cards to pay for their expenses, compared to 34% who had cash available to cover costs. The rest turn to either ‘buy now, pay later’ services or cash-based methods.

Using a credit card to pay for expenses can be risky, however. If a credit card provider charges interest or the employee gets a late payment charge because their reimbursement is not in sync with their balance due date, the employee may be reimbursed less than the amount they paid out. 

In fact, 11% of those surveyed admitted to having paid interest on their credit card as expenses were not paid back in time.

5. 54% of employees working in businesses with staff strength of up to 49 are using their savings money to cover expenses

Dipping into savings has become a routine affair to cover expenses for those working in business with a strength of up to 49 employees (41%). This is also seen in the 18-27 age category, with 23% taking money out of their savings and 16% using their overdraft. Overall, 21% of Hong Kong employees admitted to dipping into personal savings to cover work expenses.However, for employees without access to an overdraft or available savings, help is sought from friends and family, with 6% of the surveyed participants having to ask others for financial support to cover their expense overheads. 

6. Employees are having to miss work events and quit their roles due to expectations around paying for expenses upfront

When employees are expected to cover their expenses upfront, social and career-ending implications exist. 12% of people said they had either missed a company event or a trip to avoid paying for expenses upfront, and 5% have had to quit their roles as a result.

Overall, 19% have considered leaving their job due to the legacy of their company’s expense system. Another 5% say they’ve called in sick to avoid making a payment.

7. 12% of employees feel frustrated waiting for reimbursement

For employees who pay expenses two to three times in a week, 15% said they feel frustrated while waiting to be reimbursed. This figure shoots up to 21% for those working in businesses with staff strength of up to 49 members, with 42% feeling anxious while waiting.

8. 48% of workers in Hong Kong Island claimed that they are expected to pay the expenses upfront

Regional variations exist when it comes to expectations around expenses. Unlike in other areas, 48% of workers in the Hong Kong Island stated that all employees in their firms were expected to cover their costs upfront.

Similarly, 38% of employees in the Kowloon district claimed that all employees are expected to pay the expenses out of their pockets before being reimbursed. 

9. Kowloon district workers are facing the most financial strain from expenses

For employees in the Kowloon region, 36% said they had faced difficulties relating to expenses. This is followed by Hong Kong Island-based employees at 31% – something that intersects with the point above regarding the expectations that exist for Kowloon and Hong Kong Island workers to pay upfront for their costs.

10. 66% of employees want a better reimbursement system in place

Participants also thought that better methods need to be in place to pay employees back. Over 65% of people said there needs to be a better way to get their money reimbursed. 

So, what can businesses do to address the pain points employees and employers feel?

How Airwallex offers a solution to solve the reimbursement pain for both employees and employers

At Airwallex, problems related to expenses and reimbursement can be remedied – whether it's Corporate Cards for business expenses or reimbursement/employee cards, Airwallex can address your business's spend management challenges.

We're able to offer this thanks to our in-house capability to efficiently collect reconciliation information from our underlying proprietary financial infrastructure, which seamlessly interlinks payments data with the WebApp.

Here are the top benefits Airwallex can offer:

Virtual and physical cards: Giving employees flexibility in how they pay for expenses allows them to complete their roles without having to devote time to managing them. Corporate Cards not only remove the need for reimbursement but also offer speed, visibility, and control, meaning both employees and employers are kept informed at all stages.

Instant employee reimbursements: Paying employees back in a timely manner relieves the stress and financial burden some may encounter. It allows your business to save time on financial admin and ensures accuracy when it comes to up-to-date cash flow metrics.

Automated Expense Management: Integration with accounting software such as Xero, QuickBooks, Netsuite, and many more, eliminates the manual labour of tracking, approving, and reconciling expenses, meaning your business saves time and resources on automated activities.

Multi-currency payments: For global companies, Airwallex business accounts offer competitive exchange rates and a range of currency options – a perfect fit for employees with overseas expenses. Our cards are multi-currency, which means employees can spend in the currency of the country they’re in without having foreign exchange charges added to their transactions. The spend pulls directly from the corresponding currency account, or auto-converts at the interbank rate where the currency is not held.

There are also benefits for employers. In addition to being quick and speedy, we use the best available foreign exchange rates (known as the interbank rate). There are also no hidden international transaction fees, which offers your business transparency on how much is being paid out at any given time.

Flexible spending controls: At Airwallex, we understand that different roles require different parameters on what they can and can't spend on work expenses. Spending limits can be arranged, and real-time tracking means you can monitor overspending and have up-to-date figures that shape your spend management objectives.

Sometimes, finance teams can feel cautious or worried about using Corporate Cards, as there is a risk of losing control over employee spending.

Airwallex takes care of these concerns by offering wide-ranging flexibility on how cards are used, as we are the card issuer. This can include setting up cards quickly and freezing them. Finance teams have the flexibility to set spending limits on an individual and operational basis and can choose how the cards can be used and where payments can be made.

Methodology

An online survey of 500 Hong Kong workers who have paid for a business expense using their own money in the last year was conducted between 25^th July to 31^st July 2025 by Opinium Research. Data was collected adhering to established guidelines to ensure ethical and accurate data collection.