Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
The minimum wage is HK$37.50 hourly
Employees are paid on monthly basis. The wages must be no later 7 days after they are due. The due date is decided between the employer and employee.
End of year payment (including double pay, 13th month payment, bonus) of a contractual nature. It applies to an employee employed under a continuous contract in accordance with a term of his contract (including agreement made orally or in writing, in express or implied term). It does not include any payment which is of a gratuitous nature or which is payable at the discretion of the employer.
There are generally no restrictions on working hours, except in relation to young persons (under 18 years of age) for whom the maximum working period is usually eight hours per day or 48 hours per week.
Rest Day: An employee employed under a continuous contract is entitled to no less than one rest day in every period of seven days. Whether rest day is paid or not is to be agreed by employers and employees. In general, the rest day is paid in Hong Kong
There are no special restrictions applicable to the working hours or rest breaks for shift workers.
All employees covered by the Employment Ordinance, irrespective of their hours of work, are entitled to basic protection under the Ordinance. Employees who are employed under a continuous contract by the same employer for four weeks or more, with at least 18 hours worked in each week are further entitled to additional benefits.
Optional (as long as minimum wages are respected overall)
An employee is entitled to annual leave with pay after having been employed under a continuous contract for every 12 months. Annual leave entitlement increases progressively from 7 days to a maximum of 14 days according to years of service:
- 1 year, 7 days leave
- 2 years, 7 days
- 3 years, 8 days
- 4 years, 9 days
- 5 years, 10 days
- 6 years, 11 days
- 7 years, 12 days
- 8 years, 13 days
- 9+, 14 days
All employees are entitled to statutory holidays. Most employers however extend entitlement to all general holidays. There are 12 statutory holidays and 5 general holidays
Eligibility for sickness allowance by employer
An employee employed under a continuous contract is entitled to sickness allowance if (1)the sick leave taken is not less than four consecutive days and (2) sick leave is supported by an appropriate medical certificate and (3) the employee has accumulated sufficient number of paid sickness days
Accumulation of paid sickness days
An employee can accumulate paid sickness days after having been employed under a continuous contract. Paid sickness days are accumulated at the rate of two paid sickness days for each completed month during the first 12 months, and four paid sickness days for each completed month thereafter
Paid sickness days can be accumulated throughout the whole employment period but shall not exceed 120 days at any one time
The daily rate of sickness allowance is a sum equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the sickness day.
14 weeks and can begin at any time between two and four weeks before the expected date of birth of the child.
Payment by employer
The employee is eligible for maternity leave pay if she has been employed under a continuous contract for not less than 40 weeks immediately before the commencement of scheduled maternity leave.
The daily rate of maternity leave pay is a sum equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the first day of maternity leave.
Male employees are entitled to 5 days’ paternity leave
Payment by employer
The employee is eligible for paternity leave pay if he has been employed under a continuous contract for not less than 40 weeks immediately before the day of paternity leave
Payment by employer
The daily rate of paternity leave pay is a sum equivalent to 4/5 (80%) of the average daily wages earned by an employee in the 12-month period preceding the day of paternity leave
No statutory laws or regulations
A contract of employment may be terminated by the employer or employee through giving the other party due notice or payment in lieu of notice.
Statutory restrictions on termination
An employer shall not dismiss an employee under the following circumstances:
- Maternity protection
- Paid sick leave
- Giving evidence or information to the authorities
- Trade Union activities
- Injury at Work
- Employment protection
An employee may claim for remedies against an employer under the following situations:
- Unreasonable dismissal
- Unreasonable variation of the terms of the employment contract
- Unreasonable and unlawful dismissal
During Probation Period
- Within first month: not required
- After first month where contract makes provision for required length of notice: as per agreement
- After first month where contract doesn’t make provision: not less than 7 days notice
For continuous contract / After probation period
- Where contract makes provision: as per agreement, no less than 7 days
- Where contract doesn’t make provision: not less than 1 month
An employee is eligible for severance payment or long service payment subject to the following conditions
not less than 24 months under a continuous payment
a) employee is dismissed by reason of redundancy
b) Contract expires without being renewed by reason of redundancy
c) The employee is laid off
Long Service Payment
not less than 5 years under a continuous contract
a) employee is dismissed but not due to serious misconduct
b) dismissal is not due to reason of redundancy
c) employment contract expired without being renewed
d) employee dies
e) employee reigns on ill health
f) employee resigns on grounds of old age
An employee will not be simultaneously entitled to both long service payment and severance payment
Amount of payment
(last month wages* x 2/3)# x reckonable years of services
* An employee may also elect to use his average wages in the 12 months immediately preceding the termination of employment contract
# The sum should not exceed 2/3 of HK$ 22,500 (i.e. HK$ 15,000)
The maximum amount of severance payment or long service payment is HK$ 390,000
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