Hong Kong Labour Regulations

Introduction

There is no legal minimum wage in Hong Kong. Wages can be calculated by the hour, day or month, or by piece rate.

The Employment Ordinance (Chapter 57 of the Laws of Hong Kong) sets the minimum entitlements for employees, such as statutory holidays, sick and maternity leave, severance and long-service payments.

It is up to employers whether to provide additional benefits, such as a Lunar New Year bonus (normally equivalent to one month's extra pay), medical allowances, subsidised meals, good-attendance bonus, paid holidays over and above statutory public holidays, subsidised transport to and from work, free or subsidised accommodation.

Benefits

• The Employment Ordinance requires employers to provide a set of basic entitlements. These include:
• statutory holidays
• sick leave
• maternity leave
• severance payments
• long-service payments

Fringe Benefits

Some employers offer additional benefits. The most common are:

• A lunar new year bonus, usually equivalent to one month's extra pay
• medical allowance
• subsidised meals \
• good-attendance bonus
• paid rest-days/annual leave
• subsidised transport to and from work
• free or subsidised accommodation

Public Holidays

There are two kinds of holidays in Hong Kong, namely, general holidays and statutory holidays. General holidays are for banks, schools, public offices and government departments.

Statutory holidays are employment benefits which must be granted to employees as provided under the Employment Ordinance, including those working in banks and schools.

Mandatory Provident Fund

In late 2000, Hong Kong introduced its privately managed mandatory provident fund (MPF) system, designed to provide retirement benefits.

• The system covers all members of the workforce between the ages of 18 and 65 with specific exemptions.
• Employers and employees are each required to contribute 5% of the employees' monthly income to a registered MPF scheme.
• If an employee's monthly income is below HK$5,000 (US$641), employees do not have to contribute, but may choose to do so.
• The maximum level of monthly income for contribution purposes is HK$20,000 (US$2,565) resulting in an effective cap on monthly contributions of HK$1,000 (US$ 125) (unless the employees chooses to contribute more).

Working Week

The normal working week in non-office based industries is eight hours a day, six days a week. In offices, a five or a five-and-a half-day week is normal. Some companies compromise by allowing staff to work alternate Saturday mornings.

Industrial Disputes

Labour relations are generally harmonious. The Labour Department offers conciliation service to the parties concerned to facilitate an amicable settlement in case of a strike or other forms of industrial conflict.

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