Hong Kong HR Guide
Onboarding
- Employment Contract
- Tax Enrollment IR56E
- MPF Enrollment
- MPF Registration for Non-HK Expatriates
- Compensation Insurance
- Employment for Age below 18
- Data Privacy
Daily Routine
- Continuous Contract (418)
- Annual Leave
- Statutory Holiday
- Payroll
- Sick Leave
- Average Wage (713)
- Statutory Minimum Wage
- MPF Contribution
- Maternity Leave
- Reimbursement of Maternity Leave Pay
- Learning and Traning
Annual Wrap-up
On Termination
Why It Is Important?
According to Employment Ordinance, for employee fulfilling the requirement of continuous contract of employment (418), the employee should be entitled to enjoy a certain number of paid annual leaves.
How Many Paid Annual Leave My Staff Entitles?
| Years of Service | Annual Leave Entitlements |
|---|---|
| 1 | 7 |
| 2 | 7 |
| 3 | 8 |
| 4 | 9 |
| 5 | 10 |
| 6 | 11 |
| 7 | 12 |
| 8 | 13 |
| 9 or above | 14 |
You can find HR System to help you indicate the annual leave entitlement of each grading of your staff member, and according to leave schedule to calculate leave balance.
🔎 To help you to calculate the balance of annual leave, please try our Annual Leave Calculator.
How Should Employee Arrange His/Her Annual Leaves?
The employer has the final say on the actual date the annual leave taken.
However, according to Employment Ordinance, if the number of annual leave entitled is 10 days or less and if the employee wishes to do so, up to 3 days can be granted separately but the rest should be granted consecutively. If the number of annual leave entitled is more than 10 days, then the employee may request a consecutive leaves of at least 7 days.
Nevertheless, in practice, most of the companies allow employees to arrange their paid annual leave in a flexible manner.
How much Salary/Wage to be Payable during Annual Leave?
Before talking about the payment during annual leave, it should be clarified that employee is allowed to accept payment in lieu of annual leave not-taken, only for the number of days exceeding the first 10-day of the entitlement.
The daily payment of annual leave pay should be at least the average daily wages (ADW) earned by an employee in the preceding 12-month period. Please refer to further explanation in ADW.
Calculation of ADW is one of the biggest challenges to HR practioners in Hong Kong. By choosing the right HR System, you can directly calculate the corresponding ADW of annual leaves based on the payments and leaves record in the system.
Reference:
Explanation on annual leaves by labour department:
http://www.labour.gov.hk/eng/faq/cap57i_whole.htm
The concise guide published by labour department for more details on paid annual leave:
http://www.labour.gov.hk/eng/public/wcp/ConciseGuide/04.pdf
