According to Velocity Global's employment agreement template, when is the salary due in Hong Kong?

Salary payment in Hong Kong, SAR China is due on or before the last working day of each month according to the employment agreement template.

What date does the law specify salary must be paid in Hong Kong, SAR China?

In Hong Kong, wages become due on the expiry of the last day of the wage period. Employers should pay wages to employees as soon as practicable, but no later than 7 days after the end of the wage period. If an employer fails to pay wages within this 7-day period, they are required to pay interest on the outstanding amount to the employee.

How is salary calculated and what components does it consist of in Hong Kong, SAR China?

In Hong Kong, SAR China, the calculation of salary and its components are defined as follows:

• Salary Calculation: Monthly Salary / Number of Days in the Month = Daily Salary Rate.

• Salary Components: The specific components included in the salary depend on the salary package offered by the employer to the employee.

Is there a legal obligation to pay salaries in the same month in Hong Kong, SAR China?

In Hong Kong, SAR China, there is no legal obligation to pay salaries within the same month. However, employers must pay wages to employees no later than 7 days after the end of the wage period. If wages are not paid within this 7-day period, employers must pay interest on the outstanding amount to the employee.

How many salary payments are made per year in Hong Kong, SAR China?

There is no limit to the number of salary payments made per year in Hong Kong, SAR China. However, monthly payments are the most common practice.

Is salary payment monthly and is payment standard at the end of the month in Hong Kong, SAR China?

Yes, in Hong Kong, salary payment is monthly and standard at the end of the month.

Should the employment agreement specify salary in monthly or annual amounts in Hong Kong, SAR China?

In Hong Kong, SAR China, the employment agreement specifies the salary in monthly amounts. While it is possible to mention the annual amount, the usual practice is to state the monthly amount.

What tax and social security obligations do employees have in Hong Kong?

In Hong Kong, SAR China, employees' taxable income includes salary, wages, bonuses, gratuities, and the cash value of certain benefits. These earnings are taxed at progressive rates ranging from 2% to 17%, based on the total income. Additionally, both employees and employers are required to make mandatory contributions to the MPF, which is a form of social insurance.

What are the details of the customary bonuses, including the 13th-month salary, and when are these payments typically made in Hong Kong?

In Hong Kong, year-end bonuses are a common practice, although not required by law. Employers often provide these bonuses to employees, and the details are typically outlined in the employment agreement. If the employment agreement does not specify the bonus amount, the standard practice is to offer a bonus equivalent to one month's pay. This bonus is generally calculated based on the employee's average monthly salary over the previous 12 months.

What is the minimum wage information in Hong Kong?

Effective on May 1, 2025, the minimum monthly wage in Hong Kong is HKD 17,200.