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Hong Kong payment of salaries -365 days or 260 working days

hi,

 

I'm looking for some help on Hong Kong HR and payment of salaries, please.

I believe that the norm in Hong Kong is that all days of the month are deemed to be fully paid (365 day basis), this is because only one day a week is a rest day, and salary is all worked out on averages over a 12 month period.

I am used to working on a 260 day basis, and this would be in line with the rest of the organisation and the countries they are in, however the lawyer I am working with in Hong Kong is suggesting 365 days approach.

Has anyone any experience of this?  I've gone through multiple pros and cons in my head, but would really like to hear from someone who has experience of this or decided against it?

thanks

Louise 

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  • Louise - I've not dealt with HK directly for a few years, but nonetheless the following may help.

    There is a legal entitlement to at least a day off every week .Many companies work a five day week with occasional overtime on the 6th day.

    Note that an employer cannot compel a worker to work on a rest day (except for emergencies), and must reallocate the rest day shortly after it is worked (within 30 days if my memory is good).

    Voluntary rest day working is possible, any payment is then negotiated between the employer and the employee(s) - so specific payment calculation don't exist.

    In your context, I would look at the actual working patterns (5 day with occasional 6th day, or regular 6 day working).

    In the first scenario I would stay with your 1/260 calculation as it reflects the working reality - any extra days are then paid at 1/260 of annual pay or overtime

    In the second scenario I would probably calculate on 1/312 (52 weeks x 6) to establish a day's pay

    A final alternative I have heard of is to contract people to work 2 Saturdays a month (two 5 day weeks and 2 six day weeks) and to pay the same salary every month - I leave the maths to you but it is probably 1/286 of annual salary for each day worked in this pattern. 

    A useful summary of the Employment Ordinance is at :

    http://www.labour.gov.hk/eng/public/wcp/ConciseGuide/EO_guide_full.pdf

    Good luck