Long service payment is a topic that concerns many foreign domestic helpers in Hong Kong, especially those who have served the same employer for five years or more. With updated wage policies and clearer enforcement by the Hong Kong Labour Department, it is important for domestic helpers to understand how long service and severance payments are computed in 2026.
As of September 30, 2025, the Hong Kong Government increased the Minimum Allowable Wage (MAW) for foreign domestic helpers to HK$5,100 per month. This new wage applies to all contracts signed on or after that date. The food allowance remains at HK$1,236 per month. These updated figures affect long service and severance payment computations.
Termination of employment contract
Either the employer or the domestic helper may terminate the employment contract by giving:
- One month’s written notice, or
- One month’s payment in lieu of notice
Upon termination, the employer must settle the following:
- Unpaid salary
- Payment in lieu of notice (if applicable)
- Unused annual leave payment
- Long service payment or severance payment (if eligible)
- Any contractual benefits such as return airfare, food allowance, or travel allowance
Severance Payment
A foreign domestic helper is entitled to severance payment if:
- They have worked for the same employer for at least 24 months, and
- They are dismissed or their contract is not renewed due to redundancy
Long Service Payment
A foreign domestic helper is entitled to long service payment if they have worked for the same employer for at least five years and:
- They are dismissed for reasons other than serious misconduct or redundancy
- They resign due to ill health
- They resign due to old age (65 or above)
- They pass away during employment (payment goes to next of kin)
How to compute severance or long service payment
The formula remains the same:
Monthly wage × 2/3 × Years of service
Using the current minimum wage of HK$5,100:
Example 1: Helper with 6 years of service
HK$5,100 × 2/3 × 6 = HK$20,400
Example 2: Helper with 10 years of service
HK$5,100 × 2/3 × 10 = HK$34,000
Example 3: Helper with 5 years and 4 months of service
Pro‑rated calculation:
5.33 years × (HK$5,100 × 2/3) = HK$18,122 (rounded)
Example 4: Helper earning above minimum wage
If the helper earns HK$6,000 monthly:
HK$6,000 × 2/3 × 7 years = HK$28,000
Note: Only one type of payment applies—either severance or long service, not both.
Updated Long Service Payment Summary (Based on HK$5,100 MAW)
| Years of Service | Long Service Payment |
|---|---|
| 5 | HK$17,000 |
| 6 | HK$20,400 |
| 7 | HK$23,800 |
| 8 | HK$27,200 |
| 9 | HK$30,600 |
| 10 | HK$34,000 |
Labour Department Hotline: 2717 1771 (handled by “1823”)
Website: http://www.labour.gov.hk
Employer’s written statement requirement
Employers must provide a written statement detailing:
- Employment period – start and end dates
- Final monthly salary – used for computation
- Exact computation – showing formula and result
- Deductions – if any (e.g., loans, advances)
- Date of payment – must be within 7 days after contract termination
What to do if the employer refuses to pay
If a domestic helper believes they are entitled to long service or severance payment but the employer refuses, they may take the following steps:
- Negotiate – Present a written computation and request payment.
- Mediation – Seek assistance from the Labour Department for dispute resolution.
- Legal action – File a claim with the Minor Employment Claims Adjudication Board (MECAB).
How the Labour Department enforces long service payment laws
The Labour Department ensures compliance through:
- Inspections and investigations – Employers violating the law may face penalties.
- Mediation services – Helping both parties reach a settlement.
- Education and outreach – Providing guides and seminars for helpers and employers.
- Prosecution – For repeated or serious violations.
Real-world examples
Example A: Employer relocation
A helper who served 8 years is terminated because the employer is moving overseas. This is not redundancy. The helper is entitled to long service payment.
Example B: Helper resigns due to illness
A helper with 6 years of service resigns due to a doctor‑certified medical condition. She qualifies for long service payment.
Example C: Redundancy due to financial hardship
An employer can no longer afford a helper and terminates the contract after 3 years. The helper qualifies for severance payment.
Example D: Serious misconduct
If a helper is dismissed for proven serious misconduct (e.g., theft), they are not entitled to long service payment.
Conclusion
The long service and severance payment system in Hong Kong ensures that domestic helpers are fairly compensated for their years of dedicated service. With the updated 2026 wage levels and clear legal protections, helpers can better understand their rights and pursue proper compensation when their employment ends.
By enforcing these laws, Hong Kong continues to attract and retain skilled and experienced domestic workers from around the world.
