Friday, August 19, 2022

Long Service Payment Calculation: How Much Can HK Domestic Helper Get?

More OFW Updates

As of October 1, 2021, newly hired foreign domestic helpers in Hong Kong are entitled to a minimum allowable wage of HK$4,630 per month. But if the working relationship between the helper and her employers deteriorates under incompetence, incapacity to perform duties, termination of employment contract is one route either party can undertake.

Termination of Employment Contract

Either party may terminate the employment contract by giving one month’s notice or one month’s payment in place of notice to the other party.

Termination payments may include:

  • Unpaid salary
  • Payment instead of notice, if any;
  • Payment in place of any annual leave not availed by helper;
  • Long service payment/severance payment, where appropriate; and
  • Any other sum under the employment contract, e.g. free return passage, food, and traveling allowance, etc.

Severance Payment

A foreign domestic helper is entitled to a severance payment if he/she:

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has not less than 24 months of service with the same employer before the termination; and
is dismissed or the contract is not being renewed because of redundancy.

Long Service Payment

A foreign domestic helper is entitled to long service payment if he/she has no less than 5 years of service with the same employer before the termination and:

  • is dismissed or the contract is not being renewed by reason other than serious misconduct or redundancy;
  • resigns on ground of ill health;
  • resigns on the ground of old age (i.e. aged 65 or above); or
  • dies in service.
Long service payment computation for domestic helpers.
Long service payment computation for domestic helpers.

Amount of severance payment or long service payment

Monthly wages x 2/3 x years of service

For example, assuming the domestic helper has received HK$4,630 monthly salary across three employment contracts spanning six years:

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Long service = HK$4,630 x (2/3) x 6 years
Long service = HK$18,520 payable to domestic helper

The service of the incomplete year should be calculated on a pro-rata basis.

A foreign domestic helper is only entitled to either severance payment or long service payment.

Inquiry Hotline: 2-71-71-771(the hotline is handled by “1823”)
Homepage Address: http://www.labour.gov.hk

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