Formula for Calculating Foreign Domestic Workers' Salaries: Minimum Wage and Sick Leave Expenses at a Glance

Formula for Calculating Foreign Domestic Workers' Salaries: Minimum Wage and Sick Leave Expenses at a Glance

Hiring foreign domestic workers is a common choice for many Hong Kong families, but it is essential for employers to have a clear understanding of how their salaries are calculated and their various statutory rights.

Learn More About the Minimum Wage Regulations for Foreign Domestic Workers

Under the “Standard Employment Contract” signed on or after September 30, 2025, the minimum wage for foreign domestic workers is HK$5,100 per month. Employers may not pay a lower wage without authorization or through a private agreement with the foreign domestic worker. Based on historical trends, which generally show an increase of approximately 2.2–3%, the adjustment is announced every October.

It is important to note that the minimum wage does not entirely correspond to the actual wages paid to foreign domestic workers. If a foreign domestic worker performs well, many employers will voluntarily offer a pay raise, while the statutory minimum wage is primarily a standard set for foreign domestic workers who have just arrived in Hong Kong and are signing their first contract.

Meal Allowances and Housing Arrangements

In addition to wages, employers must provide domestic workers with free meals or pay them a meal allowance.

  • Prescribed meal allowance: Currently, no less than HK$1,236 per month.
  • Housing Arrangements: Employers must provide free housing for domestic workers, who must reside at the employer’s address specified in the contract. Employers must ensure that the housing is suitable and provides reasonable privacy.

Other Benefits and Expenses for Foreign Domestic Workers

Statutory Holidays and Days Off

  • Days Off: Employees are entitled to at least one day off for every seven days worked.
  • Statutory Holidays: There are a total of 15 statutory holidays per year, and employers may not substitute these with monetary compensation. Domestic workers are entitled to pay for statutory holidays after completing three months of employment.
  • Paid Annual Leave: Employees are entitled to 7 days of paid annual leave after completing 12 months of service, with the number of days increasing based on length of service up to a maximum of 14 days.

Severance Pay and Long-Service Pay

  • Severance pay: If a foreign domestic worker has worked continuously for at least 24 months and is terminated due to layoffs or non-renewal of the contract, the employer must pay severance pay.
  • Long-Service Payment: If a foreign domestic worker has worked continuously for at least 5 years and is not terminated due to gross negligence or layoffs, the employer must pay this amount.
  • Calculation method: (Monthly salary × 2/3) × retroactive years of service (fractions of a year are calculated proportionally). Severance pay and long-service pay cannot be received simultaneously.

Important Information Regarding Wage Payment Arrangements and Receipt Signatures for Foreign Domestic Workers

Properly arranging the payment of wages to foreign domestic workers is one of the employer’s key responsibilities. Correct payment methods and clear records of receipt not only help maintain a good employer-employee relationship but also protect the rights and interests of both parties, preventing future disputes arising from unclear amounts or items.

Basic Provisions on Wage Payments

Under the Employment Ordinance, employers must pay wages to foreign domestic workers at least once a month, and under no circumstances may payment be made later than 7 days after the end of the pay period.

Regarding payment methods, employers may agree with their domestic workers to pay by check, bank transfer, or cash. However, the Labor Department strongly recommends paying wages by check or bank transfer to ensure that objective payment records are maintained. If bank transfer is chosen, bank statements can serve as clear records.

The Importance of Sign-off Records

Regardless of the payment method used, employers should keep records of wage and other payments and require foreign domestic workers to sign for receipt as proof, to avoid future disputes.

Important Information Regarding Sick Leave, Pay for Overtime, and Rest Day Arrangements for Foreign Domestic Workers

In addition to base pay and vacation time, common questions in day-to-day management include how sick leave is calculated for foreign domestic workers, compensation arrangements for additional workdays, and whether employers can require foreign domestic workers to work on their days off.

How to Calculate Daily Wages for Sick Leave

Foreign domestic workers are entitled to paid sick leave just like local employees, but they must meet both of the following conditions to receive sick pay:

  1. Hold a sick leave certificate issued by a Hong Kong-registered physician covering a period of at least 4 consecutive days.
  2. I have accumulated enough paid sick days.

How Paid Sick Leave Accumulates:

  • First 12 months of employment: You accrue 2 days of paid sick leave for each full month of service.
  • After that: You will accrue 4 days for every full month of service.
  • You can accumulate up to 120 days.

Formula for calculating daily sick pay (sickness allowance):

Daily Sickness Benefit = Average Daily Wage × Four-Fifths (i.e., 80%)

When calculating the average daily wage, the average daily wage earned during the 12 months preceding the start of sick leave is generally used as a reference; if the employee has been employed for less than 12 months, the calculation is based on the actual period of employment, whichever is shorter. Sick pay must be paid on or before the regular payday.

Note: If a foreign domestic worker has not accumulated sufficient paid sick leave, the employer must still allow the worker to take the number of sick days recommended by a doctor, but is not required to pay wages for those days off. Additionally, an employer may not require a foreign domestic worker who has provided a doctor’s note to work during sick leave.

Calculation of Pay for Additional Workdays

When a foreign domestic worker works on a day off or a statutory holiday, the employer must provide compensatory time off as required by law, rather than simply paying additional wages. The procedures for these two situations differ:

Work on Days Off

In principle, employers may not require foreign domestic workers to work on their days off. A day off is a full day of rest lasting at least 24 consecutive hours.

If an employer must require a foreign domestic worker to work on a day off due to an “unforeseeable emergency,” the employer must:

  • Schedule an alternative day off within 30 days of the originally scheduled day off;
  • Notify the foreign domestic worker of the date of the additional day off within 48 hours after requesting the work.

If an employer forces a foreign domestic worker to work on a day off, the employer may be prosecuted and, upon conviction, may be fined up to 50,000 Hong Kong dollars.

Working on Public Holidays

Under the Employment Ordinance, statutory holidays cannot be “substituted with pay”; that is, employers may not pay additional wages in lieu of granting foreign domestic workers a day off. Violations of this provision are subject to a maximum fine of 50,000 Hong Kong dollars.

If an employer requires a foreign domestic worker to work on a statutory holiday, the employer must arrange for an alternate day off or a substitute holiday:

  • Any additional holidays must be scheduled within 60 days before or after the original statutory holiday.
  • Employers must give foreign domestic workers at least 48 hours' notice.

If a statutory holiday falls on a rest day, the employer must arrange for the foreign domestic worker to take the statutory holiday on the following day, which must not be a statutory holiday, a designated holiday, or a rest day.

The only exception is an “unforeseeable emergency,” in which case the employer must make up the rest day afterward, rather than simply paying additional wages. In other words, rest days cannot be “bought off” with money; employers must ensure that domestic workers are granted their full rest time.

Frequently Asked Questions (FAQ)

1. What is the minimum wage for foreign domestic workers? Is it adjusted annually?

Effective September 30, 2025, the statutory minimum wage for foreign domestic workers is HK$5,100 per month. The government reviews this amount periodically and has typically announced adjustments around September each year in recent years. Employers should closely monitor the latest announcements from the Labor Department.

2. How much is the meal allowance for foreign domestic workers? Is it possible to provide meals instead?

Under current regulations, the meal allowance must be at least HK$1,236 per month. Employers may choose to provide free meals to domestic workers in lieu of paying the meal allowance.

3. What payments must an employer make when terminating a foreign domestic worker’s contract?

When a contract is terminated, the employer is generally required to pay the following amounts:

  • Pay in lieu of notice (if one month's written notice is not given)
  • Unpaid Wages
  • Unused annual leave pay (calculated on a pro-rata basis)
  • Severance pay or long-service award (if applicable)
  • Airfare and transportation allowance for returning to one's place of origin
  • Amounts Specified in Other Contracts

Employers may use the Labor Department’s “Statutory Employment Entitlements Calculator” to help calculate the relevant amounts.

https://www.labour.gov.hk/tc/labour/Statutory_Employment_Entitlements_Reference_Calculator.htm