Hong Kong Expats
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How to Compute Long Service, Severance Pay for Hong Kong Domestic Helpers

As of September 28, 2019, 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, financial incapacity or other valid reasons, termination of employment contract is one route each party can initiate.

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;
  • 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:

  • 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 during the tenure of service.

Amount of severance payment or long service payment
(Monthly wages) x 2/3 x (number of years of service)

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

Long service = HK$4,630 x (2/3) x 6 years
Long service = HK$18,520 – the amount employer should pay to helper.

The service of an 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.

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

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