Employers and employees don’t generally make pension contributions to the government. Instead, mandatory contributions to the Mandatory Provident Fund (MPF) should be made by both employers and employees to an MPF scheme, controlled by the Mandatory Provident Fund Schemes Authority (MPFA). Contributions are mandatory for all employees, unless the employee is on a contract of 13 months or less, in which case an exemption is made. As of March 2019, employees may now opt to make additional contributions as part of the Mandatory Provident Fund’s voluntary contributions scheme.
The contribution should be taken as a percentage of the employee’s relevant income. This includes all additional payments including bonuses, commissions and leave pay, with the exception of severance pay and long-service payments.
Retirement age in Hong Kong is between 60 and 65 and should be stipulated in the contract of employment.
All employees in Hong Kong that are employed continuously will accrue sick leave in the form of a sickness allowance. This is equal to two paid sick days per month in the first year of employment and four days per month thereafter.
The maximum sickness allowance that can be accrued is 120 days.
Sick pay is calculated at a daily rate equivalent to four-fifths of the average daily wage earnt in the 12-month period worked prior to taking sick leave. It’s not permitted for an employer to dismiss an employee who is absent from work during sick leave, except in the case of gross misconduct.
Employees are required to provide a medical certificate for days in which they request sickness pay.
Maternity & paternity
An employee is entitled to 10 weeks of maternity leave pay, provided that she has worked for the employer under a continuous contract for no less than 40 weeks immediately before taking scheduled maternity leave. Maternity leave should be paid on the regular pay day of the employee.
Employees are entitled to five days’ paternity leave provided they’ve been employed continuously by the same employer for four weeks or more and have been working for at least 18 hours each week.
The daily rate of maternity and paternity leave pay is a sum equivalent to four-fifths of the average daily wages earnt in the 12-month period prior to maternity leave (or since the date of hire, if less than 12 months).