1. Mandatory Provided Pensions
Pursuant to the provisions in the Mandatory Provident Fund Schemes Ordinance (Cap. 485), employers in Hong Kong are required to make arrangements for their employees to join a registered Mandatory Provident Fund (“MPF”) scheme available in the market if such employees are aged between 18 and 65 and employed for a continuous period of not less than 60 days by the employer.
An employer who fails to enroll its employees into an approved MPF scheme or who fails to make the mandatory contributions will be subject to penalties.
2. Required Contributions
The employer is required to calculate each employee’s income and the amount of contribution for each contribution period and deduct the mandatory contribution from the employee’s income.
The calculation of the MPF contribution payable is based on the income of the employee, meaning all payments in monetary terms given to employees, including wages, salary, leave pay, fee, commission, bonus, gratuity, perquisite or allowance (including housing allowance or other housing benefit), but excluding severance payments and long service payments), and is calculated at 5% of an employee’s relevant income for each month with the employer matching the employee’s contribution, subject to a minimum and maximum level of income for the employee and a maximum level for the employer.
An employer can offset the long service payment or severance payment as required to be paid to an employee under the Employment Ordinance with the accrued benefits derived from the contribution, which the employer (but not the employee) has made in favour of the employee in the MPF scheme.
Regardless of whether the employees are working full-time or part-time (including part-time domestic helpers and summer job workers, etc.), an employer is required to have a valid insurance policy under section 40 of the Employees’ Compensation Ordinance to cover liabilities both under the Ordinance and at common law for injuries at work in respect of every employee.
4. Required Maternity/Sick/Disability
Statutory Sick allowance
Employers are to pay sick allowance (if the sick leave taken by an employee is not less than four consecutive days and the employee has accumulated sufficient paid sick days), at the rate of 4/5’s of the daily average of the wages earned by the employee during (i) the period of 12 months immediately before the sick day; or (ii) if the employee has been employed by the employer for a period shorter than 12 months immediately before the sick day, the shorter period. An employee is entitled to 2 paid sick days for each completed month of employment during the first 12 months and 4 paid sick days for each such month thereafter, which may be accumulated up to a maximum of 120 paid sick days.
Any sick days and sick allowance must be supported by the appropriate medical certificate issued by a registered medical practitioner, registered Chinese medical practitioner or registered dentist opining that the employee was, is or will be, as the case may be, unfit for work on account of sickness or injury.
Statutory Maternity Leave
A female employee employed under a continuous contract immediately before taking any maternity leave and whose pregnancy has been confirmed by a medical certificate, will be entitled to maternity leave with pay in accordance with the Employment Ordinance.
Maternity leave shall be a continuous period of 10 weeks from and inclusive of the date of commencement of maternity leave or the actual date of confinement and shall be in addition to annual leave and statutory rest days.
Maternity leave pay is available if the female employee has been employed by her employer under a continuous contract for a period of not less than 40 weeks immediately before the date of her commencement of maternity leave, and is calculated at 4/5’s of the daily average of the wages earned by the female employee during (i) the period of 12 months immediately before the date of commencement of her maternity leave; or (ii) if the employee has been employed by the employer concerned for a period shorter than 12 months immediately before the date of commencement of her maternity leave, the shorter period.
Statutory Paternity Leave
Male employees with a child born on or after 27 February 2015 are entitled to 3 days paternity leave to be taken consecutively or separately for each confinement of their spouse/partner if they fulfill other requirements as stipulated in the law. They may take paternity leave at any time during the period from 4 weeks before the expected date of delivery of the child to 10 weeks beginning on the actual date of delivery of the child. Employees who are qualified for paternity leave pay may receive a daily rate of four-fifths of their average wages as paternity leave pay.