Hong Kong Employee Rights Guide (2026): Annual Leave, Sick Leave, Public Holidays, Severance & Minimum Wage

# Hong Kong Employee Rights Guide (2026)

Most people sign an employment contract focused on the salary and job title, skimming the rest. Then the first holiday season arrives and they discover their contract specifies "statutory holidays" — not "public holidays." Or they need to take sick leave and find out paid sick leave accumulates to a capped maximum, not an unlimited entitlement. Or they are made redundant and learn for the first time that severance pay and long service payment are entirely different legal entitlements with different eligibility thresholds.

And in early 2026, many employees discovered that the landmark MPF offset mechanism — which for decades allowed employers to reduce severance and long service payments by offsetting MPF employer contributions — was abolished on 18 January 2026. For employees made redundant after that date, the implications are significant.

This guide breaks down every core employment right under Hong Kong's Employment Ordinance (Cap. 57), updated for 2025–2026 legislative changes, so you understand what the law guarantees before you sign an offer, face redundancy, or need to file a complaint.

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1. The Employment Ordinance: Hong Kong's Labour Rights Foundation

The Employment Ordinance (Cap. 57) is the central piece of legislation governing employment relationships in Hong Kong. It is enforced by the Labour Department. The Ordinance sets minimum standards that apply to all employees working in Hong Kong — regardless of what their employment contract says.

Who is protected:

• All employees working in Hong Kong, including both local residents and foreign nationals
• Full-time, part-time, and casual workers — anyone in an employment relationship is protected by at least the basic provisions
• Certain enhanced protections (annual leave, paid sick leave, severance pay, long service payment) apply specifically to employees under a continuous contract

The key principle: Any contract term that falls below the Ordinance's minimum standards is automatically void. A clause stating "no paid sick leave" has no legal effect — your statutory entitlements apply regardless.

Many of the Ordinance's most important protections apply only to employees with a continuous contract, defined as:

> Employment of 4 or more consecutive weeks, with at least 18 hours of work per week

This is commonly known as the "4-18 rule." If you work at least 18 hours per week for at least four consecutive weeks, you qualify for a continuous contract and the full range of statutory protections. Part-time or irregular workers who fall below this threshold still have basic protections (minimum wage, timely wage payment, etc.) but may not qualify for annual leave, paid sick leave, or termination payments.

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2. Annual Leave: 7 Days Minimum, Up to 14

Annual leave under the Employment Ordinance increases progressively with service length:

These are statutory minimums — the legal floor. Many employers provide more generous annual leave from the outset (10 days from day one, 15 days after five years, etc.). Anything above the statutory minimum is a contractual benefit; the Ordinance sets only the floor, and employers are free to exceed it.

Employees are entitled to leave pay during annual leave, calculated as:

> Leave pay = Average daily wages over the preceding 12 months (or actual employment period, whichever is shorter) × number of leave days

"Average daily wages" are calculated from total wages earned in the 12-month reference period — including bonuses, commissions, and other reckonable payments — divided by the actual number of days worked during that period.

As a general rule, annual leave cannot be replaced by payment in lieu. The "work through your leave and get paid extra" arrangement is not legally permitted, with two exceptions:

• Days exceeding 10: If an employee has more than 10 days' annual leave entitlement (e.g., 14 days after nine years), the employer may, after registration with the Labour Department, pay wages in lieu of the days above 10
• Unused leave on termination: Any accrued but unused annual leave must be compensated in wages on a pro-rata basis when employment ends

• Annual leave must be taken within 12 months of the end of the leave year (the leave year typically runs from the employment anniversary date)
• Leave must be taken in blocks of at least 7 consecutive days (though both parties can agree to more flexible arrangements)
• If the employer specifies the timing of annual leave, at least 14 days' advance notice must be given to the employee

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3. Sick Leave: Conditions, Pay, and the 120-Day Cap

Paid sick leave entitlement accumulates progressively over the course of employment:

• First 12 months: 2 paid sick days per complete month of service
• From the 13th month onwards: 4 paid sick days per complete month of service
• Maximum total accumulation: 120 days

Accumulation examples:

Once the 120-day cap is reached, further accrual stops until the balance falls below 120 days through use.

All three conditions must be satisfied to claim paid sick leave:

1. The sick days fall within your remaining accumulated paid sick leave balance
2. You have a medical certificate from a registered medical practitioner, Chinese medicine practitioner, or dentist — this is required for any continuous sick leave of 4 or more days
3. The illness was not caused by your own wilful misconduct

For sick leave of 3 days or fewer, a medical certificate may not be strictly required by the Ordinance, though many employers' contracts require one regardless. Check your contract.

Statutory sick leave pay is 4/5 (80%) of average daily wages — not full pay:

> Sick leave pay = Average daily wages (preceding 12 months) × 4/5 × number of sick days

Many employers provide full-pay sick leave as a contractual enhancement — this is better than the statutory minimum. If your contract is silent or only references the Ordinance, the rate is 80%.

An employer cannot dismiss an employee who is on paid sick leave (and meets the qualifying conditions). Dismissal in breach of this protection is unlawful. The employee can file a complaint with the Labour Department or bring a claim before the Labour Tribunal for compensation.

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4. Statutory Holidays in 2026: Now 17 Days

This has historically been one of the most consequential contract details to understand. In previous years, the Employment Ordinance mandated only 12 statutory holidays, while the government declared 17 public holidays — meaning a contract specifying "statutory holidays" gave an employee five fewer days off than one specifying "public holidays."

The Legislative Council passed the Employment (Amendment) Ordinance 2023, which introduces a phased increase in statutory holidays from 12 to 17, to eventually align with the full list of public holidays. In 2026, statutory holidays stand at 17 days.

The 17 statutory holidays in 2026 are:

1. New Year's Day (1 January)
2. Lunar New Year's Day (1st day)
3. 2nd day of Lunar New Year
4. 3rd day of Lunar New Year
5. 4th day of Lunar New Year
6. Ching Ming Festival
7. Buddha's Birthday
8. Labour Day (1 May)
9. Tuen Ng Festival
10. HKSAR Establishment Day (1 July)
11. Day following the Chinese Mid-Autumn Festival
12. National Day (1 October)
13. Chung Yeung Festival
14. Good Friday
15. Easter Saturday
16. Christmas Day (25 December)
17. First weekday after Christmas Day

In 2026, both statutory holidays (under the Employment Ordinance) and public holidays (under the General Holidays Ordinance, Cap. 149) stand at 17 days and largely cover the same dates. The practical distinction has narrowed significantly.

However, contract language still matters:

• A contract specifying "statutory holidays" will follow whatever the Employment Ordinance mandates for that year
• A contract specifying "public holidays" or "general holidays" follows the General Holidays Ordinance
• Contracts that bundle public holidays into the annual leave quota ("15 days annual leave inclusive of public holidays") require careful reading — confirm whether the holiday days are subtracted from your annual leave count

If required to work on a statutory holiday, the employer must either:

• Arrange a substitute holiday within 60 days; or
• Pay additional compensation as specified in the employment contract

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5. Rest Days

The Ordinance requires employers to provide employees with at least one rest day in every period of seven days.

Key points:

• Rest days are paid — wages cannot be deducted for a rest day
• If an employee is required to work on a rest day, the employer must arrange a substitute rest day or pay additional compensation
• The specific rest day may be fixed (e.g., Sunday) or may rotate on a schedule set by the employer, as agreed in the contract

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6. Maternity Leave and Paternity Leave

Duration: 14 weeks (extended from 10 weeks in 2021)

Eligibility for paid maternity leave:

• At least 40 weeks of continuous employment before the expected date of confinement (approximately 10 months)
• Must have notified the employer of the pregnancy and expected date of confinement

Pay:

• Weeks 1–10: Paid by the employer at 80% of average daily wages (calculated over the preceding 12 months)
• Weeks 11–14: Also paid at 80% of average daily wages, but the employer can claim reimbursement from the government for this additional four weeks; the reimbursement is capped at HK$80,000 total for the four-week period. This mechanism was designed to reduce the financial burden on smaller employers.

Dismissal protection:

• Dismissal of an employee because of pregnancy — or dismissal during maternity leave — is a criminal offence under the Employment Ordinance, not merely a civil matter
• The employer faces fines and potential imprisonment upon conviction
• If this happens, contact the Labour Department immediately

Duration: 5 days

Eligibility:

• At least 40 weeks of continuous employment
• A spouse or partner who is pregnant or has given birth
• Must provide supporting documentation to the employer (such as a birth certificate or medical confirmation of pregnancy)

Pay: 80% of average daily wages (calculated over the preceding 12 months)

Timing: The five days can be taken flexibly within 4 weeks before or after the birth date, in consultation with the employer

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7. Severance Payment and Long Service Payment

These two entitlements are frequently confused. Both use the same calculation formula but have completely different eligibility criteria and triggering circumstances.

Eligibility:

• At least 24 months (2 years) of continuous employment
• Dismissed due to redundancy: the employer no longer requires the employee to carry out the particular kind of work, or the employer's business has closed or relocated

Calculation formula: > Severance Payment = 2/3 × last month's wages (or average monthly wages over the last 12 months, whichever is lower) × years of service

Caps:

• Per year of service: HK$22,500
• Total maximum: HK$390,000

Worked examples:

Example 1: 5 years of service, monthly salary HK$30,000 > Formula: 2/3 × HK$30,000 × 5 = HK$100,000 > Per-year cap: HK$22,500 × 5 = HK$112,500 > Lower figure applies: Severance = HK$100,000

Example 2: 10 years of service, monthly salary HK$50,000 > Formula: 2/3 × HK$50,000 × 10 = HK$333,333 > Per-year cap: HK$22,500 × 10 = HK$225,000 > Lower figure applies: Severance = HK$225,000

Example 3: 20 years of service, monthly salary HK$60,000 > Formula: 2/3 × HK$60,000 × 20 = HK$800,000 (exceeds total cap) > Per-year cap: HK$22,500 × 20 = HK$450,000 (also exceeds total cap) > Total cap applies: Severance = HK$390,000

Eligibility:

• At least 5 years (60 months) of continuous employment
• One of the following triggering circumstances:
• The employer terminates the contract for reasons other than redundancy (and not because of the employee's serious misconduct)
• The employee terminates the contract due to ill health — must be supported by a medical certificate confirming the employee is permanently incapacitated from the type of work
• The employee dies (entitlement passes to the estate)
• A fixed-term contract expires and the employer does not renew it

Calculation formula: Identical to severance payment > Long Service Payment = 2/3 × last month's wages (or average of last 12 months, whichever is lower) × years of service > Per-year cap: HK$22,500; total cap: HK$390,000

Mutual exclusivity: Severance payment and long service payment cannot both be claimed. The triggering circumstances are generally mutually exclusive — redundancy triggers severance payment; other forms of termination trigger long service payment.

This is one of the most significant changes to Hong Kong employment law in recent decades. The Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Ordinance 2025 came into full effect on 18 January 2026.

Before abolition: Employers were permitted to use mandatory provident fund (MPF) employer contributions — and their accrued returns — to offset the severance payment or long service payment owed to an employee. In practice, this meant that many employees who qualified for severance pay received significantly less cash than the formula suggested, because a large portion of the payment was already "absorbed" by the MPF balance the employer had contributed on their behalf.

After abolition (from 18 January 2026): For all employment terminations occurring on or after 18 January 2026, employers may no longer offset severance payment or long service payment with MPF employer contributions. The two must be paid in full and independently.

What this means for you:

• If you are made redundant after 18 January 2026, your severance payment must be calculated according to the full formula and paid in addition to any MPF you receive — not instead of part of it
• If your employer attempts to deduct MPF contributions from your severance or long service payment after 18 January 2026, this is unlawful
• Transitional arrangements apply to MPF contributions made before the abolition date — consult the Labour Department or MPFA for specifics

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8. Minimum Wage

Hong Kong's Statutory Minimum Wage is reviewed every two years by the Minimum Wage Commission, an independent statutory body.

Current rate: HK$40 per hour (effective 1 May 2025)

Coverage:

• Applies to most employees working in Hong Kong, including part-time and casual workers
• Applies regardless of whether wages are calculated by time, task, or piece
• If the effective hourly rate implied by an employee's wages falls below HK$40, the employer must make up the shortfall

Exemptions:

• Foreign domestic helpers (subject to a separate minimum allowance under different legislation)
• Student interns in specific approved internship programmes (partial exemptions apply)

Checking compliance for monthly-salaried employees:

If your monthly salary is fixed, calculate your effective hourly rate as: > Effective hourly rate = Monthly wages ÷ Total hours worked in the month (including overtime)

If this falls below HK$40, your employer is in breach of the Minimum Wage Ordinance.

Note on future updates: The minimum wage is reviewed on a two-year cycle. Verify the current applicable rate at the Labour Department website (labour.gov.hk) — an update may have been announced since May 2025.

• Wage period: Must not exceed one month; wages are typically paid monthly
• Payment deadline: Wages must be paid within 7 days after the end of the wage period
• Withholding or delaying wages without cause is a criminal offence
• If your employer fails to pay wages, report this to the Labour Department at 2717 1771 — the Department has prosecutorial authority and can pursue criminal charges against employers who default

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9. Dismissal: Unlawful, Unjust, and Constructive

An employer cannot lawfully dismiss an employee for the following reasons — such dismissal violates the Employment Ordinance:

1. The employee has filed or is pursuing a workers' compensation claim for a work-related injury
2. The employee has given or is about to give evidence in legal proceedings
3. The employee is exercising a statutory right under the Employment Ordinance (e.g., making a wage claim, requesting annual leave pay)
4. A female employee is pregnant or is on maternity leave
5. The employee has engaged in trade union activities (also protected under the Trade Unions Ordinance, Cap. 332)
6. The employee has been called to serve as a juror

Employers may dismiss without notice or payment in lieu of notice in a narrow set of circumstances:

• The employee has committed serious misconduct (e.g., fraud, violence, theft)
• The employee has engaged in gross dereliction of duty
• The employee habitually refuses to follow lawful and reasonable instructions
• The employee obtained the position through fraud or misrepresentation

Outside these grounds, employers must provide the contractual notice period — or payment in lieu of notice — to terminate employment lawfully.

Minimum notice periods under the Ordinance:

• If the contract specifies a notice period: follow the contract
• If the contract does not specify a notice period: 1 month minimum (or payment of one month's wages in lieu)
• During a probationary period: 7 days minimum (unless the contract provides otherwise)

If an employer deliberately makes working conditions intolerable — through significant unexplained pay reductions, forcing an employee into a fundamentally different or degrading role, or sustained targeted harassment — to the point where the employee has no reasonable choice but to resign, this can constitute constructive dismissal. Despite having technically resigned, the employee retains the right to claim unlawful dismissal and related compensation.

To establish a constructive dismissal claim, you must generally show:

• The employer's conduct amounted to a fundamental breach of the employment contract
• You resigned in direct response to that breach
• You acted within a reasonable time (a long delay between the employer's conduct and resignation can undermine the claim)

Documentation is critical: payslips (showing any unexplained reductions), written communications (emails, messages, formal instructions), HR records, and performance reviews. Seek advice from the Labour Department or the Legal Aid Department before resigning.

If a Labour Tribunal or court upholds an unlawful dismissal claim, the remedies available include:

• Reinstatement to the original position
• Re-engagement in a comparable role
• Termination of Contract Compensation: a sum calculated by reference to wages and length of service

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10. Anti-Discrimination Protections

Four separate ordinances protect employees from workplace discrimination in Hong Kong, all enforced by the Equal Opportunities Commission (EOC):

1. Sex Discrimination Ordinance (Cap. 480): Prohibits discrimination based on sex, marital status, or pregnancy
2. Disability Discrimination Ordinance (Cap. 487): Prohibits discrimination based on disability
3. Family Status Discrimination Ordinance (Cap. 527): Prohibits discrimination based on family status (e.g., responsibilities as a carer for an immediate family member)
4. Race Discrimination Ordinance (Cap. 602): Prohibits discrimination based on race

Employees can file complaints with the EOC (2511 8211 / eoc.org.hk), which offers conciliation services and, in appropriate cases, legal assistance.

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11. Occupational Safety and Health

The Occupational Safety and Health Ordinance (Cap. 509) imposes a duty on all employers to:

• Provide a safe working environment, systems, and equipment
• Provide adequate safety training and supervision
• Report serious workplace accidents to the Labour Department

If you are injured at work, you are entitled to employees' compensation under the Employees' Compensation Ordinance (Cap. 282). All employers in Hong Kong are legally required to maintain employees' compensation insurance for their workforce — the insurer, not the employer personally, typically covers the payment.

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12. Where to Get Help

• Services: Free conciliation for employment disputes; assistance pursuing claims for outstanding wages, severance pay, annual leave pay, and other entitlements
• Hotline: 2717 1771 (24-hour recorded information; officers available during business hours)
• Website: www.labour.gov.hk (https://www.labour.gov.hk)
• Legislation index: www.labour.gov.hk/eng/legislat/content.htm (https://www.labour.gov.hk/eng/legislat/content.htm)

• Jurisdiction: Employment claims up to HK$500,000
• Key features: No filing fee; no lawyer required (the Tribunal is designed for self-represented claimants); faster and more accessible than the ordinary courts
• Address: 38 Gloucester Road, Wan Chai, Hong Kong (Hong Kong Courts Building)

• Jurisdiction: Wage claims up to HK$8,000
• Key features: Even simpler and faster than the Labour Tribunal; suitable for straightforward underpayment cases

• Services: Handles complaints of discrimination; offers conciliation; can assist with legal proceedings in appropriate cases
• Hotline: 2511 8211
• Website: www.eoc.org.hk (https://www.eoc.org.hk/en/)

• Employees who meet the income and assets tests can apply for legal aid, which funds legal representation at government expense
• Website: www.lad.gov.hk (https://www.lad.gov.hk)

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Sources and Official References

• Employment Ordinance (Cap. 57): www.elegislation.gov.hk/hk/cap57 (https://www.elegislation.gov.hk/hk/cap57)
• Labour Department — A Concise Guide to the Employment Ordinance (full text): www.labour.gov.hk/eng/public/ConciseGuide.htm (https://www.labour.gov.hk/eng/public/ConciseGuide.htm)
• Labour Department — Legislation and Regulations: www.labour.gov.hk/eng/legislat/content.htm (https://www.labour.gov.hk/eng/legislat/content.htm)
• Equal Opportunities Commission: www.eoc.org.hk/en/ (https://www.eoc.org.hk/en/)
• Labour Department — Statutory Minimum Wage: www.labour.gov.hk/eng/news/smw.htm (https://www.labour.gov.hk/eng/news/smw.htm)
• MPFA — MPF Offset Abolition (Employment and Retirement Schemes Legislation Amendment Ordinance 2025): www.mpfa.org.hk (https://www.mpfa.org.hk)
• Legal Aid Department: www.lad.gov.hk (https://www.lad.gov.hk)

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Conclusion

The Employment Ordinance is the legal floor that holds regardless of what your contract says. The recent changes — MPF offset abolition effective January 2026, statutory holidays reaching 17 days, and the minimum wage increase to HK$40 — represent meaningful improvements to employee protections in Hong Kong. But statutory rights only help you if you know they exist and know how to exercise them.

The practical steps: check whether your contract specifies statutory or public holidays and what the effective count is for the current year. Confirm that your annual leave entitlement meets the statutory minimum for your length of service. Know that your sick leave pay is 80% of your average daily wages unless your contract explicitly improves on this. If you face redundancy after January 2026, calculate your full severance entitlement without any MPF offset. And if your employer breaches any of these obligations, the Labour Department, Labour Tribunal, and related bodies provide accessible, largely free channels for enforcement.

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