A Complete Guide to Paying Your Foreign Domestic Helper: Salary, Holidays, Compensation & Insurance

Hiring a Foreign Domestic Helper is common in Hong Kong, and as an employer, you must understand the correct ways to handle salary, holidays, contract termination, and compensation. This guide provides important information to help employers follow the law and maintain a good employer-helper relationship.

 

1. Ending the Contract: Salary, Compensation & Insurance

If you need to terminate the contract with your helper, you must follow the Employment Ordinance:

  • Notice Payment: If you don’t give one month’s notice, you must pay an extra month’s salary.

  • Long Service Payment: If your helper has worked for five years or more and meets certain conditions, they are entitled to long service payment.

  • Travel Allowance: After the contract ends, you must pay for your helper’s flight ticket, food, and transportation back to their home country.

  • Insurance: Employers must provide medical insurance for their helper, including hospitalization, doctor visits, and serious illnesses.

For details, please check: Termination of Foreign Domestic Helper Contracts with Salary & Insurance Arrangements

 

2. Helper’s Holidays: Rest Days, Public Holidays & Paid Leave

Employers must follow holiday rules under the Employment Ordinance:

  • Rest Days: Helpers must have at least one day off per week.

  • Public Holidays: Helpers are entitled to 12 public holidays per year. If they work on a holiday, they must get either a replacement day off or double pay.

  • Paid Annual Leave: After one year of employment, the helper gets at least 7 days of paid leave.

For more details, please check:

·         Understanding the regulations for foreign domestic helpers' holidays

 

3. Can Employers Pay for Holidays Instead?

Some employers may want to pay extra salary instead of giving holidays—this is called "buying holidays". However, this is illegal for public holidays. Employers must give helpers their entitled holidays.

For more details, please check: Can I “buy” the paid holiday from the foreign domestic helpers?

 

4. Helper Resignation & Compensation

When a helper quits or is dismissed, the employer must calculate the notice payment and long service payment:

  • Notice Payment: If the helper resigns without notice or the employer dismisses without notice, one month's salary must be paid.

  • Long Service Payment: If the helper worked for 5 years or more and did not resign voluntarily, they may get long service payment.

    • Formula:
      Long Service Payment = (Last month’s salary × Years worked × 2/3)

For detailed calculations, check:

 

5. Can Employers Deduct Salary for Damaged Items?

If a helper accidentally breaks something, can the employer deduct money from their salary?

  • The law does not allow employers to punish helpers by deducting salary.

  • Any salary deduction must be agreed upon by both parties, and cannot exceed 25% of the monthly salary.

For more details, please check: Foreign domestic workers causing damage in public places: Is the employer responsible?

 

6. 2024 Minimum Wage Update for Helpers

The minimum wage for foreign domestic helpers is updated regularly. Employers must follow the latest wage standards to avoid legal penalties.

For the latest updates, please check: Foreign Domestic Helper Minimum Wage 2024

 

Conclusion

Understanding the rules about salary, holidays, contract termination, and compensation is essential for both employers and helpers. Following these legal requirements can reduce legal risks and create a positive and fair working relationship.

 

Related product:

California Insurance's latest foreign domestic helper insurance offers the highest coverage in Hong Kong with up to HK$88,000 coverage for hospitalization and surgical expenses. It also provides “New Starter Benefit” that offers probationary protection and “Open Cover” policy reservations for up to 365 days. Learn more or apply now.

The information provided in this article is for general reference only and should not be considered as any form of advice. Our company assumes no responsibility for its use

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