wage.cal.demo.mp4

Wage Calculator - Statutory Entitlements for Domestic Helpers

This application was designed to assist domestic helpers in Hong Kong by calculating their statutory employment entitlements.

Features

• Simplified calculation of Long Service Payment for domestic helpers

Usage

To use the Wage Calculator online:

1. Go to wagecal.netlify.app.
2. Enter working duration.
3. Enter your monthly working hours.
4. Review the Long Service Payment due.
5. Print the receipt as PDF.

Eligibility for Long Service Payment

A domestic worker in Hong Kong is eligible for long service payment if they meet the following criteria:

1. They have been employed continuously for not less than 5 years¹².
2. Their employment is terminated for reasons other than serious misconduct or redundancy¹².
3. They are certified by a registered medical practitioner as permanently unfit for their present job and resign on such grounds³.
4. They are aged 65 or above and resign on grounds of old age³².
5. They die during service³.

It's important to note that a domestic worker is not entitled to long service payment if the employer has offered, in writing, to renew the contract or re-engage the worker under a new contract at least 7 days before the expiry of the current contract, and the worker unreasonably refuses the offer¹².

Calculation of Long Service Payment

The long service payment is calculated using the following formula:

$$(\text{Last month's wages} \times \frac{2}{3}) \times \text{Reckonable years of service}$$

Some key points about this calculation:

• Service for an incomplete year should be calculated on a pro-rata basis¹³.
• The maximum amount of wages used for calculation is capped at $$\frac{2}{3}$$ of HK$22,500³.
• Employees may choose to use their average wages in the last 12 months for the calculation instead of the last month's wages³.

Payment Timeline and Legal Obligations

Employers must pay the long service payment to their domestic worker within 7 days after the date of termination of the employment contract¹². Failure to do so without reasonable excuse is a serious offense:

• Employers can be liable to prosecution and, upon conviction, face a fine of HK$350,000 and imprisonment for 3 years²⁴.

Important Considerations

1. A domestic worker cannot be simultaneously entitled to both long service payment and severance payment³⁵.
2. If a domestic worker is dismissed due to redundancy and has worked for at least 24 months, they would be entitled to severance payment instead of long service payment⁵.
3. The current minimum allowable wage for foreign domestic helpers in Hong Kong is HK$4,870 per month (as of October 28, 2023)⁵.
4. Employers should be cautious about terminating contracts frequently, as they may risk being blacklisted by the Consulate⁵.
5. When terminating a contract, employers must follow proper procedures, including giving one month's notice, informing the Immigration Department, and settling all dues with the domestic worker⁵.

In conclusion, long service payment is an important statutory benefit for domestic workers in Hong Kong, designed to reward their long-term commitment and loyalty. Employers should be aware of their obligations regarding this payment to ensure compliance with Hong Kong labor laws.

Built with

• React JS: Leveraging React's component-based architecture for efficient state management.
• Mantine UI: Enhancing the user experience with Mantine's customizable UI components.

Getting Started

If you want to run the project locally, follow these steps:

1. Clone the repository: git clone https://github.com/yourusername/wagecalculator.git
2. Install dependencies: npm install or yarn install
3. Start the development server: npm start or yarn start

Contributing

Contributions are welcome! Please feel free to submit pull requests or open issues if you find any bugs or have suggestions for improvements.

Footnotes

1. https://www.fdh.labour.gov.hk/en/faq.html ↩ ↩² ↩³ ↩⁴ ↩⁵

2. https://www.helperchoice.com/c/domestic-helper/severance-payment-long-service-payment ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶

3. https://www.clic.org.hk/en/topics/employmentDisputes/mattersRelatedToEmploymentOrdinance/terminationOfEmploymentAndTheRelevantPayments/long_service_payment ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

4. https://www.labour.gov.hk/eng/public/wcp/ConciseGuide/11.pdf ↩

5. https://www.helperplace.com/blog/long-service-payment-helper-hong-kong ↩ ↩² ↩³ ↩⁴ ↩⁵