How to calculate the Long Service Payment?

Upon termination or completion of an employment contract, domestic helpers may be entitled to the Long Service Payment if he/she has worked for you for over a certain period of time. The long service payment is a statutory benefit provided under the Employment Ordinance to reward helpers for their long-term commitment to their employers.

Who is eligible for long service payment?

Domestic helpers are eligible for Long Service Payment provided they meet the necessary requirements. A domestic helper is entitled to long service payment if he/she: 

• Has worked continuously for at least 5 years

And

• Is dismissed, or the fixed term contract expires but not being renewed by reason other than serious misconduct or redundancy

Or

• Is certified by a registered medical practitioner or registered Chinese medicine practitioner as permanently unfit for the present job and he/she resigns*; 
• Is aged 65 or above and he/she resigns; 
• Dies in service.

*Regardless of whether the medical certificate produced by the helper was issued by a registered medical practitioner or registered Chinese medicine practitioner, the employer may arrange a second medical examination to obtain a second opinion of the helper’s permanent unfitness for the relevant work. This second medical examination may be conducted by a registered medical practitioner or registered Chinese medicine practitioner chosen by the employer, and it must be done at the employer’s expense within 14 days after receiving the certificate. The employer must also give the helper a written notice of the appointment details at least 48 hours before the examination.

If the employer has offered in writing to renew the contract or re-engage the helper under a new contract at least 7 days before the expiry of the contract, but the helper has unreasonably refused the offer, then he/she is not eligible for the long service payment.

Domestic helpers may also be entitled to Severance Payment other than Long Service Payment. However, they cannot be entitled to both payments during the same period of service. For more information on their differences in eligibility criteria, please refer to Chapter 11 of “A Concise Guide to the Employment Ordinance”.

How to calculate long service payment?

Long Service Payment Calculation: 

Last Monthly wage (including food allowance if applicable) x 2/3 x reckonable years of service.

• Service of an incomplete year should be calculated on a pro-rata basis.
• The maximum amount of long service payment is HKD $390,000.

It is essential to prepare and verify all relevant details to ensure accuracy when calculating the long service payment. Below is a step-by-step guide to help you through the process:

1. Collect the total sum of your helper’s last monthly wages, including food allowance.
2. Confirm start and end dates of employment.
3. Count the total number of years of service.
4. If necessary, check for any incomplete service years and prorate the payment accordingly.
5. Double-check the eligibility criteria.

When do you need to pay?

The long service payment must be paid to the helper within 7 days after the date of termination or completion of employment contract. Employers who deliberately fail to pay long service payments to the helper without a reasonable excuse are liable to prosecution. Upon conviction, they could be fined HKD $350,000 and sentenced to imprisonment for 3 years.

Claiming long service payment due to death of the domestic helper

In the event of a domestic helper’s death, the priority in claiming the long service payment will be:

• 1st: the spouse of the deceased helper
• 2nd: children of the deceased helper (if 2 or more persons apply, the long service payment should be divided equally between them)
• 3rd: parents of the deceased helper (if 2 or more persons apply, the long service payment should be divided equally between them)
• 4th: the personal representative of the deceased helper

The person who wishes to claim for long service payment must submit an application form to the employer within 30 days after the death of the helper. Where necessary, the Commissioner for Labour may extend the deadline. To obtain the application form:

• Visit any branch office of the Labour Relations Division of the Labour Department; or 
• Download the Application for Long Service Payment by Family Members of a Deceased Employee (Form 2) from the website of the Labour Department

Once the application is submitted:

• If the spouse of the helper is applying, the employer must make the payment to him/her within 7 days after receiving the application.
• For other applicants, the employer must make the payment to him/her within 7 days after the application period ends

Employers who fail to pay long service payments to the beneficiaries of the deceased helper without a reasonable excuse are liable to prosecution. Upon conviction, they could be fined HKD $50,000.

Resources and support

For more clarification on long service payment or other rights and obligations, please see the Practical Guide for Employment of Foreign Domestic Helper (English; Chinese) from the Labour Department, or contact your local Labour Relations Division for consultation services. The division also provides free conciliation service to assist in resolving disputes related to the employment contract. If the conciliation is unsuccessful, the Labour Department will, at the request of the parties involved, refer the case to other authorities for adjudication based on the amount of the claim:

• For smaller claims: the case will be referred to the Minor Employment Claims Adjudication Board
• For larger claims: the case will be referred to the Labour Tribunal 

Other contact details:

• Immigration Department: 2111 8435

• The Labour Department’s 24-hour hotline for domestic helpers: 2157 9537
• The Labour Department’s email account for domestic helpers: fdh-enquiry@labour.gov.hk