Is there a statutory year-end bonus in Hong Kong?

In Hong Kong, there is no statutory requirement for a year-end bonus. However, many employers choose to offer a year-end bonus or 13th-month salary as part of their compensation package. Here’s what you need to know about year-end bonuses in Hong Kong:


1. What Is a Year-End Bonus?

  • The year-end bonus, also known as the 13th-month salary, is an additional payment made to employees, usually at the end of the calendar year.

  • Amount: The bonus is typically equivalent to 2 to 3 months’ salary, though the exact amount may vary depending on the employer’s policies, the employee’s performance, and the company’s financial results.


2. Is It Statutory?

  • Not Required by Law: In Hong Kong, a year-end bonus is not statutory and is not mandated by law. Employers are not obligated to provide a year-end bonus unless specified in the employment contract or a company agreement.

  • Common Practice: While not required, providing a year-end bonus is a common practice in many sectors, especially in industries where employee retention and motivation are important.


3. When Is the Year-End Bonus Paid?

  • Timing: The bonus is typically paid at the end of the year or during Chinese New Year, depending on the employer’s policies.

  • Eligibility: Employees may need to have completed a full year of service to qualify for the year-end bonus. Some employers offer pro-rated bonuses for those who have worked for part of the year.

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