Hong Kong Overtime, Leave Deductions & Encashments

Find out how to calculate overtime, unpaid leave deductions, and leave encashments for employees in Hong Kong.

How to calculate overtime

In Hong Kong, there are no specific laws that require employers to provide overtime pay to employees beyond the statutory minimum wage.

How to calculate unpaid leave deductions

Unpaid leave deductions depends on company regulations, but is customarily carried out by dividing the employee’s basic salary rate with the number of working days in a month with the number of leaves taken.

How to calculate leave encashment

Leave encashment calculation depends on company regulations, but is customarily carried out by dividing the number of days an employee worked with 365, and then multiplying it with the number of unused leave.