I’ll definitely be recommending the site to my friends when they look to move back to NZ!”. All orders are processed exclusively through our payment processors' secure gateways, and at no moment do any of Consider outsourcing your payroll! Get started by downloading a 100% free sample calculation. In order to avoid deflating the amount due for the statutory entitlement, periods where the employee is not paid the full wages or any wages should be excluded. Not properly calculating and reinstating employees may result in expensive penalties such as having to pay a further sum amounting to 3 times the employee’s average monthly wages. compiled by international organizations like the United Nations, the World Bank and Eurostat. Since became effective, when calculating the minimum salary amount for specific day or day-off, employer must refer to the average amount of the past 12 months and include those "wages" as defined in Employment Ordinance. is the cost-of-living in Hong Kong, broken down by category. include extra graphs, sample prices, or statistical parameters. calculated according to the above definition of wages. Contact us for more information on how we can help leverage your HR function. Summary of Amendments made under the Amendment Ordinance • annual; The 7-day leave pay shall be calculated on the basis of her average daily wages in the past 12 months (i.e. We are working on improving the salary calculations and we will eventually offer this (Bonus: Handover Note Template), Making Redundancies? Yes. Since became effective, when calculating the minimum salary amount for specific day or day-off, employer must refer to the average amount of the past 12 months and include those "wages" as defined in Employment Ordinance. salary calculations use as one of the inputs the same data that you can explore for free in Expatistan, reports to individuals. Calculating 1-month wages in lieu of notice on the basis of the 12-month average. We take the accuracy and reliability of our salary calculations very seriously, to different results. No, all the salary calculations are paid. The equivalent salary that you'll need in Hong Kong to keep the standard of living that you are used to in your city. Not necessarily. This can lead Wages from these periods are also excluded from the calculation. With this figure, the employers can then calculate the pay due. Accurate reporting and payroll calculations. should get a salary calculation from this page. This independent calculation will help you justify your salary demands in your negotiation. Lloyds TSB International, the Markets Research division of Deutsche Bank, and HSBC studies. the Our salary equivalence for you, it does not include any extra sources of data with are available in this section. After aggregating, cleaning up and modelling this data, The 12-month average wages is applicable to all employees covered by the Labour Ordinance regardless of how they’re rated (monthly, daily, or piece rated). Please refer to the Chinese Version below for the sample excel: A Concise Guide to the Employment Ordinance The result are up to date and comprehensive salary calculations. If you are Or go straight to see how Backstage applies Average-Wage in calculation of payroll. reliable beyond a doubt. On top of this, employers may also be subject to a ceiling of $72,500 on and any monetary remedies payable to the employee as ordered by the Labour Tribunal. prices themselves in the At the moment, we offer paid salary calculations for 201 cities. You can live as good or better as you now live in your city. and you can make the salary conversion yourself using that data. only $49 USD. What HK Employers Need to Know. our database of prices with public databases and cost-of-living indices GF527 is an administrative return for reporting site labour … The equivalent salary that you'll need in Hong Kong to keep the standard of living that you are used to in your city. Human Resources News, technology advancements, best practices. The price of a full salary calculation is published by reputable and trustworthy organizations, like the United Nations, At the moment, no. Our salary calculations are primarily based on the largest database of prices in the world, a collaborative database of prices that is constantly updated and improved. The same data behind available from reliable third-party organizations like the World Bank and UBS. The principal reason for the different results is that although the paid calculations use mainly the prices and these salary calculations is used to power the analysis and tools of, among others, This website, including your account and payment pages, is protected by SSL encryption. version of the salary calculations for You should also note that we only provide paid salary calculations for a fraction of You will know exactly how much more (or less) money you will need in Hong Kong to Keep yourself informed and updated of the latest amendments to avoid legal penalties. Recently we’ve seen a significant increase in audit activity in respect of whether clients are complying with the Average Daily Wage or 713 Ordinance. Top 5 Things to Note About Employment Contracts in Hong Kong, Redundancy Laws in Hong Kong – What Employers Need to Know, 2020 Legislation Updates & Stimulus Measures Comparison Chart, HR Leaders Should Know the Difference Between PEO & EOR, Top 5 people metrics you need to be a great HR business partner, Build Up Your Team the Way You’d Build a Jigsaw Puzzle, How to Prepare the Handover? The end results are up-to-date, reliable, and comprehensive salary calculations on cost-of-living differences and net income equivalences. How much more expensive Abundant data points from multiple redundant sources. trying to convince you to buy other related (and usually unnecessary) products. We use both PayPal and Braintree as our payment processors. your payment details even touch our servers. employer) as well as the sum paid correspondingly when calculating average wages. We have received increasing requests for reviews of Average Daily Wage calculations and heard of a number of companies facing penalties and reimbursing employees for underpaid salaries. 50% of basic pay) at $1,500, 15 days of study leave with half pay at $1,500. 1. wages (including rate of wages, overtime rate and any allowance, whether calculated by piece, job, hour, day, week or otherwise); 2. wage period; 3. length of notice required to terminate the contract; and 4. if the employee is entitled to an end of year payment, the end of … directly and they use an improved dataset compared with the free comparisons available in Expatistan. The main purpose of the 12-month average wages calculation is to protect employees. | Website Disclaimer bring more accurate results when you do not care about rankings of multiple cities among each other and only care If you just need to know the basic difference in cost-of-living between two cities, you should definitely use the up-to-date, and reliable data. Learn More, Severance Payment and Long Service Payment. “The calculation I bought was very accurate to the real cost of living in Barcelona. Another reason that may increase the differences between the free and the paid calculations is that for our index (i.e. for us to provide basic cost-of-living information in At the end of the day, we have more up-to-date, more abundant data than Mercer and AIRINC, but unlike them we do not Here’s a concise guide around the calculation of the 12-month average wage as instructed in the 713 Ordinance. We currently hold data for more than 3,000 cities. we cross check and improve the information contained in that pass our rigorous checks and conditions regarding recency, consistency, Maybe just as important, you will have an independent assessment and hard data showing why you require that salary. Using Braintree we can accept all major credit cards (Visa, MasterCard, Maestro, ...). In the last week alone we've added more than 3,900 new prices to the database. 6. For employees who have been with the company for less than 12 months, the calculation should be measured on a shorter period. about the direct cost of living difference between two specific cities. The 713 Ordinance is now over 10 years old and can sometimes be overlooked. http://www.labour.gov.hk/eng/public/wcp/GuideEAO2007.pdf, http://www.labour.gov.hk/eng/public/wcp/ConciseGuide/Appendix1.pdf, Allowance for accomodation, education, food, etc, Employer's contribution to retirement scheme, Commission or bonus payable at company's discrection, Travel allowance which is non-recurring in nature, Payment to employees to defray their incurred expense, End-of-year payment which is defined as payable only at company's discretion. more realistic than the ones offered by the big multinationals. free version of Expatistan, though. from 1 November … What Employees Should Know About Redundancies in Hong Kong? To put it more simply, the 12-month average wage is the eligible wages divided by the total days for these wages (depicted below). Or any overhead, for that matter. Only the cities Manage your employee profile, leave balance, timesheet, payroll, taxation, all in one. improved reliability, does not provide a nice, downloadable and printer-friendly salary calculation, and does not There are many professional HR outsourcing services in Hong Kong that can help you take care of your payroll needs. In the reports we compare the cities directly, which Third, we also sell the salary calculations spending a fraction of the cost that they have. possibility, but currently it is not possible. We don't have to pass big overhead and sales costs down to you. You will be getting a comprehensive and reliable salary conversion for Hong Kong. This will give you a stronger position to negotiate a better offer. However, the free version does not calculate the Annual Salary After Tax Calculator we cross check it and enhance it with public cost-of-living data For only $49 USD you will know the salary you need in Hong Kong to maintain your current standard of living after you move. Professional formatting and reliable presentation, allowing you to use the printed calculation in your negotiations. Not ready to invest in a full HR system? The results in our reports and in the free comparisons in Expatistan can be (and often are) http://www.labour.gov.hk/eng/public/wcp/GuideEAO2007.pdf, Appendix 1 of "A Concise Guide to the Employment Ordinance" Payroll outsourcing helps reduce costs, streamlining your HR operations significantly. and abundance of prices for all the items used in the cost-of-living basket Links’ Employee Stories: Work Smart Play Hard, 4 Global HR Practice Secrets to Crisis Management, Human Resources & Administration Recruitment, Banking, Financial and Accounting Services Recruitment, Sourcing, Supply Chain & Manufacturing Recruitment, Banking, Financial and Accounting Services Jobs, Top 5 Cases of Payroll Fraud and Why SMEs Are Most at Risk, A New Wave of HR Leadership – No Time For Complacency, Top 5 Questions about Payroll in Singapore, The Secret to a High Performing HR Function in Your Business, Top 4 Payroll Challenges for HR Professionals in MNC, How to Calculate Hong Kong’s 12-Month Average Wage (713 Ordinance), Sickness allowance and related provisions, Maternity leave pay and related provisions, Further sum for non- compliance of an order of reinstatement or re-engagement for unreasonable and unlawful dismissal, Leave provided under the Employment Ordinance, Sick leave due to work injuries as provided under the Employees’ Compensation Ordinance, Leave taken with the agreement of the employer (no pay leave), A normal working day where the employee is not provided with work by the employer, Contractual commission accrued and calculated on a monthly basis according to a sliding scale, 12-month wages earned before the day on which notice of termination was given: $600,000 including basic pay and commission, Leave taken with less than full wages in the 12-month period: 15 days of half-pay study leave (i.e.