13th month pay
in Hong Kong.

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Is there a 13th month pay in Hong Kong?

Contrary to popular belief, there is no legally mandated 13th month pay for employees in Hong Kong.

How is the 13th month pay calculated in Hong Kong?

The amount is calculated as specified in the employment contract. If it is not specified, then it is calculated as a sum equivalent to the average monthly salary earned by an employee in the 12-months before the day it becomes due. For employees that are employed for less than 12 months, the calculation is based on the average monthly salary earned in their employment period.

When is the 13th month salary paid in Hong Kong?

If an employer chooses to pay the 13th month in Hong Kong, they can choose when this is paid. However, it tends to be customary to make the 13th month salary payment towards the end of the calendar year.

Does the 13th month salary amount to any extra payment by the employer?

If an employer chooses to pay a 13th month payment in Hong Kong, this would normally be an extra payment by the employer.

Is the 13th month salary taxable in Hong Kong?

The 13th month salary is taxable in Hong Kong.

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FAQs

Is the 13th month pay required by law or standard in Hong Kong?

There is no statutory provision in Hong Kong for a 13th-month payment. It is, however, considered standard in Hong Kong to have a 13th month payment.

Are there more than 13th months of pay in Hong Kong?

No, the standard is 12 months of pay in Hong Kong

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)