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Employer Contribution in Hong Kong
Hong Kong is a hub for international trade. Aside from monthly salaries, employers in Hong Kong need to contribute to the Mandatory Provident Funds
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1. Introduction
Hong Kong is a compact, highly connected hub for the APAC region. It’s also home to regional HQs and bilingual talent. For HR leaders, that means getting the local holiday rules right while staying competitive in the talent market. Under the Employment Ordinance, employers must grant statutory holidays as the legal minimum, while general/public holidays are at the employer’s discretion. In 2026, statutory entitlements will increase to 15 days (including the newly added Easter Monday), which means it’s time for you to start planning early around the HK holiday calendar.
This guide covers the HK holiday calendar for 2026, best practices to navigate the holidays and payroll, and the employer compliance requirements.
2. Hong Kong Public Holidays for 2026
Below is the Hong Kong holiday calendar for 2026. Note that general holidays are different from statutory holidays. There are in total of 15 statutory holidays in 2026, which are required for all employers. However, many employers provide the full general holiday set as employee benefits to stay competitive.
3. Workforce Planning Around the 2026 HK Holiday Calendar
Looking at Hong Kong’s public holidays in 2026, which average almost a holiday per month, employers should plan around predictable spikes in leave, payroll cut-offs, and cross-border impact between mainland China and Hong Kong.
a) Managing Peak Leave Requests
In 2026, Lunar New Year (Feb 17-19, 2026) and the long Easter and Ching Ming stretch (Apr 3-7) are two prime time-off windows. For businesses in customer-facing sectors, such as hospitality and retail, align coverage early and secure temporary support. We recommend doing the following:
- Create a clear approval rule to blackout dates for critical roles, minimum staffing thresholds per team, and a fair rotation system for the more popular holiday weekends.
- Encourage employees to submit leave requests 4-6 weeks in advance to support fair scheduling.
- Publish a live team calendar so managers can spot overlaps before approving leave.
b) Making Payroll Adjustments
Payroll impacts cash flow, compliance, and employee trust all at once. l. For holidays that fall near cut-off dates (e.g. Christmas Day or month-end), employers should use the Hong Kong Association of Banks’ clearing and settlement schedule.
- Check with your bank or payroll provider at least one week in advance to ensure autopay runs smoothly during the peak Hong Kong holidays for 2026.
- Bring payroll and approval cut-offs forward, including timesheets, overtime, expense claims, and supplier payment.
- For employees eligible for statutory holiday pay, reconfirm Average Daily Wages (ADW) calculations, especially for hourly or commission-based staff where earnings fluctuate.
c) Cross-Border Impact
Given close economic ties between Mainland China and Hong Kong, a coordinated holiday calendar helps prevent downtime and supply chain bottlenecks.
- Mark both Hong Kong and Mainland holidays, like Golden Week, to anticipate reduced capacity or demand surges.
- Communicate and set hand-off and scheduling rules at least 2 weeks prior to major holidays where demand could spike.
- Share schedules with vendors or logistics partners, so they can also plan early on staffing, orders, or customer support to avoid downtime and gaps.
d) Shift Workers
Retail, hospitality, and logistics are sectors that need extra clarity and planning well ahead of time, as customers can easily experience service disruption when staffing isn’t managed properly. For employers, accurate holiday pay calculation is also important.
- Finalize and freeze the holiday rotation schedule weeks in advance.
- Use Average Daily Wages calculations for variable pay, keep written records of any substitutions, and brief managers on how to handle last-minute swaps without breaking compliance.
You can also read our complete guide on hiring in Hong Kong to learn more about the essentials of running a team in the region.
4. Employer Obligations Under Hong Kong Law
Hong Kong’s public holidays for 2026 fall into two categories: statutory holidays that employers must grant under the Employment Ordinance, and general (gazetted) holidays that many employers also observe as an added benefit. HR leaders should note the following key requirements:
- Statutory Holidays: employees are entitled to 15 statutory holidays in 2026. The Labour Department aims to fully align statutory and general holidays by 2030.
- Eligibility: Employees who are on a continuous contract and employed for at least 3 months before the statutory holiday are entitled to statutory holiday pay.
- Holiday Pay: Calculate using the Average Daily Wages (ADW) method, based on the preceding 12 months (or actual employment period if shorter). You should include variable pay, such as commissions or allowances and exclude any unpaid or underpaid days. Note that payment must be remitted no later than the next payday.
- Substitution Rules: If an employee must work on a statutory holiday, give an alternative holiday 60 days before or after the holiday and 48 hours ' prior notice. Note that employers aren’t allowed to use cash-in-lieu for statutory holidays.
- Compliance Risk: Deduction of wages and failure to pay on time will result in a fine of HKD 100,000 to 350,000 plus potential imprisonment. We recommend that employers always keep written records of rosters, notices, payouts, and ADW calculations.
The Good Employer Charter Initiative
The Labour Department of Hong Kong has been promoting the Good Employer Charter since 2017 to encourage companies to go beyond statutory obligations and foster a healthy work-life balance. For employers, the long-term strategy of staying competitive is to build trust and a good partnership with the employees.
“As employees are attaching increasing importance to work-family balance, adopting good human resource management practices is essential to recruiting and retaining manpower in various trades and industries.”
- The Labour Department of Hong Kong
5. Payroll and Compliance Considerations
Running accurate and on-time payroll is one of HR’s biggest year-round challenges. Missing even small compliance steps can lead to backlogs, penalties, and employee frustration. Hong Kong’s public holidays in 2026 are going to be clustered, so payroll cycles may shift more often. Make sure you cover the following:
- Holiday Pay Calculation: Use Average Daily Wages (ADW) as required under the Employment Ordinance; include variable earnings and exclude periods not fully paid. Note that the wages must be paid no later than the next payday.
- Record-Keeping: Maintain at least 12 months of wage, attendance, and leave records per employee, including rosters and substitution notices. Consider extending to 24 months for audit readiness. However, we’d recommend retaining the records for up to 24 months for better coverage during audits.
- Contractors and Freelancers: Statutory holidays apply only to employees under continuous contracts. However, if a freelancer regularly works enough to meet the continuous-contract threshold, you may risk reclassification. We recommend documenting terms and hours clearly and checking their status regularly before holidays.
- Audit and Disputes: The Labour Department can investigate complaints on holiday entitlements and calculations of Average Daily Wages. Maintain clear records of policies, calendars, notices, and calculations by assigning a compliance owner to ensure oversight.
6. How Slasify Supports Employers in Hong Kong
Managing the clusters of Hong Kong’s public holidays in 2026 can be taxing, given the nature of cross-border impact and Hong Kong’s role as the hub of the APAC region. As an Employer of Record (EOR) provider, Slasify offers comprehensive global payroll and HR solutions to ensure you remain compliant and efficient.
- Payroll Automation: Slasify’s payroll solution automates statutory holiday pay calculations along with taxes and MPF compliance based on Hong Kong’s regulations.
- Employer of Record (EOR) Services: Hire Hong Kong and global talent without setting up a legal entity to minimize administrative and HR costs, so limited resources can be spent elsewhere to drive business growth.
- Compliance Advisory: By working with Slasify, you’ll have access to a dedicated account manager to guide you through questions and strategies surrounding Hong Kong’s statutory and public holidays.
- Cross-Border Support: Slasify provides a single operational view of regional calendars and aligned payroll cycles, helping you manage cross-border collaboration and plan rotation coverage.
The 2026 HK holiday calendar will no doubt impact staffing and payroll timing as there are cultural, national, and religious observances to consider. Employers must comply with holiday and pay laws under the Employment Ordinance by granting the right number of holidays and ensuring correct calculations.
By partnering with Slasify, you’ll have access to local HR experts on regulations, custom strategies, and HR solutions to help streamline payroll and compliance. So talk to us today to learn more about what you can do next to drive growth in Hong Kong.
7. FAQ: Employer Questions on Hong Kong Holidays in 2026
1. What’s the difference between statutory holidays and general holidays?
Statutory holidays are the legal minimum under Hong Kong’s Employment Ordinance that employers must grant. General (gazetted/bank) holidays are the broader public list. However, many firms choose to observe them as an extra benefit to stay competitive.
2. Are employers required to grant all 17 general holidays?
No. Only the statutory holidays are mandatory. However, under the Employment (Amendment) Ordinance 2021, the number of statutory holidays is increasing progressively.
In 2026, statutory holidays will increase to 15 days with the addition of Easter Monday. Whether you follow the full general holiday list (17 days) or just the statutory minimum, it should be clearly written in your contracts and staff handbook to avoid any confusion.
3. How is statutory holiday pay calculated?
Use the Average Daily Wages (ADW) method. It’s based on the preceding 12 months, including variable pay like commissions or allowances, and excludes unpaid periods. Many companies also use Employer of Record (EOR) and payroll services to make sure all calculations are accurate.
4. Do part-time employees qualify for paid holidays?
Yes, if part-time employees who meet the continuous contract threshold (employed for more than 4 weeks with more than 18 hours per week) and have at least 3 months’ service before the holiday are entitled to paid statutory holidays.
Note: Hong Kong is reviewing the "418" rule. Employers should stay updated on potential shifts to an aggregate working hour calculation (e.g., 68 hours in 4 weeks).
5. Can statutory holidays be substituted or deferred?
If an employee works on a statutory holiday, a 48-hour prior notice must be given, and an alternative holiday must then be arranged within 60 days. Note that cash-in-lieu isn’t allowed under Hong Kong’s law.
6. What penalties apply for non-compliance?
Companies that violate the Employment Ordinance, such as failing to pay wages on time, will be fined and potentially subject to increased scrutiny/audits. According to a press release issued by the Hong Kong government, a HKD 54,000 fine was issued to a company after failing to pay wages to three employees 7 days after the expiry date.