Example 8
According to Clause 6(a) of the SEC, the monthly wages of an employee are $6,944.0 (working 6 days per
week and 8 hours per day). 5 days of annual leave pay (according to the Employment Ordinance) shall be:
12-month wages earned immediately preceding the annual leave : $100,128.0, including
$83,328.0 for 301 days of work, 52 paid rest days and 12 paid statutory holidays
Overtime pay of $16,800.0 (where the monthly average over the past 12 months is not less
than 20% of the average monthly wages of the employee during the same period)
Periods and the sum to be disregarded: No period and sum have to be disregarded because the
employee is not paid less than his full wages for the leave taken in the 12-month period
5-day annual leave pay:[($100,128.0 – 0) ÷ (365 – 0) (days) x 5(days)] = $1,371.6
Calculating sickness allowance
Example 9
According to Clause 6(a) of the SEC, the monthly wages of an employee are $6,048.0 (working 5 days per
week and 8 hours per day). If the employee is granted 4 consecutive days of sick leave, the sickness
allowance of the 4 days (according to the Employment Ordinance) shall be:
12-month wages earned immediately preceding the first sickness day: $72,128.0, including wages of
240 days of work and the following leaves (no overtime work is performed during the period):
52 paid rest days
12 paid statutory holidays
7 days of paid annual leave
52 unpaid contractual day-off
1 day no-pay leave in May (leave taken with the agreement of the Employer)
1 day no-pay leave in July (leave taken with the agreement of the Employer)
Periods and the sum to be disregarded: 52 unpaid contractual day-off and 2 days of no-pay leave (as
the 54 days are no-pay leave, the amount to be disregarded will be $0)
4-day sickness allowance:
[($72,128.0 – 0) ÷ (365 – 54) (days)] x 4(days) x 4/5 = $231.9 x 4(days) x 4/5 = $742.1
Calculating wages in lieu of notice
Example 10
According to Clause 6(a) of the SEC, the monthly wages of an employee are $6,944.0 (working 6 days per
week and 8 hours per day). Clause 17 of the SEC specifies that there is no probation period, and a notice
period of 7 days or payment in lieu of notice is required. If the employer terminates the employment on 3
January 2012, the employee’s wages in lieu of notice shall be:
12-month wages earned (i.e. 2011) immediately preceding the date of notification: $83,328.0,
including wages of 301 days of work, 52 paid rest days and 12 paid statutory holidays. No overtime
work is performed during the period.
Periods and the sum to be disregarded: No period and sum have to be disregarded because the
employee is not paid less than his full wages for the leave taken in the 12-month period
Amount of 7 days’ wages in lieu of notice:
[($83,328.0 – 0) ÷ (365 – 0) (days)] x 7(days)= $1,598.1
April 2011
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