Chapter 3: Payment and Deduction of Wages

For employer
Q3.1	Can I agree with my helper to pay lesser amount of wages than the minimum allowable wage (MAW)? What is the prevailing MAW?
A	No. Employers should pay their helpers, regardless of nationality, wages in accordance with the amount stated in the standard employment contract which should not be less than the MAW. It is a serious offence for an employer to underpay wages to his/her helper. Employers who underpay wages are liable, upon conviction, to a maximum fine of HK$200,000 and one year's imprisonment. The MAW is subject to periodical review. For standard employment contracts made on or after 06 Jun 2007, the applicable MAW is HK$3,480 per month. For contracts made before that date, an employer should pay the helper throughout the contract period wages not less than the rate specified in the standard employment contract, which should be, in any case, not less than HK$3,400 per month.
Q3.2	How should I pay wages to my helper?
A	You are advised to pay wages by cheque or by autopayment into your helper's bank account. To do this, you have to obtain your helper's consent before hand. If your helper does not prefer such methods of payment, you should pay him/her wages in legal tender. You are required to keep records of wage payments eg. relevant bank statements. You should also provide a receipt for payment of wages and food allowance and ask your helper to acknowledge receipt of the amount. A sample wage receipt is at Appendix II.
Q3.3	When should I pay wages to my helper?
A	You should pay wages to your helper not less than once every month. For example, if your helper commences employment on 5th of January, you should pay him/her as soon as possible on 5th of February, and in no case later than seven days after that day, i.e.12th of February. If you wish to change the date of payment, you should give prior notice to your helper and clear the outstanding wages on the new payment date you have specified. For example, your helper commenced employment on 5th of January. If you intend to change the payment date to the 15th of each month, you should clear the balance of the 10 days' wages (i.e. from 6th to 15th) within seven days after the 15th of January before you pay him/her on the new payment date in February.
For helper
Q3.4	What should I do when my employer pays me wages?
A	You should check the amount paid to you. If correct, you should acknowledge receipt of the amount on the receipt prepared by your employer.
Q3.5	What should I do if my employer pay less than my entitled wages?
A	If the amount is less than the wages stipulated in the employment contract, you should check with your employer to see if there is any mistake in calculation. Never acknowledge receipt of wages that you were not paid. If there is no satisfactory explanation for the underpayment, you should report the case to the appropriate branch office of the Labour Relations Division of the Labour Department immediately (see Chapter 11).
For both employer and helper
Q3.6	Can an employer deduct the helper's wages to compensate for damages to goods caused by him/her? What other items may an employer deduct from the helper's wages?
A	An employer can make deduction for damage or loss to the employer's goods or property directly attributable to the helper's negligence or default. In any one case, the sum to be deducted shall be the cost of the damaged item, subject to a limit of HK$300. The total of such deductions shall not exceed one quarter of the wages payable to the helper in that wage period. The employer may also make deductions from the helper's wages under the following circumstances: deductions for absence from work not exceeding a sum proportionate to the period of absence; deduction for recovery of any advance or over-payment of wages made by the employer to the helper. The total sum to be deducted shall not exceed one quarter of the wages payable to the employee in that wage period; deductions, at the helper's written request, for recovery of any loan made to the helper; and deductions which are required or authorized under any enactment to be made from the wages of the helper. Except with the approval in writing of the Commissioner for Labour, the total of all deductions, excluding those for absence from work, made in any one wage period must not exceed one half of the wages payable for that period.
Q3.7	What are the consequences if an employer fails to pay wages to the helper on time?
A	If an employer fails to pay wages to the helper within seven days from the due date of payment, he/she is : required to pay interest on the outstanding amount of wages to the helper; and liable to prosecution and, upon conviction, to a fine of HK$200,000 and to imprisonment for one year. If wages are not paid within one month from the due date of payment, the helper may deem he/she has been dismissed by his/her employer without notice. Under such circumstances, the employer is required to pay wages in lieu of notice in addition to other statutory and contractual termination payment to the helper (see Chapter 7).