Employment: Contract and wages

End of year payments

End of year payments are any annual payments (including double pay, 13th month payment or end of year bonus) of a contractual nature. They do not include any payment that is of a gratuitous nature or that is payable at the discretion of the employer.

There is no legal requirement under the Employment Ordinance for employers to pay end of year payments, including bonuses and double pay. End of year payments should be agreed upon between an employer and an employee.

If end of year payment is included in the employment contract, an employee is eligible for that payment if he/she has been employed under continuous contracts for a whole payment period. The payment period is the period that is specified in the employment contract or a lunar year if it is not specified.

Employers who fail to pay end of year payments to eligible employees as agreed are liable to prosecution and, upon conviction, to a fine of $50,000.