When does an employer have to pay severance or long service payment to a domestic helper?

Overview

Severance Pay and Long Service Payment are statutory entitlements under Hong Kong's Employment Ordinance — they apply to FDHs in the same way they apply to any other employee. That said, not every end-of-contract situation triggers them. Whether a payment is owed depends on the reason for departure and how long the helper has been continuously employed.

Severance Pay

Criteria	Details
Trigger	Dismissal or non-renewal due to redundancy
Minimum service	At least 24 months of continuous employment
Amount	2/3 of the last month's wage × each year of service (max 12 months)
Cap	Maximum HK$390,000 per employment

"Redundancy" means the employer no longer requires the helper's role — not that they want a different helper or are unhappy with performance.

Long Service Payment

Criteria	Details
Trigger	Dismissal for any reason other than redundancy or serious misconduct, OR contract not renewed (without the employer making a written offer at least 7 days before expiry)
Minimum service	At least 5 years of continuous employment
Amount	2/3 of the last month's wage × each year of service (max 12 months)
Cap	Maximum HK$390,000 per employment

When These Payments Are NOT Required

• The helper resigns voluntarily
• The helper is dismissed for serious misconduct (summary dismissal)
• The employer offered renewal in writing at least 7 days before expiry and the helper unreasonably refused
• The helper has served less than the minimum qualifying period

Overlap Between Severance and Long Service

An employer cannot owe both simultaneously — the two payments are mutually exclusive for the same period of employment. The more favourable calculation applies if both criteria are technically met.

Important Notes

• Both payments are calculated per year of service — for example, 3 years of service owed severance = 3 × (2/3 × last month's salary)
• Continuous service matters: breaks in employment can affect entitlement calculations
• The Labour Department has a free online severance pay calculator if you want to run the numbers yourself
• For the full list of payments due at termination, see how to terminate an FDH contract
• Use GMA's termination calculator to estimate exact severance and long service payment amounts

Need Help Working Out the Final Figure?

The formula sounds simple, but the variables add up quickly. GMA's termination calculator gives you a clear estimate in minutes — and a coordinator can double-check the numbers before you make the final payment. Calculate final payments.

Related Resources

• Labour Department — severance pay calculator
• Labour Department — long service payment guide

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