What Deductions Can Employers Make from Helper Salary in Hong Kong?

The Employment Ordinance strictly limits when and how much an employer can deduct from an employee's wages — and these rules apply fully to foreign domestic helpers. Getting this wrong can result in criminal penalties. Here is what every employer needs to know.

The General Rule: Deductions Are Restricted

Under Section 32 of the Employment Ordinance, employers are generally prohibited from deducting wages. Only specific categories of deduction are permitted, and each comes with strict limits.

Deduction for Damage or Loss

If your helper damages or loses your property through their negligence or default, you may deduct from their wages. However:

• Each incident is capped at the actual value of the damage or loss, up to a maximum of HKD 300.
• The total damage/loss deductions in any one wage period cannot exceed one quarter (25%) of the wages payable.

This means even if a helper breaks an expensive item, the most you can deduct for that incident is HKD 300.

Advance Salary Recovery

If you have given your helper an advance on their wages, you may recover it through deductions. The recovery in any one wage period is capped at one quarter (25%) of the wages payable in that period. This prevents large one-off deductions that would leave the helper with insufficient pay.

The 50% Overall Cap

For example, if your helper's monthly salary is HKD 5,100, the maximum total deductions (excluding unpaid leave) cannot exceed HKD 2,550 in that month.

Sick Leave Deductions

Sick leave works differently from other deductions. Under the Employment Ordinance:

• If the helper takes 4 or more consecutive sick days with a medical certificate and has accumulated sufficient paid sick days, they are entitled to sickness allowance at four-fifths (4/5) of their average daily wages. The employer effectively deducts one-fifth (1/5) of the daily rate for each paid sick day.
• If the sick leave is fewer than 4 consecutive days, the helper is not entitled to sickness allowance and the days are typically unpaid.
• Paid sick days accumulate at 2 days per month during the first 12 months, and 4 days per month after that, up to a maximum of 120 days.

Deductions for Absence

If a helper is absent from work without a valid reason, the employer may deduct an amount proportionate to the period of absence. These deductions for absence do not count towards the 50% overall cap.

Penalties for Illegal Deductions

Making unlawful deductions from wages is a serious offence. An employer convicted of illegal wage deductions may face:

• A fine of up to HKD 100,000
• Imprisonment for up to 1 year

It is essential to understand and respect these limits. When in doubt, do not deduct — seek professional advice first.

Quick Reference Table

• Damage/loss per incident: max HKD 300
• Damage/loss per wage period: max 25% of wages
• Advance recovery per wage period: max 25% of wages
• Total deductions per wage period (excl. absence): max 50% of wages

This article is for general reference only and does not constitute legal or professional advice. Please verify all information against your employment contract, the Employment Ordinance (Cap. 57), and seek professional advice where needed.