Posted by
cherry_joe
13 yrs ago
Hello Friends,
Can someone suggest about the calculation of 13th month pay. Didnt find much info, labour website has limited information.
1. Is it applicable only for HK based employees, regardless of Nationality?
2. Is it usually paid along with December salary or January ?
3. Some site say should have worked minimum 3 months, excluding probation the previous calendar year to become eligible - is it true ?
Thanks.
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This link is pretty clear: http://www.labour.gov.hk/eng/public/wcp/ConciseGuide/07.pdf
The key point is to check your contract.
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Is an employee eligible for the pro rata 13th month bonus (due at Chinese new year) if he or she quits now as they have found another higher paying job? My driver has quit and left me in serious difficulties and is demanding his pro rata 'bonus'.
The above document deals with dismissing an employee which is not what applies here.
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Did you have a 13 month bonus stated in the contract?
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Yes, but it's stated on completion of the year at CNY a 13th month bonus will apply.
I called the labour department today and it is quite clear, as he has resigned (and not been dismissed) he is not entitled to any pro rata 13th month bonus. I think he thinks he deserves this as he has been a good employee....but no according to the labour department, he is not entitled to it.
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Not everybody loves theis job. Some employers would like to retain staff (as it is expensive to train/re-train) so they pay this gratuity. It's just one of the things a company can do to lessen staff movement.
But, yes, 13th month pay/bonus is not guaranteed. Most bonuses are dependent on company earnings for the past year which again depends on each company's guidelines/whim. E.g. if a company lost billions of dollars the previous year, should there be a bonus? Sometimes the company officers even take a cut in their salaries. Usually when the company earned a lot, then there will be bigger bonuses, sometimes more than one month's salary.
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