When is long service payment required for my foreign domestic helper in Hong Kong?

Overview

Long service payment (LSP) is a statutory entitlement under the Employment Ordinance (Cap. 57). It applies to all employees in Hong Kong — including foreign domestic helpers — who meet the qualifying criteria after five or more years of continuous service.

LSP is separate from severance payment: a helper can receive one or the other, but not both.

Qualifying Conditions

Your helper is entitled to LSP if she has 5 or more years of continuous service and the employment ends for one of these reasons:

• Dismissal without serious misconduct — you end the contract for reasons unrelated to conduct
• Helper reaches age 65 — she resigns or is retired at the statutory retirement age
• Resignation due to certified ill-health — a medical condition makes it unreasonable to continue
• Mutual agreement to end employment based on age or health
• Death of the employee (payable to the estate)

LSP does not apply if the helper:

• Resigns voluntarily (for reasons other than ill-health)
• Is dismissed for serious misconduct
• Has fewer than 5 years of continuous service

How LSP Is Calculated

Formula: 2/3 × last month's wages × completed years of service

Component	Rule
Monthly wages	Capped at HK$22,500 per month (Cap. 57, Schedule 3)
Service years	Fractional years counted proportionally
Maximum payout	18 years of service maximum (Cap. 57, Schedule 3) — 18 × 2/3 × HK$22,500 = HK$270,000

Example: A helper with 7 years of service at the current Minimum Allowable Wage (HK$5,100/month): 7 × 2/3 × HK$5,100 = HK$23,800

When to Pay

LSP must be paid within 7 days of the last day of employment. Late payment constitutes a breach of the Employment Ordinance.

What If the Helper Expects LSP but Doesn't Qualify?

LSP requires both 5 or more years of continuous service and one of the listed qualifying reasons for ending employment. Where either condition is not met, no statutory obligation arises.

The Labour Department's official guidance on LSP eligibility is available for reference.

Goodwill payments — documented in writing as a "discretionary bonus" or "ex-gratia payment" — are distinct from LSP and carry no statutory obligation. Labelling and documentation matter; independent advice may be appropriate where there is uncertainty.

What If You Want to Give a Voluntary Bonus?

If LSP is not owed but you wish to recognise your helper's service, you may make a voluntary ex-gratia payment at your full discretion. There is no fixed formula.

Key points:

• Document it in writing as a "discretionary bonus" or "ex-gratia payment" — never label it "long service payment"
• It does not create any precedent or future obligation

Get in Touch

GMA has been helping families navigate FDH employment in Hong Kong since 2003. If you have questions about end-of-contract payments or documentation, contact us or visit our Sha Tin office.