In Hong Kong, no matter you are a SME owner, a human resources (HR) specialist or an ordinary employee, you will always come across questions about leave every year: What is the difference between "Labor Holiday" and "Bank Holiday"? How should my vacation pay be calculated? If I need to work on the day of my vacation, how should my company compensate me? These questions may seem simple, but if they are not handled properly, they may lead to labor disputes or even violations of the law.
A clear understanding of the provisions on labor holidays in the Employment Ordinance is not only the basis for protecting the rights and interests of both employers and employees, but also the key to business compliance. This article will give you a thorough analysis of the differences between "statutory holidays" and "general holidays", provide the latest list of labor holidays in 2026, as well as clear guidelines on the calculation of salary, compensatory leave and handling of special circumstances, so as to help you easily cope with the various challenges of holiday management.
What is a Statutory Holiday (Labor Holiday)? How is it different from general holidays (bank holidays)?
Many wage earners and even employers tend to confuse these two concepts. To put it simply.Statutory holidays are the "floor" and general holidays are the "ceiling".。
1. Statutory Holidays - commonly known as "Labor Holidays"
This is in accordance with the provisions of the Hong Kong Employment Ordinance.All employees（Holidays (regardless of rank, salary and seniority) are mandatory.
- Nature: Minimum standards of legal safeguards.
- Legal Consequences: A reduction of this benefit in the contract of employment would beNo effectAnd illegal.
- Trend: which is gradually increasing to 14 days in 2024.2026 This will increase to 15 天。
2. General holidays - commonly known as "bank holidays"
This is in accordance with the provisions of the General Holidays Ordinance and includes all the above statutory holidays, with the addition of religious holidays such as Good Friday and Easter.
- Nature: It is commonly adopted by banks, educational institutions, governments and large corporations.
- Attention: Employment OrdinanceNot mandatoryEmployers must grant all general holidays to their employees. If it is not specified in the contract, the employer is only required to grant "labor holidays".
- Number of days: Fixed 17 days per year.
What are the new statutory holidays in 2026? (Schedule of New Holidays)
- Public Holidays (bank holidays)： 17 days
- statutory holidays (labor leave)： 15 days (add Easter Monday)
Under the Employment (Amendment) Ordinance 2021, the number of statutory holidays is gradually increasing to align with the number of general holidays. Please note that 2026 Latest changes in 2010：
| particular year | Total number of statutory holidays | Additional Holidays |
|---|---|---|
|
2024 |
14 days |
First Sunday after Christmas (Boxing Day) |
|
2026 |
15 days |
Easter Monday |
|
2028 |
16 days |
Good Friday |
|
2030 |
17 days |
The day following Good Friday |
*Please make sure your 2026 Calendar & Payroll system is updated to include Easter Monday as a legal holiday.
Who is entitled to "paid" statutory holidays?
Not all employees are paid out for vacation! To be eligibleholiday payThe following "418" and "3-month" rules must be met by the employee:
- Continuous contract employment (418 Rules)： Work for the same employer for 4 consecutive weeks or more and at least 18 hours per week.
- Expiration of employment 3 Months: Have been employed for 3 months immediately before the statutory holiday.
How is holiday pay calculated?
Holiday pay for eligible employees is equal to the average daily wage earned during the 12 months preceding the holiday.
Key points of the formula (713 Ordinance): In calculating the average wage, periods of "unpaid wages" or "unpaid full wages" (e.g. unpaid leave, sick leave with 4/5 pay only) should be excluded and the amount of such periods should also be excluded, so as to avoid pulling down the average wage and to safeguard the rights and interests of employees.
Is Your Boss Demanding to Work on a "Red Day"? Compensatory Time Off Rules and Legal Red Lines
If, due to business needs (e.g. catering, retail), employers have to arrange for their employees to work on statutory holidays, the following three steps must be strictly adhered to:
- Advance notice: At least 48 Hour agoNotify employees.
- You have to take a leave of absence. (should not Buy-out)：
- Set another holiday: Arranged within 60 days before or after a statutory holiday (as specified by the employer).
- In lieu of a holiday: Within 30 days before or after a legal holiday (subject to the agreement of both employers and employees).*EmployersAbsolutely not.Paying extra wages (e.g. double pay) to "buy out" statutory holidays. This is a serious offence punishable by a maximum fine of HK$50,000 on conviction.Employees must be "vacationed", not just "paid".。
Special circumstances: What happens when a vacation day clashes with a rest day or a sick day?
HR's biggest headache is often dealing with overlapping vacations, and here are two of the most common scenarios:
Situation 1: Statutory Holidays vs.
- Example: The Winter Solstice in 2025 falls on a Sunday (staff rest day).
- Processing: The employer shall, after the day of restnext dayArrangement of replacement leave.
- Attention: The replacement holiday cannot be a statutory holiday, another holiday, a substitute holiday or a rest day.
Situation 2: Statutory Holidays vs. Paid Sick Leave / Work Injury
- Example: Employees are entitled to four days of sick leave, with one statutory holiday in between.
- Processing: Such date shall be deemed to bestatutory holidays, not sick leave.
- Remuneration: Employers are required to pay "Statutory Holiday Pay" (normally full pay) instead of "Sick Leave Allowance" (normally 4/5 pay).
- Quotas: That dayNo.Deduct the number of paid sick leave days accrued by the employee.
Professional management of leave and payroll, avoidance of labor law risks
In the face of the increasing number of statutory holidays and the complexity of salary calculation, do you find it difficult to accurately grasp the complexity of the law?
Instead of spending valuable time trying to figure things out on your own, risking miscalculations or labor disputes, you can leave the professional work to the experts, and the M&N team has extensive experience in helping clients with company formation, company secretarial services, accounting services, virtual offices, and more, all on your behalf to ensure a smooth and error-free process that is fully compliant with the latest Employment Ordinance.
Contact us today to find out how we can provide your business with efficient, compliant professional advice.
Frequently Asked Questions
Under the Employment Ordinance, an employee is entitled to holiday pay only if he/she has been employed for three months before the statutory holiday. If an employee does not meet this qualification, the employer is not required to pay holiday pay, but still has to arrange an "alternative holiday" for the employee within 60 days before or after the scheduled holiday if the employee is required to work on the statutory holiday.
The main difference between the two is the timing and the right of consent.
- Alternative Holiday: To be designated by the employer and must be arranged within 60 days before or after the statutory holiday. Employers are only required to give 48 hours' notice.
- Substitution of Holidays: To be agreed by the employee and scheduled within 30 days before or after the statutory holiday.
No. If a statutory holiday falls on a rest day, the employer should arrange for a compensatory holiday on the day following the rest day, which need not be a general holiday or a statutory holiday as long as it is a normal working day.
No. If a statutory holiday falls on a rest day, the employer should arrange for a compensatory holiday on the day following the rest day, which need not be a general holiday or a statutory holiday as long as it is a normal working day.
If an employee has been employed for less than 12 months, the shorter period of employment will be used to calculate the average daily wages. In the calculation, it is also necessary to exclude those periods and amounts for which full wages are not paid to ensure that the calculation is fair and accurate.
The number of statutory holidays in Hong Kong is gradually increasing to align with that of general holidays. Under the Employment (Amendment) Ordinance 2021, the future arrangements for the increase are set out below:
- From 2026 onwards: adding the first Sunday after Christmas
- From 2028 onwards: adding Easter Monday
- From 2030 onwards: increase Good Friday
References：
- Labour Department - Statutory Holidays (Progressive increase of statutory holidays) https://www.labour.gov.hk/tc/news/latest_statutory_holidays.htm
- Labour Department - A Concise Guide to the Employment Ordinance (Chapter 4: Rest Days, Statutory Holidays and Paid Annual Leave) https://www.labour.gov.hk/tc/public/ConciseGuide.htm
- Electronic version of the Laws of Hong Kong - Chapter 57 - Employment Ordinance
https://www.elegislation.gov.hk/hk/cap57 - Electronic version of the Laws of Hong Kong - Cap. 149 General Holidays Ordinance
https://www.elegislation.gov.hk/hk/cap149
Disclaimer
This article has been compiled by M&N to provide general guidance based on publicly available information and statutory provisions only. The information contained herein should not be regarded as legal or other professional advice. M&N accepts no liability for any action taken or loss incurred as a result of reliance on the contents of this document. As legislation is amended from time to time, it is important to refer to the latest official regulations or seek independent professional advice in dealing with specific cases.
