Whether you run an SME, work in HR or are an employee, questions about holidays arise every year. What is the difference between statutory holidays and bank holidays? How is holiday pay calculated? What happens if an employee must work on a holiday? Mishandling these apparently simple questions can lead to employment disputes or breaches of the law.
Understanding the Employment Ordinance’s holiday provisions protects both employers and employees and supports business compliance. This article explains statutory and public holidays, the latest 2026 holiday schedule, pay calculations, replacement holidays and special situations.
What Are Statutory Holidays, and How Do They Differ from Public Holidays?
Employees and employers often confuse these two concepts. Statutory holidays and general holidays are governed by different ordinances; general holidays should not be described as a ceiling on an employee’s leave.
1. Statutory Holidays
All employees covered by the Employment Ordinance are entitled to statutory holidays regardless of length of service. Eligibility for holiday pay must be checked separately.
- Nature: A statutory holiday entitlement.
- Development: The number increased to 14 in 2024 and to 15 in 2026.
2. General Holidays, Often Called Bank Holidays
General holidays follow the General Holidays Ordinance and the dates announced by the Government. Their list should not be treated as identical to the statutory holiday list.
- Arrangements: Check the applicable legislation and employment contract without reducing statutory holiday entitlements.
- 2026 list: Every Sunday plus 17 other specified dates listed by the Government. Refer to the official list for the actual dates.
Which Statutory Holiday Is Added in 2026? The Expansion Schedule
- 2026 general holidays: Every Sunday plus the 17 specified dates listed by the Government.
- 2026 statutory holidays: 15 days, with Easter Monday added.
Statutory holidays are increasing progressively under the Employment (Amendment) Ordinance 2021. Check the effective years and added holidays in the following table:
| Year | Total Statutory Holidays | Holiday Added |
|---|---|---|
|
2024 |
14 days |
The first weekday after Christmas Day (Boxing Day) |
|
2026 |
15 days |
Easter Monday |
|
2028 |
16 days |
Good Friday |
|
2030 |
17 days |
The day following Good Friday |
*Update your 2026 calendar and payroll system to include Easter Monday as a statutory holiday.
Who Qualifies for Paid Statutory Holidays?
To qualify for holiday pay, an employee must have been employed under a continuous contract for at least three months immediately before the statutory holiday.
From 18 January 2026, a continuous contract requires:
- Continuous employment by the same employer for four weeks or more; and
- At least 17 hours of work each week; or, where an employee works fewer than 17 hours in a week, at least 68 hours in that week and the immediately preceding three weeks combined, with employment by that employer throughout the four-week period.
For employment periods before 18 January 2026, the previous requirement of four weeks or more with at least 18 hours each week still applies. The old “418” rule should not be presented as the standard for all current cases.
How Is Holiday Pay Calculated?
For an eligible employee, holiday pay equals the average daily wages earned during the 12 months before the holiday.
Key calculation rule (the 713 provisions): exclude periods for which no wages or less than full wages were paid, such as unpaid leave or sickness days paid at 4/5 wages, together with payments for those periods. This prevents the average being reduced and protects employee entitlements.
Working on a Holiday: Replacement Days and Legal Limits
If an employer requires an employee to work on a statutory holiday, an alternative holiday must be arranged with the applicable notice:
- Within 60 days before the statutory holiday: Give at least 48 hours’ notice before the alternative holiday.
- Within 60 days after the statutory holiday: Give at least 48 hours’ notice before the statutory holiday.
- Substituted holiday: If both parties agree, it may be arranged within 30 days before or after the statutory holiday or alternative holiday.
Payment cannot replace a holiday: Whether or not the employee qualifies for holiday pay, the employer must grant the statutory holiday or arrange an alternative or substituted holiday. An employer who, without reasonable excuse, fails to grant the relevant holiday or pay holiday pay due may be prosecuted and, on conviction, fined up to HK$50,000.
Special Cases: Holidays Coinciding with Rest Days or Sick Leave
When leave periods overlap, first identify the type of holiday and the employee’s applicable entitlement.
Situation 1: A statutory holiday falls on a rest day
- Arrangement: The employer should grant the statutory holiday on the day following the rest day.
- Condition: That day must not be a statutory holiday, alternative holiday, substituted holiday or rest day. Describing it simply as a normal working day is insufficient.
Situation 2: A statutory holiday and sickness absence or work-injury absence concern the same period
Sickness absence and work-injury absence involve different arrangements and should not be treated as identical in all cases. Check holiday pay against the employee’s eligibility and average daily wage rules. Sickness allowance, work-injury compensation and accumulated sickness days should be checked individually against the applicable legislation and Labour Department guidance, rather than assuming that every case attracts full pay or never reduces sickness days.
Professional Holiday and Payroll Management to Reduce Employment Law Risks
Finding it difficult to keep up with increasing statutory holidays and complex payroll calculations?
Rather than spending time working through the rules and risking calculation errors or disputes, seek professional support. M&N’s experienced team helps clients incorporate companies and provides company secretarial, accounting and virtual office services, handling the process smoothly and accurately in line with the latest Employment Ordinance.
Contact us to discuss efficient, compliant professional advice for your business.
Frequently Asked Questions
An employee must have been employed under a continuous contract for at least three months immediately before the statutory holiday to qualify for holiday pay. Not qualifying for pay does not remove the statutory holiday entitlement. If work is required that day, the employer must still arrange an alternative holiday and comply with the notice rules. A substituted holiday may also be arranged under the rules if both parties agree. Payment cannot buy out the holiday.
The arrangements differ in notice, timing and agreement:
- Alternative holiday: It may be arranged within 60 days before or after the statutory holiday. If arranged before it, give at least 48 hours’ notice before the alternative holiday; if arranged after it, give at least 48 hours’ notice before the statutory holiday.
- Substituted holiday: Both parties must agree. It may be arranged within 30 days before or after the statutory holiday or alternative holiday.
No. When a statutory holiday falls on a rest day, the employer should grant it on the following day, provided that day is not a statutory holiday, alternative holiday, substituted holiday or rest day. Describing it simply as a normal working day does not fully state the conditions.
Refer to the Labour Department’s 2026 statutory holiday list and Concise Guide to the Employment Ordinance for the holiday list, holiday pay and alternative holiday arrangements.
Use the shorter employment period if the employee has worked for less than 12 months. Exclude periods and payments for which full wages were not paid, ensuring a fair and accurate calculation.
Statutory holidays are increasing in stages. Easter Monday was added in 2026, bringing the annual total to 15. Good Friday will be added in 2028, bringing the total to 16, and the day following Good Friday in 2030, bringing it to 17.
References:
- Labour Department: Statutory Holidays for 2026 https://www.labour.gov.hk/tc/news/latest_holidays2026.htm
- Labour Department: A Concise Guide to the Employment Ordinance, Chapter Four—Rest Days, Statutory Holidays and Paid Annual Leave https://www.labour.gov.hk/tc/public/ConciseGuide.htm
- Hong Kong e-Legislation: Cap. 57, Employment Ordinance
https://www.elegislation.gov.hk/hk/cap57 - Hong Kong e-Legislation: Cap. 149, General Holidays Ordinance
https://www.elegislation.gov.hk/hk/cap149
Disclaimer
This article was prepared by M&N using publicly available information and legislation for general guidance only. It should not be treated as legal or other professional advice. M&N accepts no responsibility for actions taken or losses arising from reliance on this article. Legislation changes from time to time; consult the latest official provisions or seek independent professional advice for a specific case.
