Payroll Concepts > Pay-Related Calculations > Leave Pay

Employees are entitled to be paid when they take certain types of leave as discussed in the following section:

Salaried employees’ leave pay is included in their salary as the amount is fixed, irrespective of actual hours worked. Hourly-paid workers only receive income for actual hours worked, so they must be paid extra when they take paid leave.

The daily rate of leave pay is a sum equivalent to the average daily wages earned by an employee in the 12-month period preceding the following specified dates. If an employee is employed for less than 12 months, the calculation shall be based on the shorter period. 

Sick, Maternity and Paternity leave pay is equivalent to four-fifths of the above mentioned average daily wages. You can edit each of these leave types to have the leave pay be calculated using the full average daily wages instead. This can be done by creating a new entitlement policy and selecting “Average Daily Wage” from the Leave pay calculated using dropdown. For more information about creating an entitlement policy, please go to:  

For more information about how the average daily wage is calculated, please go to:

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