{"id":5266,"date":"2020-08-03T14:04:33","date_gmt":"2020-08-03T06:04:33","guid":{"rendered":"https:\/\/www.workstem.com\/?p=5266"},"modified":"2024-11-07T15:13:44","modified_gmt":"2024-11-07T07:13:44","slug":"year-end-bonus-mandatory","status":"publish","type":"post","link":"https:\/\/www.workstem.com\/hk\/en\/blog\/year-end-bonus-mandatory\/","title":{"rendered":"Is Year-End Bonus Mandatory?"},"content":{"rendered":"<div class='post-index' id='post-index'><a href='###' id='post-index-close'><i class='fa fa-list'><\/i><\/a>\r\n\t\t\t\t<h3 class='post-index-title'>Chapter catalogue<\/h3>\r\n\t\t\t\t<div class='post-index-inner' id='post-index-inner'>\r\n\t\t\t\t<ol class='post-index-list'><li class=\"post-index-item\" data-tt=\"title-idx-0\" ><a href=\"###\"title=\"Who should get end-of-year payment?\">Who should get end-of-year payment?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-1\" ><a href=\"###\"title=\"Can the company temporarily decide not to pay end-of-year payment?\">Can the company temporarily decide not to pay end-of-year payment?<\/a><\/li><li class=\"post-index-item\" data-tt=\"title-idx-2\" ><a href=\"###\"title=\"How much does the company need to pay for end-of-year payment?\">How much does the company need to pay for end-of-year payment?<\/a><\/li><\/ol>\r\n\t\t\t<\/div><\/div>\r\n\t\t\t<script>\r\n\t\t\t$(function(){\r\n\t\t\t\tvar contIdxHeight = $('#post-index-inner').height()+20;\r\n\t\t\t\t$('#post-index-inner').css('height',contIdxHeight+'px');\r\n\t\t\t\t$('#post-index-close').on('click',function(){\r\n\t\t\t\t\tif($('#post-index-inner').height()>20) {\r\n\t\t\t\t\t\t$('#post-index-inner').css('height',0);\r\n\t\t\t\t\t\t$('#post-index-inner').css('padding-top',0);\r\n\t\t\t\t\t} else {\r\n\t\t\t\t\t\t$('#post-index-inner').css('height',contIdxHeight+'px');\r\n\t\t\t\t\t\t$('#post-index-inner').css('padding-top','20px');\r\n\t\t\t\t\t}\r\n\t\t\t\t});\r\n\t\t\t\t$('.post-index-item').on('click',function(){\r\n\t\t\t\t\tvar tt=$(this).data('tt');\r\n\t\t\t\t\tscrollPosition(document.getElementById(tt));\r\n\t\t\t\t});\r\n\t\t\t});\t\r\n\t\t\t<\/script><div class='post-content-full'><p>The question of whether companies should pay end-of-year bonuses to employees often confuses HRs. This article answers a few commonly asked questions regarding year-end bonus. We hope it can help you in your daily HR management.<\/p>\n<p>End of year payment means any annual payment (including double pay, 13th month payment, end of year bonus) of a contractual nature. It does not include any payment which is of a gratuitous nature or which is payable at the discretion of the employer.<\/p>\n<p><strong>\ud83d\udca1 Therefore, whether to pay End-Of-Year Payment depends on if it\u2019s stipulated in the employment contract.<\/strong><\/p>\n<h2 id=\"title-idx-0\" class=\"icon-anchor\">Who should get end-of-year payment?<\/h2>\n<p>According to Hong Kong Labour Ordinance, the provisions concerning end-of-year payment apply to those employed under a continuous contract who, in accordance with a term of their contract (including agreement made orally or in writing, in express or implied term), are entitled to an end of year payment from their employer.<\/p>\n<p>If the contract doesn\u2019t include end-of-year payment and the employees agree on the arrangement, then the employer is not obligated to pay.<\/p>\n<h2 id=\"title-idx-1\" class=\"icon-anchor\">Can the company temporarily decide not to pay end-of-year payment?<\/h2>\n<p>For every employment contract made after 27 June 1997, it is presumed that an annual payment or annual bonus is not of a gratuitous nature and is not payable only at the discretion of the employer unless a written term or condition in the contract expresses intention to the contrary.<\/p>\n<p>That is to say, once the provision concerning end of year payment is stipulated in the contract, not all companies can cancel payment or change the amount.<\/p>\n<h2 id=\"title-idx-2\" class=\"icon-anchor\">How much does the company need to pay for end-of-year payment?<\/h2>\n<p>If the amount is stated in the contract, the company needs to pay end-of-year payment according to the contract, such as \u201cdouble pay\u201d or \u201cbonus\u201d, as a form of end-of-year payment.<\/p>\n<p>If the amount of end-of-year payment is not specified in the contract, it will be the amount of average monthly wages earned by an employee in the past 12 months.<\/p>\n<p>Calculating for year-end payments can be a big hassle if you don\u2019t have the necessary data and tools. Luckily, there\u2019s a professional HR System \u2013<span style=\"color: #3366ff\"><a style=\"color: #3366ff\" href=\"https:\/\/www.workstem.com\/hk\/en\/\" target=\"_blank\" rel=\"noopener\"> Workstem<\/a><\/span>, to help you with all these <span style=\"color: #3366ff\"><a style=\"color: #3366ff\" href=\"https:\/\/www.workstem.com\/hk\/en\/product\/payroll\/\" target=\"_blank\" rel=\"noopener\">one-time payments<\/a><\/span>!<\/p>\n<p><i><span style=\"font-weight: 400\">Read More:<\/span><\/i><br \/>\n<a href=\"https:\/\/www.workstem.com\/hk\/en\/blog\/retail-industry-long-service-payment-calculation\/\"><i><span style=\"font-weight: 400\">How to Efficiently Handle Payroll with Complex Long Service Payment in Retail?<\/span><\/i><\/a><br \/>\n<a href=\"https:\/\/www.workstem.com\/hk\/en\/blog\/retail-industry-long-service-payment-calculation\/\"><i><span style=\"font-weight: 400\">How to Efficiently Handle Payroll with Complex Transportation Allowance in F&amp;B?<\/span><\/i><\/a><br \/>\n<a href=\"https:\/\/www.workstem.com\/hk\/en\/blog\/pet-hospital-incentive-bonus-calculations\/\"><i><span style=\"font-weight: 400\">How to Calculate Diverse Bonus Methods for Quick Payroll Processing?<\/span><\/i><\/a><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Chapter catalogue Who should get end-of-year payment?Can the company temporarily decide not to pay end-of-year payment?How much does the company need to pay for end-of-year payment? The question of whether companies should pay end-of-year bonuses to employees often confuses HRs. This article answers a few commonly asked questions regarding year-end bonus. We hope it can&#8230;<\/p>\n","protected":false},"author":5,"featured_media":20773,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[272],"tags":[468,452,463],"class_list":["post-5266","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-all-en","tag-employment-ordinance","tag-payroll"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Is Year-End Bonus Mandatory? - Workstem<\/title>\n<meta name=\"description\" content=\"End of year payment means any annual payment (including double pay, 13th month payment, end of year bonus) of a contractual nature.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.workstem.com\/hk\/en\/blog\/year-end-bonus-mandatory\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Is Year-End Bonus Mandatory? 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