⚠️ This page is for general education and reference only and is not legal advice. Hong Kong employment rights are governed by the Employment Ordinance (Cap. 57) and your individual contract; if in doubt, consult the Labour Department or a professional.
What is average daily wages (ADW)?
ADW is the statutory base for several Employment Ordinance payments. Take total wages in the 12 months before the relevant date (or the whole employment period if shorter), divide by the days in that period, and disregard days (and wages) when the employee was not paid full wages.
ADW = (period wages − wages for disregarded days) ÷ (period days − disregarded days)
Disregarded days generally include rest days, statutory/general holidays, annual leave, sick leave, maternity/paternity leave, leave with the employer's consent, and days without work because none was provided. Then:annual leave payandstatutory holiday payuse ADW × 1;sickness allowance(and maternity/paternity pay) use ADW × 4/5. See also theleave calculator.
Worked example
Wages HK$360,000 over 365 days, with 66 disregarded days and HK$50,000 disregarded wages: ADW = (360,000 − 50,000) ÷ (365 − 66) = 310,000 ÷ 299 ≈ HK$1,036.79. Enter the same figures above to match. Derived rates: ~$1,036.79 for annual leave / holiday pay per day; ~$829.43 for sickness / maternity / paternity (× 4/5).
Caveats
Dividing monthly salary by 30 or 26 often does not match the statutory ADW definition. Commission, allowances and pay cycles complicate the inputs; this tool only implements the basic formula. Relevant dates can differ by payment type. For deadline planning, see theworking days calculator.
Sources
- Concise Guide to the Employment Ordinance:labour.gov.hk
- Employment Ordinance (Cap. 57):elegislation.gov.hk
FAQ
How are average daily wages (ADW) calculated?
ADW = (total wages in the 12 months before the relevant date − wages for disregarded days) ÷ (days in that period − disregarded days). If employed for less than 12 months, use the whole employment period.
Which days must be excluded?
Disregard days on which the employee was not paid full wages — rest days, statutory/general holidays, annual leave, sick leave, maternity/paternity leave, leave with the employer's consent, and days without work because the employer provided none — and the sums paid for those days.
What is ADW used for?
ADW underpins several statutory payments: annual leave pay and statutory holiday pay at ADW × 1; sickness allowance and maternity/paternity pay at ADW × 4/5.
Is ADW the same as monthly salary ÷ 30?
Not necessarily. The Ordinance requires the 12-month (or whole-period) method with the specified exclusions. Dividing monthly pay by 30 or 26 may not match the statutory ADW definition.
Which ADW period applies to leave or sick pay?
Use the 12 months before the relevant date (e.g. when leave starts, a sick day, or the statutory holiday). Different payments can have different relevant dates — check Labour Department guidance for edge cases.
Can I rely on this calculator legally?
No. It is for general estimation and education only, not legal advice. Complex wage packages (commission, allowances, etc.) should be checked with the Labour Department or a professional.