2017 H1 Legislative updates: New IR56s specifications and Statutory Minimum Wage Increase
Posted by: on 6 June 2017 in Compliance
Performing the crucial role of workforce planning and management, it is always important for HR professionals to stay compliant with local laws and legislations in their daily operations. ADP has summarized some important Hong Kong legislative updates that are effective in the first half year of 2017 to help you keep track.
- New IR56s Specifications
Hong Kong Inland Revenue Department (IRD) has released IR56E (notification by an employer of an employee who commences to be employed), IR56F (notification by an employer of an employee who is about to cease to be employed), IR56G (notification by an employer of an employee who is about to depart from Hong Kong) and IR56B (employer’s return of remuneration and persons) specifications dated April 2017.
The main changes are in point 13 of IR56E/IR56G/IR56B and point 15 of IR56F that:
- The wording of “overseas company” will be changed to “non-Hong Kong company”.
- The wording of “either in Hong Kong or overseas” will be changed to “either in Hong Kong or elsewhere”.
It is our understanding from IRD that for employers who have previously obtained approval to use their self-developed software to prepare these IR56 specifications in computerized format, they can still continue to use the format previously approved to file the form until further notice. However, employers are recommended to update the format in accordance with the latest specification. The approval can be withdrawn in future but reasonable notice will be given to employers so that necessary amendments can be made in time.
- Statutory Minimum Wage Increase
Effective 1 May 2017
The Legislative Council has approved the subsidiary legislation relating to statutory minimum wage (SMW). Effective from 1 May 2017, the SMW rate will be increased to 34.50 HKD per hour from 32.50 HKD per hour. The monetary cap on the requirement of employers recording the total number of hours worked by employees will also be changed to 14,100 HKD from 13,300 HKD per month.
Guidelines to minimum wage calculation and other specifications can be obtained at the Labour Department website.