What is Average Monthly Wage

The Average Monthly Wage is applied to: 

• Wages in lieu of notice (by month)

• Bonus Average Regarded Wages

• Double Pay

• User-Defined Formula

For Monthly Rate employees,

• Average Monthly Wage = Accumulated Regarded Wages / (Accumulated Regarded Days / 365 x 12)

Monthly wages refer to the employee’s average monthly wages earned in the 12 months immediately preceding the termination date. It generally includes:

• Basic salary

• Overtime pay

• Commissions

• Shift allowances

• Productivity bonuses

• Regular payments for work performed

For Daily/Hourly Rate employees, 

The Average Monthly Wage is 18 times the Average Daily Wage over the last 12 months.

Reference: Labour Department - The Employment Ordinance, Cap. 57