713 ADW Calculator (HK)
Updated November 2026 · Free · No sign-up
Calculate ADW under the Employment (Amendment) Ordinance 2007 ("713") — the 12-month average daily wage, excluding disregarded periods, that prices every HK statutory entitlement: holiday pay, annual leave pay, sickness allowance, maternity/paternity pay.
Quick answer: The 713 rule: statutory entitlements pay the 12-month average daily wage (ADW) = wages earned ÷ days in the period, EXCLUDING unpaid/not-fully-paid periods and their wages. Commissions and OT patterns count — flat "basic salary ÷ 30" shortcuts systematically underpay variable earners.
The 713 Mechanics
ADW = (12-month wages − wages paid for disregarded periods) ÷ (365 − disregarded days). Disregarded periods: days not worked with no/partial pay — no-pay leave, 4/5-rate sickness days, maternity weeks, lay-off days. The exclusion stops low-paid periods from dragging the average — the ordinance’s whole point after the pre-2007 underpayment era.
What ADW Prices
| Statutory holiday pay | 1 × ADW per holiday (qualify: 3 months’ service) |
| Annual leave pay | ADW × leave days |
| Sickness allowance | 4/5 × ADW per sick day (4+ consecutive, certified) |
| Maternity/paternity pay | 4/5 × ADW (14 weeks / 5 days) |
| End-of-year payment proration | Related 12-month logic |
Worked Example
$360,000 earned, 10 no-pay days ($0 in them): ADW = 360,000 ÷ 355 = $1,014. A statutory holiday pays $1,014; a certified sick day pays 4/5 = $811; 14 weeks’ maternity ≈ $79,500. A commission-heavy December means January’s holiday pay literally reflects it — audit your employer’s divisor.
The Compliance Angle
"Basic ÷ 30" payroll shortcuts underpay anyone with commissions/OT — Labour Department prosecutions follow (holiday-pay underpayment is a criminal offence in HK). Keep payslips; the Labour Tribunal recomputes ADW from records. Related rules: annual leave’s 7-14 day scale and the 14 statutory holidays.
Frequently Asked Questions
What is the 713 ordinance?
The 2007 Employment (Amendment) Ordinance requiring statutory entitlements to be paid at the 12-month average daily wage, excluding unpaid/partially-paid periods from the average.
What counts in ADW wages?
All wages — basic, commissions, overtime pay patterns, allowances — the inclusive definition is why variable earners gained from 713.
What are disregarded periods?
Days not fully paid (no-pay leave, 4/5-rate sick days, maternity weeks, lay-offs) — both the days AND their wages drop from the calculation.
What rate is sickness allowance?
Four-fifths of ADW, for 4+ consecutive certified sick days, drawing on accumulated paid sickness days (2/month year one, 4/month after, bank of 120).
Is underpaying holiday pay an offence?
Yes — criminal prosecution territory in HK, alongside Labour Tribunal recovery; the ÷30-basic shortcut is the classic violation.
✓ Formula verified • Last updated: November 3, 2026