Hong Kong has introduced several significant updates to its employment laws that take effect in 2026. These changes are designed to enhance worker protections, accommodate modern workforce dynamics, and expand statutory entitlements. Whether you are a business owner, an HR professional, or an employee, understanding these updates is critical for compliance and strategic planning.
1. The Introduction of the “4-68 Rule”
Perhaps the most transformative change in 2026 is the implementation of the “4-68 Rule,” which officially came into force on January 18, 2026. This rule updates the legal test for determining whether an employee is employed under a “continuous contract” under the Employment Ordinance.
Previously, under the “4-18 Rule,” an employee had to work at least 18 hours per week for four consecutive weeks to qualify for statutory benefits. The new rule focuses on aggregate hours rather than rigid weekly minimums. Now, an employee qualifies for continuous contract status if they work at least 68 hours in total over any four consecutive weeks and maintain an ongoing employment relationship.
This update effectively closes loopholes that previously excluded workers with irregular, fluctuating schedules from receiving statutory entitlements. Employees under a continuous contract gain access to essential benefits such as:
Paid annual leave.
Statutory holidays.
Sickness allowance.
Rest days.
Maternity and paternity leave.
Severance or long-service payments (subject to conditions).
| Feature | Old “4-18 Rule” (Before Jan 18, 2026) | New “4-68 Rule” (From Jan 18, 2026) |
| Hour Requirement | At least 18 hours per week. | At least 68 hours over 4 weeks. |
| Weekly Consistency | Mandatory every week. | Flexible weekly distribution. |
| Focus | Weekly threshold. | Aggregate hours. |
| Impact on Part-Time | Many excluded. | More workers covered. |
2. Statutory Minimum Wage Increase
Effective May 1, 2026, Hong Kong’s statutory minimum wage rate will see an increase of 2.38%.
New Rate: The minimum wage rises from HK$42.1 to HK$43.1 per hour.
Record-Keeping Adjustments: Correspondingly, the monetary cap that determines whether an employer is legally required to keep records of an employee’s hours worked will increase from HK$17,200 to HK$17,600 per month.
3. Expansion of Statutory Holidays
Hong Kong continues its phased approach to aligning statutory “labour” holidays with general public holidays.
For the year 2026, the number of statutory holidays increases to 15 days.
Easter Monday (falling on April 6, 2026) is the newly added statutory holiday for the year, in accordance with the Employment (Amendment) Ordinance 2021.
All employees are entitled to these statutory holidays. Furthermore, if a statutory holiday happens to fall on an employee’s scheduled rest day, the employer must grant a substituted holiday on the day following the rest day, provided that day is not already a statutory or rest day.
Preparing for the Future
Employers must immediately audit their workforce management practices, update HR systems to track aggregate hours over four-week rolling periods, and adjust payroll software to reflect the new minimum wage and holiday accruals. By embracing these updates, businesses can ensure smooth compliance while actively fostering a fairer environment for their workforce.
