How Much Can Employers Deduct for Imported Worker Accommodation? (10% or 20% Depends on Contract Version)
Bottom line: Providing accommodation is the employer's contractual responsibility. When free housing is not provided, the accommodation deduction cap varies by standard employment contract (LD 294) version: Orange version (7/2024) = 10% of wages; Pink version (6/2026) and Green version (8/2026) = 20%, both subject to the actual accommodation cost being the lower cap. The green version is strictest: the lowest of (actual cost, fixed monthly wage × 20%, current payable × 20%), and deduction is allowed only from the current wage period, with no cross-period back-deduction.
Which version did you sign? (Look at approval date, not signing date)
| Contract version | Applicable batch | Deduction cap |
|---|---|---|
| Orange LD 294 (7/2024) | Approval-in-principle granted on or before 2026-06-15 | Lower of actual cost or 10% of wages |
| Pink LD 294 (6/2026) | Initial screening before 6-15, approved after (approval letter specifies) | Lower of actual cost or 20% of wages |
| Green LD 294 (8/2026) | Initial screening on/after 6-16 and approved | Lowest of three; current period only |
Key memory point: The accommodation deduction cap is determined by the approval-in-principle date, not the signing date — "signed after 16 June" does not mean the new 20% cap applies.
Worked example (Green version, waiter with monthly wage HK$17,210)
- Fixed monthly wage × 20% = $3,442
- Assumed actual per-capita dormitory cost = $3,000
- Actual deductible = lower of the two = $3,000/month
- Compared with the old 10% cap ($1,721), the 24-month contract difference is about $30,700
Supporting red lines (often overlooked)
- Employer-provided meals must be free — no meal deductions from wages
- Housing standards: each person ≥ 3.4 m² net usable floor area, each bedroom ≤ 6 beds, basic furniture/utilities provided free
- Compliant arrangements for residing in the Mainland: employer provides Mainland housing, or employee lives in own Mainland residence (Contract Option B), both must be written into the contract
- Medical examination fees are paid by the employer
FAQ
Official sources: Labour Department ESLS official page and LD 294 three-colour contract templates (7/2024, 6/2026, 8/2026) | Last verified: 2026-10-04
Internal links: Long-form "Hong Kong Imported Worker Accommodation Requirements and Costs"; "Employer Cost Breakdown"
Can an existing approved contract switch to 20%?
No "grandfathering". Approvals-in-principle issued before 16 June and existing contracts remain under the old rules; renewals/new quota applications are treated as new applications under the new rules.
If housing is provided, can deductions still be made?
No. If the contract selects "employer provides free housing", no accommodation deduction is allowed; no deduction for periods of non-occupancy either.
Can a deposit be charged separately?
Deposits and similar arrangements must be in writing and must not circumvent the deduction cap; the written annex is the only evidence in disputes.
