Hong Kong imported-worker housing: employer duties, deductions and contract-version FAQ

The short answer: housing is the employer's duty

The standard employment contract (LD 294) states it plainly: the employer must provide suitable furnished accommodation for the worker in Hong Kong or the Mainland, meeting the standards the contract lists. The employer may provide it free of charge or not — where it is not free, boarding fees may be deducted from wages up to the contract's cap. Either way the responsible party is the employer, not the worker.

Zhigang's role: helping employers source compliant Hong Kong dormitory options and putting the arrangement and deduction terms in writing. Whether housing is "suitable" is reviewed by the Labour Department against the contract standards, and employers providing housing must allow Department officers to inspect the Hong Kong premises at reasonable times.

The contract version sets the deduction cap: orange 10%, pink & green 20%

There is no flat "20%" — the cap depends on the version you sign, and the version depends on the approval batch:

• All three contract samples download from the Labour Department's ESLS page; check which version the approval letter specifies before signing
• The Employment Ordinance separately limits wage deductions — even where the contract provides, the actual deduction is capped at what the law allows (the green contract builds this in)

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Green contract LD 294 (8/2026) sample — English PDF, clause 11 and Schedule →Labour Department ESLS page (all three contract samples) →

When living in the Mainland is allowed

The contract's housing clause is designed as a Hong Kong/Mainland choice, and both Mainland arrangements are compliant: first, the employer provides accommodation in the Mainland (e.g. cross-border commuting setups); second, contract option B — the worker lives in their own Mainland residence. Either must be ticked and written into the contract at signing; verbal agreements do not count.

Two reminders: for Mainland-residence cases, travel between the home area and Hong Kong still follows the contract and visa conditions; and on levels: under Article 16 of LD294, the employer's free-medical-care duty may be suspended for periods when the worker is voluntarily and personally away from Hong Kong, but returns to the employer-provided or the worker's own Mainland residence under the accommodation terms are an exception to that exclusion — such trips do NOT lift the free-medical-care duty; actual medical arrangements still follow the standard employment contract and applicable law. Housing terms interlock with other contract duties, so read the whole contract before signing.

Minimum standards: 3.4 m² per person, six beds max

Green contract (8/2026) clause 12 requires: a clean and separate unit; at least 3.4 m² net floor area per person; free toilet, bathing and cooking facilities, electricity and water supply, and basic furnishings including beds, blankets, pillows, electric fans and a fridge; sleeping rooms separated from living/reception rooms; and no more than six beds per sleeping room. The orange and pink versions carry equivalent standards in their schedules.

Two commonly missed clauses: if the employer provides meals, they must be free — meal costs cannot be deducted from wages; and the medical-examination fee is paid by the employer. These are contract terms, not favours.

How the deduction is computed and settled

Green version (strictest): each wage period's boarding fee is the lowest of — actual boarding cost; fixed monthly salary × 20%; and 20% of the amounts actually payable to the worker for that period. It may be deducted only from that period's wages, never carried across periods; where the Employment Ordinance allows a lower deduction, the lower figure governs.

Example: a worker on HK$12,000/month has a cap of HK$2,400 (20% of fixed salary) versus 20% of amounts payable and actual cost — if the dormitory actually costs HK$1,800, only HK$1,800 may be deducted. Pink and orange versions apply the same logic with their wage-percentage formulas.

Settlement principles: amounts, formula and timing go into the written contract or annex; actual deductions must match the actual housing arrangement item by item — housing stated as free means no deduction, and no deduction for periods not occupied. Wages are paid by automatic transfer net of the boarding fee, no later than seven days after the wage period ends.

Deposits, utilities, repairs and early exit

The contract fixes the cap and the standards; the rest of the housing detail is filled by written agreement. Employers and workers should sign a housing annex covering: whether a deposit applies, its amount and refund conditions; how the tenancy aligns with the contract term; how utilities are split and whether they are capped; who is responsible for repairs and response times; and how housing is settled if the worker exits early or the contract ends early.

Two bottom lines: these details must not circumvent the contract's and the Employment Ordinance's deduction limits — a deposit cannot smuggle in a higher boarding charge; and when disputes arise, the written annex is the evidence — verbal promises cannot be proven. Zhigang helps employers draft the housing annex to match the contract terms before both parties sign.

FAQ

• Q: Who is responsible for housing? A: The employer, by contract — provide suitable accommodation in Hong Kong or the Mainland per the applicable LD 294; deductions are allowed only where housing is not free.
• Q: Can the worker live in the Mainland? A: Yes — employer-provided Mainland housing, or the worker's own Mainland residence (contract option B); either must be written into the contract.
• Q: Is the deduction always 20%? A: No. Orange 10%; pink and green 20%; green takes the lowest of three amounts and deducts from the current period only. Confirm the version from the approval batch first.
• Q: What does "housing included" mean? A: The contract ticked "the employer will provide the accommodation free" — no boarding deduction is allowed; where reality differs from the contract, the contract governs and the Labour Department can advise.
• Q: Can the worker rent their own room in Hong Kong? A: The contract's framework is employer-provided housing or the worker's own Mainland residence; self-rented Hong Kong rooms do not fit the contract's housing arrangement — confirm with the Labour Department and a Zhigang consultant before deviating.

Sources

Sources: the Labour Department ESLS page (www.labour.gov.hk/tc/plan/iwESLS.htm, verified 4 Oct 2026) and the three standard employment contract sample PDFs — orange ESLS_SEC(7/2024), pink ESLS_SEC(6/2026), green ESLS_SEC(8/2026) (clauses 11–12 and schedules). This is a third-party explainer; individual cases follow the Labour Department and the contract text.