What is long service payment in SAP PY-HK - Hong Kong, China?

SAP Term: long service payment

• Component: PY-HK

• Component Name: Hong Kong, China

• Description: Payment to which an employee who has worked for the company for 5 or more years is legally entitled to if his or her employment is terminated other than summary dismissal or redundancy, he or she dies or retires age 65 or above. It is reduced by any gratuity or the employer's non-mandatory contribution to a retirement scheme. An employee is eligible for either the severance payment or the long service payment but not both.

Smart SAP Assistant

• Key Concepts: 
  Long service payment is a type of payment provided by the Hong Kong government to employees who have worked for the same employer for a certain period of time. It is a one-off payment and is not considered part of the employee's salary. The amount of the payment depends on the employee's length of service and salary. 
  
  How to use it: 
  In SAP, long service payment is handled through the PY-HK Hong Kong, China component. This component allows employers to calculate and pay long service payments to their employees. It also allows employers to track employee service records and ensure that they are in compliance with local laws and regulations. 
  
  Tips & Tricks: 
  When using the PY-HK Hong Kong, China component, it is important to ensure that all employee records are up-to-date and accurate. This will help ensure that employees receive the correct amount of long service payment. Additionally, employers should be aware of any changes in local laws or regulations that may affect their ability to provide long service payments. 
  
  Related Information: 
  For more information about long service payments in Hong Kong, please visit the website of the Labour Department at https://www.labour.gov.hk/eng/public/lp/lp_ls_payment.htm. Additionally, employers can find more information about SAP's PY-HK Hong Kong, China component at https://help.sap.com/viewer/product/PY_HK_CHINA/latest/en-US.