Upon commencement of the Employment (Amendment) Ordinance 2007 (“E(A)O 2007”), regardless of whether an employee is monthly, daily or piece rated, his relevant statutory entitlements shall be calculated on the basis of his 12-month average wages; and in computing his average wages, any periods and wages that fall under the "disregarding provisions" shall be excluded.

The relevant statutory entitlements shall be calculated on the basis of the average daily (or monthly) wages earned by an employee in the 12-month (Note 1) period preceding the specified dates as stipulated by the E(A)O 2007. If an employee is employed for less than 12 months, the calculation shall be based on the shorter period (Note 2).

The specified dates of the relevant statutory entitlements are:

Statutory Entitlements	Day(s) of Leave	Specified Dates
Holiday Pay	1 day	Day of the statutory holiday
	More than 1 consecutive day	First day of the statutory holidays
Annual Leave Pay	1 day	Day of the annual leave
	More than 1 consecutive day	First day of the annual leave
	Day(s) of untaken leave upon termination of contract	Date of termination of contract

Note 1: "Month" refers to "calendar month".

Note 2: Suppose an employee commenced employment on 5 July 2007, his period of employment will be less than 12 calendar months before 4 April 2008 (i.e. Ching Ming Festival). His holiday pay for 4 April 2008 shall therefore be calculated on the basis of his average daily wages earned in the period 5 July 2007 and 31 March 2008.

How to determine the specified date and the 12-month period for calculating holiday pay – in the case of "the Day Following the Chinese Mid-Autumn Festival"

• The specified date is the day of the statutory holiday, i.e. 26 September 2007
• The 12-month average wages is calculated on the basis of the wages earned in the period 1 September 2006 and 31 August 2007.

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