Amanda Chua, Author at Omni HR

Tax season can be stressful for employers anywhere, and this is no different in Hong Kong. With a plethora of specific forms, changing submission deadlines and frequently updated tax laws, staying on top of your Hong Kong tax return can be tricky—and the penalties for non-compliance steep.

But not to fear— we will be taking a look at everything you need to know about filing taxes in Hong Kong, including the relevant authorities, deadlines for tax submissions, forms you’ll need to fill out, penalties you want to avoid and tips for making the process as smooth as possible.

The Hong Kong Tax Governing Authority

In Hong Kong, the Inland Revenue Department (IRD) is the governing authority responsible for administering and enforcing tax laws. The IRD operates under the Financial Services and the Treasury Bureau and is tasked with overseeing all things tax related, including income tax, property tax, profits tax, and salaries tax.

The primary role of the IRD is to ensure compliance with tax regulations, collect taxes owed to the government, and provide guidance and assistance to taxpayers looking to better understand their tax obligations. This includes for employers who are responsible for withholding and remitting taxes on behalf of their employees. So, if you’re an employer in Hong Kong, keep an eye out for releases from the IRD as they may contain pertinent info to make your tax time easier.

The IRD also plays an important role in the development and implementation of new tax policies, including updates to tax laws and regulations. Employers in Hong Kong must closely follow the guidelines and regulations created by the IRD when preparing and filing tax returns for their employees, and stay up to date with any changes that occur, in case of accidental non-compliance based on new, or changed tax law.

When to File Hong Kong Tax Return?

The deadlines for Hong Kong tax return are determined based on the taxpayer’s role and status, as well as the type of income they’re reporting. For employees paying their salary tax, the filing deadline is typically on or before April 30th of the year following the relevant tax year. For example, the tax return for the year 2023 should be filed on or before April 30th, 2024.

Employers on the other hand are required to report how much they paid to their employees through employer’s returns, which are usually due on or before the 10th day of April following the end of the tax year. Employers must also issue tax returns, commonly known as Forms IR56 series, to their employees by the end of February each year.

If you’re an employer in Hong Kong, it’s essential you meet these deadlines to avoid penalties and stay compliant with Hong Kong’s tax regulations. Because the specific tax deadlines are prone to change, this is an area you should pay extra attention to each year to avoid incurring any late penalties.

Read next: Your Guide to Managing Payroll Hong Kong

Employers’ Checklist for Filing Hong Kong Tax Return

As with tax submissions in many other places in the world, Hong Kong tax returns involve quite a lot of form-filling (which, as of 2023, must be filled and submitted electronically). Here, we’ve created a handy checklist of forms you’re going to need to be aware of for Hong Kong tax return season:

Tax withholding and remittance

Form BIR60: Employers are responsible for withholding taxes from their employees’ salaries and remitting them to the IRD on their behalf. This process involves completing Form BIR60, which provides details of the tax withheld and remitted for each employee.

Employer’s returns of remuneration and pensions

Employers are required to submit employer’s returns of remuneration and pensions to the IRD annually. These returns include the following forms:

BIR56A Form: This form provides details of the remuneration paid to each employee during the tax year.
IR56B Form: This form is used to report the end of employment or departure of an employee from Hong Kong.

For more information: How to File a Hong Kong Employer’s Return: Understanding Forms BIR56A and IR56B

Record Keeping

Employers must maintain accurate records of their employees’ remuneration, including salaries, bonuses, allowances, and other benefits. The IRD requires that these employee records should be retained and accessible for at least seven years for auditing purposes.

Additional Forms and Requirements

In addition to the above forms, there’s a few additional forms to consider, based on the specific nature of an employer’s circumstances:

BIR56B: This form is used to report the remuneration paid to non-resident employees.
BIR56C: Employers who provide benefits-in-kind to their employees must complete this form to report the cash value of these benefits.
BIR11E: Employers who make payments to self-employed individuals or subcontractors must complete this form to report such payments.

When it comes to tax time, make sure to run through this checklist and take note of all the forms relevant to you and your employees, so that you can submit a thorough and accurate Hong Kong tax return.

Penalties for Late Hong Kong Tax Return

Late tax filing is universally frowned upon, and in Hong Kong is no exception. There are a series of penalties and fines for employers who are tardy on their tax submissions. The penalties for late submission or non-compliance may include:

Late filing penalty: Employers who fail to file their employer’s returns of remuneration and pensions (the BIR56A and IR56B forms we mentioned above) by the deadlines outlined by the IRD will incur late filing penalties. The amount of the penalty varies depending on the duration of the delay. The maximum penalty for late filing is HK$50,000 (depending on the circumstances), but if payment isn’t promptly made an additional fine of HK$1,000 will be imposed every day until the issue has been resolved.
Late payment penalty: Filing is one thing, but payment is even more important. Employers who fail to remit the taxes withheld from their employees’ salaries by the IRD due date will also incur steep late payment penalties. The penalty is calculated based on the amount of tax outstanding and the duration of the delay. The longer the delay, the steeper the fine. Alternatively, the IRD may reassess the employer and give them a tax assessment much higher than the original amount submitted.
Surcharge: In addition to late filing and late payment penalties, employers may be liable for a surcharge on the outstanding tax amount. The surcharge is imposed to deter non-compliance and is calculated as a percentage of the tax outstanding.

The IRD also has a framework under Section 82A of their Penalty Policy to help them analyze how much to penalize employers who submit their Hong Kong tax return late, largely based on attitude, cooperation, and how well informed you are. For instance, people who express genuine surprise or regret for filing late will usually face less steep penalties than employers who are combative or disagreeable. In the event you file late, make sure you are as cooperative and polite as possible with the IRD.

Tips to Stay Ahead of Hong Kong Tax Return

Now that you’ve got an understanding of the penalties for non-compliance, here’s what you can do to avoid that and to streamline your Hong Kong tax return:

Stay updated on regulations: Keep up to date with changes in tax laws and regulations issued by the IRD in Hong Kong. Regularly review updates and announcements to make sure you’re staying compliant with the latest requirements.
Maintain organized records: Maintain accurate and organized records of employee remuneration, tax withholdings, and other relevant financial data (and keep it that way for at least seven years.) Proper record-keeping helps with the preparation and submission of tax returns and minimizes the risk of errors or omissions.
Utilize HR technology: Leverage HR automation and software solutions to streamline payroll processes, automate tax calculations, and generate required tax forms. Human Resources Information Systems (HRIS) can help simplify payroll management and ensure accuracy in tax reporting.
Plan and prepare early: Start preparing for tax return filing well in advance of the deadlines. Establish a timeline for completing key tasks, such as gathering financial data, compiling records, and submitting tax returns. Early planning allows for enough time to address any issues or challenges that might come up.
Communicate with employees: Maintain open communication with your employees regarding tax matters, including deductions from their salaries, tax filing deadlines, and any changes in tax policies or procedures. Clear and transparent communication will help your employees understand their tax obligations and reduce misunderstandings or confusion.

Make Hong Kong Tax Return Easy with Omni

Managing Hong Kong tax returns requires meticulous attention to legal requirements and thorough documentation—especially when the consequences for misfiling can cause significant penalties and troubles for your organization. You should strive to minimize human error by leveraging automation to ensure accuracy and compliance.

Our time and attendance features empower teams to automate data and produce accurate reports in minutes, making payroll calculations seamless and accurate. And with payroll solutions that support HKD and pay schedules, Omni offers an entire suite of solutions to make your Hong Kong tax return seamless.

With Omni, you not only get the convenience of automation but also the peace of mind that comes with a solution designed to meet the specific needs of your business in Hong Kong. Ready to take advantage of the convenience, efficiency and reliability of automated payroll?

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With over 2 billion Muslims worldwide, representing diverse backgrounds and cultures, it is likely that a portion of your workforce observes Ramadan. As Ramadan holds great significance for Muslims, it is crucial for employers to consider how they can support their Muslim employees and As such, the chances that a segment of your workforce observes Ramadan is high. Since the month is of very high regard to Muslims, it’s important for you, as an employer, to think about how to support your Muslim employees and how to celebrate Ramadan at work.

As Ramadan approaches, this guide provides strategies on how to celebrate Ramadan at work, ensuring that Muslim employees feel respected and included during this spiritual period.

What is Ramadan?

Ramadan is the ninth month of the Islamic calendar and is observed by Muslims worldwide as a month of fasting, spiritual reflection, and increased devotion to worship. It’s considered one of the Five Pillars of Islam and holds great significance for Muslims.

The reason behind its observance is to commemorate the revelation of the Quran to Prophet Muhammad, and it’s an opportunity for Muslims to strengthen their faith and improve themselves spiritually.

Ramadan involves abstaining from food and drink from sunrise to sunset every day for 29 or 30 days (depending on the lunar cycle), as well as engaging in increased acts of charity and prayer. The exact number of fasting hours varies depending on the location, but it can range from 11 to 18 hours a day.

It’s worth mentioning that not all Muslims are required to fast during Ramadan. Children, elderly individuals, pregnant or nursing women, and those with health conditions that may be worsened by fasting are exempted from the obligation. Menstruating women are also not required to fast.

However, all of these groups can still engage in other spiritual activities and are encouraged to do so through prayer, reflection, and participating in charitable deeds.

When does Ramadan start and end in 2024?

This year, Ramadan is expected to begin on the night of 10 March 2024 and end on the evening of 9 April 2024. However, the date is subject to change as the Islamic calendar is based on the lunar cycle, which means the beginning of a new month depends on the sighting of the crescent moon.

Ways to Support Employees During Ramadan

When considering ways to support your employees or how to celebrate Ramadan at work, it’s important to recognize that supporting your employees during Ramadan involves more than just greeting them with “Ramadan Kareem”.

As an inclusive employer, it’s important to think of how to celebrate Ramadan at work or how to support Ramadan at work by creating a supportive environment for your Muslim employees. That way, they can observe the holy month without experiencing additional stress or feelings of exclusion.

Now that you’ve understood the importance of Ramadan, let’s dive into the ways on how to celebrate Ramadan at work and how to support Ramadan at work to promote employee engagement and foster an inclusive culture.

Looking for more employee engagement ideas?

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1. Working arrangements

When it comes to how to celebrate Ramadan at work, it’s important to understand the typical daily schedule of your Muslim employees. They will fast from dawn until sunset, refraining from food, drink, and certain activities. After sunset, they will break their fast and may engage in spiritual activities until sunrise. Understanding and accommodating these routines can help create a supportive environment during Ramadan.

Given the circumstances, two significant changes occur during Ramadan that you can help alleviate if you’re considering how to support Ramadan at work: fatigue and low energy levels due to fasting, and longer nights with less sleep due to nighttime prayers and spiritual activities. Here are some ways you can ease these issues for your employees:

Offer flexible working hours

Flexible working hours can help your employees manage their energy levels. For instance, they could start work earlier in the day to wrap up earlier in the afternoon when they need to break their fast and might be feeling fatigued. Alternatively, if they stay up late at night, they could start work later in the morning to get more sleep and remain productive.

Provide remote or hybrid work options

Remote or hybrid work model presents another option, particularly for those with lengthy commutes. By working from home, they can save time and energy that would otherwise be spent on commuting during the fasting hours.

Additionally, they’ll feel less pressured, knowing that they can make the most of their special evenings without the concern of a long journey to work the next morning.

Relevant reads: HR’s Guide to Remote Workforce Management

Fostering work-life balance

The final ten days of Ramadan are considered the most holy and spiritual, with many Muslim employees seeking time off work to focus on prayer and reflection.

While you don’t necessarily have to grant your employees the entire ten days off, part of understanding how to celebrate Ramadan at work involves respecting this aspect. Being flexible with approving time off requests during this period will make a huge difference to your Muslim employees, fostering a sense of inclusion and boosting employee motivation, which they will remember throughout the year.

Following Ramadan, Muslims celebrate Eid al-Fitr, a three-day festival marking its end. While the exact dates aren’t set in stone, it’s worth keeping an eye out and being aware of these celebrations just like learning how to celebrate Ramadan at work.

During this time, you should expect a relatively high volume of time off requests from your Muslim employees. These requests may also be on short notice, as the exact dates of Eid al-Fitr are determined only a few days in advance. Many companies offer time off for this holiday, at least for the first day, so it’s important to be prepared for this. Likewise, some APAC countries may declare these dates as public holidays.

2. Workplace Environment

In addition to considering work arrangements, understanding how to celebrate Ramadan at work involves creating a supportive and inclusive workplace environment.

Foster a culture of understanding and respect

It is important to educate all employees about the significance of Ramadan and its practices, fostering empathy and understanding. This can be done through workshops, presentations, or informational emails.

Encouraging open communication and empathy among colleagues is also key to creating a supportive environment where everyone feels valued and respected, regardless of their religious beliefs or practices.

Furthermore, simple gestures like being considerate of noise levels during prayer times and providing snacks such as dates, fruits, and water during Iftar (the breaking of the fast) can greatly contribute to making your employees feel appreciated and included.

Avoid offering food and drink during the day

Regarding food and drinks, an important aspect on how to celebrate Ramadan at work or how to support Ramadan at work is to avoid offering food and drinks throughout the day during Ramadan. Instead, consider planning team lunches or dinners closer to Iftar time. This not only respects their religious practices but also creates a sense of camaraderie and belonging among colleagues.

Decorating the office

Another great way on how to celebrate Ramadan at work and how to support Ramadan at work is by decorating the office for Ramadan. Similar to how you would decorate the office for holidays such as Christmas, consider celebrating Ramadan at work by adorning the office with lanterns, colorful lights, and banners that extend blessings to your Muslim colleagues for a blessed Ramadan.

3. Practical support

Finally, if you are seeking practical ways on how to celebrate Ramadan at work or how to support Ramadan at work, we have a few suggestions for you.

Providing dedicated prayer space

Muslim employees are required to pray five times a day, and two to three of these prayers may occur during work hours.

As an employer, part of how to celebrate Ramadan at work and how to support Ramadan at work is to provide a designated prayer space in the workplace. This could be a quiet room or even a converted unused office. That way, employees do not have to leave the office premises or feel uncomfortable praying in a public space.

Also, it’s not just about creating the space but also to be understanding of their prayer breaks. Employees should feel comfortable and encouraged to take breaks for prayer without feeling guilty, judged, or rushed. This is particularly important as praying on time is considered a religious obligation.

Organizing communal Iftar gatherings

Another way on how to celebrate Ramadan at work is by organizing communal Iftar gatherings. Allowing your Muslim employees to break their fast with their colleagues can create a sense of community and deepen relationships among team members.

These gatherings provide an opportunity for colleagues to share in the observance of Ramadan and enhance understanding and respect for different cultural and religious practices.

Establishing employee support groups

Consider establishing employee support groups to assist those who may be struggling to balance work and fasting. These groups can provide a platform for employees to share their experiences, challenges, and tips on managing Ramadan at work.

Flexible meeting schedules and deadline extensions

Fasting during Ramadan can be physically and mentally taxing, potentially leading to tasks taking longer to complete unintentionally. Providing your employees with some flexibility during this time can significantly improve their productivity and well-being, reducing burnout.

As part of thinking about how to support Ramadan at work, you could also adjust meeting schedules to accommodate your fasting employees. This can mean avoiding scheduling meetings around prayer times, Iftar, and similar periods.

Another approach is to consult your employees on how to celebrate Ramadan at work or how to support Ramadan at work to determine the most suitable meeting times during this month. The key is to be understanding, flexible and communicate openly with your employees.

Demonstrating awareness of their religious obligations and a willingness to make their lives easier can greatly boost their morale and motivation.

Omni Tip on how to celebrate Ramadan at work:
During Ramadan, employees may hesitate to discuss their religious practices or concerns with supervisors in fear of being misunderstood. To avoid this, it is important to create a supportive environment where employees feel comfortable discussing their needs and concerns openly, without fear of judgment.

Frequently Asked Questions

1. How long is Ramadan?

Ramadan is typically a month-long Islamic holiday. However, because the Islamic calendar is based on lunar cycles, the exact number of days may vary from year to year. Typically, it lasts 29 to 30 days.

2. How do people fast during Ramadan?

During Ramadan, Muslims fast from dawn to sunset, refraining from eating, drinking (including water), smoking, and other activities. They also strive to avoid negative thoughts and behaviors, such as gossiping. The fast is broken at sunset with a meal called Iftar.

3. Can employees work during Ramadan?

Yes, employees observe Ramadan at work normally. However, it’s important for employers to be understanding and look into how to support Ramadan at work to accommodate their employees’ religious obligations during this time and also consider how to celebrate Ramadan at work to do their part in being inclusive.

4. How many hours shall employees work during Ramadan?

In many countries, there are specific regulations or guidelines revolving around how to celebrate Ramadan at work and how to support Ramadan at work. These include adjusting work hours for employees observing Ramadan to make provisions for their fast.

Generally, work hours are shortened to allow for more rest and to observe religious practices more comfortably. For instance, in the UAE, the workday is reduced by two hours.

It’s recommended that employers consult relevant legislation and guidelines to know how to celebrate Ramadan at work and how to support Ramadan at work. Employers can consider reducing work hours or implementing flexible scheduling for employees fasting during Ramadan. This not only supports their well-being but also helps in maintaining productivity levels during the fasting period.

5. What to greet colleagues during Ramadan?

When it comes to how to celebrate Ramadan at work, greeting colleagues is a great way to do it. It’s considerate and respectful to use the traditional greeting, “Ramadan Mubarak,” which means “Blessed Ramadan.” Another common phrase is “Ramadan Kareem,” translating to “Generous Ramadan.” “Happy Ramadan” is also widely accepted as a friendly and respectful greeting.

Also, part of knowing how to support Ramadan at work is to avoid making statements like “I’m sorry you have to fast” or “It must be hard not eating during the day.” These comments may come across as dismissive of an individual’s personal beliefs.

Most Muslims look forward to Ramadan and find it a spiritually uplifting month. So, focus on well-wishes and appreciation for their dedication to observing Ramadan.

Leverage HR Technology to Boost Employee Engagement

Dive into the Ramadan month with our tips on how to support Ramadan at work and how to celebrate Ramadan at work. Supporting your employees during the fasting month is not only a gesture of respect for their religious beliefs but also a way to foster a more inclusive and understanding workplace culture.

By being mindful of their needs, offering flexibility, and creating a supportive environment, you can help your Muslim employees observe Ramadan with ease, ensuring they feel valued and appreciated.

Stay on top of every upcoming festive celebration with Omni’s customizable dashboard which allows your teams to set and manage calendars pre-loaded with country or region specific holidays and timezones.

Our robust time off management capabilities allow HR teams to streamline the management process of leave requests during Ramadan period. Omni also seamlessly integrates with your team’s most loved work tools such as Slack, enabling managers to receive and manage time off approvals directly within the messaging platform, removing time-consuming steps from leave management with a quick push of a button. With automated calculations, employees and managers can easily view leave balances in real-time without the intervention of HR.

Book a demo with our team to learn more about how Omni can support your international workforce during the spiritual month of Ramadan.

Download our free HR Calendar 2024 for more engagement ideas!

Research indicates that 98% of employees feel disengaged from work if they receive little to no feedback. While receiving employer feedback boosts morale, self-evaluation can be tricky. How can you objectively assess your performance without exaggeration or downplaying?

This is particularly difficult when evaluating team achievements or addressing your own shortcomings, especially if influenced by managerial oversights.

All these hurdles are common when considering how to write a mid-year review for yourself and others. Let’s dive into the details, including what to include in your reviews and tips to craft a compelling narrative that shows your commitment to improvement within the organization.

What is a mid-year review?

A mid-year performance review is a scheduled check-in between an employer and an employee, typically held around the halfway mark of the year. It’s a rather relaxed, one-on-one conversation to discuss the employee’s progress, performance, and areas of improvement. These reviews allow managers to suggest strategy changes and address concerns before the detailed year-end review.

While usually informal, some employers may prefer a more structured evaluation. The review assesses progress toward current goals and may establish new goals if necessary. Employees are encouraged to share their perspectives and any obstacles they’ve encountered to receive guidance for success.

Relevant reads: How to Write a Performance Review in a Remote Work Environment

Why should employees write a mid-year review?

Before discussing how to write a mid-year review for yourself, let’s briefly explore its benefits for both employees and the organization.

For employees

Gain self-awareness: reflecting on your performance halfway through the year helps focus on your strengths, weaknesses, and areas for improvement. It allows you to step back, analyze progress and plan for growth.
Proactively address concerns: identifying challenges early enables you to take proactive stress to address them before they escalate. Tackling issues promptly can prevent them from becoming larger problems.
Demonstrate initiative and drive your development: conducting a mid-year review shows your commitment to continuous improvement and excellence in your role. Taking initiative can make a positive impact on supervisors and colleagues.
Celebrate your wins: recognizing achievements from the first half of the year boosts confidence and energizes you for upcoming challenges, inspiring you to strive for excellence.
Set goals for the remainder of the year: use the mid-year review to set clear, actionable goals for the second half of the year. This provides direction and focus, maximizing your efforts for the rest of the year.

For organizations

Gather valuable information: mid-year reviews provide valuable insights into employee performance, progress, and challenges. This information aids in decision-making regarding HR budget, training initiatives, and strategic planning.
Foster open communication: encouraging employees to share feedback creates a workplace culture where they feel valued, leading to higher engagement levels.
Align expectations: mid-year reviews realign employee goals and expectations, ensuring everyone is working towards common goals.
Improve employee engagement: involving employees in the review process demonstrates that their contributions are recognized. This appreciation and involvement boost employee engagement and commitment.
Course correct: Mid-year reviews help organizations to address employee concerns promptly and realign efforts to achieve organizational goals.

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Components to Include in a Mid-Year Review

To understand how to write a mid-year review, you need to include the right sections that cover your achievements, contributions, and areas of improvement.

Key achievements

Acknowledge significant achievements, such as meeting project milestones or exceeding sales targets, with concrete data or metrics wherever possible.

For example, “I successfully led a project team that implemented a new CRM system, resulting in a 20% increase in sales leads.”

Quantify your impact

Use specific, measurable data to back up your achievements. For instance, “I implemented a new customer feedback system that resulted in a 30% increase in customer satisfaction scores compared to previous year.”

Highlight contributions to team and company goals

Demonstrate how your work supports broader organizational goals, citing specific examples of projects where you contributed to these objectives and collaborated with team members.

Identify core strengths

Showcase your leadership abilities, problem-solving skills, and adaptability to new technologies. Highlight instances where you’ve taken initiative, led projects, and positively influenced team members.

Focus on specific development goals

Mention the goals you set at the beginning of the year and assess your progress. Discuss strategies to achieve these goals, especially if you’re slightly behind target.

For instance, as a sales representative who set a goal to achieve a 15% increase in monthly sales volume compared to last year. However, at the mid-year review, you found that you achieved a 12% increase, slightly below target. The mid-year review can help identify strategies to boost sales performance in the remaining months by focusing on areas of improvement and building on successful strategies.

Outline areas of improvement

Reflect on skills that could be developed to improve your performance, such as technical skills, communication skills, and conflict resolution.

By including these sections in your mid-year review, you can provide a comprehensive overview of your performance and demonstrate your commitment to growth and development within the organization.

If you’re unsure where to start, discover strategies for structuring self-evaluation conversations now!

Tips on How To Write a Mid-Year Review

In the next section in our guide on how to write a mid-year review, we’ll explore the essential tips for writing a review, whether for yourself or other team members.

How to write a mid-year review for yourself

If you are writing a mid-year for yourself, here’s what you need to focus on:

Review and reflect on past performance reviews

Begin by revisiting previous performance evaluations or feedback, including written assessments and meeting notes. Look for key points regarding strengths, areas for improvement, accomplishments, and feedback. Also, review your goals and their progress.

Based on this, ask yourself these questions to conduct your self-evaluations better:

What specific actions or behaviors were praised by my manager or colleagues?
Are there any recurring themes or patterns in the feedback I’ve received?
How have I addressed previous areas for improvement since the last review?
What insights have I gained about my strengths and weaknesses?
Have there been any unexpected challenges or successes that I can learn from?
How have I grown professionally since my last review?

Omni Tip on how to write a mid year review:
Create a running doc or list that you update weekly or monthly with projects you’ve worked on and wins you’ve had throughout the year. This makes it easier to recall when it comes time to review and reflect on your performance!

Use the SMART framework

Setting SMART goals is another helpful tip on how to write a mid-year review. Based on past performance evaluations, you’ll have new goals. Break these larger objectives into smaller, actionable tasks.

For example, instead of saying “I will try to improve my sales performance in the next few months,” you can say, “I will increase my monthly sales by 15% compared to the previous quarter by the end of the year. To achieve this, I will attend at least two additional monthly networking events, allocate one hour daily to follow up with potential clients, and enroll in a sales training course by the end of Q3.”

This approach ensures your goals are specific, measurable, and tied to a timeline, making it easier to track progress and make adjustments.

Be honest and objective

It is important to approach how to write a mid-year review with honesty and objectivity, acknowledging both successes and setbacks. Avoid being overly critical or lenient.

For example, if you’ve made progress in meeting deadlines but faced challenges on a specific project, address it directly:

“During the XYZ project, miscommunication led to rework and missed deadlines. I take full responsibility and plan to improve my communication by scheduling regular check-ins and actively listening to team input.”

This demonstrates your commitment to improvement and responsibility for your actions.

Include feedback from others

Feedback from others can provide valuable insights on your performance from different perspectives, shaping how to write a mid-year review. Your supervisor provides insights into their expectations, your strengths, and areas for improvement.

Peers offer a unique perspective on how to write a mid-year review for yourself, noting strengths and areas to develop that your supervisor may not have observed.

Additionally, feedback from external sources like mentors can provide valuable guidance and constructive criticism to support your growth.

Structure review with clarity

Your mid-year review should provide clarity on accomplishments, challenges, goals, and development areas, each with subheadings for further detail. Along with that, keep in mind the following:

Use concise and objective language and avoid unnecessary verbosity
Focus on solutions and proactive measures to address challenges instead of dwelling solely on problems
Maintain a positive and constructive tone throughout the review
Structure your review document logically and provide evidence to support your claims

Reframe shortcomings as opportunities for growth

Managers don’t expect perfection; they value individuals with a growth mindset who see shortcomings as opportunities. Identify root causes behind your shortcomings and use them to improve.

For example, if you missed project deadlines, explain how you’ll implement a more structured planning process for future improvement.

For Others

If you want to learn how to write a mid-year review for another individual or team, focus on the following areas:

Gather data and feedback

Collect quantitative and qualitative data from various sources to assess outcomes and workplace commitment. Use performance evaluations, project reports, and feedback from colleagues and supervisors. Consider conducting 1-on-1 meetings or surveys to gather input from team members, peers, or stakeholders.

Provide clear and unbiased feedback

Review progress toward the goals and expectations set at the beginning of the year or in the previous review. Use specific examples, observations, and outcomes to provide clear and concise feedback. While giving feedback, ensure you keep any personal opinions aside and base feedback on collected information, avoiding performance appraisal bias and judgements.

Balance positive and constructive feedback

It’s vital to acknowledge all achievements, big or small, to recognize an individual’s or team’s contribution. However, a balanced evaluation includes both praise and constructive criticism. little and big wins to show the contribution made by the individual or team. To illustrate, while praising an increase in customer retention rates, suggest exploring new strategies to diversify customer outreach. Provide specific examples of successes and areas of improvement to promote balanced growth.

Rely on facts and figures over opinion

It is important that your feedback is based on facts and figures rather than assumptions or personal opinions. Support your statements with quantifiable measures wherever possible.

Here’s an example:

“In the past six months, your sales figures have consistently exceeded the department average by 15%. Your performance is particularly noteworthy considering the challenging market conditions we’ve faced. Your ability to close deals efficiently and maintain strong client relationships is reflected in our recent survey’s 95% positive customer feedback.”

While not every point can be quantified, using numbers strengthens your feedback and demonstrates thorough research.

How Omni Helps Organizations Drive Progress

Knowing how to write a mid-year review for yourself or others is crucial to assess progress. Set new goals, and identify areas for improvement.

With well-structured self-evaluation strategies, you can confidently navigate your performance review, unlocking your full potential and driving personal and organizational achievements. Omni’s customizable performance review feature allows managers to design a self-evaluation template for employee performance reviews, track employee submissions, and derive critical insights to drive business decisions all in one centralized platform.

Performance reviews don’t have to be a dreaded task, with the right framework and guidance, the exercise can become a useful tool in self-reflection and professional development.

For more resources on how to write a mid-year review for yourself and others,

check out our free performance review questions template!

Join the 83% of Omni customers who have unlocked new, actionable insights after using our performance management module, and book a free demo with our team today.

In 2023, the Hong Kong government increased Hong Kong minimum wage, as it is periodically reviewed every two years.

As a business owner or HR personnel, it’s essential to comply with these requirements, as understanding the Hong Kong minimum wage also helps ensure compliance with other labor laws.

Regarding the minimum wage in Hong Kong, how much is it, who does it apply to, and what are the penalties for non compliance? Read on to find out.

The Minimum Wage Ordinance

According to the Labor department of the Hong Kong Special Administrative Region government, the minimum wage ordinance sets the statutory minimum wage in Hong Kong (SMW) and specifies which payments qualify as payable wages. This regulation has been in effect since 1 May 2011, when the SMW was introduced.

So, what criteria does the ordinance use to determine Hong Kong minimum wage?

It seeks to strike a balance “between forestalling excessively low wages and minimizing the loss of low-paid jobs while sustaining Hong Kong’s economic growth and competitiveness.”

What is counted as wages in Hong Kong?

Payments that qualify as wages cannot fall below the Hong Kong minimum wage standard. So, what falls under the category of wages? According to the the Concise Guide to the Statutory Minimum Wage:

Wages are “all remuneration, earnings, allowances including traveling allowances, attendance allowances, commission, overtime pay, tips and service charges, however designated or calculated, capable of being expressed in terms of money, payable to an employee in respect of work done or to be done, subject to certain exclusions.”

What is Hong Kong minimum wage?

Currently, the Hong Kong minimum wage is HK$40 per hour. This statutory minimum wage took effect on 1 May 2023, and applies to all types of employment contracts, such as full-time, part-time, contractual, casual, daily, and piece-rate work, without regional variations.

To calculate the total Hong Kong minimum wage, multiply the hourly rate (HK$40) by the total number of hours worked during the wage period.

Aside from this, it is important to keep track of employee work hours for payroll and labor law compliance purposes. Regarding the maximum monthly amount for employers to record the total number of hours worked by employees, this stands at HK$16,300.

Read next: Understanding The Payroll System Hong Kong Runs On

What happens if an employee’s wage is less than Hong Kong minimum wage?

The Employment Ordinance classifies this as a breach of wage provisions.

If an employer intentionally fails, without a valid reason, to pay their employees at least the minimum wage in Hong Kong, they may face prosecution.

In cases where a conviction is reached, you could be subject to a fine or imprisonment for failing to comply with the Hong Kong minimum wage requirements.

Penalties for Paying Below Hong Kong Minimum Wage

Those convicted of paying below the Hong Kong minimum wage could face a fine of up to HK$350,000 and imprisonment for a term of up to three years.

This penalty applies not only to employers but also to any managers, directors, secretaries, or other individuals in similar decision-making roles who are complicit, contribute, or neglect to ensure that employees are paid at least the Hong Kong minimum wage.

This penalty applies to employers and any consenting, contributing, or neglectful managers, directors, secretaries, or similar decision-makers who play a part in issuing salaries below the minimum wage in Hong Kong.

Who is protected under the Statutory Minimum Wage (SMW) Regime?

The Hong Kong minimum wage applies to all employees, employers, and their employment contracts, encompassing both manual and non-manual work, irrespective of age, nationality, and occupation.

Under employment contracts

The statutory Hong Kong minimum wage is relevant to full-time, part-time, and casual employment, including apprenticeships, unless the apprentices have undergone a productivity assessment that sets a different minimum wage fitting to their productivity level.

People with disabilities are also covered by the Hong Kong minimum wage regulations. However, they have the option to undergo a productivity assessment to determine if they should receive the Hong Kong minimum wage or a lower rate commensurate with their productivity.

Student interns and work experience students

Regarding student interns and work experience students, the Hong Kong minimum wage ordinance generally applies to them. However, there are exceptions for certain student interns and work experience students during an exempt student employment period.

To qualify for exemptions, students must be enrolled in specific education programs specified under the Minimum Wage Ordinance. They must be student employees registered in full-time education programs for non-local academic qualifications at degree level or higher, or in full-time accredited programs provided by local education institutions, as listed in the Ordinance.

Moving on to interns, they’re exempt from the Hong Kong minimum wage requirements if their education institutions have arranged or endorsed their internships and if these internships are a compulsory or elective part of their programs. It is important to note that age and the duration of the internship are not relevant in this context.

Similarly, work experience students are not required to be paid the Hong Kong minimum wage under certain conditions. They must be enrolled in the same education programs as student interns (as mentioned above). Their internships do not have to be curriculum-related or arranged or endorsed by the education institutions.

Unlike student interns, age and work experience duration of work experience matter for work experience students. They must be under the age of 26 at the start of their employment.

Employers can mutually agree with a student employee to designate 59 consecutive days as an exempt student employment period. In such cases, the student employee must make a statutory declaration confirming this agreement and provide the original form or a copy of it to the employer.

It’s important to note that a student employee can only commence one exempt student employment period per year, even if they work for different employers.

Self-employed individuals, volunteers and others

When it comes to exemptions, self-employed individuals and volunteers are not covered by the Hong Kong minimum wage regulations.

If you operate a family business and employ a relative, you are allowed to pay them below the Hong Kong minimum wage. This also applies to live-in domestic workers. Additionally, specific jobs, such as those of seafarers, aviation workers, and public officers, are subject to unique regulations concerning the minimum wage in Hong Kong.

Learn more: Your Guide to Managing Payroll Hong Kong

Factors Affecting the Statutory Hong Kong Minimum Wage

Understanding the factors that influence the government’s decision on the Hong Kong minimum wage transforms it from a random number to a well-considered and computed rate. This understanding is crucial, especially when managing the cost of recruitment and processing payroll.

General Economic Factors

Consider the needed resources for economic growth, productivity levels, employment demand, prices, cost of living, investment, and competitiveness. But how do these economic factors play into the Hong Kong minimum wage?

The International Labor Organization (ILO) captured it succinctly when it stated, “If the minimum wage is set too high or increased too much, this may have unexpectedly large impacts on the labor costs that employers must pay. This, in turn, could trigger price inflation, hurt exports, and reduce the level of employment.”

Conversely, if wages are too low, many households in Hong Kong may struggle to sustain themselves.

Labor Market Conditions

To determine the minimum wage, decision-makers must evaluate labor market conditions, such as the cost, demand, and supply of employment. They key question is: Is the labor market competitive?

In a competitive market, offering wages that are competitive (according to the market standards) is essential to retaining a strong workforce. If wages are too low, employees may be disengaged and leading to high attrition rates, while paying excessively high wages can lead to revenue loss and potential market exit.

Therefore, policymakers must be careful when considering an increase in the Hong Kong minimum wage, as it could result in loss of employment. Employers may struggle to meet the increased wage demands, leading to reduced demand for labor and a surplus of willing workers.

Conversely, in a non-competitive labor market, wage adjustments can be made more flexibly without the risk of job losses or business closures. This allows governments to raise the Hong Kong minimum wage without adversely affecting employment levels.

The Hong Kong minimum wage should help contain issues of labor market inequality and poverty and empower you to abide by social employment policies.

With a set hourly rate that businesses can’t go below, decision-makers provide vulnerable workers with a degree of protection against exploitation, including women, immigrants, youth, and people of color (regardless of their employment agreement).

Read next: How to Eliminate Gender Discrimination in the Workplace

Additionally, exemptions from the minimum wage in Hong Kong contribute to social inclusion. Consider this: individuals with disabilities, depending on the nature of their disability, may face challenges in being as productive as necessary for a business to profit from their employment. This situation can make them particularly vulnerable to being replaced and experiencing hiring biases.

However, a lower Hong Kong minimum wage would enable these individuals to find employment suitable for their productivity levels, while also enabling businesses to safeguard their revenue and promote workforce diversity. The same principle applies to other groups with limited availability for work, such as student interns mentioned above.

Public and Stakeholder Views

Stakeholder and public opinions matter in determining Hong Kong minimum wage, which explains why many individuals choose to voice their opinions on the matter. Their livelihoods are directly impacted by it.

For shareholders, investors, and suppliers, the Hong Kong minimum wage represents a compulsory expense that reduces business revenue. They expect a certain return on their investment. Otherwise, many may opt to leave the market, reallocating their funds elsewhere and potentially harming the Hong Kong economy.

However, decision-makers must also consider employee perspectives since the minimum wage issue in Hong Kong directly affects employees, influencing their quality of life.

Additionally, customers rely on services and goods that are within their purchasing power. If salaries are excessively high or low, it could price them out of the market entirely. Furthermore, human rights organizations and social services advocate for improved living conditions.

Many activists and community workers expressed outrage over the modest 32-cent increase in the Hong Kong minimum wage in 2023. They viewed it as insufficient for one of the most expensive cities in the world. Does this mean we can anticipate a significantly higher minimum wage in Hong Kong next year? Only time will tell.

Leveraging Omni to Ensure Compliance with Hong Kong Minimum Wage

Understanding and managing Hong Kong minimum wage requires careful attention and accuracy to ensure compliance. That’s why it’s important to pick the right HR tool and strategy to make the whole process less overwhelming.

Omni’s suite of features makes the requirements for running a compliant and efficient payroll system in Hong Kong easy. With secure and centralized employee records, HR teams can swiftly access employment contracts and essential documents that support payroll practices. Our time and attendance features empower teams to automate data and produce accurate reports in minutes. And with payroll solutions that support Hong Kong currency and pay schedules, Omni offers an entire suite of solutions to make your payroll system Hong Kong seamless.

Manage more than one company? Omni helps you establish a dedicated payroll admin for each company, who have the power to enroll employees, manage company settings and easily process your payroll.

Book a demo with our team, or try out Omni for a free 14-day trial to learn how our automation can help you remain compliant and reduce your administrative workload for all of your People management needs.

Effective goal-setting (and goal follow through) are foundational for the success of every organization. That’s where Objectives and Key Results (OKRs) come in—they’re a relatively new tactic to set and achieve goals, with transparency and effective measurement.

But they’re not just useful for Sales and creative departments. OKRs for HR professionals can help transform your Human Resources team from a purely administrative department into a serious strategic partner.

Here’s what you need to know about OKRs, how to implement them for your HR team, and the impact they can have on your organization:

What are OKRs for HR?

We’ve written about OKRs a few times before, and for good reason. Originally popularized by Intel and later adopted by companies like Google, OKRs provide one of the most effective frameworks for defining and tracking objectives and their outcomes.

For HR professionals, OKRs offer a structured approach to aligning day-to-day HR initiatives with top-down organizational goals so that they ultimately work together towards strategic success. Unlike older styles of performance metrics, OKRs put extra emphasis on transparency, alignment, and accountability, helping you and your HR team focus on short and long term priorities while accurately measuring their impact on business success.

OKRs can encompass a wide range of HR objectives, from talent acquisition and employee engagement to diversity and inclusion initiatives. They provide HR professionals with a clear roadmap for improving key areas of the employee lifecycle and driving organizational growth. By setting ambitious yet achievable objectives and tracking progress with measurable key results, your team can drive continuous improvement and show just how valuable HR can be as a strategic partner to leadership.

How are OKRs for HR Used By Organizations?

OKRs for HR serve as a powerful tool for aligning human resources initiatives with broader business objectives and driving strategic outcomes. Here’s how they are typically used:

Alignment with organizational goals: OKRs for HR should be aligned with the overall strategic objectives of your organization. By setting HR goals that directly contribute to the company’s mission, vision, and company values, your HR team can ensure that their efforts are focused on activities that drive business success—and that this contribution can be measured.

Setting priorities: OKRs help HR teams prioritize their initiatives and allocate resources effectively. By identifying key areas of focus and setting clear objectives, you can ensure that your efforts are directed towards the activities that have the greatest positive impact.

Measuring performance: OKRs provide a framework for measuring the success of HR initiatives and tracking progress over time. By defining specific key results that clearly indicate your progress towards the strategic goals you’ve set, your team can monitor its performance and make data-driven decisions to update and modify its strategy as needed.

Driving accountability: With OKRs for HR, you can create a culture of accountability within your team. By assigning ownership of specific objectives and key results to individuals or smaller teams, you can make sure that everyone is responsible for contributing to the achievement of the main goals at your organization.

Continuous improvement: OKRs promote a culture of continuous improvement within the HR function. By regularly reviewing progress against objectives and key results, HR teams can identify areas for optimization and adjust their strategies accordingly to drive better outcomes.

By leveraging OKRs effectively, your HR department can optimize their efforts and work in the most effective, efficient, and transparent way to high-level organizational goals.

Benefits of Setting OKRs

Setting OKRs for HR allows you to enhance the effectiveness of your projects, advance day-to-day priorities all while driving meaningful impact within your organization. Here are some key benefits:

HR Professionals

Strategic alignment: As mentioned above, OKRs align HR initiatives with broader organizational goals and strategic objectives. By setting HR-specific objectives that directly contribute to your company’s mission and vision, you and your HR team can ensure that your efforts are perfectly in step with the overall direction of the business. Not only that, demonstrating this alignment and transparently working towards holistic goals gives your HR team an important seat at the strategy-making table.

Improved focus and clarity: OKRs for HR provide you with clear priorities and objectives, helping you focus your efforts on activities that have the greatest impact. By defining specific objectives and key results, your HR team can gain clarity on what needs to be achieved first and foremost, and can direct their resources towards achieving those goals before adding additional tasks or priorities onto their plate.

Data-driven decision making: OKRs promote data-driven decision-making within the HR function. By setting measurable key results that indicate progress towards objectives, HR professionals can track performance, analyze trends, and make informed decisions based on objective data rather than subjective opinions.

Enhanced communication and collaboration: You can facilitate better communication and collaboration among your team and across departments with OKRs for HR. By aligning objectives with teams from across your organization and sharing key results transparently, you can create a culture of collaboration, making sure everyone is working towards common goals and objectives.

Increased motivation and engagement: Setting OKRs can increase employee motivation and engagement for you and your team by offering clear goals and objectives to work towards. When people understand how their work contributes to the organization’s success and see their progress towards achieving their goals, they are more motivated and engaged in their work.

The Organization

OKRs for HR aren’t just good for human resources—effectively implemented, their downstream effects will be a boost to any organization’s bottom line. This includes:

Improved employee performance: By setting clear objectives and key results aligned with organizational goals, OKRs for HR help improve employee performance. When your HR team understands what is expected of them and how their work contributes to overall success, they are more motivated to perform at their best.

Learn more: A Guide to Mastering Performance Management

Enhanced talent acquisition: Organizations with well-defined OKRs and foster a culture of goal-setting are more attractive to top talent. A defined vision and purpose make it easier to attract and hire the best candidates.

Reduced talent costs: Effective OKRs for HR can lead to reduced turnover in the department and increased employee retention. When employees are engaged, motivated, and aligned with organizational goals, they are less likely to leave the company, reducing cost of recruitment, onboarding process, and training new employees, and maintaining an unbroken chain of organizational and personnel knowledge in your HR department.

Stronger employer brand: Organizations that set and achieve meaningful OKRs are seen as more successful and desirable places to work. A strong track record of goal achievement can enhance your organization’s reputation as an employer of choice, leading to increased interest from potential candidates and improved employer branding.

Increased profitability: Ultimately, the successful implementation of OKRs should drive increased profitability for your organization. By aligning HR efforts with strategic objectives, your organization can improve efficiency, productivity, and performance, leading to higher revenues and a better bottom line.

HR OKR Examples

Now that we’ve made it clear what OKRs for HR means and why they’re important for HR professionals and the organization, it’s time to dive into exactly what those OKRs might look like. Here are a few examples of what how an OKR might look at your organization:

For company culture

Objective: Foster a positive and inclusive company culture.

Key Results:

Increase employee satisfaction scores by 10% in the annual engagement survey.
Launch three company-wide culture initiatives focused on diversity, equity, and inclusion.
Achieve a Glassdoor rating of 4.5 stars or higher based on employee reviews.

For employee engagement

Objective: Improve employee engagement and morale.

Key Results:

Increase employee participation in company-sponsored events by 20%.
Implement regular pulse surveys to measure employee satisfaction and engagement, with a target score of 80%.
Reduce employee turnover rate by 15% compared to the previous year.

For recruitment

Objective: Attract and hire top talent efficiently.

Key Results:

Decrease time-to-hire for key positions by 20%.
Increase the diversity of the candidate pool by implementing targeted recruitment strategies.
Achieve a candidate satisfaction rating of 4 out of 5 based on post-interview feedback.

For employee retention

Objective: Improve employee retention rates.

Key Results:

Reduce voluntary turnover rate by 10% within the next six months.
Implement retention initiatives such as career development programs and mentorship opportunities.
Conduct exit interviews with departing employees to identify trends and areas for improvement.

For employee wellness

Objective: Promote employee health and well-being.

Key Results:

Increase participation in wellness programs by 25%.
Reduce absenteeism rates by 15% through wellness initiatives and incentives.
Implement flexible work arrangements to support work-life balance.

For performance management

Objective: Enhance performance management processes.

Key Results:

Implement a new performance management system and train managers on its use.
Increase the frequency of performance feedback sessions to bi-monthly for all employees.
Improve the completion rate of performance evaluations to 100%.

For training and development

Objective: Invest in employee growth and development.

Key Results:

Increase participation in training programs by 30%.
Develop individualized development plans for all employees based on their career goals and aspirations.
Achieve a 90% satisfaction rate among employees who participate in training and development activities.

For ensuring compliance

Objective: Ensure compliance with relevant labor laws and regulations.

Key Results:

Conduct regular audits to ensure HR policies and practices align with legal requirements.
Provide ongoing training to HR staff and managers on compliance-related topics.
Achieve a 100% compliance rate with all labor laws and regulations.

Grow Your HR Team with Omni

OKRs offer a powerful framework for HR to align employee goals with organizational objectives, increasing employee performance and engagement. OKR software can streamline the process, making it easier for HR to set, track, and manage objectives, fostering a culture of transparency and accountability.

Omni’s performance management system powers your business with access to reports and analytics that provide valuable insights for measuring key results. Easily set, track, and measure OKRs across your teams within one, intuitive dashboard.

To learn more about how Omni can help you unlock your business’ potential, schedule a demo with our team today.

Read next: OKR Software Comparison Guide 2024

A Gallup survey found that when it comes to enforcing change in the workplace, 41% of respondents want to improve engagement or culture at work, 28% are focused on pay and benefits, and 16% prioritize wellbeing. This comes as global employee engagement has reached a record high of 23% globally.

Employees are still keen on improving the engagement and culture in the organization. That’s where monitoring employee engagement and satisfaction levels becomes instrumental. The eNPS score serves as a metric to gauge these levels, allowing organizations to take relevant steps before the situations worsen and lead to employee turnover.

Employee stress levels are also at an all-time high, which is concerning. As much as employees might love their jobs and the culture, excessive stress and employee burnout can diminish their likelihood of recommending the organization as a great place to work. To help you keep these areas in check, here’s a guide to calculating eNPS and using it to make your organization a place employees want to vouch for.

What is an Employee Net Promoter Score?

The Employee Net Promoter Score (eNPS) is a crucial metric for organizations to monitor the satisfaction and engagement level of employees. It goes beyond mere employee satisfaction surveys by focusing on whether employees would actively advocate for their company, recommending it to their acquaintances, friends, family, or even strangers inquiring online. The score reflects on employees’ underlying sentiments and loyalty towards their organization.

One of the most critical advantages of eNPS lies in its ability to serve as an early warning system. Early identification of a low eNPS score can help you address underlying issues proactively before they escalate. Such quick measures towards these issues retain employees and mitigate potential risks to the company’s reputation and productivity.

How To Calculate eNPS?

To calculate eNPS, you need employees to openly and honestly answer one crucial question—“On a scale of 0-10, how likely are you to recommend this company to your friends, family, or people you know?”

Based on the responses, you divide employees into three categories:

Promoters(9-10): enthusiastic about your brand, employees readily recommend your company.

Passives(7-8): content with the company but may not actively endorse it.
Detractors(0-6): unhappy with the company and may spread negative word-of-mouth.

While promoters would go above and beyond to get top talent in the organization, it’s the detractors we need to keep in check. Once you categorize employees, calculate the eNPS score using the following formula:

eNPS: (percentage of promoters) – (percentage of detractors)

The eNPS score can be anywhere between +100 to -100.

Let’s say you are surveying 300 employees. Prepare the survey around a key question: the likelihood of recommending the organization. Include an open-ended question to gather qualitative feedback on the reasons behind employees’ likelihood or reluctance.

Out of 300 respondents:

Promoters: 150 or 50%

Passives: 100 or 33.33%
Detractors: 50 or 16.67%

eNPS = 50% (percentage of promoters) – 16.67% (percentage of detractors) = 33.33

In this example, the eNPS score is +33.33, indicating a positive sentiment among employees.

How to Interpret eNPS Results?

Once you’ve calculated your eNPS score, it’s time to interpret the results and create an actionable strategy to tackle dissatisfied employees. Here’s how:

1. Calculate the score

Calculate the eNPS score by subtracting the percentage of detractors (those rated 0-6) from the percentage of promoters (those rated 9-10) in the survey responses. For example, if 30% of respondents are promoters and 15% are detractors, the eNPS score would be 30-15 = 15.

Instead of calculating eNPS for the entire organization, you can calculate it for specific departments or teams within the company. For instance, your tech department has an eNPS of +50, indicating high employee satisfaction and loyalty.

At the same time, the marketing department has an eNPS of -20, demanding immediate improvements. This approach will lead to targeted interventions and a better understanding of the employee sentiments in different departments.

2. Understanding the range

As mentioned earlier, eNPS scores can range from -100 to +100, with positive scores indicating a higher proportion of promoters relative to detractors and negative scores suggesting the opposite. A score above 0 is generally considered positive, while a score below 0 indicates more dissatisfied employees.

An eNPS score ranging from 10-30 is considered satisfactory. Scores exceeding +50 are typically regarded as excellent, indicating that employees are thriving under the current work setup and practices. Conversely, if the score falls to -50 or below, it is a cause for concern and suggests significant organizational issues.

eNPS score range:

Below Zero: alarming; more dissatisfied employees

0: neutral

10 to 30: satisfactory

Above 50: excellent; employees thriving

3. Analyze responses

eNPS scores are often interpreted alongside qualitative feedback provided by respondents to understand the strengths and underlying issues. Analyzing this feedback involves identifying common themes or patterns in the responses, such as references to leadership, work environment, communication, or career development.

4. Creating benchmarks

Analyzing responses is crucial for understanding the current situation. To establish benchmarks, compare your organization’s eNPS score to industry averages or competitors’ scores.

Perceptyx benchmark research, based on data from over 15 million employees in global organizations, shows that the global eNPS benchmark increased from 13.8 in 2021 to 14.9 in 2022. The current average eNPS score across all companies measuring eNPS is 14. Here’s an industry-wise breakdown to assist you in benchmark setting.

Industry: eNPS score

Professional Services: 28

Healthcare: 23

Manufacturing: 17

Retail trade: -1

Finance and insurance: 22

Omni Tip on eNPS score:
Conduct your own research and benchmark against organizations of similar size and type to get meaningful comparisons and deeper insights into typical eNPS ranges within your industry!

5. Taking action

Once you have analyzed the data and established benchmarks, develop actionable strategies to address identified issues. Prioritize these issues based on their severity and impact, focusing on high-priority areas with the greatest potential to positively impact employee satisfaction in the short term.

For example, if employees are highly dissatisfied with current leadership tactics, prioritize conducting leadership development programs or coaching sessions to improve managerial skills.

Similarly, if collaboration appears to be a problem, create opportunities for employees to interact outside of their immediate work teams. The goal is to take action to improve the situation before it escalates.

Why Should HR Leaders Advocate for eNPS?

A Gartner survey found that over 75% of employees now value manager support even more, even as managers tackle 51% more responsibilities than they can handle. This shows the need for HR leaders and managers to proactively demonstrate care for employees’ expectations, growth, and well-being. Here are additional reasons why advocating for eNPS is essential:

Obtain data-driven insights

eNPS offers HR leaders with data-driven insights into employee engagement, satisfaction, and sentiment. For instance, if many employees rate the company poorly on work-life balance, HR can investigate further to uncover underlying issues, such as heavy workloads or inflexible scheduling. It’s crucial to note that survey results are just the beginning of a deeper exploration into the root causes of employee dissatisfaction.

Improve employee engagement

Analyzing eNPS surveys can reveal varying levels of engagement among different departments or teams. For instance, HR leaders may find that the marketing team has lower eNPS scores compared to the sales team. This insight allows HR to develop personalized engagement strategies tailored to each department’s unique needs. For example, they might organize team-building activities for the marketing team to enhance collaboration and morale.

Additionally, if employees feel undervalued or unappreciated, HR can implement rewards and recognition programs. To illustrate, a peer-to-peer recognition program where employees nominate their colleagues for recognition. This approach helps HR identify ways to provide employees with what they need to feel more engaged and satisfied in the organization.

Want to take your employee engagement initiatives to the next level?

Download our HR Calendar 2024 for inspiration!

Reduce employee turnover

A report found that nearly six in ten employees are psychologically disengaged from work, showing up but feeling clueless and disconnected. These employees are essentially “quiet quitting”, often leaving organizations due to a perceived lack of growth opportunities.

High attrition rates result in additional costs for recruitment, onboarding, and lost productivity. eNPS surveys can assist HR leaders in identifying reasons for turnover, such as dissatisfaction with leadership, limited growth prospects, or poor work-life balance. Proactively addressing these issues can help retain top talent and reduce turnover rates, saving valuable time and resources for other organizational aspects.

Strengthen company culture

eNPS surveys highlight the strengths and weaknesses of the company culture. Positive feedback about the collaborative environment indicates a strength, while concerns about diversity and inclusion point to a weakness.

These surveys also help HR leaders gauge if the company lives up to its company values. For example, if the organization promotes integrity and innovation, eNPS feedback reveals if employees perceive these values in daily operations. If there’s a disconnect between words and actions, HR can bridge the gap and reinforce the desired cultural norms.

Relevant reads: Strategies and Tools for Defining Culture in the Workplace

Continuous improvement

eNPS surveys are conducted periodically to track trends in employee engagement and satisfaction. For example, if the initial survey shows a low score in career development opportunities, you can introduce training programs to address this.

Subsequent surveys help track the impact of these programs, highlighting whether satisfaction in this area has been improved. This allows HR to identify areas of progress and those needing further attention.

How can eNPS Increase Employee Engagement?

eNPS scores highlight factors that hinder employee engagement. Understanding these dissatisfactions and disengagements enables you to take necessary actions to improve the situation.

Identify areas of improvement

eNPS surveys allow employees to share feedback anonymously. By gathering feedback alongside the score, organizations can identify patterns and areas of improvement. For example, if the survey consistently identifies unrealistic deadlines and overwork, changes are necessary. Implementing mental health days at work and launching initiatives like fitness classes and meditation sessions can help address these issues.

Encourage ownership and participation

eNPs surveys demonstrate that the organization values employees’ opinions and experiences, fostering a sense of participation and ownership. Employees recognize that their input can drive improvements, empowering them to actively find solutions to identified problems.

To illustrate, in a company with many remote employees, workers may feel overwhelmed by constant check-ins and meetings. They may prefer an asynchronous work environment. Through eNPS surveys, they can raise such issues and actively participate in bringing about the desired change.

Invest in employee-wellbeing

eNPS scores indicate where organizations should invest to address employee well-being challenges like high stress, burnout, or work-life balance issues. Initiates like wellness programs, flexible work hours, and mental health resources demonstrate a commitment to meeting employees’ needs. In Singapore, various mental-well being programs are available to improve workplace mental health.

Focus on building a positive work culture

eNPS survey responses, especially the qualitative feedback, can reveal employees’ sentiments towards the company culture. Positive feedback indicates a supportive culture where employees feel valued. Negative feedback may indicate toxicity, such as gender discrimination in the workplace or a lack of psychological safety.

The ratio of promoters to detractors in eNPS scores also provide clarity on company culture. A high number of promoters indicates an excellent culture, while a predominance of detractors suggests a need to define and improve the company culture.

Read next: 5 Inspiring Company Culture Examples for Building a Great Workplace

Transform Employee Experiences with Omni

eNPS scores offer valuable insights for HR leaders to gauge employee engagement, satisfaction, and overall sentiment towards the organization. The insights gathered from surveys can help identify areas of strength and weakness in the company’s culture and work environment. However, to truly harness the power of eNPS data, HR tools like Omni are the perfect tool.

Omni offers real-time graphs and easily exportable reports, streamlining employee analytics and reducing calculation times and errors. This equips you with the necessary data to understand the trends within your organization. These tools empower HR teams to monitor trends over time, compare results across various departments, and proactively identify areas for improvement.

By leveraging Omni’s powerful automation alongside eNPS surveys, organizations can create a more engaged and productive work environment, leading to improved employee retention and overall business success.

Book a demo with our team today to learn more!

What and when is International Women’s Day?

International Women’s Day is a global observance held annually on 8 March. It celebrates the achievements of women in social, economic, cultural and political spheres.

Each year, International Women’s Day has a specific theme, the theme for 2024 is “Inspire Inclusion: Empowering Changemakers”. It focuses on individuals and organizations working to foster a more inclusive world for women and girls.

International Women’s Day serves as a significant event to raise awareness about gender equality and the challenges faced by women worldwide. It provides a platform to celebrate women’s achievements in various fields and amplify their voices. The day also hopes to inspire action towards creating a more just and equitable world for everyone.

What and when is Women’s History Month?

Formally recognized by US Congress in 1987, Women’s History Month has evolved into a commemoration of the diverse contributions and accomplishments of women across history. It highlights their significant roles in shaping societies, cultures, and economies worldwide.

Women’s History Month seeks to recognize the contributions of women that have often been excluded or marginalized in historical narratives. It also aims to raise awareness about the ongoing struggle for gender equality and to inspire future generations of girls and young women to pursue their dreams and achieve their full potential.

Reasons to Celebrate International Women’s Day at Work

how to celebrate International Women’s Day at work

Celebrating International Women’s Day at work holds significant importance for several reasons. It offers a dedicated opportunity to recognize and celebrate the achievements of women within your organization, fostering a sense of inclusion and inspiring others to strive for excellence.

Additionally, observing International Women’s Day demonstrates the organization’s commitment to gender equality, creating a welcoming environment attractive to talent who value diversity and inclusion. It helps raise awareness about unconscious biases and initiates conversations on creating a more equitable workplace. Furthermore, celebrating International Women’s Day can enhance employee engagement, morale and team cohesion while bolstering the organization’s public image and brand reputation.

In need of inspiration to boost employee engagement?

Download our 2024 HR Calendar for ideas!

Ways to Celebrate International Women’s Day at Work

Now that we’ve covered the fundamentals of International Women’s Day and its significance in the workplace, let’s dive into how to celebrate International Women’s Day at work.

1. Highlight achievements

To kick off our list on how to celebrate International Women’s Day at work, consider dedicating a physical or virtual space in the office to showcase ongoing projects, initiatives, and achievements led by women in the organization.

Recognizing women’s contribution in areas like leadership, innovation, and mentorship is crucial, and this can be effectively achieved through an awards ceremony.

Omni Tip on how to celebrate International Women’s Day at work:
Be sure to showcase success stories and accomplishments from various departments to underscore the diverse impact of women within your organization!

Read next: 12 Employee Recognition Examples to Keep Your Team Engaged All Year

2. Host professional networking events

Organizing internal or external networking events is a fantastic option on how to celebrate International Women’s Day at work. These events offer women from different levels and departments the opportunity to foster collaboration and share knowledge. Inviting female mentors and role models can provide younger employees with valuable insights and connections.

Additionally, consider offering sessions on topics such as career development, negotiation skills, or confidence building to empower women in the workplace.

3. Invite a guest speaker

To further enrich International Women’s Day celebrations at work, organizing panel discussions featuring diverse voices can shed light on the challenges and opportunities for women in your industry, fostering a deeper understanding of current issues. Consider inviting guest speakers to address relevant topics such as gender equality, unconscious bias, or women in leadership. These speakers can offer valuable insights and inspire meaningful conversations among employees.

Omni Tip on how to celebrate International Women’s Day at work:
How about hosting a film screening for International Women’s Day? Pick films that resonate with the theme, and then chat about them afterward. Choose films with subtitles or in multiple languages for everyone to enjoy!

4. Women’s history trivia

Next up on how to celebrate International Women’s Day at work is hosting a women’s history trivia challenge. This fun and engaging activity not only raises awareness about the remarkable achievements and contributions of women across history but also promotes a positive company culture that values diversity and inclusivity.

By celebrating the legacy of women who have shaped our society, this trivia challenge encourages participants to learn more about inspiring individuals and deepen their understanding and appreciation of gender equality and women’s empowerment.

5. Create an inspiration wall

Creating an inspiration wall to celebrate International Women’s Day is a fantastic way to honor the achievements and contributions of women. The aim of the inspiration wall is not only to celebrate the success of women but also serve as a source of inspiration for others.

Encourage employees to share their favorite inspirational quotes, their own stories or share how they have been inspired by women in their lives. This activity can foster a sense of community and empowerment among employees, encouraging them to support and uplift one another.

6. Host a book club

An enlightening way on how to celebrate International Women’s Day at work is to host a book club. Choosing books written by female authors or focusing on themes related to women’s experiences, achievements and challenges can spark meaningful conversations among employees. It also provides an opportunity for readers to broaden their perspectives, empathize with different cultures, and appreciate diverse voices.

Additionally, a book club can promote a culture of continuous learning and inclusivity within the organization, creating a supportive and positive environment for all employees.

7. Donate to charity

Donating to charity is an impactful way to celebrate International Women’s Day and support causes that support women and girls globally. Some notable organizations include World Association of Girl Guides & Girl Scouts (WAGGGS), Room to Read, AWARE SG and The Asia Foundation.

By contributing to movements that focus on issues such as gender equality, education, healthcare, and economic empowerment for women, employees can make a positive impact on the lives of women in need.

8. Provide learning and development initiatives

Another powerful way on how to celebrate International Women’s Day at work is to invest in learning and development initiatives tailored to address skill gaps among women.

By offering training programs and workshops focused on leadership, technical skills, and personal development, organizations can empower women to advance their careers and bridge the gender gap. These initiatives benefit both individual employees and the organization by fostering a more diverse and inclusive workplace culture.

9. Examine pay parity

Examining pay parity is an impactful way to celebrate International Women’s Day at work. By analyzing and taking concrete actions to address any gender pay gaps, it demonstrates the organization’s commitment to gender equality and fair compensation practices.

This process involves evaluating salary structures, promotion practices, and bonus allocations to ensure that women are not disadvantaged. By sharing the findings and taking correct actions, it not only promotes fairness but also boosts employee trust and morale.

Read next: How to Eliminate Gender Discrimination in the Workplace

10. Promote work-life balance

Last but definitely not the least on our list on how to celebrate International Women’s Day at work is to promote work-life balance. By implementing flexible work arrangements, providing childcare support, and offering resources for mental health and wellness, organizations can empower women to achieve a better balance between their professional and personal lives, reducing the risk of employee burnout.

Recognizing the importance of work-life balance not only benefits women but also contributes to a more inclusive and supportive workplace environment for employees. It highlights the commitment to gender equality and acknowledges the diverse responsibilities and priorities that women often juggle. Ultimately, promoting work-life balance in the workplace can lead to increased job satisfaction, productivity, overall well-being and reduced attrition rates among employees.

Leveraging HRIS to Champion Women at Work

Celebrating International Women’s Day in the workplace is not just about recognizing women’s achievements and impacts, but also about promoting gender equality and diversity. By referencing our list on how to celebrate International Women’s Day at work, organizations can create a more inclusive and supportive work environment where women can thrive.

HRIS like Omni can play a crucial role in bridging the gap by providing tools for tracking gender diversity metrics, identifying areas for improvement, and implementing policies that promote work-life balance and gender equality.

Omni’s streamlined leave management module allows easy administration of inclusive leave policies and benefits administration, supporting parental leave, managing L&D benefits, and administering wellness stipends to help promote work-life balance and tools to uplift the women within your organization.

Our comprehensive payroll solution provides impactful insights to seamlessly review, address, and prevent pay parity issues. Advanced performance management modules provide real-time performance data, helping HR teams swiftly identify and address skill gaps, so you can provide your teams with the training and tools they need to help boost overall performance and nurture talent.

Creating a healthy, supportive and positive work environment not only enhances workplace experience but also enables employees to realize their full potential and stay engaged. This approach enhances your company’s competitiveness in today’s ever-changing market conditions. Omni’s scalable, all-in-one employee management software can help your business automate and streamline the most complex administrative HR functions so you can consistently build high-performing, diverse, and inclusive teams.

Start your free trial!

Join the 83% of Omni customers who have unlocked new, actionable insights after using our modern HR solution, book a demo with our team today.

Filing your Income Tax Return (ITR) Philippines is crucial for responsible financial management, but it can also seem daunting. This guide simplifies the process and equips individuals and businesses with the knowledge and tools to navigate how to compute ITR Philippines effectively.

Who is Required to File for ITR?

Individuals and entities engaged in income-generating activities are required to compute ITR Philippines. This includes employees, self-employed individuals, corporations, partnerships, and other entities earning income within the country.

According to the Bureau of Internal Revenue (BIR), you are mandated to file income tax return, if it meets the following criteria:

Resident citizens engaged in trade, business, or practice of profession within and without the Philippines.
Non-resident citizens who have income from sources within the Philippines.
Resident aliens who have income from sources within the Philippines.
Non-resident aliens engaged in trade or business in the Philippines.
Estates and trusts engaged in trade or business in the Philippines.
Corporations, partnerships, and other juridical entities registered with the Securities and Exchange Commission (SEC) and doing business in the Philippines.
Cooperatives registered with the Cooperative Development Authority (CDA) and doing business in the Philippines.

Common Jobs in the Philippines

The Philippines boasts a diverse workforce, with individuals employed in various sectors contributing to the nation’s economy. Understanding the landscape of common jobs is crucial in the context of ITR Philippines filing, as it helps identify who might be required to participate in this process.

While specific income thresholds determine the mandatory filing of ITRs in the Philippines, individuals earning above the minimum wage in various occupations are generally obligated to file their tax returns. Here are some examples of common jobs in the Philippines that fall under this category:

Agriculture

The Philippines is an agricultural country, with about 30% of the land area devoted to farming. The major crops are rice, corn, coconut, sugarcane, banana, pineapple, and mango. Agriculture employs about 24% of the labor force and contributes about 8.6% of the GDP.

Construction

The construction industry is one of the fastest-growing sectors in the Philippines, thanks to the government’s infrastructure program and the increasing demand for housing and commercial spaces. Construction employs about 8% of the labor force and contributes about 7.2% of the GDP.

Housework

Many Filipinos work as domestic helpers, either locally or abroad. Housework involves tasks such as cleaning, cooking, laundry, childcare, and elderly care. Housework employs about 4% of the labor force and contributes about 1.9% of the GDP.

Transportation

The transportation sector is vital for the movement of people and goods across the country. The common modes of transportation are jeepneys, buses, tricycles, taxis, trains, and airplanes. Transportation contributes about 3.6% of the GDP and this sector alone has a total of 209,919 workers.

BPO

Business process outsourcing (BPO) is the practice of contracting non-core business functions to a third-party provider. The Philippines is one of the leading BPO destinations in the world, offering services such as call centers, data entry, accounting, human resources, and information technology. In 2022, the Philippines IT-BPO industry emerged as the country’s leading employer, boasting over 1.44 million full-time employees and contributing about 6.3% of the GDP.

What is the Minimum Wage in the Philippines?

According to the Department of Labour and Employment, the national minimum wage in the Philippines is ₱610 per day. However, the salaries of Filipino workers vary according to their region, and sector. For instance, Metro Manila has the highest minimum wage, at ₱505.23 per day. Rural locations usually have the lowest salary ranges.

How to Compute Income Tax Return Philippines

When it comes to computing ITR Philippines, understanding the process is important. From determining your taxable income to applying deductions and credits, each step plays a vital role. Here is the breakdown of the key elements involved in calculating your ITR Philippines:

Gather documents

The first step to compute ITR Philippines is to gather all the necessary documents that will serve as the basis of your income and deductions. These documents include:

Income documents: These are the documents that show how much income you earned in a given year, such as the BIR Form 2316 (Certificate of Compensation Payment/Tax Withheld), payslips, bank statements, invoices, receipts, etc.

Deduction documents: These are the documents that show how much expenses you incurred in relation to your income, such as BIR Form 2307 (Certificate of Creditable Tax Withheld at Source), official receipts, and vouchers.

Proof of tax payments: These are the documents that show how much taxes you already paid or withheld in a given year.

You should keep these documents organized and accessible, as you will need them to fill out the appropriate ITR Philippines forms and to support your tax declarations in case of an audit.

Determine your taxable income

The next step on how to compute income tax return Philippines is to determine your taxable income, which is the amount of your gross income used to calculate how much tax you owe in a given year.

(Tax Income = Gross income – allowable itemized or standard deductibles)

To determine your taxable income, you need to follow these steps:

Step 1: Choose your tax rate

Graduated Income Tax (GIT): This is the standard tax scheme based on your total taxable income. You can find the tax rates in the BIR’s tax table.

8% Preferential Tax Rate: This is a simplified scheme where you pay a flat 8% tax on your gross sales/receipts. However, this option is only available if your annual gross sales/receipts do not exceed ₱3,000,000.

Step 2: Calculate your gross income

Gross income or gross sales refers to the total income earned by an individual on a pay check before taxes and other deductions.

You can do this by adding up your income from all sources, such as compensation income, business income, passive income, etc.

Step 3: Calculate your allowable deductions (if applicable):

You can go for either a 40% Optional Standard Deduction (OSD) or itemized deductions.

40% OSD: This allows you to automatically deduct 40% of your gross income as business expenses without needing to provide individual receipts.

Itemized deductions: This involves listing and providing receipts for all your actual business-related expenses. This option might be beneficial if your expenses exceed 40% of your income.

Step 4: Subtract deductions from gross income to get your taxable income

Subtract any allowable deductions from your income, such as personal and additional exemptions, optional standard deduction (OSD), itemized deduction, etc. The result you get is your taxable income which is further used to compute ITR Philippines.

The following is the formula used to compute ITR Philippines:
Taxable Income = (Monthly Basic Pay + Additional Pay) – (SSS + PhilHealth + PAG-IBIG + Deductions Due to Absences/Tardines)

Identify Your Tax Type: Are you a resident or non-resident taxpayer? This affects your tax obligations.
Refer to the BIR Tax Table: This table shows the tax rates for different income brackets under the GIT scheme.

Find your tax rate

The tax rates and brackets vary depending on your tax type and income type. For example, for individual compensation income earners, the tax rate is based on a progressive system, where the higher your taxable income, the higher your tax rate. The tax rates range from 0% to 35%, with six brackets.

For corporate income earners, the tax rate is based on a flat system, where the tax rate is the same regardless of your taxable income. The tax rate is 30% for domestic and resident foreign corporations, and 35% for non-resident foreign corporations.

Calculate tax due

Multiply next taxable income by the tax rate from the table: Once you identify your tax bracket, find the corresponding tax rate. Multiply your taxable income by this tax rate. This gives you the basic tax liability before further adjustments.
Subtract any tax credits or withheld taxes: If applicable, subtract any tax credits you’re eligible for from your basic tax liability. These credits can reduce your overall tax owed. Additionally, if your employer withholds income tax from your salary, subtract the amount withheld from your basic tax liability. This reflects the tax already paid on your behalf.

If your tax due is positive, it means that you have to pay the difference to the government. If your tax due is negative, it means that you have a tax refund or a tax credit that you can use for future tax payments.

Preparing for Income Tax Return Philippines

To compute ITR Philippines, we have outlined the necessary steps needed in preparation for it.

1. Determine the forms you need: Tax returns are generally prepared using forms prescribed by BIR. Depending on your income type and situation, you may need BIR Form 1701, 1701A, or 1700 as an Individual taxpayer.

Form 1701 can be used if you’re a mixed-income individual, that is you are earning from employment and a side profession or business (e.g freelancer, consultant)
Form 1701A can be used if you are receiving income from your profession or business.
Form 1700 can be used for individuals who are earning based on employment income. This remains solely their only source of income.

For Corporate taxpayers, the forms available are:

Form 1701Q is used for reporting quarterly income.
Form 1702-MX is used to report mixed income subject to varying tax rates.
Form 1702-RT is used when reporting income subject to a regular or fixed tax rate.

2. Gather necessary documents: As outlined in the computation process above, once you have determined the forms needed, collect all required income, deduction, and payment proofs.

3. Choose your filing method: To successfully compute ITR Philippines, you need to determine which filing method is right for you. There are two filing methods available:

Online: This is done through the electronic filing and payment system (eFPS) and electronic BIR forms (eBIRForms). If you want to compute ITR Philippines via eFPS, it requires taxpayers to pay taxes online through the convenience of an Internet banking service via debit from their enrolled bank account. eBIRForms is a tax preparation software that allows taxpayers to fill out their tax forms, by submitting their papers to the system.
Offline: This is done manually by preparing and submitting a physical ITR form at your Revenue District Office (RDO).

4. Calculate your taxes: Use the steps mentioned above to determine your tax liability.

5. Pay your taxes (if applicable): To avoid penalties and interest charges, it is important to pay taxes on time. If you have them due, make the payment through authorized channels before the deadline.

The deadline for computing ITR Philippines falls on the 15th of April every year following the close of a taxable year.

Read more: HR’s Guide to Payroll Taxes in the Philippines

Tools to Improve ITR Philippines Processing

There are many tools and strategies to improve the processing of ITR Philippines. From digital platforms to software solutions, various tools can streamline and enhance the efficiency of ITR processing. Here are some of the key tools that you can implement to simplify and improve your ITR Philippines processing:

Spreadsheets

Spreadsheets have been a go-to tool for managing data, which is also used when individuals and entities compute ITR Philippines. This tool allows you to compute your income and deductions along with the tax figures manually.

While spreadsheets offer a free and customizable option, the manual effort involved in data entry, formula creation, and error checking can be significant, especially for individuals or businesses with complex tax situations. The risk of errors can also lead to inaccurate calculations and potential tax liabilities.

Download our free Excel Payroll Template and streamline your payroll process!

Tax software

Tax software presents itself as a modern solution to compute ITR Philippines in an effective manner. This tool offers a user-friendly and efficient alternative to manual spreadsheets.

However, it’s often separate from existing systems, meaning your HR department has to input information from various sources. Every time data needs to be transferred from one system to another, there’s a chance for errors. Manual data entry, even with careful review, can introduce typos, inconsistencies, and missed information.

These errors can have significant consequences, like underpaying or overpaying taxes, leading to penalties and audits. Additionally, investing in tax software incurs an extra cost, which might not be feasible for all organizations.

HR automation

With HR automation, the chances of human error are minimized and accurate results are ensured. This tool is designed to compute ITR Philippines easier and faster.

It streamlines the process, making filing your income tax return more efficient. There’s no need for additional data input when using HR tools. Your information is already stored within the system, reducing errors and speeding up the process. Plus, it integrates seamlessly with your existing HR processes, making information easily accessible when you need it most.

Read next: Top 6 HRIS Philippines for 2024

Stay Ahead of the Philippines Tax Season with Omni

Navigating the complexities of ITR Philippines can be overwhelming, but with the right tools, such as Human Resources Information System (HRIS), organizations can streamline the process.

HRIS like Omni can automate data collection, calculation, and submission, ensuring accuracy and compliance with tax laws. Omni offers a comprehensive payroll solution tailored to Philippines specific requirements.

With features like support for Philippine peso, automated tax calculations, and managed SSS, PhilHealth and PAG-IBIG contributions, Omni can help HR teams simplify ITR Philippines processing and ensure compliance with ease.

Book a demo with us today and see how Omni can simplify the intricacies and complexities of preparing and submitting for income tax reporting in the Philippines and minimize the costs associated with common errors.

If you search for the minimum wage in most countries, you typically find a straightforward answer — a single number set by the federal government. Certain states or provinces may opt to set their own minimum wage, but it can’t be any lower than the federal minimum. However, the Philippines minimum wage is quite different.

Due to the significantly different economic conditions across various regions, the minimum wage varies in nearly every part of the country, set by regional authorities. Not only that, different minimum wages are established based on the type of employment. This specific and flexible system makes the Philippines minimum wage quite susceptible to change.

Suffice to say, for companies planning to set up shop in the Philippines, there is much to understand about the Philippines minimum wage to ensure compliance with global labor laws. Here’s what you need to know:

Types of Employment in Philippines

The Philippines is a country with a particularly wide array of employment sectors, each with their own specific employment regulations you need to be aware of. Whether it’s in the agricultural sector or the diverse array of non-agricultural industries, different categories of employment have specific rights, responsibilities, and regulatory considerations.

Agriculture

Plantation: This type of employment involves work in agricultural settings where crops such as sugarcane, rice, corn, and other plantation crops are cultivated. Employees working in plantation agriculture perform the work of planting, harvesting, and maintaining crops.
Non-plantation: Non-plantation agriculture includes employment in activities related to farming but excludes the plantation crops mentioned above. This includes working on smaller farms, raising livestock, poultry farming, and other agricultural activities that don’t meet the definition of plantation agriculture.

Non-Agriculture

Non-agricultural employment covers a wide range of industries and sectors outside the agricultural domain. This includes work in manufacturing, services, construction, retail, hospitality, information technology, finance, and other sectors.

There are some key differences between these two sectors which include:

Wage rates: Agricultural workers are subject to different wage rates due to the seasonal and often unpredictable nature of agricultural work. There are also different Philippines minimum wages (which vary by region) for plantation and non-plantation workers.

Working hours: There are differences in the maximum allowable working hours for agricultural and non-agricultural workers. For example, non-agricultural workers typically have standard working hours prescribed by law, while agricultural workers have more flexible and extended working hours to accommodate seasonal demands.

Employment contracts: The terms and conditions of employment contracts will vary considerably between agricultural and non-agricultural workers. An example of this could be agricultural workers will only be hired on a seasonal or temporary basis, while non-agricultural workers will have more stable and long-term employment contracts.

Benefits and protections: Agricultural workers are entitled to specific benefits and protections under the law, like provisions for housing, transportation, and healthcare, to address the unique challenges of agricultural work.

The Regional Tripartite Wages and Productivity Board

The Regional Tripartite Wages and Productivity Board (RTWPB) are government bodies established to regulate and set Philippines minimum wage rates across its different regions. One of the RTWPBs’ main priorities is conducting regular assessments of economic factors, cost of living, and productivity levels within the specific region the board oversees.

The RTWPBs also recommend adjustments to minimum wage rates based on their assessments. These adjustments are necessary to make sure that workers receive fair wages that reflect changes in economic conditions and the cost of living in their specific region. If housing prices spike in one area of the Philippines, the RTWPB may recommend a minimum wage increase to prevent workers being priced out.

The RTWPBs also play a vital role in resolving disputes related to wage and labor issues. They serve as venues for tripartite (meaning involving three different parties) consultations and negotiations between employers and workers’ representatives to hear grievances and make sure that labor standards are upheld. Also, these boards conduct education and information campaigns to raise awareness about labor rights and regulations among employers and workers, promoting self-advocacy and up-to-standard work environments.

What is the Philippines Minimum Wage?

In the Philippines, the minimum wage varies depending on the region and the type of employment. The minimum wage rates are determined by the RTWPBs and are frequently reviewed and updated based on the current economic situation of the region in question.

Payroll cycle

The payroll cycle refers to how often employees get paid their wages. In the Philippines, it’s common to pay employees on a monthly basis. That said, a monthly cycle isn’t mandatory and some employers prefer a bi-monthly or semi-monthly payroll cycle.

The choice of payroll cycle will depend on factors such as company policy, industry standards, and the nature of the business. Companies with foreign offices or ownership are more likely to adopt a different cycle, as monthly payment is less common in regions like North America. Ensuring a suitable payroll cycle can also contribute to employee engagement and satisfaction

Read next: HR’s Guide to Payroll Taxes in the Philippines

Pay date

As the term suggests, the pay date is the specific day on which employees receive their salaries. Employers typically establish a pay date based on their payroll schedule and the frequency of payroll cycles. Employers need to communicate the pay date clearly to employees to ensure transparency and avoid any confusion regarding when they receive their payment.

Working hours

Working hours in the Philippines are regulated by law to protect the rights and well-being of employees. The standard work week consists of 40 hours, with employees entitled to additional compensation for any work exceeding these hours. Employers must adhere to these regulations to prevent employee burnout and ensure fair compensation for overtime work, as laid out by the Philippine labor laws.

Night shift differential

Employees who work during the night shift, defined as hours between 10 PM and 6 AM, are entitled to receive a night shift differential. This is an additional compensation typically set at 110% of the employee’s regular wage rate.

The night shift differential compensates employees for working during non-standard hours and makes it so employers have to provide fair compensation for working overnight. This additional pay recognizes the challenges and potential impacts on health and well-being that working during these hours can have.

Overtime compensation

As we mentioned in our discussion of working hours, overtime compensation is provided to employees who work beyond the standard work hours or on rest days and holidays. Overtime pay rates typically range from 125% to 200% of the employee’s regular wage rate, with higher rates applying to work performed on rest days and holidays.

Employers have to accurately calculate and offer overtime compensation to employees who work more than their standard hours to remain compliant with labor regulations and give their workers fair treatment.

The Provincial Philippines Minimum Wage

The provincial Philippines minimum wage is determined by a number of different factors, including economic conditions and the cost of living in different regions of the country. The Wage Rationalization Act (also known as RA 6727) lays out the framework for how and why to set minimum wage rates, taking into account the needs of workers and the current economic conditions in each province.

One of the key reasons for the variation in minimum wage rates is the differing cost of living and economic development levels in different regions. For example, provinces with higher living costs or more robust economies may have higher minimum wage rates compared to those in less well-off regions.

For example, Metro Manila, which is one of the most developed and expensive regions in the country, the Philippines minimum wage for non-agricultural workers is much higher compared to other provinces. As of 2024, the minimum wage in Metro Manila for non-agricultural workers is ₱570 per day. Compare that to the Caraga Region in Mindanao, where the cost of living is generally lower compared to urban areas, the minimum wage for non-agricultural workers is set at ₱385 per day.

By tailoring Philippines minimum wage rates to the specific needs of workers and the economic realities of each province, the government sets the standard to promote fair compensation and economic development across the country.

View the Philippines minimum wage rate for all regions

Changes in the Philippines Minimum Wage

As mentioned above, the Philippine minimum wage across regions is much more fluid and prone to change than elsewhere, shifting to meet the needs of workers. Here are some of the changes that have happened over the last three years:

2022

National Capital Region

For agriculture (non-plantation) the minimum wage increased from ₱500 to ₱533
For agriculture (plantation) the minimum wage increased from ₱500 to ₱533
For non-agriculture, the minimum wage increased from ₱537 to ₱570

Western Visayas

For agriculture (non-plantation) the minimum wage increased from ₱315 to ₱430
For agriculture (plantation) the minimum wage increased from ₱315 to ₱420
For non-agriculture, the minimum wage increased from ₱395 to ₱450

2023

National Capital Region

For agriculture (non-plantation) the minimum wage increased from ₱533 to ₱573
For agriculture (plantation) the minimum wage increased from ₱533 to ₱573
For non-agriculture, the minimum wage increased from ₱570 to ₱610

2024

Davao Region

As of 13 February 2024, the RTWPB for the Davao region has issued a wage increase of ₱19 to take effect on 1 September 2024. When in effect the change will look like:

For agriculture (non-plantation) the minimum wage increased from ₱438 to ₱457
For agriculture (plantation) the minimum wage increased from ₱438 to ₱457
For non-agriculture, the minimum wage increased from ₱443 to ₱462

Navigating Philippines Minimum Wage with Omni

Understanding and managing the diverse Philippines minimum wage rates require careful attention to regional and industry specific variations. That’s why it’s important to pick the right HR tool and strategy to make the whole process less overwhelming.

Omni’s suite of modules simplifies the task of managing the dynamic Philippines minimum wage. Through secure and centralized employee records, HR teams can quickly access accurate employment contracts and necessary documents for calculating minimum wage adjustments.

Omni provides a comprehensive payroll solution tailored to Philippines specific requirements. With features like support for Philippine peso, automated tax calculations, and managed SSS, PhilHealth and PAG-IBIG contributions, Omni enables HR teams to streamline their payroll processing and ensure compliance with changing minimum wage requirements across the region.

In the wake of the pandemic, many employees have grown comfortable working from home. However, the reality is that enabling all employees to work remotely is often unfeasible. This raises the question: what about the 94% of employees who prioritize work-life balance?

In Singapore, where overwork is prevalent, addressing this issue is crucial. While granting remote work to all employees may be difficult, offering time off in lieu can help strike a better balance. Taking action now can prevent valued employees from resigning due to employee burnout.

Time off in lieu (TOIL) allows employees to take time off work for extra hours performed. Understanding and implementing TOIL effectively can help rejuvenate your workforce, leading to improved results and positive work environment.

What is time off in lieu?

Time off in lieu refers to the practice where an employee takes time off of work for additional hours they have worked beyond their regular working hours. Instead of receiving monetary compensation for overtime, employees accrue hours they can use as paid time off. It gives them the flexibility to manage work-life balance and can be particularly beneficial if they prefer time off rather than additional pay.

For example, if an employee works extra hours in a particular week, he is entitled to take equivalent time off in the future. It typically depends on the employer’s approval and clauses mentioned in the company policy. Employers can use time off in lieu to reward their hardworking employees without taking the burden of additional payroll costs for overtime.

What is the difference between TOIL and paid overtime?

When dealing with overtime, both time off in lieu and paid overtime offer solutions, but their compensation methods differ. With TOIL, employees trade extra hours for future paid leave, whereas paid overtime compensates employees with additional pay for each hour worked beyond their regular schedule.

TOIL offers greater flexibility in managing work-life balance, as employees can choose when to use their accrued time off. Conversely, paid overtime provides immediate financial compensation for the extra hours worked. Each approach provides its benefits and is suitable for various circumstances, depending on the needs and preferences of the employees and organization.

Who is eligible for time off in lieu in Singapore?

When it comes to determining eligibility for time off in lieu in Singapore, there are a few considerations:

Employment Act coverage

Part IV of the Employment Act entitles employees who are earning up to S$2,600 per month and workers performing manual labor earning up to S$4,500 per month to time off in lieu if they worked on a rest day or public holiday. Employees can choose to receive either:

1 day of TOIL for up to 4 hours of work
1 day of TOIL + overtime pay for more than 4 hours of work

It is important to note that employees not covered in Part IV such as managers and executives are not automatically entitled to TOIL. However, there are other ways to provide entitlements to these groups of individuals.

Employment contract

For individuals not covered in Part IV of the Employment Act, the employment contract is the go-to to determine specific TOIL provisions and entitlements for working overtime, on weekends, or on public holidays. It’s important to specify all these conditions within your employment contracts to ensure compliance.

Read next: HR’s Guide to Managing Singapore Employment

Mutual agreement

Regardless of the Employment Act coverage or employee contracts, employees can always negotiate TOIL provisions with employers in exchange for extra working hours. This should be a mutually agreed arrangement where both parties are aware of the terms including numbers of hours worked and the corresponding time off provided.

It’s also crucial to note that the act provides 11 public holidays to employees in Singapore. What if your peak working days fall between any of these holidays? That’s where you ask employees to put in the additional hours for time off in lieu or paid overtime, as they see fit.

Do employees get time off in lieu if a public holiday falls on a rest day or non-working day?

As per the Ministry of Manpower guidelines, if the public holiday falls on a rest day, the following day will be a paid public holiday. If the public holiday falls on a non-working day, employees are entitled to time off in lieu or an extra day’s pay.

For example, Nathan works 5 days a week. In this case, Saturday is his non-working day and Sunday is his rest day.

For public holidays that fall on Saturday, Nathan is entitled to either a day off or salary in lieu at the gross rate of pay, which includes the basic rate of pay and allowances.

For public holidays that fall on Sunday, Nathan will receive a paid public holiday on Monday.

Struggling to understand and calculate public holiday pay in Singapore?

Check out our 2024 Public Holidays Singapore guide!

For employees who work on a public holiday, employers by default are required to pay an additional day pay. However, by mutual agreement, employees can choose to receive either:

A public holiday in lieu
Time off in lieu (only for employees not covered under Part IV)

How to calculate time off in lieu?

Accurately calculating time off in lieu is crucial to ensure you are accurately compensating for the number of hours worked beyond regular working hours. Here are some tips:

Recording time off in lieu earned

Your company policy or employment contract should clearly state a specific conversion rate between overtime hours worked and time off earned. You then multiply the overtime hours worked by the agreed-upon conversion rate to calculate the equivalent time off earned by employees.

For example,

Conversion rate: 1.5 Hours of TOIL for 1 hour of overtime

Total overtime logged by employee = 10 hours.

Time off in lieu entitled = 10 hours x 1.5 = 15 hours

Omni Tip: Maintaining accurate records of time off in lieu is crucial to clearly indicate the dates or periods for which TOIL is earned. This practice helps remove unnecessary confusion.

Administering time off in lieu

Proper administration of TOIL is pivotal to prevent potential misuse. It is important to ensure that TOIL aligns with company policies and procedures, including clear guidelines on how employees can request TOIL in advance.

You should clearly state the number of days of advance notice required from employees and outline the approval process from managers. Additionally, maintain accurate records of TOIL balances, showing the total accumulated TOIL hours and any time taken off in lieu.

When employees request time off in lieu, deduct the corresponding number of TOIL hours from their balance. Encourage employees to take TOIL within a reasonable timeframe to prevent excessive accruals.

Utilization of Time Off in Lieu

Now that we’ve covered the basics of calculating and administering time off in lieu, it is necessary to impose limitations on usage of TOIL. This includes setting a cut-off date and refraining employees from using TOIL during peak periods.

Setting a cut-off date

Setting a cut-off date for TOIL offers several benefits for both employers and employees.

For employers, accumulating large amounts of unused TOIL can create significant financial liabilities, especially when employees choose to take their time off simultaneously. A cut-off date encourages employees to utilize their accrued TOIL within a reasonable time frame, reducing potential financial burdens.

On the flip side, encouraging employees to use their TOIL within a specific time frame helps them maintain a healthy work-life balance and avoid potential burnout from accumulating unused leave.

Limiting TOIL during busy periods

Busy periods often require all hands on deck. Allowing employees to take TOIL during this time could potentially disrupt productivity due to understaffing. By limiting the usage of TOIL during peak periods not only ensures sufficient workforce availability when it’s needed the most but also, reduces workload and associated costs for HR departments to process and manage TOIL requests.

What to include in your time off in lieu policy?

Your time off in lieu policy should clearly outline eligibility criteria, accrual rates, maximum limits, request procedures, appropriate tracking methods, and other relevant details. Let’s delve into these aspects in detail.

Eligibility

The policy should clearly specify who is eligible for TOIL. As mentioned above, employees are entitled to TOIL based on the Employment Act or employment contract. However, the policy can further clarify eligibility based on:

Employee category and employment status: define which categories of employee are eligible. Specify eligibility based on employment status (permanent or probationary).
Job roles: clarify eligibility based on job roles or positions. Consider responsibilities, work hours, or classification within the organization. For example, positions requiring frequent overtime should be eligible for TOIL.

These are just some examples of eligibility criteria for your TOIL policy. It is crucial to focus on implementing fair and equitable criteria across the organization.

Accrual and maximum limits

Accrual in a TOIL policy determines how employees accumulate time off based on additional hours worked in a given period. The accrual rate can vary based on different factors.

For example, the hour-for-hour method accrues TOIL based on each additional overtime hour worked, ensuring employees receive equivalent time off. However, some organizations may prefer a fixed accrual rate, where employees receive time off based on a predetermined rate, regardless of actual overtime hours.

To prevent excessive accumulation of TOIL, setting a maximum limit on TOIL accrual can be beneficial. This ensures employees do not accumulate excessive time off, which could disrupt company productivity and operation. The limit should strike a balance between providing enough rest time for employees and maintaining operational efficiency, while also complying with relevant regulations.

Usage

Your time off in lieu policy should clearly state the process for requesting time off, including how and when employees can take their accrued time off. This should include a formal procedure for submitting requests, such as through employee self-service portals, email or written form, along with any required documents or approvals.

Additionally, the policy should specify advance notice requirements to facilitate effective absence management and ensure sufficient time for planning during absences. It should also define limitations on when TOIL can be taken based on staffing levels and peak periods to avoid disrupting organization operations.

Lastly, ensure transparency by empowering employees to easily access and track their real-time accrued TOIL balance, allowing them to plan time off effectively.

Recordkeeping

Investing in an HRIS can help manage TOIL accrual, usage, and balances for both employers and employees. Employees should have access to a dedicated employee portal to view their TOIL records, enabling them to schedule time off effectively.

However, it is essential to prioritize data security and confidentiality by ensuring that only employers and relevant employees have access to this information.

Read next: The 7 Best HR Software Singapore Has to Offer in 2024

Review and updates

Regularly review your TOIL policy to align with your organizational changes, legal developments, and employee feedback. Consider various metrics like utilization rates and compliance with accrual limits to gauge employee engagement and satisfaction.

Collect feedback from relevant stakeholders, including HR professionals, managers, and employee representatives, and update the policy as needed.

Communicating the policy

Transparently communicating any changes to the TOIL policy to employees using clear and simple language through various channels such as email, newsletters, bulletin boards, and team meetings.

Ensure the TOIL policy is clearly outlined in a document or include it inside your employee handbook, emphasizing key points such as eligibility criteria, accrual methods, maximum limits, and request procedures.

Additionally, HR professionals and managers should be readily available to address any TOIL-related inquiries.

Additional considerations

Some additional considerations to strengthen your TOIL policy are as follows:

Carryover policies

While some employees are excited to take time off, others may not utilize it as frequently. Clarify in your policy whether accrued time off in lieu hours can be carried over from one year to the next. Some organizations permit this while others require employees to use all accrued TOIL within a timeframe. If carryover is allowed, specify any limitations or conditions.

Loss of TOIL

What happens to the accrued TOIL in case of resignation or termination? Either the employee receives the payout of unused TOIL hours, or it is fortified. Your company policy should tackle the same while complying with labor laws and regulations.

Compliance with labor laws

Ensure your TOIL policy complies with relevant labor laws, regulations, and industry standards governing time off, overtime and compensation in your jurisdiction. This includes adhering to minimum wage requirements, overtime regulations, and specific TOIL provisions. For example, in Singapore, employees covered under the Employment Act are entitled to 11 public holidays. If they work extra hours, TOIL and additional pay policies must be followed.

Time Off in Lieu Management Made Simple with Omni

Time off in lieu offers a flexible approach to balancing employee workload and ensuring fair compensation for extra hours worked. A robust leave management system can streamline the process, making it easier to track, approve and manage TOIL accrual and usage.

Omni’s time off management capabilities help managers and HR teams swiftly navigate employee leave management. Omni’s platform allows you to approve time off in lieu on the go and keep track of who’s in and out of the office with at-a-glance scheduling.

Our employee self-service portal empowers employees to submit their time off requests, which automatically routes to the appropriate manager thanks to customizable approval workflows. Omni seamlessly integrates with your team’s favorite work tools such as Slack, enabling managers to manage time off approvals with a simple push of a button. With automated calculations, employees and managers can easily view TOIL leave balances in real-time, and track how many vacation days they have left without having to go through HR.

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If you’re not quite ready to take the leap, try leveraging some free tools to simplify your leave management efforts for free. Download Omni’s Employee Time-off Request Form Template to easily gather the information you need to manage employee time and attendance.

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