One to Watch: Proposal to Include Foreign Domestic Helper (FDH) Salary Expenses as a Salaries Tax Deduction
- ZenCare Employment Resolve
- Feb 4
- 1 min read
In response to the increasing burden on middle-class families, Legislative Council (LegCo) members submitted a proposal in January 2026 to include the salary expenses of employing Foreign Domestic Helpers (FDHs) as a deductible item for Salaries Tax, aiming to alleviate financial pressure on families. This policy is currently at the proposal stage and has not yet been officially implemented.
Background of the Proposal: LegCo members believe that "sweetener" measures (fiscal handouts) should be applied strategically where they are needed most. By allowing employers to deduct FDH salary expenses, the proposal aims to directly alleviate the financial strain on middle-class families.
FDH-Related Expenses: Currently, the Minimum Allowable Wage (MAW) for FDHs has been adjusted to HK$5,100 per month (applicable to contracts signed on or after September 30, 2025).
Current Tax Allowances: Under the existing tax regime, employers are entitled to the basic tax allowance, but there is currently no specific deductible item directly targeting FDH salary expenses.
Related Proposals: In addition to the FDH tax deduction, other suggestions include adjusting deductions for home loan interest and domestic rents, as well as increasing the Child Allowance.
This is a tax concession proposal made ahead of the 2026-27 Budget. Whether it will be implemented is subject to the final decision by the Government.
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