This section applies to an employee’s remuneration, including cash and non-cash payment and benefits. Employers that operate fair and open remuneration systems engage their employees more fully and effectively than those that do not.

1. The employer should handle honestly, fairly and openly all aspects of the pay package, including initial offer, reviews, bonuses.
   
2. Pay should reflect the value of work done and be related to the market rate and be performance-based. Employees undertaking work of equal value should receive equal pay, unless there is a significant difference in experience, qualifications or performance on the job.
   
3. Payment should be made regularly and on time according to the schedule set out in the contract of employment - daily, weekly, bi-weekly or monthly - and employees provided with a periodic statement showing a breakdown of various pay items.
   
4. Payments should not be withheld or suffer unreasonable deductions without the employee's written consent.
   
5. The minimum statutory benefits such as maternity pay, long service payment, sick leave, are required by law and should be made on time. Employers should not terminate employment just because an employee becomes eligible for statutory benefits.
   
6. Whether employers offer a range of non-statutory fringe benefits to their employees is a matter of choice and their capacity to implement appropriate benefits schemes. However, where benefits are paid, for example employee medical insurance, employees need to understand the rules and limits, the claim procedures and to know that benefits are fairly and consistently applied.
   
7. Where an employer has promised that a pay review will be undertaken after meeting certain criteria, the promise must be honoured.
   
8. Employers should have in place open and fair processes to assess and reward employees’ performance taking into account the state of the business and the external market. Employees who perform well should be paid more than those who do not. However, to avoid increasing costs permanently, performance based rewards should be variable – that is paid when justified but not permanently added to the employee's salary.
   
9. Incentive and commission-based pay schemes are effective ways of motivating and rewarding employees. When employers use them, such schemes should be well-devised, have clear and attainable targets, be transparent and be implemented fairly and consistently.
   
10. Employers must be aware of their responsibilities under the Mandatory Provident Fund Schemes Ordinance (and keep up-to-date with its amendments) and comply fully with its terms. Where ‘top-up’ schemes exist or are introduced, they must also be appropriately registered and comply with the appropriate regulations introduced from time to time.
    
11. Should there be a need for employers to reduce employees’ pay and benefits employees should be fully briefed of the reason for the change, available options and the likely impact on them. Employees’ consent should be obtained before making any changes. Employers will find their employees more willing to accept such changes to their terms of employment if the management discusses in good time the company’s situation and if the reductions are fairly and reasonably applied. Employees will want to know how their contribution will help their employer’s business recover and when, if ever, they may be able to recover their former earnings. At all times employer should be aware of and comply with current legislation.
    
12. During and after a merger or an acquisition employees need to know at the first opportunity how their pay and benefits may be affected. Employers will retain good employees more effectively by keeping them promptly and fully informed.