Company: GLXG
Filing Date: 2025-10-24
Form Type: 20-F
Source: 0001213900-25-102144
Chunk: 245

Company: Galaxy Payroll Group Ltd
Filing Date: 2025-10-24
Form: 20-F
Item: Item 19
Chunk 245
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 future use of the assets) indicate that the carrying value of an asset may not
be recoverable.

The Group assesses the recoverability of the assets based on the non-discounted
future cash flows the assets are expected to generate and recognize an impairment loss when estimated discounted future cash flows expected
to result from the use of the assets plus net proceeds expected from disposition of the asset, if any, are less than the carrying value
of the asset. For the years ended June 30, 2025, 2024 and 2023, no impairment of long-lived assets was recognized.

F-13

Employee benefits

Under Hong Kong Mandatory
Provident Fund Schemes Ordinance, an employer shall enroll their regular employees in Mandatory Provident Fund Schemes. Regular employees
are those who are at between 18 and 65 years of age and have been employed for consecutive 60 days or more. An employer is required to
make regular mandatory contributions at least5% of the employee’s monthly income between HKD7,100and HKD30,000and HKD1,500of
the employee’s monthly income over HKD30,000.

The employees of
the Group’s subsidiary in the PRC are members of state-managed retirement pension schemes operated by the local government. The
subsidiary is required to contribute a specified percentage of its payroll costs to the retirement pension scheme to fund the benefits.
The only obligation of this subsidiary with respect to the retirement pension scheme is to make the specified contributions.

The Group’s subsidiary
in Taiwan also participates in the employee retirement benefits plans in Taiwan in respect of employees solely under the Group’s
employment services. The Group is required to make monthly contributions calculated as a percentage of the monthly payroll costs and the
government undertakes to assume the retirement benefit obligations of all existing and future retired employees of the Group in Taiwan.

The Group also operates a
defined contribution scheme which is a unitized scheme, for eligible employees in Macau.

During the years ended June
30, 2025, 2024 and 2023, the Group provides employee benefits to its employees amounting to HKD773,622(US$98,552), HKD703,239and HKD635,635,
respectively.

Leases

Under ASC Topic 842, lease
assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate
used to determine the present value of the future lease payments is the