What is the minimum wage in Hong Kong?

The current minimum wage in Hong Kong is relatively low despite a push for an increase by works rights activists in the region. It stands at HK$37.5 per hour, with a gross daily wage of at least HK$56 or HK$1,128 for a regular working week of 7.5 hours.

Despite this meagre wage there is still no legal requirement for employers to pay their employees a minimum wage, which has caused friction between workers, unions, businesses and the government in recent years. Research carried out by the Hong Kong University of Science and Technology has suggested that the Chinese enrichment over the last decade has not impacted the local wages as much as expected.

For many people living in Hong Kong, the current minimum wage is simply not enough to sustain a decent standard of living and this has been recognised by many in the city. An increase in the minimum wage is one of the main demands that protesters are making in their ongoing demonstrations against the government.

Despite the demand for an increased minimum wage, the government has been reluctant to budge from their current stance. In 2017, a campaign was launched to raise the minimum wage to HK$39 an hour, but it was not successful in bringing about any change. In March 2020, a proposal was submitted by pro-democratic lawmakers that could raise the rate from HK$37.5 to HK$40 per hour but it was rejected by the government and currently remains unchanged.

There are certain workers that are exempt from this minimum rate, however. They include students in work-study arrangements during school holidays and those aged 16 years or under working part-time hours.

Employers can also avoid paying the minimum wage by providing meals and accommodation as part of their employees’ salary package, which many companies do to save costs. While not technically illegal, it has been criticised by those who argue that it furthers the inequality gap between lower-paid and higher-paid workers in Hong Kong.

For those who rely on minimum wage as their main source of income, it is essential that they check their payslip every month to ensure that they are receiving the correct amount. They are entitled to overtime payments of at least 12.5% of their basic salary for working more than their designated hours for the week, however this is not always something that employers adhere to in practice.

Ultimately, it is down to individual workers, unions and activists groups to keep pushing for an increase in the minimum wage so that everyone who works hard in Hong Kong can afford to live comfortably and have financial security. If a new law for an increased minimum wage can be passed, then it will benefit both businesses and their employees.

For more information about the minimum wage in Hong Kong and other employment laws, please visit the website of the Labour Department here.

What is the Minimum Wage in Hong Kong?

Hong Kong, known globally as a vibrant financial hub, is also one of the most expensive cities in the world. In Hong Kong, the minimum wage is a critical issue for workers, employers, and policymakers alike. The minimum wage is an hourly wage rate that is set by the labor department to protect the basic employment rights of low-income workers. In this article, we will answer some of the most frequently asked questions about the minimum wage in Hong Kong.

What is the current minimum wage rate in Hong Kong?

The current minimum wage rate in Hong Kong is HKD 37.5 per hour. The rate was increased by 4.7% from the previous rate of HKD 34.5 per hour from May 1, 2019. Though being one of the highest minimum wage rates globally, the Hong Kong Confederation of Trade Unions has been calling for a further increase in the minimum wage.

Who is eligible for the minimum wage in Hong Kong?

The minimum wage in Hong Kong is applicable to all employees, regardless of their employment duration, age, or industry. The minimum wage level applies to all workers, including full-time and part-time workers, foreign domestic helpers, and hourly-rated workers. The only exceptions to the minimum wage rule are live-in domestic helpers and student interns.

How is the minimum wage calculated in Hong Kong?

The Minimum Wage Ordinance (MWO) provides a legal framework to calculate the minimum wage in Hong Kong. The minimum wage rate is set by taking into account the median wage rate, the cost of living, the general economic climate, and the labor market situation. The Commissioner of Labor calculates and reviews the minimum wage rate biennially, ensuring that it is at a reasonable level to protect the interests of the workforce.

What are the benefits of the minimum wage in Hong Kong?

The minimum wage provides benefits to workers in low-wage sectors. The minimum wage is a critical tool in reducing poverty and promoting social inclusion. It protects the basic employment rights of low-income workers, including fair compensation, working hours, and rest periods. It also ensures that employers do not exploit workers by offering salaries lower than the minimum wage rate.

What are the challenges in implementing the minimum wage in Hong Kong?

One of the primary challenges in implementing the minimum wage in Hong Kong is the high cost of living in the city. Even with the current minimum wage, living in Hong Kong is still expensive, and workers may struggle to make ends meet. The other notable challenge is the informal economy, where employers may not comply with the minimum wage laws, leading to the exploitation of workers.

How does the minimum wage compare globally?

Hong Kong’s minimum wage is one of the highest globally, which is commendable. According to a report by the Organisation for Economic Co-operation and Development (OECD), Hong Kong ranks third in the world, behind Australia and Luxembourg, with the highest minimum wage rates. However, it is important to note that the high minimum wage rate alone does not directly translate to a high standard of living for low-income workers.

Conclusion

The minimum wage in Hong Kong plays a crucial role in protecting the basic employment rights of low-income workers. The current minimum wage rate is HKD 37.5 per hour, which is one of the highest in the world. The minimum wage provides numerous benefits to workers, including fair compensation, working hours, and rest periods. However, challenges in implementing the minimum wage remain, including the high cost of living and the presence of an informal economy. Policymakers must continue to review and adjust the minimum wage rate to ensure that it remains at a level that protects the interests of workers, the economy, and society as a whole.