First Freeze In Minimum Wage On The Cards

Low-income workers have voiced fears that the city's minimum wage would be frozen for the first time since it was implemented nearly a decade ago.

A decision on an adjustment is due at the end of a biennial review, and reports said labour and management representatives on the Minimum Wage Commission have failed to reach a consensus.

There would be the first time since the minimum wage took effect in 2011 that the two sides have failed to reach agreement.

Currently, the minimum wage is HK$37.5 an hour. The employee side has called for an increase to at least HK$40 in line with inflation. Employers, however, said they cannot afford the hike because of the weak economy and an uncertain outlook. Some of them proposed a modest increase to HK$38, or even a freeze.

The commission will submit its report to the government next month. Should the majority view on the commission favour a freeze, it's likely the administration will adopt that position.

That would be the first time the minimum wage has failed to go up. It had risen following each biennial review thus far, with the latest raise from HK$34.5 to HK$37.5 in May last year.

The next pay adjustment will be in force in May next year.

The head of the Minimum Wage Commission, Priscilla Wong, has earlier refused to rule out the possibility of a freeze, citing the negative impact of the social unrest and the China-US trade dispute on the local economy.