Govt Freezes Minimum Wage For The First Time

Hong Kong's minimum wage has been frozen for the first time since its implementation in 2011, and the welfare minister denied it's unfair to grassroots workers.

Secretary for Labour and Welfare Law Chi-kwong announced on Tuesday that the city's minimum wage will be frozen at HK$37.5 an hour, the first time it won't go up at the end of a biennial review.

Law said the Minimum Wage Commission, which completed the review in October, made the suggestion having taken into consideration the economic recession and high unemployment, and the government accepted the recommendation.

In its report, the commission said its majority view is that if there were an increase in the minimum wage, more employers would cut low-paying jobs.

The freeze will take effect in May for two years.

Law rejected claims that that freezing the minimum wage is unfair to grassroots workers, saying they can benefit from other government welfare policies such as Comprehensive Social Security Assistance.

The chairwoman of the Minimum Wage Commission, Priscilla Wong, said the freeze doesn't mean low-income workers would have less purchasing power. She pointed out that the previous wage increase in 2019 -- an 8.7 percent rise from HK$34.5 to HK$37.5 -- has outpaced inflation so far.

Law said the commission had struck "a fine balance" between the views of management and labour.

"Definitely, expectations range from a reduction in the minimum wage to substantially increasing it. The commission considered all the views and struck a balance," he said.

There have been reports the employee side wanted an increase to at least HK$40, while employers countered with a modest rise to HK$38, or even a freeze or a pay cut.

The minimum wage had gone up following each biennial review thus far until now.