Minimum Wage To Go Up To HK$40: Sources

RTHK learned on Thursday that a government-appointed committee has proposed raising the statutory minimum wage in Hong Kong from HK$37.5 to HK$40 per hour.

The 6.7 percent hike is expected to come into force in May next year upon the Executive Council’s approval.

Reacting to the news, labour sector lawmaker Chau Siu-chung, of the Federation of Hong Kong and Kowloon Labour Unions, said some workers told him they are happy with the increase after the minimum wage has remained steady since 2019, but are disappointed that it barely catches up with inflation.

Chau said the sector hopes the Minimum Wage Commission could propose raising the minimum wage to HK$46 per hour.

Another labour group, the Federation of Trade Unions, said it reluctantly agreed to the increase after a freeze last year, adding the government should revise the mechanism that determines the minimum wage and revisit the level every year, instead of every two years.

A member of the Labour Advisory Board representing employers, Jimmy Kwok, said the increase is in line with inflation and believes sectors such as catering and retail will find it acceptable.

The Minimum Wage Commission is expected to submit its proposal later this month.

DAB lawmaker Frankie Ngan said he’s not so much concerned about the actual wage level but how it is calculated.

He urged the government to calculate the minimum wage with a standard formula that takes into account factors such as inflation and median wage.

“It will be objective, and it is useful for the business sector and the labour sector to perceive what the minimum wage level is, and it will reduce the uncertainty for the labour market,” he said.

Ngan also said the minimum wage level should be reviewed every year.