[Hong Kong] Hourly minimum wage to increase to HK$40 as early as May 1

Hong Kong's Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) on raising the Statutory Minimum Wage (SMW) rate to HK$40 per hour. This adjustment will come into force as soon as Labour Day on May 1, Human Resources Online reports.

The change will see the SMW rate lifting from its current level of HK$37.50 per hour, an increase of HK$2.50 or approximately 6.7 per cent.

The Government will publish the Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2023 in the Gazette on January 13 and table it in the Legislative Council (LegCo) on January 18. Subject to the approval of the LegCo, the revised SMW rate will reportedly come into force on May 1, 2023.

In addition, the Employment Ordinance (Amendment of Ninth Schedule) Notice 2023 amends the monthly monetary cap on recording the total number of hours worked. An employer will now be exempted from the requirement of recording the total number of hours worked by an employee in a wage period if wages payable to the employee for that wage period are not less than HK$16,300 (up from the current HK$15,300) per month.

In tandem with the commencement of the revised SMW rate, the revised monetary cap will reportedly come into force on the same day on which the revised rate takes effect (May 1, 2023).

Chris Sun - Secretary for Labour and Welfare - is reportedly pleased with the MWC's accomplishment of reviewing the SMW rate. "After careful consideration, the Government is of the view that the MWC has ably discharged its statutory function of reviewing the SMW rate after thorough and balanced deliberation," he said.

"The recommendation of the MWC has struck an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining Hong Kong's economic growth and competitiveness. The Government accepts the recommendation of the MWC, and considers that the new rate will be conducive to the overall interest and development of Hong Kong."

Source: Human Resources Online

(Quotes via original reporting)

Hong Kong's Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) on raising the Statutory Minimum Wage (SMW) rate to HK$40 per hour. This adjustment will come into force as soon as Labour Day on May 1, Human Resources Online reports.

The change will see the SMW rate lifting from its current level of HK$37.50 per hour, an increase of HK$2.50 or approximately 6.7 per cent.

The Government will publish the Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2023 in the Gazette on January 13 and table it in the Legislative Council (LegCo) on January 18. Subject to the approval of the LegCo, the revised SMW rate will reportedly come into force on May 1, 2023.

In addition, the Employment Ordinance (Amendment of Ninth Schedule) Notice 2023 amends the monthly monetary cap on recording the total number of hours worked. An employer will now be exempted from the requirement of recording the total number of hours worked by an employee in a wage period if wages payable to the employee for that wage period are not less than HK$16,300 (up from the current HK$15,300) per month.

In tandem with the commencement of the revised SMW rate, the revised monetary cap will reportedly come into force on the same day on which the revised rate takes effect (May 1, 2023).

Chris Sun - Secretary for Labour and Welfare - is reportedly pleased with the MWC's accomplishment of reviewing the SMW rate. "After careful consideration, the Government is of the view that the MWC has ably discharged its statutory function of reviewing the SMW rate after thorough and balanced deliberation," he said.

"The recommendation of the MWC has struck an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining Hong Kong's economic growth and competitiveness. The Government accepts the recommendation of the MWC, and considers that the new rate will be conducive to the overall interest and development of Hong Kong."

Source: Human Resources Online

(Quotes via original reporting)