Extra pay of HK$3 an hour may help up to 280,000 workers, data shows
Bosses won't have to dig too deep to cover rise, data shows, as minimum wage is reviewed
Up to 280,000 of the city's lowest paid workers will benefit if the hourly minimum wage of HK$30 is raised to between HK$32 and HK$33, as government advisers are likely to recommend.
Employers, meanwhile, would face additional wage costs of just 0.1 to 0.3 per cent, official data showed.
The suggested increase of HK$2 to HK$3 an hour was generally agreeable to advisers on a government-appointed commission tasked with reviewing the minimum wage, in force since 2011, sources said.
At a meeting this month, members of the Minimum Wage Commission had an "initial consensus" to set the new level at HK$32.50, according to one of the sources who has direct knowledge of the body's confidential discussions.
"There is an initial consensus, but the members will meet again later this month," the source said.
Another source agreed there was a consensus on fixing the new level between HK$32 and HK$33, but it had not been decided whether it would be HK$32.50.
The minimum wage law took effect in May 2011, guaranteeing every employee a salary of at least HK$28 an hour. This was raised to HK$30 two years later. The pay floor is again heading for a possible adjustment on May 1.
By the end of this month, the 12-member commission, made up of equal numbers of employer and employee representatives, will submit its recommendation report to the Chief Executive in Council. Any proposal must go through the Legislative Council before becoming effective.
Business members had initially called for the rate to remain at HK$30, while those from the labour sector had suggested HK$34 to HK$35, the first source said.
The business representatives had cited the ongoing Occupy Central protests as contributing to instability in the economy.
"Some said retail business in Mong Kok and Causeway Bay had fallen a lot," the source said.
Simon Wong Ka-wo, president of the Federation of Restaurants and Related Trades, found the recommended level acceptable. "Personally, the impact on me will not be big because I already offer wages above this level," Wong said.
"The impact may be bigger for some other small and medium-sized enterprises, especially when ripple effects appear."
He was referring to the likelihood that employees already earning more than the minimum wage would seek higher pay.
To gauge the impact of the recommended levels, the checked Census and Statistics Department figures for last year and found that 98,100 people made HK$30 an hour.
The numbers of workers earning below HK$32 and HK$33 an hour were 200,600 and 278,300, respectively.
And the likely extra burden on SMEs appeared to be limited, the data showed.
The wage bill would rise just 0.1 per cent, or HK$786 million, if the rate went up to HK$32, and 0.3 per cent if it became HK$33.
Unionist lawmaker Tang Ka-piu said: "The extra cost to businesses is actually low, so the minimum wage level should be higher."
Tang said that during the 2012 review, the government claimed 300,000 could benefit from a pay rise to HK$30. But when it eventually took effect last year, only 100,000 benefited, he said, because the government had made use of outdated figures to conduct its analysis. "The problem is the huge time gap between the commission's decision and the introduction of the new level."
