Bill for standard working hours in Hong Kong could hit HK$10 billion, says committee report
Firms could face bill of HK$103m, or up to HK$10b, according to findings
Employers in Hong Kong could face an extra wage bill of between HK$103 million and HK$10.3 billion a year if working hours are standardised, depending on how it is done.
These are the latest findings from the Standard Working Hours Committee, which also said about 7,000 profit-making companies could slip into the red if they had to use their profits to cover the additional wages.
"Some profitable companies may be able to absorb [the extra costs]. But some of those making a small profit may not be able to do so," said Stanley Lau Chin-ho, an employer representative on the committee.
The economists who conducted the study generated 27 scenarios by altering several elements - the workers' monthly salary, the number of hours they work until overtime is paid, and the level of overtime payment.
If the regulations only apply to those making HK$10,000 a month or below, and if the standard working-hours level is set at 52 a week and working beyond 52 hours means an overtime payment at the standard hourly rate, employers will need to fork out HK$103 million in additional wages a year.
However, if it applies to people making HK$15,000 or below, with a standard working-hours level of 44 while working above 44 hours incurs 1.5 times the regular pay, the additional wage bill will be HK$10.3 billion. Among those hit hardest would be employers running security guard, restaurant and retail businesses.