Hong Kong minimum wage to jump to HK$37.50, in biggest rise since it was introduced
- Executive Council endorses increase, which was suggested by Minimum Wage Commission last year
Low-paid Hong Kong workers are set to benefit from the biggest increase yet in the city’s minimum wage, which will jump to HK$37.50 (US$4.80) an hour from May, after a formal endorsement by the government on Tuesday.
The 8.7 per cent rise from the current HK$34.50 was expected to bump up the pay of about 150,000 workers, mostly in security and service jobs. But it reportedly could also add an extra HK$700 million a year to the expenses of the business sector.
The Executive Council endorsed the increase, understood to have been recommended in a report last year by the Minimum Wage Commission, at its weekly meeting on Tuesday, according to a source, who spoke on condition of anonymity because the discussions were confidential.
The 13-member commission is an independent statutory body with members from the labour sector, the business community, academia and the government.
The new minimum will take effect on May 1.
It will be the biggest increase since Hong Kong launched a statutory minimum wage in 2011, which started at HK$28 an hour. The rate is reviewed every two years. The figure rose by 7 per cent to HK$30 in 2013 and a further 8.3 per cent to HK$32.50 in 2015. The government increased the rate by 6.2 per cent to HK$34.50 in 2017.