Latest increase in Hong Kong’s minimum wage will benefit only half as many workers as previously thought
- The rise of HK$3 per hour, which comes into force on May 1, will apply to only 75,500 employees, rather than 150,000
- A strong labour market and higher wages mean fewer workers will get a lift than with previous increases
The record increase in Hong Kong’s minimum hourly wage, by HK$3 (US$0.38) this year will benefit only 75,500 low-paid employees, or half of how many were originally estimated, it was revealed on Friday.
Priscilla Wong Pui-sze, chairwoman of the government-appointed Minimum Wage Commission, explained that the previous estimate of 150,000 workers who would get a pay rise if the level was raised to HK$37.50 per hour was based on data from 2017.
But she said the actual number was halved when last year’s data was applied, a change that reflected more people being employed and paid better during the period.
The Executive Council on Tuesday endorsed raising the minimum hourly wage from the HK$34.50 set two years ago to HK$37.50 starting from May 1.
While there were calls for the commission to further raise the wage given the robust labour market, Wong warned of the need to balance the impact.
“The minimum wage provides a floor, not a peg to the actual salaries. The minimum wage is not social welfare either. We have to make sure that under the new rate, the basic income level can be protected, meanwhile, there won’t be a great loss of low-paid jobs.”
The increase of HK$3, or 8.7 per cent, this year is the greatest growth the 13-member commission has agreed on ever since Hong Kong launched a statutory minimum wage in 2011, which started at HK$28 per hour.