Hong Kong freezes domestic helper wages for second straight year, officials point to coronavirus-hit economy as factor for denying pay rise
- Minimum wage for foreign domestic workers to remain at HK$4,630 a month following annual government review, though food allowance is increasing
- Officials says affordability issues for households amid the coronavirus crisis was main factor in keeping wage level the same
The monthly rate would stay at HK$4,630 (US$595), but an allowance for workers who did not receive food from their employer would rise by HK$52 to HK$1,173, the government announced on Thursday.
The higher allowance will apply to contracts signed as of Friday.
Domestic workers expressed disappointment over the decision, while employers said the pay freeze was expected.
Mahee Leclerc, general manager of the HelperChoice online service platform which connects domestic workers to employers, said helpers faced their own increased financial pressure due to the pandemic.
“Foreign domestic workers are also affected by the Covid-19 pandemic. They face greater expenses and pressure to send more remittances back to their families because the economic situation is far worse back home,” Leclerc said.
Cheung Kit-man, chairman of the Hong Kong Employment Agencies Association, said the pay freeze was in line with expectations and the increase in food allowance was welcomed.
He estimated that about 10 per cent of employers choose to provide the allowance instead of food.
“Let’s be honest, the previous level of HK$1,121 for food is not enough for one person to begin with,” Cheung said.
200 more quarantine slots ‘nowhere near enough’ to ease Hong Kong’s helper shortage
A government spokesman said the financial ability of households to afford a helper was the main reason for not changing the minimum salary.
“We have carefully considered Hong Kong’s general economic and labour market conditions over the past year, as well as Hong Kong’s near-term economic outlook, including the impact of the Covid-19 pandemic in this year’s review,” the spokesman said.
Hong Kong has experienced a shortage of domestic helpers since authorities suspended inbound flights from the Philippines and Indonesia earlier this year in response to imported Covid-19 cases from the two countries.
The bans have been lifted but a number of entry restrictions remain. With fewer domestic workers available, the cost for families to hire a helper has increased while the labour pool fell from 400,000 in 2019 to 370,000.
The shortage has led to a bidding war among employers, with many households struggling to find workers even after offering wages of between HK$5,000 and HK$6,500.
A recent survey by HelperChoice found the average salary of domestic workers had reached HK$5,144 per month, which was mainly due to the labour shortage.
“Some wealthier employers were able to pay higher wages during the pandemic, but that’s not the case for all,” Leclerc said.
200 more quarantine slots ‘nowhere near enough’ to ease Hong Kong’s helper shortage
The government reviews the pay of helpers on an annual basis. They received a 2.4 per cent pay rise in 2019 and a 2.5 per increase the year before.
The last time authorities froze domestic worker salaries for two consecutive years was 2009 and 2010 amid the aftermath of the global financial crisis.
Meanwhile, Betty Yung Ma Shan-yee, chairwoman of the Hong Kong Employers of Domestic Helpers Association, said some employers were expecting a wage reduction for domestic helpers.
Yung, who leads the 5,000-member association, said some employers had hoped for a 10 per cent cut in worker salaries, as many households also faced financial hardships amid the pandemic.
“Families with slightly lower incomes, or who rely on a single income source, are feeling the pinch and won’t be able to afford hiring a helper to take care of their elderly family members or children,” she said.
