Editorial | Hong Kong working poor fully deserve better deal under new formula
- Stronger safety net on wages for city’s worst paid and most vulnerable is to be welcomed despite inflation and cost fears
Hong Kong’s lowest paid workers are to get wage rises each year under a new mechanism linked to inflation and economic growth, instead of a review every two years. And they will be protected from a pay cut when the new formula produces a negative result instead of a case for a rise.
That is the good news for the city’s so-called working poor, such as security guards and cleaners.
The not-so-good news is that after receiving their first rise in the minimum wage for four years last year, following a freeze during the pandemic, these workers cannot expect another increase until the current two-year term expires next year. This means the first annual rise will not come until 2026.
Sadly, therefore, they cannot celebrate more money in hand this Labour Day. Admittedly, under the new formula it still would have been only HK$1.80 (US23 cents) more per hour, taking the minimum to HK$41.80 an hour.
That would have done little for the purchasing power of Hong Kong’s notoriously low wage floor. But it would have been better than nothing and probably affordable at this stage of economic recovery from the pandemic.