The Executive Council of Hong Kong announced last Tuesday that the statutory minimum wage will be raised from HK$34.5 to HK$37.5 per hour. The change will take effect on 1 May 2019.
75,500 workers are estimated to benefit from the rate increase, which is the greatest growth in the preceding eight years. Companies' salary budget is expected to increase HK$800-930 million.
“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,” Priscilla Wong Pui-sze, chairwoman of the government-appointed Minimum Wage Commission, commented.
Under the Minimum Wage Ordinance, the statutory minimum wage must be reviewed once every two years.
The story was first reported by SCMP.