Hong Kong minimum wage expected to rise by HK$1.80 to HK$41.80 per hour this year: sources
- According to a source close to Minimum Wage Commission, the existing HK$40 hourly rate is set to increase by HK$1.80
- Minimum wage will also be reviewed annually, rather than every two years, insider says
Hong Kong will raise the minimum wage by HK$1.80 to HK$41.80 (US$5.34) per hour this year and introduce a formula for future adjustments that will not allow pay cuts, the Post has learned.
The minimum wage will also be reviewed annually, rather than every two years.
According to a source close to the city’s Minimum Wage Commission, the existing HK$40 hourly rate is expected to increase by HK$1.80, a 4.5 per cent rise.
The commission was also expected to formalise the review process through introducing a formula that would consider factors such as the consumer price index (A), current gross domestic product growth and average GDP growth in the past 10 years, the insider said.
The consumer price index reflects changes in the cost of consumer goods and services generally bought by households. Index (A) relates to about 50 per cent of households in the city, which are in the relatively low expenditure range.
The formula would ensure the future minimum wage was not lowered from the current rate, the source added.
The proposal, tabled by the commission last October, is pending the approval of the government’s key decision-making Executive Council before it is submitted to the Labour Advisory Board, consisting of both employer and employee representatives, for deliberation.