HK sets initial minimum wage rate at $28/hr

Statutory minimum wage will protect grassroots workers and ensure their pay is commensurate with hours worked.

The Chief Executive-in-Council has adopted the recommendation of the Provisional Minimum Wage Commission to set the initial statutory minimum wage rate at $28 an hour. It will come into force on May 1.

The Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2010 will be published in the Gazette on November 12 and tabled at the Legislative Council on November 17, according to a government report.

Chief Executive Donald Tsang said on Wednesday legislating for a minimum wage is a major labour policy of the current-term government. It is also a milestone in the protection of low-income workers' rights.

"I hope the Legislative Council will pass the subsidiary legislation so it can come into force on May 1 as scheduled," he said. "The minimum wage rate has been discussed in society for years. It is a subject of much controversy. I would like to extend my thanks to the chairperson and members of the Provisional Minimum Wage Commission for their hard work. Despite the tremendous difficulties, the commission reached a consensus on the initial statutory minimum wage rate, having adopted an evidence-based approach and conducted extensive consultation. This is a hard-won achievement."

He said since the statutory minimum wage is new to Hong Kong, various sectors should work together in preparation for the legislation's implementation. The Labour Department will strengthen employment services for young people, middle-aged people and the disabled, and formulate guidelines to help employers and employees better understand their respective obligations and entitlements.

Secretary for Labour & Welfare Matthew Cheung said the statutory minimum wage will protect grassroots workers and ensure their pay is commensurate with hours worked.

"I should also reiterate employees are the most valuable asset of an enterprise. It is always in the interest of employers to bear in mind the well-being, morale and sentiment of their employees, treat them well and maintain harmonious labour relations," he said.

The Labour Department will launch extensive promotion campaigns on the minimum-wage requirements and form guidelines to address the special characteristics of specific sectors. Publicity materials with illustrative examples drawn from different trades and industries explaining the application of the Minimum Wage Ordinance will also be formulated.

"Employees who feel aggrieved and find their rights undermined should seek help from the Labour Department, and we stand ready to assist," Mr Cheung said.

The Government will also gazette on November 12, and table at the Legislative Council on November 17, the Minimum Wage Ordinance (Commencement) Notice 2010, Minimum Wage Ordinance (Commencement) (No. 2) Notice 2010 and Employment Ordinance (Amendment of Ninth Schedule) Notice 2010. The Employment Ordinance amendment specifies the monthly monetary cap on keeping records of hours worked. An employer will be exempted from the requirement if the wages payable to the employee for a particular wage period are more than $11,500 per month.