Gov't raises minimum wage to $40 per hour

Previously, it was $37.5 per hour.

In time for labour day, the government has increased the Statutory Minimum Wage (SMW) to $40 per hour from $37.5 per hour.

The increase took effect on 1 May.

The increase covers employees who are monthly-rated, daily-rated, hourly-rated, piece-rated, permanent, casual, full-time or part-time,  regardless of whether or not they are employed under a continuous contract as defined in the Employment Ordinance (EO).

Under the Minimum Wage Ordinance (MWO), the SMW also covers disabled employees.

"The MWO provided a special arrangement for employees with disabilities to opt for a productivity assessment to determine whether they should be remunerated at no less than the SMW or a rate commensurate with their productivity, the government said.

"For the disabled employees who have chosen this special arrangement, their employers have to pay wages of not less than the amount to be calculated according to the new SMW rate and the degree of productivity assessed," it added.

On the other hand, SMW does not apply to live-in domestic workers, student interns, and work experience students.

Apart from the SMW rate hike, the government also raised the monthly monetary cap on the requirement of employers to record the total number of hours worked by employees under the EO to $16,300 from $15,300.

"When wages payable in respect of a wage period are less than $16,300 per month, the employer is required to keep a record of the total number of hours worked by the employee in that wage period," the government explained.