HK$2 increase in hourly minimum wage coming

The government is to increase Hong Kong’s minimum wage by HK$2 to HK$30 per hour on Labour Day 2013.

The new minimum wage is seen as a win for employers who pushed for the minimal increase, and a loss for unions that wanted an increase to HK$33 an hour. The current wage level of HK$28 an hour was implemented in May 2011.

Secretary for Labour & Welfare Matthew Cheung said the Minimum Wage Commission will submit its report to Chief Executive Leung Chun-ying by the end of October.

“Once the Executive Council has decided on the level of the rate, we will then go to the Legislative Council, to be followed by the legislative process to get the subsidiary legislation amended. I would have thought that probably in early next year, January or February, would be the time we will see the law amended. Allowing time for employers to adjust their contracts, we expect the new rate to come into effect no later than May 1, Labour Day,” he said.

He said he is aware of the anxiety and wishes of the working population and the government will do what it can to compress the timetable.

Minimum Wage Commission members representing both employers and employees last week agreed to increase the hourly rate by 7% from the current HK$28 following angry debates over the past month.
Labour Party lawmaker Lee Cheuk-yan said the 7% rise is disappointing since this doesn't even keep pace with the 10% increase in public housing rent.

He was surprised employers opposed HK$30 or higher since many were complaining of the difficulty in hiring employees at the current minimum wage.

Simon Wong Ka-wo, president of the Hong Kong Federation of Restaurants and Related Trades, said if the wage rose more than HK$30, operational costs will go up by 10%.