Minimum wage in Hong Kong to be raised

HRM 19 Dec 2012

Labour minister Matthew Cheung announced its plans to raise the city’s minimum wage to HK$30 (US$3.87) an hour, despite fierce opposition from employers.

Cheung said that the raise represents a 7.1% increase from the current HK$28 pay per hour, which was introduced in May last year to tackle a widening income gap between the rich and poor.

"(The new rate) will be effective from May 1 next year if it is approved by the legislative council," Cheung said, in a report by AFP. He added that around 320,000 workers are expected to benefit from the adjustment.

However, this hike has been criticised not only by employers, but also by labour groups as being inadequate. Critics said that the raise was too small to cover inflation and the high cost of living in Hong Kong.

Known for its many rich tycoons, the financial hub is also home to hundreds of thousands of workers who live on hourly wages sometimes as low as US$2 an hour prior to the introduction of the minimum wage.

Hong Kong's inflation rose 5.3% year-on-year in 2011, and may gain 3.9% this year according to a government forecast.



Leave your comment
Start a new discussion

HRM Asia forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Post a Comment
HRM Asia welcomes your contribution. Your IP address is recorded in the event of a complaint.
Name *
Email *
(required, but will not display)
Comment *
Please enter in the numbers in the box left.
You are about to submit your comment. Is it:
  • Professional
  • In your own name or pseudonym, not impersonating someone else
  • Free from rude language
  • Free from advertising
  • If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.
  • 20 Sep | Michael Page International | Singapore
    19 Sep | Michael Page International | Singapore
    Gamification and story-telling at Sabre Holdings
    Joyita Poddar, HR Director, APAC, Sabre Holdings, elaborates on how firms should sell the success stories of their own employees through different platforms
    TTSH: HR leading the health drive
    The business case for WSH
    Itron: A five-prong guideline to employee retention
    Performance Leadership Pte Ltd | info@performance.sg
    Lunch, Learn and Bond with your teams, all within 1 hour! Choose from a variety of light-hearted, interesting or thought-provoking topics that appeal ...
    Performance Recognition Pte Ltd | info@performance.sg
    A monthly business incubator where leaders grow their skills, exchange ideas and share best practices.
    Organisational Development Concepts | enquiries@odctraining.com.sg
    Public speaking is a set of skills not a talent. You can be a good presenter if you learn the skills for presentation success.