Hong Kong set to increase minimum wage by 4.5%

Hong Kong is poised to increase its hourly minimum wage to HK$41.8 (US$5.35) from its current rate of HK$40 (US$5.12), reflecting a 4.5% increase, as reported by the Hong Kong Free Press on Apr 29, 2024.

The city’s minimum wage saw its last increase of HK$2.50 (US$0.32) in 2023 after being stagnant at HK$37.50 (US$4.80) since 2019. 

Additionally, it’s reported that the Minimum Wage Commission will begin reviewing the minimum wage annually, departing from the previous practice of conducting reviews every two years, a change advocated for by labor activists to better align with inflation. 

It is also indicated that the commission plans to adopt a new formula preventing any decrease in the minimum wage.

Additional Information:

• The minimum wage in Hong Kong was introduced in 2011 at HK$28 (US$3.58), and it has steadily risen since then.
• In 2021, the minimum wage remained unchanged as the government pointed to the unfavorable economic forecast and the high unemployment rate as reasons for announcing the decision.
• Approximately 143,000 individuals were earning the minimum wage in mid-2021, predominantly in sectors such as security, cleaning services, and retail, as per the Minimum Wage Commission.