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Reactions mixed as minimum pay poised to go up
The hourly minimum wage is expected to increase to HK$40 from May after four years of being maintained at HK$37.50.
The Minimum Wage Commission, sources said, has reached a consensus on the pay rise.
It is understood that the commission will recommend raising the minimum by 6.7 percent to the government by the end of the month.
Chief Executive John Lee Ka-chiu, it is believed, is expected to announce shortening the minimum wage review period from two years to one year at his maiden policy address on Wednesday.
The new rate is expected to come into effect from May at the earliest if the proposal is approved by the Executive Council.
Census and Statistics Department figures show about 14,300 people - working mostly in cleaning, security and food and beverage sectors - earned the minimum wage from May to June last year. That is about 0.5 percent of the city's workforce.
The government implemented a statutory minimum wage in 2011 to protect grassroots people, setting it at HK$28 an hour. That figure was gradually increased to HK$37.50 in 2019.
Last year, authorities froze the minimum wage, citing a pandemic-hit economy and record unemployment rates.
Lawmaker Kingsley Wong Kwok, chairman of the Hong Kong Federation of Trade Unions and speaking on behalf of the legislature's labor constituency, said HK$40 is the bottom line.
"The pay hike would only barely catch up with inflation," he said.
Wong added that the constituency will only reluctantly accept the proposal as rejecting it outright could result in the minimum wage being frozen for another two years.
He said the average employee who makes HK$40 an hour earns an average monthly salary of HK$8,300.
"Only by receiving the Working Family Allowance on top of that can they lead a dignified life," Kwok said.
But the honorary president of the Federation of Hong Kong Industries, Jimmy Kwok Chun-wah, said companies cannot afford to pay workers higher wages as they are still operating in a state of uncertainty.
"A minimum wage hike would cause a ripple effect as employees would expect pay rises across the board," he said.
Ray Chui Man-wai, chairman of the Institute of Dining Professionals, said employees making more than the minimum wage would also expect raises - and then restaurants would have to increase their prices by 20 percent.
The Federation of Hong Kong and Kowloon Labor Unions said raising the minimum wage for cleaners and security guards would not have an effect on most businesses.
It also called on the government to raise the minimum wage to no less than HK$46.
Oxfam last week call on the government to raise the minimum wage to HK$45.40 to help low-income households cope with inflation and rising costs of living.
Baguio, to which street cleaning is outsourced by the Food and Environmental Hygiene Department, said the expected wage hike is appropriate.
It is understood that the commission will recommend raising the minimum by 6.7 percent to the government by the end of the month.
Chief Executive John Lee Ka-chiu, it is believed, is expected to announce shortening the minimum wage review period from two years to one year at his maiden policy address on Wednesday.
The new rate is expected to come into effect from May at the earliest if the proposal is approved by the Executive Council.
Census and Statistics Department figures show about 14,300 people - working mostly in cleaning, security and food and beverage sectors - earned the minimum wage from May to June last year. That is about 0.5 percent of the city's workforce.
The government implemented a statutory minimum wage in 2011 to protect grassroots people, setting it at HK$28 an hour. That figure was gradually increased to HK$37.50 in 2019.
Last year, authorities froze the minimum wage, citing a pandemic-hit economy and record unemployment rates.
Lawmaker Kingsley Wong Kwok, chairman of the Hong Kong Federation of Trade Unions and speaking on behalf of the legislature's labor constituency, said HK$40 is the bottom line.
"The pay hike would only barely catch up with inflation," he said.
Wong added that the constituency will only reluctantly accept the proposal as rejecting it outright could result in the minimum wage being frozen for another two years.
He said the average employee who makes HK$40 an hour earns an average monthly salary of HK$8,300.
"Only by receiving the Working Family Allowance on top of that can they lead a dignified life," Kwok said.
But the honorary president of the Federation of Hong Kong Industries, Jimmy Kwok Chun-wah, said companies cannot afford to pay workers higher wages as they are still operating in a state of uncertainty.
"A minimum wage hike would cause a ripple effect as employees would expect pay rises across the board," he said.
Ray Chui Man-wai, chairman of the Institute of Dining Professionals, said employees making more than the minimum wage would also expect raises - and then restaurants would have to increase their prices by 20 percent.
The Federation of Hong Kong and Kowloon Labor Unions said raising the minimum wage for cleaners and security guards would not have an effect on most businesses.
It also called on the government to raise the minimum wage to no less than HK$46.
Oxfam last week call on the government to raise the minimum wage to HK$45.40 to help low-income households cope with inflation and rising costs of living.
Baguio, to which street cleaning is outsourced by the Food and Environmental Hygiene Department, said the expected wage hike is appropriate.
