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Minimum Wage Commission has submitted 2024 Report on Reviewing the Statutory Minimum Wage Rate
The Minimum Wage Commission (MWC) has completed the review of the Statutory Minimum Wage (SMW) rate and submitted its report to the Chief Executive (CE) in Council today (October 31).
Pursuant to the Minimum Wage Ordinance (MWO), MWC’s main function is to make recommendation about the SMW rate to CE in Council. As set out in section 12(3) of MWO, MWC in performing its functions needs to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and give due regard to the need to sustain Hong Kong’s economic growth and competitiveness. MWC agreed to adopt the formula (Note) under the enhanced review mechanism of SMW accepted by CE in Council on April 30 this year for conducting the current review.
After CE in Council’s consideration of MWC’s report, the Government will at an appropriate time announce the decision. MWC will also publish its report in due course.
MWC comprises a Chairperson and 12 Members from the labour sector, the business sector, the academia and the Government.
Note: The formula is:
Minimum Wage Commission holds meeting today
At its meeting today (September 2), the Minimum Wage Commission discussed the recommended Statutory Minimum Wage rate and the relevant impact assessment.
Monday, September 2, 2024Minimum Wage Commission holds meeting today
At its meeting today (June 21), the Minimum Wage Commission (MWC) was briefed on the major results of the 2022 Annual Survey of Economic Activities and the 2023 Annual Earnings and Hours Survey. MWC also discussed its workplan for 2024 and the execution arrangements for recommending the next Statutory Minimum Wage rate.
Friday, June 21, 2024Minimum Wage Commission delighted by Government's acceptance of recommendations on enhancing review mechanism of Statutory Minimum Wage
The Minimum Wage Commission (MWC) has unanimously put forth its recommendations on enhancing the review mechanism of the Statutory Minimum Wage (SMW) after extensive consultations, detailed analyses and thorough deliberations. The recommendations are reviewing the SMW rate once a year (Annual Review), adopting a formula for implementing the Annual Review and reviewing the aforesaid new review mechanism five to 10 years after its implementation.
The Chairperson of the MWC, Ms Priscilla Wong, said today (April 30), "We are delighted to learn that after considering the MWC's study report, the Chief Executive (CE) in Council has accepted our recommendations on enhancing the review mechanism of the SMW."
Ms Wong added, "The recommendations on the new review mechanism represent the unanimous consensus of the MWC. The adoption of a formula for adjusting the SMW rate can reduce the contention of the community over the rate of each SMW adjustment, thereby helping foster harmonious labour relations. The MWC believes that the new review mechanism can enhance the efficiency of reviewing the SMW rate, while complying with the policy objectives of the Minimum Wage Ordinance (Cap. 608)."
With the CE in Council's acceptance of the MWC's recommendations, the MWC has successfully concluded the aforesaid study. The MWC notes that the CE will require the MWC to submit the next recommendation report on the SMW rate to the CE in Council on or before October 31 this year in accordance with the requirements of the Minimum Wage Ordinance. The MWC will commence the relevant work in due course.
The "Study Report on Enhancing the Review Mechanism of the Statutory Minimum Wage" has been uploaded to the MWC's website (www.mwc.org.hk).
Tuesday, April 30, 2024Chief Executive in Council accepts recommendations on enhancing review mechanism of Statutory Minimum Wage
The Chief Executive (CE) in Council has accepted the recommendations of the Minimum Wage Commission (MWC) on enhancing the review mechanism of the Statutory Minimum Wage (SMW). The recommendations include reviewing the SMW rate once a year (Annual Review), adopting a formula for implementing the Annual Review and reviewing the aforesaid new review mechanism five to 10 years after its implementation.
After extensive consultations and making reference to experience in reviewing the SMW rate, the MWC recommended implementing the Annual Review, which would allow closer alignment of the SMW rate with socio-economic changes and safeguard the income of grassroots employees more effectively.
The formula proposed by the MWC comprises two indicators, namely inflation and the Economic Growth factor. The former ensures that the rate of adjustment in the SMW will not fall below the headline Consumer Price Index (A) inflation, so as to maintain the purchasing power of the SMW and safeguard the employment income of grassroots employees. The Economic Growth factor enables the rate of increase in the SMW to be suitably higher than inflation when the Hong Kong economy performs well (i.e. economic growth in the latest year is higher than the trend growth in the latest decade).
The Secretary for Labour and Welfare, Mr Chris Sun, said he is very pleased with the MWC's accomplishment in the historic and challenging mission of studying enhancements to the review mechanism of the SMW. He paid warm tribute to the Chairperson of the MWC, Ms Priscilla Wong, for her exemplary leadership and all MWC members for their untiring efforts and sterling contributions.
Mr Sun said, "Having carefully considered the MWC's study report, the Government is of the view that the MWC has ably discharged its function. The recommendations of the MWC have struck an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining Hong Kong's economic growth and competitiveness. The Government agrees that the adoption of a formula for adjusting the SMW rate will enhance predictability and transparency, thereby reducing the contention of the community over the rate of each SMW adjustment, and helping foster harmonious labour relations. The Government also believes that the new review mechanism is in line with the overall interests of Hong Kong."
The first SMW rate derived under the new review mechanism will take effect on May 1, 2026. The Government will thrash out the arrangements for implementing the new review mechanism and announce them in due course. Moreover, in accordance with the requirements of the Minimum Wage Ordinance (Cap. 608), the CE will require the MWC to submit the next recommendation report on the SMW rate on or before October 31 this year. The next SMW rate recommended by the MWC will take effect on May 1, 2025.
In January 2023, the CE tasked the MWC to study how to enhance the review mechanism of the SMW, including the review cycle, how to improve efficiency, and balancing a host of factors such as the minimum wage level and sustained economic development. The MWC submitted the Study Report on Enhancing the Review Mechanism of the Statutory Minimum Wage to the Government on October 31 the same year. The Report has been uploaded to the MWC website (www.mwc.org.hk).
Tuesday, April 30, 2024Minimum Wage Commission has submitted the Study Report on Enhancing the Review Mechanism of the Statutory Minimum Wage
As announced in the Chief Executive (CE)’s 2022 Policy Address, the Government would invite the Minimum Wage Commission (MWC) to study how to enhance the review mechanism of the Statutory Minimum Wage (SMW), including the review cycle, how to improve efficiency, and balancing a host of factors such as the minimum wage level and sustained economic development, and make proposals to the Government.
CE has subsequently tasked MWC to conduct the above study pursuant to section 12(2) of the Minimum Wage Ordinance (Cap. 608). MWC has completed the study and submitted the study report on enhancing the review mechanism of SMW to CE today (October 31).
MWC comprises a Chairperson and 12 Members from the labour sector, the business sector, the academia and the Government. Apart from reviewing the views and information provided by the public and the related organisations during the two-stage consultation, MWC has also analysed the relevant factors (covering general economic conditions, labour market conditions, competitiveness and social inclusion, etc.) which were considered during the past reviews of the SMW rate. MWC puts forward its recommendations after thorough and in-depth deliberations on various options for enhancing the review mechanism, and having taken into account the views of employers and employees as well as Hong Kong’s economic situation. MWC believes that the recommendations will be conducive to the overall interest and development of Hong Kong.
The Government will examine and consider the recommendations made by MWC, and decide on the way forward of the review mechanism in six months’ time. MWC will publish the study report in due course.
Tuesday, October 31, 2023Minimum Wage Commission holds meeting today
At its meetings held on July 3 and today (September 25), the Minimum Wage Commission examined the views received during the two stages of consultation on enhancing the review mechanism of the Statutory Minimum Wage and discussed different options of enhancing the review mechanism.
Monday, September 25, 2023Second-stage consultation on enhancing the Statutory Minimum Wage review mechanism
The Minimum Wage Commission has completed the second-stage consultation on enhancing the review mechanism of the Statutory Minimum Wage (from 5 to 25 June 2023).
Monday, June 26, 2023Second-stage consultation on enhancing Statutory Minimum Wage review mechanism to end on June 25
The Minimum Wage Commission (MWC) today (June 19) reminded the public that the second-stage consultation on enhancing the review mechanism of the Statutory Minimum Wage will end on June 25.
The MWC launched the second-stage consultation on June 5. The public is welcome to give views by e-form on the MWC's website, email (mwc@labour.gov.hk), fax (2110 3518) or post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before June 25. The consultation document can be downloaded from the MWC's website (www.mwc.org.hk/en/consultation/index.html).
Monday, June 19, 2023MWC further invites public views on enhancing Statutory Minimum Wage review mechanism
The Minimum Wage Commission (MWC) today (June 5) launched the second-stage consultation to further invite views from the public on enhancing the review mechanism of the Statutory Minimum Wage.
The MWC completed the first-stage consultation on enhancing the review mechanism on April 24. Taking account of the views received, the MWC would like to listen to the views from the public and stakeholding organisations in a more focused manner through the second-stage consultation. On completion of the second-stage consultation, the MWC will consolidate and deliberate the views received with a view to putting forth recommendation(s) to the Government.
The consultation document can be downloaded from the MWC's website (www.mwc.org.hk/en/consultation/index.html). The public is welcome to give views by e-form on the MWC's website, email (mwc@labour.gov.hk), fax (2110 3518) or post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before June 25.
The Chief Executive (CE) announced in his 2022 Policy Address that the MWC would be invited to study how to enhance the review mechanism, including the review cycle, how to improve efficiency, balancing a host of factors such as the minimum wage level and sustained economic development, and to make proposals to the Government. The CE has exercised the power conferred by the Minimum Wage Ordinance (MWO) (Cap. 608), and tasked the MWC to conduct the aforesaid study and submit a report on the study to the CE by end-October 2023.
Pursuant to the MWO, the MWC’s main function is, when required by the CE to do so, to make recommendation on the Statutory Minimum Wage rate to the CE in Council. In performing its functions, the MWC needs to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and give due regard to sustaining Hong Kong's economic growth and competitiveness.
Monday, June 5, 2023Minimum Wage Commission holds meeting today
At its meeting today (May 15), the Minimum Wage Commission (MWC) reviewed the views of the public received during the first stage consultation on enhancing the review mechanism of the Statutory Minimum Wage, and endorsed the arrangements for the second stage consultation to be held from 5 to 25 June with the details to be announced later. MWC also examined Hong Kong’s latest socio economic and employment conditions.
Monday, May 15, 2023First-stage consultation on enhancing the Statutory Minimum Wage review mechanism
The Minimum Wage Commission just completed a four-week (from 28 March to 24 April 2023) first-stage consultation on enhancing the review mechanism of the Statutory Minimum Wage.
Tuesday, April 25, 2023First-stage consultation on enhancing Statutory Minimum Wage review mechanism to end on April 24
The Minimum Wage Commission (MWC) today (April 18) reminded the public that the first-stage consultation on enhancing the review mechanism of the Statutory Minimum Wage will end on April 24.
The MWC launched a four-week first-stage consultation on March 28. The public is welcome to give views by e-form on the MWC's website, email (mwc@labour.gov.hk), fax (2110 3518) or post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before April 24. The consultation document can be downloaded from the MWC's website (www.mwc.org.hk/en/consultation/index.html).
Tuesday, April 18, 2023MWC invites public views on enhancing Statutory Minimum Wage review mechanism
The Minimum Wage Commission (MWC) today (March 28) launched a four-week first-stage consultation to invite views from the public on enhancing the review mechanism of the Statutory Minimum Wage (the review mechanism).
The Chief Executive (CE) announced in his 2022 Policy Address that the MWC would be invited to study how to enhance the review mechanism, including the review cycle, how to improve efficiency, balancing a host of factors such as the minimum wage level and sustained economic development, to make proposals to the Government. The MWC is pressing ahead with the study and would like to listen to views from the public on enhancing the review mechanism.
The consultation document can be downloaded from the MWC's website (www.mwc.org.hk/en/consultation/index.html). The public is welcome to give views by e-form on the MWC's website, email (mwc@labour.gov.hk), fax (2110 3518) or post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before April 24.
On completion of the first-stage consultation, the MWC will analyse and collate the views received towards conducting the second-stage consultation. The MWC will announce the relevant arrangements in due course.
Pursuant to the Minimum Wage Ordinance (MWO) (Cap. 608), the MWC's main function is, when required by the CE to do so, to make recommendation on the Statutory Minimum Wage rate to the CE in Council. The CE has exercised the power conferred by the MWO and tasked the MWC to conduct the study on how to enhance the review mechanism and submit a report on the study to the CE by end-October 2023. In performing its functions, the MWC needs to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and give due regard to sustaining Hong Kong's economic growth and competitiveness.
Tuesday, March 28, 2023Minimum Wage Commission holds meeting today
At its meeting today (March 24), the Minimum Wage Commission (MWC) was briefed on the major results of the 2021 Annual Survey of Economic Activities and the 2022 Annual Earnings and Hours Survey. MWC also examined Hong Kong’s latest socio-economic and employment conditions. MWC is pressing ahead with the study on enhancing the review mechanism of the Statutory Minimum Wage and will conduct the first-stage consultation shortly. MWC endorsed, at today’s meeting, the document to be promulgated for the reference of the public during the consultation.
Friday, March 24, 2023Minimum Wage Commission holds meeting today
At its meeting today (February 28), the Minimum Wage Commission deliberated on its workplan for 2023 and examined the community’s views on the review mechanism of the Statutory Minimum Wage.
Tuesday, February 28, 2023Minimum Wage Commission appointments announced
The Government announced today (January 13) the appointments to the Minimum Wage Commission (MWC) for a two-year term with effect from March 1, 2023.
The Chief Executive (CE) has re-appointed Ms Priscilla Wong Pui-sze as the Chairperson of the MWC and 12 incumbent members from the labour sector, the business sector, the academia and the Government. The Chairperson and the nine non-official members are appointed on an ad personam basis.
The Secretary for Labour and Welfare, Mr Chris Sun, welcomed the appointments. He said, "The new term of the MWC will endeavour to study how to enhance the review mechanism of the Statutory Minimum Wage (SMW). I am most grateful that the Chairperson and all members will continue to serve on the MWC for another term. Ms Wong's exemplary leadership and the members' diverse expertise and rich experience in reviewing the SMW rate will certainly be conducive to the smooth completion of the aforesaid important study. The CE has required the MWC to submit a report on the study by the end of October 2023."
Established under the Minimum Wage Ordinance, the MWC's main function is to report to the CE in Council its recommendations on the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness. The MWC also has any other function given to it by the CE in writing. The CE announced in the 2022 Policy Address that the MWC would be invited to study how to enhance the review mechanism of the SMW, including the review cycle, how to improve efficiency, and balancing a host of factors such as the minimum wage level and sustained economic development, and make proposals to the Government in this regard. The CE has given the function of carrying out the aforesaid task to the MWC in writing.
The membership of the MWC for the next term is as follows:
Chairperson
------------------
Ms Priscilla Wong Pui-sze
Non-official Members
------------------------------
Mr Chan Wing-on
Mr Lau Chin-shek
Ms Juan Leung Chung-yan
Professor Joyce Ma Lai-chong
Dr Billy Mak Sui-choi
Ms Ng Wai-yee
Ms Malina Ngai Man-lin
Mrs Katherine Ngan Ng Yu-ying
Professor Tang Hei-wai
Members who are public officers
---------------------------------------------
Permanent Secretary for Labour and Welfare
Permanent Secretary for Commerce and Economic Development
Government Economist
Minimum Wage Commission delighted by acceptance of recommended new Statutory Minimum Wage rate
After detailed analyses, in-depth assessment and thorough consideration, the Minimum Wage Commission (MWC) has unanimously recommended raising the Statutory Minimum Wage (SMW) rate from the current $37.5 per hour to $40.
The Chairperson of the MWC, Ms Priscilla Wong, said today (January 10), "We are delighted to learn that the Chief Executive in Council has accepted our recommendation about the new SMW rate after considering the report of the MWC."
Ms Wong added, "The recommended SMW rate is the consensus of the MWC. The MWC believes that the new SMW rate could strike an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining Hong Kong's economic growth and competitiveness. We earnestly hope that the new SMW rate could be accepted by the Legislative Council."
The MWC adopted an evidence-based approach to review the SMW rate in a comprehensive, objective and balanced manner. Apart from monitoring regularly an Array of Indicators on general economic conditions, labour market conditions, competitiveness and social inclusion, the MWC also fully considered the views of the community on the review of the SMW rate. In addition, the MWC considered the impact assessment results of various SMW test levels under different economic scenario assumptions. The MWC believes that the recommended rate would be conducive to the overall interest and development of Hong Kong.
The "2022 Report of the Minimum Wage Commission" has been uploaded to the MWC's website (www.mwc.org.hk).
Tuesday, January 10, 2023Chief Executive in Council adopts recommendation on Statutory Minimum Wage rate
The Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) on raising the Statutory Minimum Wage (SMW) rate from its prevailing level of $37.5 per hour to $40, an increase of $2.5 or 6.7 per cent.
The Government will publish the Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2023 in the Gazette this Friday (January 13) and table it in the Legislative Council (the LegCo) on January 18. Subject to the approval of the LegCo, the revised SMW rate will come into force on May 1 this year, Labour Day.
The Secretary for Labour and Welfare, Mr Chris Sun, is pleased with the MWC’s accomplishment of the important and challenging mission of reviewing the SMW rate. He paid warm tribute to the Chairperson of the MWC, Ms Priscilla Wong, and all MWC members for their untiring efforts and sterling contributions.
Mr Sun said, "After careful consideration, the Government is of the view that the MWC has ably discharged its statutory function of reviewing the SMW rate after thorough and balanced deliberation, and the recommendation of the MWC has struck an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low paid jobs, while giving due regard to sustaining Hong Kong’s economic growth and competitiveness. The Government accepts the recommendation of the MWC, and considers that the new rate will be conducive to the overall interest and development of Hong Kong."
The "2022 Report of the Minimum Wage Commission" has been uploaded to the MWC's website (www.mwc.org.hk).
The Government will also publish in the Gazette on January 13, and table in the LegCo on January 18, the Employment Ordinance (Amendment of Ninth Schedule) Notice 2023. The Notice amends the monthly monetary cap on recording the total number of hours worked. An employer will be exempted from the requirement of recording the total number of hours worked by an employee in a wage period if wages payable to the employee for that wage period are not less than $16,300 (currently $15,300) per month. In tandem with the commencement of the revised SMW rate, the revised monetary cap will come into force on the same day on which the revised rate takes effect, that is, May 1 this year.
Tuesday, January 10, 2023Minimum Wage Commission has submitted recommendation report on the Statutory Minimum Wage Rate
The Minimum Wage Commission (MWC) has submitted its recommendation report on the Statutory Minimum Wage (SMW) rate to the Chief Executive (CE) in Council today (October 31).
MWC has been tasked to report to the CE in Council its recommendation on the SMW rate pursuant to the Minimum Wage Ordinance (Cap. 608). In performing its function, MWC must maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and give due regard to sustaining Hong Kong’s economic growth and competitiveness.
MWC comprises a Chairperson and 12 Members from the labour sector, the business sector, the academia and the Government. Adopting an evidence-based approach, MWC has completed the review of the SMW rate in a comprehensive, objective and impartial manner. Apart from making reference to various statistical data and information, MWC also conducted extensive and in-depth consultations with the community on the review of the SMW rate, considered other factors that were pertinent to the review of the SMW rate but could not be fully quantified as well as the impact assessment results of the recommended SMW rate.
The CE in Council will at an appropriate time announce its decision after considering MWC’s recommendation report. MWC will publish its recommendation report in due course.
Monday, October 31, 2022Minimum Wage Commission holds meeting today
At its meeting today (August 25), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions. Members also discussed the impact assessment results of different Statutory Minimum Wage test levels as well as the views collected through public consultation and consultation meetings with stakeholders.
Thursday, August 25, 2022Review of the Statutory Minimum Wage rate
The Minimum Wage Commission launched a six-week public consultation from 20 April to 31 May 2022 to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage rate.
Wednesday, June 1, 2022Public consultation on review of Statutory Minimum Wage rate to end on May 31
The Minimum Wage Commission (MWC) today (May 18) reminded members of the public and stakeholders that the public consultation on the review of the Statutory Minimum Wage (SMW) rate will end on May 31.
The MWC commenced a six-week public consultation on April 20, 2022. Various sectors of the community, including members of the public and stakeholders, are welcome to express views on the review of the SMW rate to the MWC in writing by e-Form on its website (www.mwc.org.hk); by email (mwc@labour.gov.hk); by fax (2110 3518); or by post (The Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before May 31. The public can also contact the Secretariat of the MWC at 2852 3862. Details and relevant reference data and information are available at the MWC's website.
Wednesday, May 18, 2022MWC invites views from various sectors on review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) today (April 20) commenced a six-week public consultation to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage (SMW) rate.
The MWC adopts an evidence-based approach in reviewing the SMW rate. Apart from making reference to and analysing relevant statistical data and information, the MWC also conducts extensive consultations to fully consider the views from various sectors of the community on the review of the SMW rate.
Relevant reference data and information have been uploaded to the MWC's website (www.mwc.org.hk). The data and information are for reference only and do not imply that the MWC has any preconceived stance or has come to any conclusion on its recommendation about the SMW rate. Reference can also be made to the 2021 Report on Annual Earnings and Hours Survey released by the Census and Statistics Department available at the department's website (www.censtatd.gov.hk).
Various sectors of the community, are welcome to express their views on the review of the SMW rate in writing to the MWC by e-Form (www.mwc.org.hk/en/consultation/index.html) on the MWC's website; by email (mwc@labour.gov.hk); by fax (2110 3518); or by post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before May 31. The public can also contact the Secretariat of the MWC at 2852 3862.
Pursuant to the Minimum Wage Ordinance (Cap. 608), the MWC is tasked to report to the Chief Executive in Council its recommendation about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
Wednesday, April 20, 2022Review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) will submit to the Chief Executive (CE) in Council its recommendation report on the Statutory Minimum Wage (SMW) rate by the end of October 2022 at the latest.
In accordance with the Minimum Wage Ordinance (MWO) (Cap. 608), the CE has required the MWC to submit its recommendation report on the SMW rate on or before October 31, 2022. Pursuant to the MWO, in performing its functions, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The MWC adopts an evidence-based approach in reviewing the SMW rate. Apart from making reference to and analysing relevant statistical data and information, the MWC also considers the views from the community. The MWC will commence a six-week public consultation next Wednesday (April 20) to invite views from various sectors of the community on the review of the SMW rate.
Wednesday, April 13, 2022Minimum Wage Commission holds meeting today
At its meeting today (March 21), the Minimum Wage Commission (MWC) was briefed on the major results of the 2020 Annual Survey of Economic Activities and the 2021 Annual Earnings and Hours Survey. MWC examined Hong Kong’s latest socio-economic and employment conditions, and discussed the key assumptions to be adopted for the impact assessment. It also deliberated on its workplan for 2022 and the consultation arrangements for its review of the Statutory Minimum Wage rate.
Monday, March 21, 2022Minimum Wage Commission holds meeting today
At its meeting today (December 2), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions, and discussed the impact assessment framework to be adopted for reviewing the Statutory Minimum Wage rate as well as the views collected at focused consultation meetings with stakeholders of low-paying sectors in September.
In addition, MWC met with the media before the meeting today to share its recent work.
Thursday, December 2, 2021Minimum Wage Commission holds meeting today
At its meeting today (June 15), the Minimum Wage Commission discussed its work plan for 2021. It also reviewed the Array of Indicators to be considered in monitoring Hong Kong’s socio-economic and employment conditions after the implementation of Statutory Minimum Wage and the latest conditions of various indicators.
Tuesday, June 15, 2021Minimum Wage Commission holds meeting today
The Minimum Wage Commission (MWC) of the new term held its first meeting today (March 30). MWC received briefings on the major results of the 2020 Annual Earnings and Hours Survey and the 2019 Annual Survey of Economic Activities, and agreed on the housekeeping arrangements for this term.
Tuesday, March 30, 2021Minimum Wage Commission appointments announced
The Government announced today (February 19) the appointments to the Minimum Wage Commission (MWC) for a two-year term with effect from March 1, 2021.
The Chief Executive has re-appointed Ms Priscilla Wong Pui-sze as the chairperson of the MWC and appointed its 12 members from the labour sector, the business sector, academia and the Government. The chairperson and the nine non-official members are appointed on an ad personam basis.
Among the non-official members, Mr Chan Wing-on, Mr Lau Chin-shek, Ms Juan Leung Chung-yan, Dr Billy Mak Sui-choi, Ms Ng Wai-yee, Ms Malina Ngai Man-lin and Mrs Katherine Ngan Ng Yu-ying are serving members, while Professor Joyce Ma Lai-chong and Professor Tang Hei-wai are newly appointed.
The Secretary for Labour and Welfare, Dr Law Chi-kwong, welcomed the appointments. He said, "The MWC assumes the important mission of reviewing and recommending the Statutory Minimum Wage (SMW) rate. The chairperson and members of the MWC for the new term possess a good wealth of knowledge and abundant experience in various fields. I am confident that the MWC will continue to discharge its statutory function effectively."
Dr Law also thanked the two outgoing members, Professor Paul Lau Sau-him and Professor Terry Lum Yat-sang, for their excellent support and sterling contributions to the MWC.
Established under the Minimum Wage Ordinance, the main function of the MWC is to report to the Chief Executive in Council its recommendations about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The membership of the MWC for the next term is as follows:
Chairperson
------------------
Ms Priscilla Wong Pui-sze
Non-official Members
------------------------------
Mr Chan Wing-on
Mr Lau Chin-shek
Ms Juan Leung Chung-yan
Dr Billy Mak Sui-choi
Ms Ng Wai-yee
Ms Malina Ngai Man-lin
Mrs Katherine Ngan Ng Yu-ying
Professor Joyce Ma Lai-chong (newly appointed)
Professor Tang Hei-wai (newly appointed)
Members who are public officers
---------------------------------------------
Permanent Secretary for Labour and Welfare
Permanent Secretary for Commerce and Economic Development
(Commerce, Industry and Tourism)
Government Economist
Chief Executive in Council adopts recommendation on Statutory Minimum Wage rate
The Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) to maintain the prevailing Statutory Minimum Wage (SMW) rate at $37.5 per hour.
The Secretary for Labour and Welfare, Dr Law Chi-kwong, said, "The Government has carefully considered the report of the MWC and is of the view that the MWC has ably discharged its statutory function of reviewing the SMW rate with thorough and balanced deliberations."
He added, "During the current round of review of the SMW rate by the MWC, the Hong Kong economy was in a deep recession with an elevated unemployment rate and the economic outlook was faced with an unusually high degree of uncertainty. Under such an austere economic environment, maintaining the prevailing SMW rate can help strike an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs."
Dr Law paid tribute to the Chairperson of the MWC, Ms Priscilla Wong, and all members for accomplishing the review of the SMW rate. In accordance with the Minimum Wage Ordinance, the MWC will be required to submit the next recommendation report by October 31, 2022.
The full text of the "2020 Report of the Minimum Wage Commission" is available at the MWC's website (www.mwc.org.hk).
Tuesday, February 2, 2021Minimum Wage Commission has submitted recommendation report on the Statutory Minimum Wage Rate
The Minimum Wage Commission (MWC) has submitted its recommendation report on the Statutory Minimum Wage (SMW) rate to the Chief Executive (CE) in Council today (October 31).
MWC has been tasked to report to CE in Council its recommendation about the SMW rate pursuant to the Minimum Wage Ordinance (Cap. 608). In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness.
The CE in Council will at an appropriate time announce its decision after considering MWC’s recommendation report. MWC will timely publish its recommendation report.
Saturday, October 31, 2020Minimum Wage Commission held meeting yesterday
At its meeting yesterday (September 3), the Minimum Wage Commission deliberated on the recommended Statutory Minimum Wage rate.
Friday, September 4, 2020Minimum Wage Commission holds meeting today
At its meeting today (August 18), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions. MWC also discussed the views collected during public consultation and the impact assessment results of different Statutory Minimum Wage test levels.
Tuesday, August 18, 2020Minimum Wage Commission holds meeting today
At its meeting today (June 23), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions. MWC also discussed the major considerations in the review of the Statutory Minimum Wage rate and main assumptions to be adopted in the impact assessment, as well as the initial views collected during the public consultation conducted from April 22 to June 16.
Tuesday, June 23, 2020Review of the Statutory Minimum Wage rate
The Minimum Wage Commission launched an eight-week public consultation from 22 April to 16 June 2020 to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage rate.
Wednesday, June 17, 2020Public consultation on review of Statutory Minimum Wage rate to end on June 16
The Minimum Wage Commission (MWC) today (June 5) reminded members of the public and stakeholders that the public consultation on the review of the Statutory Minimum Wage (SMW) rate will end on June 16.
The MWC commenced an eight-week public consultation on April 22, 2020. Various sectors of the community, including members of the public and stakeholders, are welcome to express views on the review of the SMW rate to the MWC in writing by e-Form on its website (www.mwc.org.hk); fax (2110 3518); email (mwc@labour.gov.hk); or post (The Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central) on or before June 16. The public can also contact the Secretariat of the MWC at 2852 3864. Details and relevant reference information and data are available at the MWC's website.
Friday, June 5, 2020Review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) will submit to the Chief Executive (CE) in Council its recommendation report on the Statutory Minimum Wage (SMW) rate by the end of October 2020 at the latest.
In accordance with the Minimum Wage Ordinance (MWO) (Cap. 608), the CE has required the MWC to submit its recommendation report on the SMW rate on or before October 31, 2020. Pursuant to the MWO, in performing its functions, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The MWC adopts an evidence-based approach in reviewing the SMW rate. Apart from research and analysis of relevant statistical data, the MWC is conducting public consultation and the community is welcome to provide their views on the review of the SMW rate in writing by e-Form (www.mwc.org.hk/en/consultation/index.html) on the MWC's website, by fax (2110 3518), by email (mwc@labour.gov.hk) or by post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central) on or before June 16, 2020. The public can also contact the Secretariat of the MWC at 2852 3864.
Friday, April 24, 2020MWC invites views from various sectors on review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) today (April 22) commenced an eight-week public consultation to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage (SMW) rate.
The MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from research and analysis of relevant statistical data, the MWC conducts extensive consultation to fully consider the views from various sectors of the community on the review of the SMW rate.
Relevant reference information and data have been uploaded to the MWC's website (www.mwc.org.hk). The information and data are for reference only and do not imply that the MWC has any preconceived stance or has come to any conclusion on its recommendation about the SMW rate. Reference can also be made to the 2019 Report on Annual Earnings and Hours Survey released by the Census and Statistics Department available at the department's website (www.censtatd.gov.hk).
Members of the public and stakeholders are welcome to express their views on the review of the SMW rate in writing to the MWC by e-Form (www.mwc.org.hk/en/consultation/index.html) on the MWC's website; by fax (2110 3518); by email (mwc@labour.gov.hk); or by post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before June 16. The public can also contact the Secretariat of the MWC at 2852 3864.
Pursuant to the Minimum Wage Ordinance (Cap. 608), the MWC is tasked to report to the Chief Executive in Council its recommendation about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
Wednesday, April 22, 2020Minimum Wage Commission holds meeting today
At its meeting today (March 30), the Minimum Wage Commission was briefed on the major results of the 2018 Annual Survey of Economic Activities and the 2019 Annual Earnings and Hours Survey. The Commission also examined Hong Kong’s latest socio-economic and employment conditions, and deliberated on its workplan for 2020 and the consultation arrangements for its review of the Statutory Minimum Wage rate.
Monday, March 30, 2020Minimum Wage Commission holds meeting today
At its meeting today (December 5), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions, and discussed the impact assessment framework and methodology to be adopted when studying the Statutory Minimum Wage rate.
Thursday, December 5, 2019Minimum Wage Commission holds meeting and meets the media today
At its meeting today (October 15), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions and discussed the views collected at focused consultation meetings with stakeholders of low paying sectors held on September 16.
In addition, MWC met the media before the meeting today to share its recent work.
Tuesday, October 15, 2019Minimum Wage Commission holds meeting today
At its meeting today (June 26), the Minimum Wage Commission discussed its work plan for 2019. It also reviewed the Array of Indicators to be considered in monitoring Hong Kong’s socio-economic and employment conditions after the implementation and upratings of Statutory Minimum Wage and the latest conditions of the various indicators.
Wednesday, June 26, 2019Minimum Wage Commission holds meeting today
The Minimum Wage Commission (MWC) of the new term held its first meeting today (March 25). MWC received briefings on the major results of the 2018 Annual Earnings and Hours Survey and the 2017 Annual Survey of Economic Activities, and agreed on the housekeeping arrangements for this term.
Monday, March 25, 2019Minimum Wage Commission appointments announced
The Government announced today (February 19) the appointments to the Minimum Wage Commission (MWC) for a two-year term with effect from March 1, 2019.
The Chief Executive has re-appointed Ms Priscilla Wong Pui-sze as chairperson of the MWC and appointed its 12 members from the labour sector, the business sector, academia and the Government. The chairperson and the nine non-official members are appointed on an ad personam basis.
Among the non-official members, Mr Lau Chin-shek, Professor Lau Sau-him, Professor Terry Lum Yat-sang and Mrs Katherine Ngan Ng Yu-ying are serving members, while Mr Chan Wing-on, Ms Juan Leung Chung-yan, Dr Billy Mak Sui-choi, Ms Ng Wai-yee and Ms Malina Ngai Man-lin are newly appointed.
The Secretary for Labour and Welfare, Dr Law Chi-kwong, welcomed the appointments. He said, "The MWC assumes the important mission of reviewing and recommending the Statutory Minimum Wage (SMW) rate. The chairperson and members of the MWC for the new term possess a good wealth of knowledge and abundant experience in various fields. I am confident that the MWC will continue to discharge its statutory function effectively."
Dr Law also thanked the five outgoing members, Mr Bankee Kwan Pak-hoo, Professor Leung Siu-fai, Ms Li Fung-ying, Mr Simon Wong Kit-lung and Mr Kingsley Wong Kwok, for their excellent support and sterling contributions to the MWC.
Established under the Minimum Wage Ordinance, the main function of the MWC is to report to the Chief Executive in Council its recommendations about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The membership of the MWC for the next term is as follows:
Chairperson
-------------
Ms Priscilla Wong Pui-sze
Non-official Members
-----------------------
Mr Lau Chin-shek
Professor Lau Sau-him
Professor Terry Lum Yat-sang
Mrs Katherine Ngan Ng Yu-ying
Mr Chan Wing-on (newly appointed)
Ms Juan Leung Chung-yan (newly appointed)
Dr Billy Mak Sui-choi (newly appointed)
Ms Ng Wai-yee (newly appointed)
Ms Malina Ngai Man-lin (newly appointed)
Members who are public officers
------------------------------------
Permanent Secretary for Labour and Welfare
Permanent Secretary for Commerce and Economic Development
(Commerce, Industry and Tourism)
Government Economist
Minimum Wage Commission delighted by acceptance of its recommended new Statutory Minimum Wage rate
After detailed analyses, in-depth assessment and thorough consideration, the Minimum Wage Commission (MWC) has by unanimous consensus recommended that the current Statutory Minimum Wage (SMW) rate of $34.50 per hour be raised to $37.50 per hour.
The Chairperson of the MWC, Ms Priscilla Wong, said today (January 11), "We are delighted to learn that the Chief Executive in Council has accepted our recommendation about the new SMW rate after considering the report of the MWC."
Ms Wong added, "Our recommendation is based on the unanimous consensus and support of all the MWC Members. The recommended new SMW rate maintains an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to the need to sustain Hong Kong's economic growth and competitiveness. We earnestly hope that the recommended new SMW rate could be accepted by the Legislative Council."
The MWC has adopted an evidence-based approach to review the SMW rate in an objective and balanced manner. Apart from making reference to the data of an Array of Indicators (covering four areas of consideration, namely general economic conditions, labour market conditions, competitiveness and social inclusion, and including a large number of indicators which were released more frequently and more up to date), the MWC also studied in detail the findings of other surveys and fully considered the views of the community on the review of the SMW rate. In parallel, the MWC considered other factors that were pertinent to the review of the SMW rate but could not be fully quantified, and conducted stress tests under four economic scenarios to assess the potential impact of different SMW test levels on employees, enterprises, the unemployment rate and inflation.
Based on the data from the Census and Statistics Department and assuming the Hong Kong economy would grow by 2.5 per cent to 3.5 per cent in real terms over the year earlier for the first half of 2019, the MWC roughly estimated that the number of employees with an hourly wage less than $37.50 in the first half of 2019 before the implementation of the recommended new SMW rate (i.e. pre-adjustment employees involved) would be around 61 500 to 75 500, representing 2.0 per cent to 2.5 per cent of all employees in Hong Kong. Since the labour market would keep adjusting before and after the implementation of the recommended new SMW rate, the assumptions underlying the above rough estimates on the number of pre-adjustment employees involved might differ from the actual outcomes. Taking into account the impact of the knock-on effect on pay hierarchies (knock-on effect) and drawing on the experience gained from previous SMW upratings, the MWC envisaged that, barring any abrupt economic downturn, the number of employees benefiting from pay rises owing to the uprating of the SMW would eventually be greater than the number of pre-adjustment employees involved, as well as the number of employees earning the recommended new SMW rate after the adjustment.
For enterprises, taking into account rest day pay and meal break pay (for employees who are granted these payments according to their employment contracts or agreements) and the impact of the knock-on effect in addition to the amount payable by enterprises to comply with the statutory requirement, the MWC estimated that the total wage bill would increase by about $800 million to $930 million or approximately 0.1 per cent. The MWC envisaged that the impact of the recommended new SMW rate would be manageable for most enterprises, while the overall business environment and incentives for business start-ups should not be significantly affected.
Regarding the impact on the unemployment rate, the MWC estimated that the recommended new SMW rate would lift the overall unemployment rate by about 0.1 to 0.3 percentage points. With the prevailing low unemployment rate in Hong Kong, barring any abrupt economic downturn, the recommended new SMW rate would unlikely trigger a marked deterioration in labour market conditions.
As for the impact on inflation, assuming a full pass-on of additional wage bills to prices of products and services and taking into account the first round of wage-price spiral effect, the MWC estimated that the Composite Consumer Price Index (CPI) inflation and CPI(A) inflation (the latter being a better measure for the impact of price changes on the grass roots) would both go up by about 0.1 percentage points. Nevertheless, as it would be unlikely for all enterprises to fully pass on the additional wage bills to consumers, the actual impact of the recommended new SMW rate on inflation should be smaller than the above estimates.
The full text of the "2018 Report of the Minimum Wage CommissionThis link will open in a new window" has been uploaded to the MWC's website (www.mwc.org.hk).
Chief Executive in Council adopts recommendation on Statutory Minimum Wage rate
The Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) to raise the Statutory Minimum Wage (SMW) rate from its prevailing level of $34.5 per hour to $37.5 per hour, an increase of $3 or 8.7 per cent.
The Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2019 will be published in the Government Gazette next Friday (January 18) and tabled in the Legislative Council (LegCo) on January 23. Subject to the approval of LegCo, the revised SMW rate will come into force on May 1, the next Labour Day.
The Secretary for Labour and Welfare, Dr Law Chi-kwong, paid warm tribute to the Chairperson of the MWC, Ms Priscilla Wong, and all its members for their hard efforts and sterling contribution in accomplishing the important and challenging mission of reviewing the SMW rate.
Dr Law said, "The Government has carefully considered the report of the MWC and is of the view that the MWC has ably discharged its statutory function of reviewing the SMW rate with thorough and balanced deliberation."
He added, "Since the SMW came into effect on May 1, 2011, the earnings of low-income employees have continued to improve and the employment market has remained largely stable. The smooth implementation of the SMW has been attributable to the support of the community and co-operation of stakeholders."
The full text of the "2018 Report of the Minimum Wage CommissionThis link will open in a new window" is available at the MWC's website (www.mwc.org.hk).
The Government will also publish in the Government Gazette on January 18, and table in LegCo on January 23, the Employment Ordinance (Amendment of Ninth Schedule) Notice 2019. The Notice amends the monthly monetary cap on recording the total number of hours worked. An employer will be exempted from the requirement to record the total number of hours worked by an employee in a wage period if wages payable to the employee for that wage period are not less than $15,300 (currently $14,100) per month. In tandem with the commencement of the revised SMW rate, the revised monetary cap will come into force on the same day on which the revised rate takes effect, that is May 1 this year.
Minimum Wage Commission has submitted recommendation report on the Statutory Minimum Wage Rate
The Minimum Wage Commission (MWC) has submitted its recommendation report on the Statutory Minimum Wage (SMW) rate to the Chief Executive (CE) in Council today (October 31).
MWC has been tasked to report to CE in Council its recommendation about the SMW rate pursuant to the Minimum Wage Ordinance (Cap. 608). In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness.
MWC comprises a Chairperson and 12 Members from the labour sector, the business sector, the academia and the Government. Adopting an evidence-based approach, MWC has completed the review of the SMW rate in a comprehensive, objective and impartial manner. Apart from making reference to the latest data in an Array of Indicators, MWC has assessed the impact of the recommended SMW rate based on detailed analyses of wage distribution data and findings of other surveys. MWC has taken into full account the views on the review of the SMW rate from the community and arrived at the recommendation unanimously.
Minimum Wage Commission holds meeting today
At its meeting today (August 24), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions and deliberated on the Statutory Minimum Wage rate to be recommended to the Chief Executive in Council pursuant to the Minimum Wage Ordinance (Cap. 608 of the Laws of Hong Kong).
Friday, August 24, 2018Minimum Wage Commission holds meeting today
At its meeting today (July 27), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions. MWC also discussed the views collected during public consultation and consultation meetings with stakeholders as well as the impact assessment results of different Statutory Minimum Wage test levels.
Friday, July 27, 2018Review of the Statutory Minimum Wage rate
Pursuant to the Minimum Wage Ordinance (Cap. 608), the Minimum Wage Commission (MWC) is tasked to report to the Chief Executive in Council its recommendation about the Statutory Minimum Wage (SMW) rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness. MWC adopts an evidence-based approach in reviewing the SMW rate. Apart from research and analysis of relevant statistical data, MWC conducts extensive consultation to fully consider the views from the community on the review of the SMW rate.
MWC launched a six-week public consultation from 9 April to 20 May 2018 to invite views from the community, including members of the public and stakeholders, on the review of the SMW rate. In June, MWC will conduct consultation meetings with stakeholders to understand their views with justifications on the review of the SMW rate.
Public consultation on review of Statutory Minimum Wage rate to end on May 20
The Minimum Wage Commission (MWC) today (May 8) reminded members of the public and stakeholders that the public consultation on the review of the Statutory Minimum Wage (SMW) rate will end on May 20.
The MWC commenced a six-week public consultation on April 9, 2018. The public is welcome to give views on the review of the SMW rate to the MWC by e-Form on its website (www.mwc.org.hk); fax (2110 3518); email (mwc@labour.gov.hk); or post (The Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central) on or before May 20. Details and relevant reference information and data are available at the MWC's website.
Review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) will submit to the Chief Executive (CE) in Council its recommendation report on the Statutory Minimum Wage (SMW) rate by the end of October 2018 at the latest.
In accordance with the Minimum Wage Ordinance (MWO) (Cap. 608), the CE has required the MWC to submit its recommendation report on the SMW rate on or before October 31, 2018. Pursuant to the MWO, in performing its functions, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The MWC adopts an evidence-based approach in reviewing the SMW rate. Apart from research and analysis of relevant statistical data, the MWC is conducting public consultation and the community is welcome to provide their views on the review of the SMW rate by May 20, 2018.
MWC invites views from various sectors on review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) today (April 9) commenced a six-week public consultation to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage (SMW) rate.
The MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from research and analysis of relevant statistical data, the MWC conducts extensive consultation to fully consider the views from various sectors of the community on the review of the SMW rate.
Relevant reference information and data have been uploaded to the MWC's website (www.mwc.org.hk). The information and data are for reference only and do not imply that the MWC has any preconceived stance or has come to any conclusion on its recommendation about the SMW rate. Reference can also be made to the 2017 Report on Annual Earnings and Hours Survey released by the Census and Statistics Department available at the department's website (www.censtatd.gov.hk).
Various sectors of the community are welcome to forward their views on the review of the SMW rate to the MWC by e-Form on the MWC's website; by fax (2110 3518); by email (mwc@labour.gov.hk); or by post (Minimum Wage Commission, 1/F, Harbour Building, 38 Pier Road, Central), on or before May 20, 2018.
Pursuant to the Minimum Wage Ordinance (Cap. 608), the MWC is tasked to report to the Chief Executive in Council its recommendation about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
Minimum Wage Commission holds meeting today
At its meeting today (March 16), the Minimum Wage Commission was briefed on the major results of the 2016 Annual Survey of Economic Activities and the 2017 Annual Earnings and Hours Survey. The Commission also examined Hong Kong’s latest socio-economic and employment conditions, and deliberated on its workplan for 2018 and the consultation arrangements for its review of the Statutory Minimum Wage rate.
Friday, March 16, 2018Minimum Wage Commission holds meeting today
At its meeting today (December 8), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions, and discussed the impact assessment framework and methodology to be adopted when studying the Statutory Minimum Wage rate.
Friday, December 8, 2017Appointment to Minimum Wage Commission
The Government announced today (December 8) the appointment of Professor Lau Sau-him as a member of the Minimum Wage Commission (MWC) for the period from December 8, 2017, to February 28, 2019.
The Secretary for Labour and Welfare, Dr Law Chi-kwong, welcomed the appointment. He also thanked Dr Raymond So Wai-man, the outgoing member, for his sterling contribution during his tenure.
The MWC was established under the Minimum Wage Ordinance with the main function of reporting to the Chief Executive in Council its recommendations about the Statutory Minimum Wage rate. Details of the MWC are available at its website (www.mwc.org.hk).
Minimum Wage Commission holds meeting and meets the media today
At its meeting today (October 6), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions and discussed the views collected at focused consultation meetings with stakeholders of low paying sectors held on September 7 and 8. MWC also noted the experience of selected places in reviewing the minimum wage rate.
In addition, MWC met the media before the meeting today to share its recent work.
Minimum Wage Commission holds meeting today
At its meeting today (June 19), the Minimum Wage Commission discussed its work plan for 2017. It also reviewed the Array of Indicators to be considered in monitoring Hong Kong’s socio-economic and employment conditions after the implementation and uprating of Statutory Minimum Wage and the latest conditions of various indicators.
Minimum Wage Commission holds meeting today
The Minimum Wage Commission (MWC) of the new term held its first meeting today (March 17). MWC received briefings on the major results of the 2016 Annual Earnings and Hours Survey and the 2015 Annual Survey of Economic Activities, and agreed on the housekeeping arrangements for this term.
Minimum Wage Commission appointments announced
The Government announced today (March 1) the appointments to the Minimum Wage Commission (MWC) for a two-year term with effect from March 1, 2017.
The Chief Executive has appointed Ms Priscilla Wong Pui-sze as the chairperson of the MWC and appointed its 12 members from the labour sector, the business sector, the academia and the Government. The chairperson and the nine non-official members have been appointed on an ad personam basis.
Among the non-official members, Mr Bankee Kwan Pak-hoo, Mr Lau Chin-shek, Professor Leung Siu-fai, Ms Li Fung-ying, Professor Terry Lum Yat-sang, Mr Simon Wong Kit-lung and Mr Kingsley Wong Kwok are serving members, while Mrs Katherine Ngan Ng Yu-ying and Professor Raymond So Wai-man are newly appointed.
The Secretary for Labour and Welfare, Mr Stephen Sui, welcomed the appointments. He said, "The Statutory Minimum Wage (SMW) rate impacts on Hong Kong's labour market, society and economy. The chairperson and members of the MWC for the new term possess a wealth of knowledge and experience in various fields. I am confident that the MWC will continue to discharge its important statutory function effectively."
Mr Sui also thanked the outgoing chairperson, Mr Jat Sew-tong, SC for his excellent leadership, and two outgoing members, Ms Lau Ka-shi and Professor Suen Wing-chuen, for their sterling contributions to the MWC.
The MWC is established under the Minimum Wage Ordinance with the main function of reporting to the Chief Executive in Council its recommendations on the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The membership of the MWC for the next term is as follows:
Chairperson
---------------
Ms Priscilla Wong Pui-sze (newly appointed)
Non-official Members
---------------------------
Mr Bankee Kwan Pak-hoo
Mr Lau Chin-shek
Professor Leung Siu-fai
Ms Li Fung-ying
Professor Terry Lum Yat-sang
Mr Simon Wong Kit-lung
Mr Kingsley Wong Kwok
Mrs Katherine Ngan Ng Yu-ying (newly appointed)
Professor Raymond So Wai-man (newly appointed)
Members who are public officers
----------------------------------------
Permanent Secretary for Labour and Welfare
Permanent Secretary for Commerce and Economic Development
(Commerce, Industry and Tourism)
Government Economist
Minimum Wage Commission delighted by acceptance of its recommended Statutory Minimum Wage rate
Premised on detailed analyses, in-depth assessment and thorough consideration, the Minimum Wage Commission (MWC) has by consensus recommended that the current Statutory Minimum Wage (SMW) rate of $32.5 per hour be raised to $34.5 per hour.
The Chairperson of the MWC, Mr Jat Sew-tong, SC, said today (January 18), "We are delighted to learn that the Chief Executive in Council has accepted our recommendation about the SMW rate after considering the report of the MWC."
Mr Jat added, "Our recommendation is based on the consensus and support of all the MWC Members. The recommended SMW rate maintains an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to the need to sustain Hong Kong's economic growth and competitiveness. We earnestly hope that it could be accepted by the Legislative Council."
Adopting an evidence-based approach, the MWC reviewed the SMW rate in a comprehensive, objective and balanced manner. Apart from making reference to statistics in the Array of Indicators (Note) (including a large number of indicators which were released more frequently and more up-to-date), the MWC also deliberated in detail the findings of other surveys and fully considered the views on the review of the SMW rate from various sectors of the community. The MWC also took into consideration relevant factors which were pertinent to the review and could not be fully quantified, and conducted stress tests to estimate the potential impact of each SMW test level under different economic conditions.
According to the data from the Annual Earnings and Hours Survey conducted by the Census and Statistics Department (C&SD), there were 154 500 employees with an hourly wage less than $34.50 in May to June 2015, representing 5.2 per cent of all employees in Hong Kong. Making reference to the more recent wage data from the C&SD and assuming the Hong Kong economy would grow moderately by 2 per cent year-on-year in real terms for the first half of 2017 (i.e. the scenario of moderate economic growth), the MWC crudely estimated that the number of employees involved with an hourly wage less than $34.50 in the first half of 2017 before the implementation of the recommended SMW rate would be around 74 100, representing 2.5 per cent of all employees in Hong Kong. The MWC envisaged that the uprating of the SMW to the recommended level would raise the wages of the majority of employees involved. Taking into account the impact of the knock-on effect on pay hierarchies (knock-on effect), the number of employees with pay rises owing to the uprating of the SMW would eventually be greater than the number of employees involved.
For the impact on enterprises, taking into account rest day pay and meal break pay (for employees who are granted these payments according to their employment contract or agreement) in addition to the statutory requirements as well as the impact of the knock-on effect in the scenario of moderate economic growth, the MWC estimated that the total wage bill would increase by about $660 million or approximately 0.1 per cent. The MWC envisaged that the impact of the recommended SMW rate should be manageable for most sectors, including small and medium enterprises.
As regards the impact on the unemployment rate, the MWC estimated that the recommended SMW rate would lift the overall unemployment rate by about 0.1 percentage points in the scenario of moderate economic growth. With the prevailing unemployment rate in Hong Kong still relatively low, and barring any abrupt economic downturn, the recommended SMW rate would be unlikely to trigger a marked deterioration in labour market conditions.
For the impact on inflation, assuming a full pass-on of additional wage bills to prices of products and services and taking into account the first round of wage-price spiral effect, the MWC estimated that the Composite Consumer Price Index inflation would go up by about 0.2 percentage points in the scenario of moderate economic growth. As a measure of inflation on the grass roots, the corresponding rise in the Consumer Price Index (A) inflation would be around 0.3 percentage points. As it would be unlikely for all enterprises to fully pass on the additional wage bill to consumers, the actual impact of the recommended SMW rate on inflation should be smaller than the above estimates.
The full text of the "2016 Report of the Minimum Wage Commission" has been uploaded to the MWC's website (www.mwc.org.hk).
Note: The Array of Indicators covered four areas of consideration, namely general economic conditions, labour market conditions, competitiveness and social inclusion.
Wednesday, January 18, 2017
Chief Executive in Council adopts recommendation on Statutory Minimum Wage rate
The Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) to raise the Statutory Minimum Wage (SMW) rate from its prevailing level of $32.5 per hour to $34.5 per hour, an increase of $2 or 6.2 per cent.
The Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2017 will be published in the Government Gazette this Friday (January 20) and tabled in the Legislative Council (LegCo) on February 8. Subject to the approval of LegCo, the revised SMW rate will come into force on May 1, 2017, the next Labour Day.
The Acting Secretary for Labour and Welfare, Mr Stephen Sui, paid warm tribute to the Chairperson of the MWC, Mr Jat Sew-tong, SC, and all its members for their hard efforts and sterling contribution in accomplishing the important task of reviewing the SMW rate.
Mr Sui said, "The Government has carefully considered the report of the MWC and is of the view that the MWC has ably discharged its statutory function of reviewing the SMW rate with reasonable and balanced deliberation."
He added, "Since the SMW came into effect on May 1, 2011, the earnings of low-income employees have continued to improve. The smooth implementation of the SMW has been attributable to the support of the community. I am also most grateful for the co-operation of employers at large."
The full text of the "2016 Report of the Minimum Wage Commission" is available at the MWC's website (www.mwc.org.hk).
The Government will also publish in the Government Gazette on January 20, and table in LegCo on February 8, the Employment Ordinance (Amendment of Ninth Schedule) Notice 2017. The Notice amends the monthly monetary cap on recording the total number of hours worked. An employer will be exempted from the requirement to record the total number of hours worked by an employee in a wage period if wages payable to the employee for that wage period are not less than $14,100 (currently $13,300) per month. To synchronise with the commencement of the revised SMW rate, the revised monetary cap will come into force on the same day on which the revised rate takes effect, that is May 1, 2017.
Wednesday, January 18, 2017
Minimum Wage Commission has submitted recommendation report on the Statutory Minimum Wage Rate
The Minimum Wage Commission (MWC) has submitted its recommendation report on the Statutory Minimum Wage (SMW) rate to the Chief Executive (CE) in Council today (October 31).
MWC has been tasked to report to CE in Council its recommendation about the SMW rate in accordance with the Minimum Wage Ordinance (Cap. 608). In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness.
MWC comprises a Chairperson and 12 Members from the labour sector, the business sector, the academia and the Government. Adopting an evidence-based approach, MWC has completed the review of the SMW rate in a comprehensive, objective and impartial manner. Apart from making reference to the latest data in an Array of Indicators, MWC has assessed the impact of the recommended SMW rate based on detailed analysis of wage distribution data and findings of other surveys. MWC has taken into full account views on the review of the SMW rate from various sectors of the community and arrived at the recommendation unanimously.
Monday, October 31, 2016
Minimum Wage Commission holds meeting today
At its meeting today (September 30), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions and deliberated the recommended Statutory Minimum Wage (SMW) rate. MWC is undertaking detailed consideration of relevant statistical data and information together with views of stakeholders and members of the public, and will continue its deliberation on the review of the SMW rate.
Friday, September 30, 2016
Minimum Wage Commission holds meeting today
At its meeting today (September 9), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic and employment conditions and deliberated the recommended Statutory Minimum Wage (SMW) rate. MWC is undertaking detailed analysis, assessment and consideration of relevant statistical data and information as well as views of stakeholders and members of the public, and will continue its deliberation on the review of the SMW rate.
Friday, September 9, 2016
Minimum Wage Commission holds meeting today
At its meeting today (July 29), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions as well as views collected during public consultation and consultation meetings with stakeholder groups. It also deliberated the preliminary impact assessment under different Statutory Minimum Wage test levels.
Friday, July 29, 2016
Appointment to Minimum Wage Commission
The Government announced today (June 17) the appointment of Professor Terry Lum Yat-sang as a member of the Minimum Wage Commission (MWC) for the period from June 17, 2016 to February 28, 2017.
The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, welcomed the appointment. He also thanked Professor Alfred Chan Cheung-ming, the outgoing member, for his valuable contribution during his tenure.
The MWC was established under the Minimum Wage Ordinance with the main function of reporting to the Chief Executive in Council its recommendations about the Statutory Minimum Wage rate. Details of the MWC are available at its website (www.mwc.org.hk).
Friday, June 17, 2016
Review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) will submit to the Chief Executive (CE) in Council its recommendation report on the Statutory Minimum Wage (SMW) rate by the end of October 2016 at the latest.
The CE has acted in accordance with the Minimum Wage Ordinance (MWO) (Cap. 608) and required the MWC to submit the recommendation report on or before October 31, 2016. According to the MWO, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The MWC is now undertaking an evidence-based approach in reviewing the SMW rate. In addition to analysing relevant statistical data, the MWC will examine information collected from other surveys and fully consider the views of the community regarding the review of the SMW rate. Following the completion of the six-week public consultation in May 2016, the MWC will conduct consultation meetings with stakeholders during this month. The MWC will then undertake detailed analysis and assessment with thorough deliberation on the basis of relevant information and data as well as views received from members of the public and stakeholders with a view to submitting a report to the CE in Council by the end of October 2016.
Tuesday, June 14, 2016
Review of the Statutory Minimum Wage rate
In accordance with the Minimum Wage Ordinance, the Minimum Wage Commission (MWC) is tasked to report to the Chief Executive in Council its recommendation about the Statutory Minimum Wage (SMW) rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness. MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from making reference to the relevant information and data, MWC also conducts extensive consultation to consider fully the views from members of the public and stakeholders on the review of the SMW rate.
MWC launched a six-week public consultation from 11 April to 22 May 2016 to invite written submissions from various sectors of the community on the review of the SMW rate. In June, MWC will conduct consultation meetings with stakeholders to understand their views with justifications on the review of the SMW rate.
Monday, May 23, 2016
Public consultation on review of Statutory Minimum Wage rate to end soon
The public consultation on the review of the Statutory Minimum Wage (SMW) rate conducted by the Minimum Wage Commission (MWC) will close on May 22 (Sunday).
The MWC commenced a six-week public consultation on April 11, 2016, to invite views on the review of the SMW rate. Members of the public and stakeholders are welcome to forward their views on the review of the SMW rate to the MWC by fax to 2110 3518; by email to mwc@labour.gov.hk; or by post to 1/F, Harbour Building, 38 Pier Road, Central, Hong Kong, on or before May 22. Details of the public consultation are available at the MWC's website (www.mwc.org.hk).
Wednesday, May 18, 2016
Public consultation on review of Statutory Minimum Wage rate to end on May 22
The Minimum Wage Commission (MWC) today (May 9) reminded members of the public and stakeholders that the public consultation on the review of the Statutory Minimum Wage (SMW) rate will close on May 22.
The MWC commenced a six-week public consultation on April 11, 2016, to invite views on the review of the SMW rate. Members of the public and stakeholders are welcome to forward their views on the review of the SMW rate to the MWC by fax to 2110 3518; by email to mwc@labour.gov.hk; or by post to 1/F, Harbour Building, 38 Pier Road, Central, Hong Kong, on or before May 22. Details of the public consultation are available at the MWC's website (www.mwc.org.hk).
Monday, May 9, 2016
Views on review of Statutory Minimum Wage rate invited
The Minimum Wage Commission (MWC) today (April 11) commenced a six-week public consultation to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage (SMW) rate.
The MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from analysing relevant statistical data, the MWC conducts extensive consultation to fully consider views of the community regarding the review of the SMW rate.
Relevant reference information and data have been uploaded to the MWC's website (www.mwc.org.hk). The information and data are for reference only and do not imply that the MWC has any preconceived stance or has come to any conclusion on its recommendation about the SMW rate. Reference can also be made to the 2015 Report on Annual Earnings and Hours Survey released by the Census and Statistics Department, which is available at the department's website (www.censtatd.gov.hk).
Various sectors of the community are welcome to forward their views on the review of the SMW rate to the MWC by fax to 2110 3518; by email to mwc@labour.gov.hk; or by post to 1/F, Harbour Building, 38 Pier Road, Central, Hong Kong, on or before May 22, 2016.
The MWC is tasked to report to the Chief Executive in Council its recommendation about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
Monday, April 11, 2016
Minimum Wage Commission holds meeting today
At its meeting today (March 18), the Minimum Wage Commission was briefed on the major results of the 2014 Annual Survey of Economic Activities and the 2015 Annual Earnings and Hours Survey. The Commission also examined Hong Kong’s latest socio-economic and employment conditions and deliberated a consultation plan for its review of the Statutory Minimum Wage rate.
Friday, March 18, 2016
Minimum Wage Commission holds meeting today
At its meeting today (December 15), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions, and discussed the impact assessment framework to be considered when studying the Statutory Minimum Wage (SMW) rate. It also noted the experience of some other places in reviewing the SMW rate.
Tuesday, December 15, 2015
Minimum Wage Commission holds meeting today
At its meeting today (September 11), the Minimum Wage Commission examined Hong Kong’s latest socio-economic and employment conditions. It also discussed the views about the impact of Statutory Minimum Wage collected at focused consultation meetings with stakeholders of low paying sectors held on September 9 and 10.
Friday, September 11, 2015
Minimum Wage Commission holds meeting and meets the media today
At its meeting today (May 29), the Minimum Wage Commission (MWC) reviewed the Array of Indicators to be considered in monitoring Hong Kong’s socio-economic and employment conditions after the implementation of Statutory Minimum Wage, and discussed its work plan for 2015.
MWC also met the media today to share its work and way forward.
Friday, May 29, 2015
Minimum Wage Commission holds meeting today
The Minimum Wage Commission (MWC) of the new term held its first meeting today (March 23). MWC was briefed on the major results of the 2014 Annual Earnings and Hours Survey and the 2013 Annual Survey of Economic Activities. It also agreed on the housekeeping arrangements and examined Hong Kong’s latest socio-economic conditions.
Monday, March 23, 2015
Minimum Wage Commission appointments announced
The Government announced today (February 3) the appointments to the Minimum Wage Commission (MWC) for a two-year term with effect from March 1, 2015.
The Chief Executive has re-appointed Mr Jat Sew-tong, SC, as the chairperson as well as 12 incumbent members from the labour sector, the business community, academia and the Government. The chairperson and the nine non-official members have been appointed on a personal basis.
The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, welcomed the appointments. He said, "The Statutory Minimum Wage (SMW) rate impacts on Hong Kong's labour market, society and economy. I am most grateful that the chairperson and all members will continue to serve on the Commission to contribute their wealth of experience and insights. I am confident that with Mr Jat's outstanding leadership and dedicated support of all members, the Commission will continue to effectively discharge its important statutory function."
The MWC was established under the Minimum Wage Ordinance with the main function of reporting to the Chief Executive in Council its recommendations about the SMW rate. In performing its function, the MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The membership list of the MWC with effect from March 1, 2015, is as follows:
Chairperson
---------------
Mr Jat Sew-tong, SC
Non-official Members
---------------------------
Professor Alfred Chan Cheung-ming
Mr Bankee Kwan Pak-hoo
Mr Lau Chin-shek
Ms Lau Ka-shi
Professor Leung Siu-fai
Ms Li Fung-ying
Professor Suen Wing-chuen
Mr Simon Wong Kit-lung
Mr Kingsley Wong Kwok
Members who are public officers
----------------------------------------
Permanent Secretary for Labour and Welfare
Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)
Government Economist
Tuesday, February 3, 2015
Minimum Wage Commission's Chairperson meets the media
The Chairperson of the Minimum Wage Commission (MWC), Mr Jat Sew-tong, SC, met the media today (January 15) and said he earnestly hoped that the Statutory Minimum Wage (SMW) rate of $32.50 per hour recommended with the unanimous consensus of all MWC members could be accepted by the Legislative Council.
Adopting an evidence-based approach, the MWC reviewed the SMW rate in a comprehensive, objective and balanced manner. Apart from making reference to the statistics in an Array of Indicators (including a large number of indicators which were released and updated more frequently), the MWC also studied in detail the findings of other surveys and fully considered the views from various sectors of the community. The MWC also took into account other relevant considerations that could not be fully quantified and conducted impact assessment under different SMW test levels.
Based on the data from the Annual Earnings and Hours Survey conducted by the Census and Statistics Department (C&SD), the number of employees earning an hourly wage less than $32.50 in May to June 2013 was 255 200, with a coverage of 8.7 per cent of all employees in Hong Kong. Taking into account the latest data from the General Household Survey and the Labour Earnings Survey conducted by the C&SD, the MWC roughly estimated that in the first half of 2015 and at the time just before the SMW rate is raised to the recommended level, there would be approximately 150 000 employees (accounting for about 5 per cent of all employees) earning an hourly wage less than $32.50.
For the impact on businesses, taking into account rest day and meal break pay (for employees who are granted these payments according to their employment contract or agreement) that are beyond the statutory requirements, together with the impact of knock-on effects, the MWC estimated that the total additional wage bill arising from the recommended SMW rate would be around $1.36 billion, representing an increase of about 0.2 per cent. The MWC envisaged that the additional wage bill entailed by the recommended SMW rate should be manageable for most enterprises (including low-paying sectors and small and medium enterprises).
As regards the impact on the unemployment rate, should the Hong Kong economy grow by 2.5 per cent in the first half of 2015, the MWC estimated that the recommended SMW rate would lead to an increase of about 0.1 percentage points to 0.2 percentage points in the overall unemployment rate. With slower economic growth at 1.5 per cent, the increase in the overall unemployment rate was estimated to be about 0.4 percentage points. According to the MWC, with the prevailing unemployment rate in Hong Kong still relatively low, the recommended rate is unlikely to trigger a marked deterioration in the labour market. As for the impact on inflation, assuming a full pass-on of the additional wage bill to prices of products and services and taking into account the first round of a wage-price spiral effect, it was estimated that the Composite Consumer Price Index would go up by about 0.3 percentage points. However, as it is unlikely for all enterprises to fully pass on the additional wage bill to consumers, the actual impact of the recommended SMW rate on inflation should be smaller than the above estimate.
"The MWC considers that the recommended SMW rate maintains an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, whilst giving due regard to the need to sustain Hong Kong's economic growth and competitiveness," Mr Jat said.
The full text of the "2014 Report of the Minimum Wage Commission" has been uploaded to the MWC's website (www.mwc.org.hk).
Thursday, January 15, 2015
Minimum Wage Commission delighted by acceptance of its recommended Statutory Minimum Wage rate
After carrying out detailed analyses, in-depth assessment and thorough consideration, the Minimum Wage Commission (MWC) has by unanimous consensus recommended that the current Statutory Minimum Wage (SMW) rate of $30.0 per hour be raised to $32.5 per hour.
"We are delighted to learn that the Chief Executive (CE) in Council has accepted our recommendation on the SMW rate after considering the report of the MWC," the MWC Chairperson, Mr Jat Sew-tong, SC, said today (January 14).
The MWC is tasked to report to the CE in Council with its recommendation on the SMW rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
The full text of the "2014 Report of the Minimum Wage Commission" has been uploaded onto MWC's website (www.mwc.org.hk).
Wednesday, January 14, 2015
Chief Executive in Council adopts recommendation on Statutory Minimum Wage rate
The Chief Executive in Council has adopted the recommendation of the Minimum Wage Commission (MWC) to raise the Statutory Minimum Wage (SMW) rate from its prevailing level of $30 per hour to $32.50 per hour, an increase of $2.50 or 8.3 per cent.
The Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2015 will be published in the Government Gazette this Friday (January 16) and tabled in the Legislative Council (LegCo) next Wednesday (January 21). Subject to the approval of LegCo, the revised SMW rate will come into force on May 1, 2015, the next Labour Day.
The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, paid warm tribute to the Chairperson of the MWC, Mr Jat Sew-tong, SC, and all its members for their hard work and sterling contribution in accomplishing the important task of reviewing the SMW rate.
Mr Cheung said, "The Government has carefully considered the report of the MWC and is of the view that it has ably discharged its statutory function of reviewing the SMW rate with reasonable and balanced deliberation."
He added, "The implementation of the SMW since May 1, 2011, has been smooth. The employment market has since remained stable and the earnings of low-income employees have continued to improve. I am most grateful for the co-operation of employers at large. I appeal to the community to continue to support the implementation of the SMW."
The full text of the "2014 Report of the Minimum Wage Commission" is available at the MWC's website (www.mwc.org.hk).
The Government will also publish in the Government Gazette on January 16, and table in LegCo on January 21, the Employment Ordinance (Amendment of Ninth Schedule) Notice 2015. The Notice amends the monthly monetary cap on recording the total number of hours worked. An employer will be exempted from the requirement of recording the total number of hours worked by an employee in a wage period if the wages payable to the employee for that wage period are not less than $13,300 (currently $12,300) per month. To synchronise with the commencement of the revised SMW rate, the revised monetary cap will come into force on the same day on which the revised rate comes into effect, that is May 1, 2015.
Wednesday, January 14, 2015
Minimum Wage Commission has submitted recommendation report on the Statutory Minimum Wage Rate
The Minimum Wage Commission (MWC) has submitted its recommendation report on the Statutory Minimum Wage (SMW) rate to the Chief Executive (CE) in Council today (October 31).
MWC has been tasked to report to CE in Council its recommendation about the SMW rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness.
MWC comprises a Chairperson and 12 Members from the labour sector, the business community, academia and Government. Adopting an evidence-based approach, MWC has reviewed the SMW rate in a comprehensive, objective and impartial manner. Apart from making reference to the relevant data in an array of indicators, MWC has made detailed analysis and assessment of the impact of the recommended SMW rate based on wage distribution data and findings of other surveys. MWC has taken into full account views from various sectors of the community and arrived at the recommendation unanimously.
Friday, October 31, 2014
Minimum Wage Commission holds meeting today
At its meeting today (August 22), the Minimum Wage Commission (MWC) examined Hong Kong’s latest socio-economic conditions and deliberated the Statutory Minimum Wage (SMW) rate. MWC is undertaking detailed analysis, assessment and consideration of relevant statistical data and information as well as views of stakeholders and members of the public, and will continue its deliberation on the review of the SMW rate.
Friday, August 22, 2014
Minimum Wage Commission holds meeting today
At its meeting today (July 25), the Minimum Wage Commission examined Hong Kong’s latest socio-economic conditions as well as the views of members of the public and stakeholders on the review of the Statutory Minimum Wage (SMW) rate. It also deliberated the preliminary impact assessment of the various SMW test rates.
Friday, July 25, 2014
Minimum Wage Commission holds meeting today
At its meeting today (July 3), the Minimum Wage Commission was briefed on the outcome of the study about the impact of the Statutory Minimum Wage (SMW) rate (as revised in 2013) on pay hierarchies in the retail and restaurant sectors. The Commission also examined Hong Kong’s latest socio-economic conditions and discussed the underlying considerations and impact assessment for the review of the SMW rate.
Thursday, July 3, 2014
Review of the Statutory Minimum Wage rate
In accordance with the Minimum Wage Ordinance, the Minimum Wage Commission (MWC) is tasked to report to the Chief Executive in Council its recommendation on the Statutory Minimum Wage (SMW) rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong’s economic growth and competitiveness. MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from analysing relevant statistical data, MWC examines information collected from other surveys and conducts extensive consultation to consider fully views of the community regarding the review of the SMW rate.
The following has been undertaken / is being planned by MWC:| 7 April to 18 May 2014 | To share with the public the relevant information and data, and invite written submissions from members of the public and stakeholders on the review of the SMW rate. |
| June 2014 | To conduct consultation meetings with stakeholders to understand their views with justifications on the review of the SMW rate. |
| July to September 2014 | To undertake detailed analysis and assessment with prudent deliberation on the basis of relevant information and data as well as views of members of the public and stakeholders. |
| Before end-October 2014 | To submit the recommendation report on the SMW rate to the Chief Executive in Council |
Monday, May 19, 2014
Public consultation on the review of Statutory Minimum Wage rate ends on May 18
The Minimum Wage Commission (MWC) today (May 6) reminded members of the public and stakeholders that the public consultation on the review of the Statutory Minimum Wage (SMW) rate will close on May 18.
MWC commenced a six-week public consultation on April 7, 2014, to invite views on the review of the SMW rate. Members of the public and stakeholders are welcome to forward their views to MWC by fax to 2110 3518; or by email to mwc@labour.gov.hk; or by post to 1/F, Harbour Building, 38 Pier Road, Central, Hong Kong, on or before May 18. Details of relevant information and data are available at MWC's website (www.mwc.org.hk).
Tuesday, May 6, 2014
Views on the review of Statutory Minimum Wage rate invited
The Minimum Wage Commission (MWC) today (April 7) launched a six-week public consultation to invite views from various sectors of the community, including members of the public and stakeholders, on the review of the Statutory Minimum Wage (SMW) rate.
MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from analysing relevant statistical data, MWC examines information collected from other surveys and conducts extensive consultation to consider fully views of the community regarding the review of the SMW rate.
Relevant information and data have been uploaded onto MWC's website (www.mwc.org.hk). Such information and data are provided for reference only, and they do not imply that MWC has come to any conclusion. To this end, MWC looks forward to receiving views on the review of the SMW rate from members of the public and stakeholders. Reference can also be made to the 2013 Report on Annual Earnings and Hours Survey released by the Census and Statistics Department, which is available at the department's website (www.censtatd.gov.hk).
Various sectors of the community are welcome to forward their views to MWC by fax to 2110 3518; or by email to mwc@labour.gov.hk; or by post to 1/F, Harbour Building, 38 Pier Road, Central, Hong Kong, on or before May 18.
MWC is tasked to report to the Chief Executive in Council its recommendation on the SMW rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
Monday, April 7, 2014
Review of Statutory Minimum Wage rate
The Minimum Wage Commission (MWC) will submit to the Chief Executive (CE) in Council its recommendation report on the Statutory Minimum Wage (SMW) rate by the end of October 2014 at the latest.
After considering the work and time involved for the Commission to review and report its recommendation on the SMW rate, the CE has acted in accordance with the Minimum Wage Ordinance (Cap. 608) and required MWC to submit the recommendation report on or before October 31, 2014.
MWC adopts an evidence-based approach in conducting the review of the SMW rate. Apart from making reference to the relevant statistical data, it needs to undertake detailed analysis and impact assessment based on wage distribution data and findings of other surveys, and to conduct extensive consultation to consider fully views of the community regarding the review of the SMW rate.
MWC is tasked to report to the CE in Council its recommendation on the SMW rate. In performing its function, MWC must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, and the need to sustain Hong Kong's economic growth and competitiveness.
MWC will commence a six-week public consultation next Monday (April 7, 2014) to invite views from various sectors of the community on the review of the SMW rate.
Friday, April 4, 2014
Minimum Wage Commission holds meeting today
At its meeting today (March 20), the Minimum Wage Commission was briefed on the major results of the 2013 Annual Earnings and Hours Survey and the 2012 Annual Survey of Economic Activities. The Commission also examined Hong Kong’s latest socio-economic conditions. It further deliberated a consultation plan for its review of the Statutory Minimum Wage rate.
Thursday, March 20, 2014
Minimum Wage Commission holds meeting today
At its meeting today (December 19), the Minimum Wage Commission examined Hong Kong's latest socio-economic conditions after the revision of the Statutory Minimum Wage (SMW) rate, and discussed the impact assessment framework to be considered when studying the SMW rate. The Commission was also briefed on the setting of the poverty line.
Thursday, December 19, 2013
Minimum Wage Commission holds meeting and meets the media today
At its meeting today (September 19), the Minimum Wage Commission (MWC) examined the latest performance of the Basket of Indicators, listened to the progress of the study on impact of revised statutory minimum wage rate on pay hierarchies in the retail and restaurant sectors and provided advice, and noted the experience of other places in reviewing minimum wage rate.
The MWC also met the media today to share its work progress and way forward.
Thursday, September 19, 2013
Minimum Wage Commission holds meeting today
The Minimum Wage Commission held its meeting today (May 23) to examine the business performance of low paying sectors in 2011, to discuss a Basket of Indicators to be considered by the Commission and its latest performance, and to provide advice on a consultancy study proposed by the Government.
Thursday, May 23, 2013
Minimum Wage Commission holds meeting today
The Minimum Wage Commission (MWC) of the new term held its first meeting today (March 20). The MWC was briefed on the major results of the 2012 Annual Earnings and Hours Survey and the 2011 Annual Survey of Economic Activities.
The MWC Chairperson, Mr Jat Sew-tong, stated that the MWC is mainly tasked, when required by the Chief Executive, to report to the Chief Executive in Council its recommendations about the statutory minimum wage (SMW) rate. In making its recommendation, the MWC will need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs while sustaining Hong Kong's economic growth and competitiveness.
"The SMW rate has important implications on various sectors of the community. In fulfilling the Commission's mission, I will work closely with all the Members of the MWC in an objective, evidence-based and balanced manner by taking full account of the social, economic and employment factors in Hong Kong and the views of various stakeholders," Mr Jat said.
The MWC is established under the Minimum Wage Ordinance with 12 Members from the labour sector, the business community, academia and the Government. The Chairperson and the nine non-official Members are appointed on a personal basis.
Wednesday, March 20, 2013
Minimum Wage Commission appointments announced
The Government announced today (February 26) the appointments to the Minimum Wage Commission (MWC) for a two-year term with effect from March 1, 2013.
The Chief Executive has re-appointed Mr Jat Sew-tong, SC, as the chairperson and appointed 12 members from the labour sector, the business community, academia and the Government to the MWC. The chairperson and the nine non-official members are appointed on a personal basis.
Among the non-official members, Professor Alfred Chan Cheung-ming, Mr Lau Chin-shek, Ms Lau Ka-shi, Professor Suen Wing-chuen and Mr Simon Wong Kit-lung are serving members, while Mr Bankee Kwan Pak-hoo, Professor Leung Siu-fai, Ms Li Fung-ying and Mr Kingsley Wong Kwok are newly appointed.
The Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, welcomed the appointments. He said, "The statutory minimum wage (SMW) has important implications on Hong Kong's employment, society and the economy. I am most grateful that the chairperson and members have agreed to serve on the Commission to offer their wealth of experience and insights."
He continued, "Mr Jat has led the first-term MWC in accomplishing the important task of reviewing the initial SMW rate. I am confident that under his outstanding leadership the Commission will discharge its function effectively. My gratitude also goes to the four outgoing members, Professor Stephen Cheung Yan-leung, Mr Kwong Chi-kin, Mr Lee Kai-ming and Ms Caroline Mak Sui-king, for their sterling contribution and dedication to the MWC."
The MWC is established under the Minimum Wage Ordinance with the main function of reporting to the Chief Executive in Council its recommendation on the SMW rate. It has to maintain an appropriate balance between the objectives of forestalling excessively low wages on one hand and minimising the loss of low-paid jobs on the other while sustaining Hong Kong's economic growth and competitiveness.
The membership list of the MWC for the new term is as follows:
Chairperson
---------------
Mr Jat Sew-tong, SC
Non-official Members
---------------------------
Professor Alfred Chan Cheung-ming
Mr Lau Chin-shek
Ms Lau Ka-shi
Professor Suen Wing-chuen
Mr Simon Wong Kit-lung
Mr Bankee Kwan Pak-hoo (newly appointed)
Professor Leung Siu-fai (newly appointed)
Ms Li Fung-ying (newly appointed)
Mr Kingsley Wong Kwok (newly appointed)
Members who are public officers
----------------------------------------
Permanent Secretary for Labour and Welfare
Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)
Government Economist
