Hong Kong Minimum Wage [Extra Quality]

The calculator provides the monthly minimum wage payable based on input information, such as the number of days worked in a month and hours worked per day. The calculator assumes a consistent wage rate for each working day of the month and that the employee has not taken any statutory holidays.

Under the Employment Ordinance, employers who willfully or without a reasonable excuse fail to pay minimum wage are liable to prosecution, which may lead to a fine of HK$350,000 (US$44,781) and up to three years of imprisonment.

Hong Kong Minimum Wage

DOWNLOAD 🔥 https://urllie.com/2y4yDu 🔥

Increases in minimum wages have been associated with reductions in suicide rates in the United States, but little evidence is available for Asia where social and contextual factors, as well as drivers of suicide, may be different. We investigated the impact of the introduction of the minimum wage in Hong Kong in May 2011 on suicide rates using an interrupted time series design for the period January 2006 to December 2016. We investigated both immediate and gradual changes in monthly suicide rates after the introduction of the minimum wage taking into account secular trends. We conducted stratified analyses by age and gender. In total 9396 suicides were recorded in Hong Kong during the 11-year study period. Introduction of the minimum wage was associated with an immediate decrease of 13.0% in the monthly suicide rate (95% confidence interval (CI) 5.4%-19.9%, P = 0.001). There was an immediate decrease of 15.8% in older working aged (25-64 years) men (95% CI: 4.2%-25.9%, P = 0.009). Point estimates of immediate effect for other subgroups were also in a negative direction, but were not statistically significant. There was no evidence of a gradual effect on suicide rates at the population level or by subgroup other than a small increase in younger working aged men. We estimate that 633 suicides were prevented by the minimum wage legislation for the period from May 2011 to December 2016, the majority in older working aged men. Our results provide new evidence that, similar to findings in Western settings, minimum wages may help to reduce suicide in Asia, particularly for working age men. Our study highlights the importance of examining the health impacts of government economic policy and suggests minimum wages may provide policy makers with an upstream population-based strategy to reduce suicide rates.

The Minimum Wage Ordinance Cap. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010.[2] The executive branch proposed a minimum wage of HK$28 (~US$3.61) per hour in November 2010, which the Legislative Council voted to accept after much debate in January 2011.[3][4] It came into effect on 1 May 2011.[5] Prior to this, there had also been a fixed minimum wage for one specific class of workers, foreign domestic helpers, of HK$3,740/month.[6]The Hong Kong statutory minimum wage for non-domestic workers is HK$37.5 (~US$4.83) per hour, effective 1 May 2019.[7]

Hong Kong had some legislation relating to the minimum wage as early as 1932; the Governor was granted the right, but was not obliged, to establish a minimum wage.[2] The Trade Boards Ordinance also gave the governor (and after 1997, the Chief Executive) the power to set minimum wages for piece-rate and time-rate work, and established penalties for non-compliance.[8] However, no governor exercised these powers.[2] In 2006, legislators floated a proposal for a voluntary minimum wage.[2] The executive branch formed a Minimum Wage Provisional Commission in February 2009 to research and eventually set a proposed wage floor.[9]

More debate came about on the possibility of a minimum wage in 2010. Legislator Tommy Cheung, who represents the catering functional constituency, suggested that the minimum wage be no greater than HK$20.[10] This earned him the derogatory nickname "Twenty-dollar Cheung".[fn 1] He later amended his proposal to HK$24.[11] Lam Woon-kwong of the Equal Opportunities Commission also indicated he had no objection to a lower minimum wage for disabled people.[12] Chief Executive Donald Tsang was opposed to the whole concept of a minimum wage, according to legislator Lee Cheuk-yan of the Hong Kong Confederation of Trade Unions. Other voices of opposition included the free-market think tank Lion Rock Institute, as well as Miriam Lau of the Liberal Party, who gave estimates that between 30,000 and 170,000 jobs would be lost as a result of the proposal, depending on the wage adopted.[2]

The law does not mandate that meal breaks and rest days be paid; Secretary for Labour and Welfare Matthew Cheung stated that this should be decided by private negotiation between employers and employees.[15] There were fears that the implementation of the law might actually lead to lower take-home pay for low-income workers who currently receive paid meal breaks. In November 2010, before the minimum wage came into effect, fast-food chain Cafe de Coral had forced staff to sign new contracts that would give them a pay raise but see their paid meal breaks forfeited, effectively leading to lower pay.[16] In April 2011, Edward Cheng, president of the Hong Kong Association of Property Management Companies, the largest property management association in Hong Kong, stated that he would appeal to their members to retain paid meal breaks for estate security guards where possible; however, he pointed out that the property owners themselves would have to approve any consequent increases in management fees.[17]

On 1 May 2013, the statutory minimum wage is reviewed, and to be set at the level at $30 (~US$3.87).[18] This is to be in effect from 1 May 2013 to 30 April 2015, as the minimum wage is set to be reviewed every two years.

Foreign domestic helpers' minimum wages are inflation-adjusted annually for contracts about to be signed, and apply for the duration of the contract.[20] Furthermore, FDHs are entitled to one 24-hour rest period each week. An employer's failure to meet this minimum level may result in a fine as high as HK$350,000 and three years' imprisonment.[6]

The minimum wage for FDHs was reduced by HK$190 (5%) in 1999.[20] Again in April 2003, in a deflationary environment, the Government announced a HK$400 reduction in pay, to HK$3,270, "due to the steady drop in a basket of economic indicators since 1999."[21] This led to lawsuits by some Filipinos in Hong Kong.[22] The minimum allowable wage was raised by HK$80 to HK$3,480 per month for contracts signed on or after 6 June 2007.[23] Another HK$100 cost of living adjustment took effect for all employment contracts signed on or after 17 July 2008, increasing the minimum wage to HK$3,580 per month.[6] In September 2017, the minimum wage was further increased from HK$4,310 to $4,410 per month.[24] As of 2019, the minimum wage of FDHs are set to HK$4,630/month.[25]

However, in real terms, this hike isn't materially changing the financial situation of those on minimum wage salaries, as Hong Kong's cumulative inflation rate from 2019 to 2022 was 7%, meaning the net increase is nullified.

The minimum wage is usually decided through a minimum wage ordinance/statute, a wage board, industrial and labour courts, or tribunals. Collective agreements between trade unions and employers can also decide the minimum wage payable.

Enforcing statutory minimum wages also ensures that workers receive fair wages to access the necessities of life and stay above the poverty line. From the standpoint of welfare economics, the statutory minimum wage is also considered a tool to minimize societal inequality.

Before the ordinance, a 1932 legislation and the Trade Board Ordinance of 1940 gave powers to the governor to establish minimum wages. But the governors did not propose any minimum wage under these legislations.

As such, the government may freeze the statutory minimum wage rate until the economy bounces back. Between 2011 and 2018, when the Hong Kong economy was in a better position, the minimum wage rate increased from HKD 28 to HKD 37.5. However, from 2019 until 2023, it has only increased from HKD 37.5 to HKD 40.

They believe employers should pay a living wage, estimated to be HKD 60 currently, to meet the basic needs of employees in an expensive region such as Hong Kong. Worker rights movements have also urged the government to consider minimum wage reviews every year instead of reviewing them once every two years.

After entering all the basic information (working hours and wages) and generating a report, the program will calculate the amount of minimum wage the employee is entitled to and whether or not they are being paid that amount based on their current salary.

If you are looking to relocate and work in Hong Kong, you should understand how the minimum wage works to ensure that you are not being exploited by your employee and are being paid the correct wage as required by law.

Labour Secretary Chris Suen said on Facebook on Labour Day that a report evaluating the minimum wage review system will be submitted by the Minimum Wage Commission by the end of October. The government will then decide the future direction of the system and make announcements as soon as possible, he added.

The labour advocacy group added that since the minimum wage was launched in 2011, the accumulated increase over the past 12 years was 42.9 per cent while that of the overall labour market was 48.5 per cent. This reflects that the minimum wage has not kept up with the market, SoCO said.

While pro-establishment labour unions, the HKFTU and Federation of Hong Kong and Kowloon Labour Unions (HKFLU) both agreed that the HK$40 minimum wage should be reviewed annually, the HKFTU suggested that the authorities refer to the MTR fare review mechanism.

The debate about the minimum wage in Hong Kong started more than a decade ago and was intended to devise an optimal statutory regime to forestall excessively low wages. However, from the government perspective the intent was also to avoid impacting labour market flexibility, economic growth and competitiveness, and moreover to set off a significant loss of low-paid jobs. e24fc04721