Overview of The Hong Kong Minimum Wage Ordinance – Labour Legislation in Hong Kong

Overview of The Hong Kong Minimum Wage OrdinanceThe Hong Kong Minimum Wage Ordinance sets a Statutory Minimum Wage (SMW) regime in the country that aims to strike the right balance in the job market.

This labour legislation in Hong Kong is aimed preventing wages in Hong Kong from being excessively on the low end, and minimising the loss of low paying jobs while simultaneously maintaining Hong Kong’s economic competitiveness and growth.

The Minimum Wage Ordinance’s major provision is aligned as close as it can be to that of the Employment Ordinance. This ensures consistency and effective enforcement, making it easier for both employers and employees while effectively minimising the compliance costs incurred by employers.

The SMW is expressed as hourly rates and has been in effect in Hong Kong since 1 May 2011, providing grassroots employees with a wage floor to protect them. This means that wages paid to an employee for the total number of working hours within respect of an wage period must be no less than the SMW’s rate on average.

Beginning 1 May 2019, the SMW raised its rates from $34.5 an hour to $37.5 an hour. Simultaneously, employers are required to keep records of the monetary cap requirement for the total number of hours an employee has worked, and this cap has now been revised to $15,300 monthly from the previous $14,100 monthly.

You may also like to know about Intern Minimum Wage Exemption in Hong Kong.