Minimum Wage Ordinance, Chapter 608
The Minimum Wage Ordinance was established to create a minimum wage system tthat balances preventing extremely low wages with avoiding job losses among low-paid workers while also supporting Hong Kong’s economic growth and competitiveness.
The Statutory Minimum Wage (SMW) sets a minimum wage level to protect workers in lower-income positions.
The SMW has been in effect since May 1, 2011. As of May 1, 2023, the SMW rate had increased to $40 per hour.
Additionally, the monthly maximum requirement for employers to record the total hours worked by employees has been adjusted to $16,300.
The SMW is calculated per hour, ensuring that the wages paid to an employee for any pay period must not fall below the average SMW rate for the total hours worked.
The key aspects of the Minimum Wage Ordinance, such as the definition of wages, are closely aligned with the Employment Ordinance to ensure consistency, effective enforcement, clarity for both employers and employees, and to minimize the compliance burden on employers.
At the time of writing this, there is an ongoing discussion regarding raising the minimum wage by 4.5% to HK$41.8 per hour.
