What is the current statutory minimum wage in Hong Kong

What Is the Current Statutory Minimum Wage Hong Kong Rate?

The current statutory minimum wage Hong Kong rate is HK$40 per hour. This rate took effect on 1 May 2023 under the Statutory Minimum Wage Ordinance (Cap. 608). It applies to all employees regardless of contract type, part-time, casual, or piece-rated workers, with limited exceptions.

Hong Kong Minimum Wage Rate

The hong kong minimum wage rate is HK$40 per hour. This rate covers all employees under the Employment Ordinance unless specifically exempted. Employers must ensure an employee's average hourly wage for any wage period meets or exceeds this level. Calculate this by dividing total wages paid by total hours worked.

Current SMW Level

The current smw level of HK$40 per hour was recommended by the Minimum Wage Commission and approved by the Chief Executive in Council. It was gazetted and took effect on 1 May 2023. The previous rate was HK$37.50 per hour.

Minimum Wage Review Hong Kong

The minimum wage review hong kong process is set by the Statutory Minimum Wage Ordinance. The Minimum Wage Commission reviews the wage level every two years. Before recommending a new rate to the Chief Executive in Council, the Commission analyses economic indicators like GDP growth, inflation, wage trends, and labour market conditions. Any rate change must be gazetted before it becomes effective.

Statutory Minimum Wage Amount

The statutory minimum wage amount is HK$40 per hour for all hours worked in a wage period. For employees not paid hourly, such as monthly salaried staff, employers must use the statutory formula in the Employment Ordinance (Cap. 57) to calculate the hourly rate. Employers must keep wage records proving compliance. The Labour Department enforces the ordinance and investigates complaints.

How the Hourly Rate Is Applied

The hourly rate applies to all employees under a contract of employment, except those specifically exempted. Exempt categories include: - Live-in domestic workers employed by a close family member - Persons employed under a placement arrangement in a sheltered workshop - Students on work experience programmes covered by the Student Employment Encouragement Programme

For all other employees, divide total wages paid in a pay period by total hours worked. If the result is below HK$40, the employer must pay the shortfall. The Labour Department provides guidance on the calculation method and a compliance tool.

Employee Coverage and Wage Protection

The Statutory Minimum Wage Ordinance protects all employees, including foreign domestic helpers, part-time workers, and casual workers. This protection does not replace other statutory entitlements like rest days, statutory holidays, annual leave, or sickness allowance. Minimum wage compliance is separate from Mandatory Provident Fund contributions under the MPF Schemes Ordinance.

Next Review

The Minimum Wage Commission will conduct the next review and submit its recommendation to the Chief Executive in Council. The government will announce any change to the current statutory minimum wage level after considering the Commission's report.