Explainer | How far will Hong Kong’s new minimum wage raise of 5.25% go in helping workers?

Hong Kong’s lowest-paid workers received a pay rise on Thursday, with their hourly wage increasing by HK$2.10 (30 US cents), from HK$40 to HK$42.10, following a recommendation adopted by the government’s key decision-making Executive Council.

The Post takes a look at the 5.25 per cent increase, the first since a new formula for adjusting the rate was passed last year, and what it means for workers such as cleaners and security guards.

1. How often is the minimum wage raised?

Hong Kong launched a statutory minimum wage in 2011 that was set at HK$28 an hour, with reviews conducted every two years.

The figure rose by seven per cent to HK$30 in 2013, followed by 8.3 per cent to HK$32.50 in 2015. In 2017, the government raised the wage by 6.2 per cent to HK$34.50.

The most significant increase of 8.7 per cent came in 2019 that pushed the hourly wage floor up to HK$37.50.

In 2023, the city’s lowest-paid workers got a HK$2.50 pay rise per hour – about 6.7 per cent – upon an increase in the minimum wage to HK$40 an hour after a four-year freeze amid the Covid-19 pandemic.

The 42.9 per cent increase from HK$28 in 2011 to HK$40 in 2023 fell short of the accumulated 44.7 per cent inflation during that time.

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