The minimum wage is a crucial system for safeguarding the fundamental rights and interests of workers. This article will delve into the definition of Hong Kong's Statutory Minimum Wage (SMW), the methods for salary settlement under the hourly-rated system, its scope of application, and the basic principles to follow when calculating minimum wage. This guide aims to provide you with a comprehensive understanding of this important labour protection.
Minimum wage, or Statutory Minimum Wage, refers to the lowest wage standard set by a country or region through legislation. It is designed to protect the income of grassroots employees and prevent excessively low wages.
In Hong Kong, the minimum wage system is established under the Minimum Wage Ordinance and is calculated on an hourly basis. The core principle is that the wages payable to an employee in respect of any wage period, when averaged over the total number of hours worked during that period, shall not be less than the SMW rate.
Hong Kong's SMW came into force on May 1, 2011, with the initial rate set at HK$34.50 per hour. Subsequently, the rate has been adjusted. Effective from May 1, 2025, the SMW rate has been raised to HK$42.1 per hour. Concurrently, the monetary cap on the requirement for employers to keep records of the total number of hours worked by an employee has also been revised to HK$17,200 per month.
The SMW has a broad scope of application, covering employees with different pay patterns and employment arrangements, including:
However, the following individuals are not covered by the minimum wage:
For a detailed definition of the scope of application, it is recommended to consult the official documents of the Labour Department regarding the Minimum Wage Ordinance for the most accurate information.
To accurately calculate the monthly (or other periodic) salary payable to an employee under the minimum wage system, both employers and employees need to be aware of the following basic principles. The Labour Department also provides a minimum wage reference calculator to assist with calculations.
The primary objectives of establishing a minimum wage are to prevent wages from being excessively low, to protect the basic livelihood of grassroots workers, and to help reduce the unreasonable loss of low-paid jobs. For many individuals engaged in long working hours, physically demanding labour, or unpleasant work, minimum wage legislation provides a fundamental income guarantee and is crucial for their sustenance.
For a more in-depth understanding of the details of the Minimum Wage Ordinance, you can refer to the "Concise Guide to Statutory Minimum Wage" prepared by the Labour Department. If you have any questions regarding the calculation or application of the minimum wage, you are welcome to contact the various branch offices of the Labour Relations Division of the Labour Department or call their enquiry hotline (usually available on the Labour Department's official website) for further assistance and information.