As effective from 1 October 2021, the government has set a Minimum Domestic Helper Salary of HK$4,630 per month which the employer has to pay to the foreign domestic helpers. Firms profitability 6 5.3. The "minimum wage" for an employee is determined by multiplying the number of "hours worked" in a wage period by the prescribed minimum hourly wage rate. and other independent countries.Some countries may have a very complicated minimum wage system; for example, India has more than 1202 minimum wage rates . In 2019, starting from 1st May, the SMW rate has been revised to $37.5 per hour from $34.5 per hour. Compute minimum wage from 1 May 2017 to 30 April 2019 （$34.5 per hour） Every two years since, this wage has been reviewed and subsequently raised to combat inflation - apart from the most recent review in 2021. . The Minimum Wage Ordinance in Hong Kong is applicable to every employee, except in the case of interns or students who are exempted. Minimum Wage - Economic Theory 2 4. One of the most prominent areas that has set their sights on this minimum wage increase is the city of Los Angeles. With effect from 1 May 2019, the SMW rate is raised to $37.5 per hour. Introduction in Hong Kong - May 2010 3 5. Currently, the minimum salary in Hong Kong is HK$ 37.5 per hour according to the Labour Department of the Govern of the Hong Kong. The Government announced today (September 30) that the Minimum Allowable Wage (MAW) for foreign domestic helpers (FDHs) in Hong Kong would remain at $4,630 per month. Hong Kong maids: how come they can be paid way below minimum wage? Touted as the biggest increase yet to the . Hong Kong's wage commission has announced it has agreed on a figure for the territory's first minimum wage. minimum wage (6¨ ö- \o ), for an employee for a wage period, has the meaning given by section 8(2); non-local education programme (g6Ô&Ø5PZZZI³ ) means a full- . Are they hypocrites? 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 . The commission also took into account that the Hong Kong economy was in a deep recession with an elevated unemployment rate and the economic outlook is subject to an unusually high degree of uncertainty when reviewing the minimum wage rate, Dr Law added. Most countries have a nation-wide minimum wage that all workers must be paid. Employment 5 5.2. Hong Kong's hourly minimum wage is expected to increase by HK$3 an hour, with government advisers reaching an agreement after "fiery" discussions. Hong Kong's 360,000 domestic helpers will not be getting a pay rise for a second year, the government has announced on Thursday. What is Hong Kong Minimum Wage for Domestic Helper in 2021? As of 2021, the minimum salary in Hong Kong is of HK$ 37.5 per hour (roughly 4.85 USD). Answer: I think it's a good thing. Recently, the Hong Kong government announced its endorsement of the latest minimum wage increase from HK$34.50 to HK$37.50, set to increase in May 2019. In Hong Kong, minimum wage refers to the lowest hourly gross wage and do not include meal breaks or rest days. Compute minimum wage from 1 May 2019 ($37.5 per hour)* * If 1 May 2019 falls within a wage period, the SMW rate of $37.5 per hour applies to any hour worked on or after 1 May 2019 in calculating minimum wage for that wage period. Leading the Minimum Wage Campaign. Concurrently, the monetary cap on the requirement of employers keeping records of the total number of hours worked by employees is also revised to $15,300 per month. In terms of emotional heat and public controversy, the debate over the minimum wage for Hong Kong lags not far behind political reform. It was proposed in 2010, approved in 2011 and came into effect in May 2011. The prevailing SMW rate will continue to apply until 30 April 2023 and the next round of review will be conducted in October 2022. The fundamental requirement of the Minimum Wage Legislation is that every employee in Hong Kong will be entitled to be paid an amount not less than the "minimum wage". In 1999 Hong Kong Confederation of Trade Unions (HKCTU) Opposed by functional constituencies in 2004. The legislation was intended to protect those in low income jobs, while allowing Hong Kong to remain competitive internationally. Introduction 2 3. Is that the higher the minimum wage, the better to the life of the workers in general? Anger over the . The current wage level for non-domestic workers took effect on May 1, 2019 and this is the first time that the minimum wage will remain unchanged since it was introduced a decade ago Law said in a briefing that most of the commission's members agreed to keep the current minimum wage, adding that Hong Kong is in deep recession with a high . Ironically, because HK is not a democracy, I think the political and social elite are more likely to. As a university graduate, I think the minimum wage would be $28-$30 at most. Introduction in Hong Kong - May 2010 3 5. Seeing that there is a great controversy over the law of minimum wage, we hope to let the public understand more about minimum wage, including its history, pros and cons of the law, etc. Hong Kong is about to enactits first minimum wage, which will likely be around 28 Hong Kong dollars, or US$3.61, per hour. The Hong Kong government announced on 2 February 2021 that the statutory minimum wage will be frozen at HKD 37.5 per hour for the next two years to 2023. The statutory minimum wage rate, which is $37.5 per hour, in Hong Kong has also been stationary for the last two years, showing that the government is treating everyone equally. Compute minimum wage from 1 May 2017 to 30 April 2019 （$34.5 per hour） The prevailing SMW rate will continue to apply until 30 April 2023 and the next round of . Prior to this, there was a fixed minimum monthly wage for foreign domestic workers (HKD 3740). It's worth noting that the SMW is described by the Labour Department as a wage floor, to protect grassroots . China labor law requires local governments to update their minimum wage every few years, at a minimum. 7. At present, the minimum wage sits at HK$37.5 per hour and applies to all local workers apart from domestic helpers. In Germany, the minimum wage is $10.10 an hour while in Taiwan, the minimum wage stands at $4.90. Hong Kong employers in the Pearl River Delta may have kicked and screamed, and without doubt China's global wage competitiveness has been reduced, but the message from China's leaders was . The Hong Kong government announced on 2nd February 2021 that the statutory minimum wage will be frozen at HKD 37.50 per hour for the next two years to 2023. Most members agreed to freeze the minimum wage level. Starting Jan. 1, 2022, the arts and crafts retailer's minimum wage will move to $18.50. Hobby Lobby has become the latest to increase its minimum hourly wage. A fair minimum wage for workers in Hong Kong would be when the low-skilled workers can afford to pay the soaring rents, and buy food and other essentials. Statutory Minimum Wage (SMW) has come into force since 1 May 2011. Watch: Hong Kong and Bangkok . The increase in the minimum wage and allowance. The thing about Hong Kong is that it is not a democracy and the entire city is run by a few rich tycoon families with the support of the government in Beijing. Answer (1 of 7): The minimum wage in Hong Kong is HKD$37.5 per hour (effective May 2019). The current SMW will remain the same until 30 April 2023, and a review by the Minimum Wage Commission will be conducted in October 2022. This will increase to 37.50 Hong Kong dollars (approximately . A specified student intern is * a student undergoing a period of work arranged or endorsed by a local education institution specified in Schedule 1 to the Minimum Wage Ordinance, and the work is a compulsory or elective component of the requirements of a full-time accredited programme being provided by the institution to the student; or * a student resident in Hong Kong and undergoing a period . Especially at the entrepreneurial end of the spectrum, business people long enjoyed a lack of red tape. Hong Kong has had a statutory minimum wage since 2011, which is currently 34.50 Hong Kong dollars (approximately U.S. $4.40) per hour. We draw on theoretical arguments for and against a SMW policy, examining empirical evidence outside Hong Kong to suggest an agenda for research. Impacts - 15 months later 5 5.1. 608). The initial minimum wage level was established in the form of subsidiary legislation once the principal minimum wage bill had passed, recommending a rate to the Chief Executive. Naz Iraj, 17, St Margaret's Girls' College. Impacts - 15 months later 5 5.1. 608 is an ordinance enacted by the Legislative Council of Hong Kong to introduce a minimum wage in Hong Kong in July 2010. The Minimum Allowable Wage (MAW) is a statutory minimum salary for all Foreign Domestic Helpers (FDH) in Hong . Income inequalities. Compute minimum wage from 1 May 2019 ($37.5 per hour)* * If 1 May 2019 falls within a wage period, the SMW rate of $37.5 per hour applies to any hour worked on or after 1 May 2019 in calculating minimum wage for that wage period. 608) The Minimum Wage Ordinance (MWO) has come into force since 1 May 2011. HK$32.50 (US$4) per hour Hong Kong's minimum wage was last changed in 1-May-2015. The minimum wage could freeze at HK$37.5 per hour next year as Covid-19 deals a heavy blow to Hong Kong's economy, according to sources. outside Hong Kong and is not his or her usual place of employment. Hong Kong, a semiautonomous Chinese city of 7.4 million people shaken this summer by huge protests, may be the world's most unequal place to live. The average value for Hong Kong during that period was 5506.3 currency units with a minimum of 4704 currency units in May 2011 and a maximum of 6300 currency units in May 2019. The minimum wage will also expand the rules involved in doing business in Hong Kong. If so, it would be the first time since the minimum wage . The Politics of the Minimum Wage in Hong Kong. Minimum Wage in Hong Kong . Minimum Wage Ordinance, Chapter 608. Firms profitability 6 5.3. In May 2011, Hong Kong implemented a minimum wage policy of HK$28 per hour. Hong Kong's Minimum Wage is the lowest amount a worker can be legally paid for his work. Mathew Y. H. Wong. For instance, the minimum wage in Australia (which is the highest worldwide) is $13.60 per hour. The minimum wage of foreign domestic workers will remain at HK$4,630 a month, while a monthly allowance, for those whose employers do not provide them with food, will be increased by HK$52 to not less than HK$1,173 . An across-the-board statutory minimum wage (SMW) will come into effect in Hong Kong on 1 May 2011. A Hong Kong group advocating for increasing workers' living wages has said the government's decision to freeze the minimum wage at HK$37.5 (US$4.84) was "totally disrespectful" to . Hong Kong government has promised to increase the minimum wage to 44 HKD if the country's GDP improves in the future. 20 of the regions increased minimum wages in 2017. Minimum Wage Ordinance in Hong Kong Confirmation of Student Status for "Work Experience Student" under Minimum Wage Ordinance (Cap. To print the whole chapter in HTML, please click at the bottom of the TOC panel and then click .Please set the page orientation to "Landscape" for printing of bilingual texts on a single page. We will write a custom Economic Consequences Minimum Wage Rate in Hong Kong specifically for you for only $14.00 $11,90/page 308 certified writers online Learn More. The confederation set up the Hong Kong People's Alliance for a Minimum Wage (the Alliance), which the chief executive at the time rebuffed in favor of a voluntary mechanism that unsurprisingly had little impact. But the agreed level - likely to raise the earnings of 11% of the working population . Department of Politics and Public Administration, University of Hong Kong, Hong Kong, SAR; Department of Government, University of Essex, Colchester, UK Correspondence yhmwong@hku.hk. 2nd February 2021 - (Hong Kong) The Minimum Wage Commission completed a review of the statutory minimum wage level earlier, but did not reach a consensus. The HKCTU was a key player in the battle for a minimum wage in the city. Economic cycle considerations 9 7. . A minimum wage of $4.82 an hour. In Hong Kong, any household employing a foreign worker must pay at least the Minimum Allowable Wage (MAW) and either provides free food or a food allowance on top. Hong Kong minimum wage frozen for first time ever. In 2018, 15 out of 31 mainland China regions increased minimum wages. Wage period (1) The wage period of an employee is the period in respect of . In this website, you will see, hear and read different… Prior to this, there was a fixed minimum monthly wage for foreign domestic workers (HKD 3740). To print the whole chapter in HTML, please click at the bottom of the TOC panel and then click .Please set the page orientation to "Landscape" for printing of bilingual texts on a single page. The Statutory Minimum Wage (SMW) in Hong Kong changed over the years. The minimum wage in Hong Kong will remain unchanged at HK$37.50. According to sources, the government submitted a report to the Executive Council this (2nd) morning and it was […] Most members tend to agree to freeze the minimum wage level. Because they have not adjusted their minimum wages in over two years, Fujian, Gansu, Guizhou, Hunan, Qinghai, Tianjin, and Zhejiang are expected to adjust their minimum . Introduction 2 3. Economic cycle considerations 9 7. Minimum wage laws were enforced to protect workers from employer's exploitation; the laws were formulated to regulate minimum wages. Minimum Wage - Economic Theory 2 4. Hong Kong's statutory minimum wage will be frozen at HK$37.50 (US$4.84) an hour, the government has announced . Photo: Winson Wong. Discussion. The executive branch proposed a minimum wage of HK$28 (~US$3.61) per hour in November 2010, which the Legislative Council voted to accept after much debate in January 2011. In addition, under the Standard Employment Contract for hiring FDHs, employers are required to provide FDHs with food free of charge. The Minimum Wage Ordinance Cap. This is a list of the official minimum wage rates of the 193 United Nations member states and former members of the United Nations, also including the following territories and states with limited recognition (Northern Cyprus, Kosovo, etc.) Hong Kong: Hong Kong's Statutory Minimum Wage Remains At HK$37.50 Per Hour. Inflation 7 6. For all the talks about Hong Kong and its search for equality and treating people fairly, how is it that so many families in Hong Kong hire oversea maid and pay them pennies? Under this exemption, student interns and work experience students with no employment . The minimum hourly wage for 2021 in Hong Kong is HKD 37.50. Part 2: Housing issues in . In accordance with the Minimum Wage Ordinance (Cap.608 of the Laws of Hong Kong) This link will open in a new window, the Minimum Wage Commission is tasked with the important function of, when required by the Chief Executive (CE) to do so, reporting to CE in Council its recommendation about the Statutory Minimum Wage (SMW) rate.. SMW impacts on various aspects including the society, economy . It is the first time that the government has frozen the minimum wage since it was introduced on 1 May 2011. Union leaders meanwhile have slammed the meagre increase to HK$37.50 (US$4.70) an hour as "shameful". Minimum wage in Hong Kong Table of Contents 1. For the first time ever, the Hong Kong government has frozen the minimum wage since it was introduced on 1 May 2011. 2nd February 2021 - (Hong Kong) The Minimum Wage Commission completed a review of the statutory minimum wage level earlier, but did not reach a consensus. 0 comments. Minimum wage in Hong Kong, May 2011 - December 2021: For that indicator, we provide data for Hong Kong from May 2011 to December 2021. 6. It was proposed in 2010, approved in 2011 and came into effect in May 2011. The Minimum Wage Ordinance establishes a Statutory Minimum Wage (SMW) regime aimed at striking an appropriate balance between forestalling excessively low wages and minimising the loss of low-paid jobs while sustaining Hong Kong's economic growth and competitiveness. The Minimum Wage in UK Aged 16-17 Aged 18-20 Aged 21 or over £3.57 £3.64 £4.83 £4.92 £5.80 £5.93. Employment 5 5.2. Part 1: Minimum Wage law in Hong Kong 2 2. The intern minimum wage exemption in Hong Kong exempts student employees under the Minimum Wage Ordinance (Cap. Currently, Los Angeles The Secretary for Labour and Welfare, Law Chi-kwong, announced at 3pm this afternoon (2nd) that Hong Kong's economy is currently […] The minimum wage started in 2011 at HKD28/hour, and rose in stages to the current rate of HKD37.50/hour². On 2 February 2021, the Hong Kong government announced that the statutory minimum wage (SMW) rate will remain at HK$37.50 per hour following a review by the Minimum Wage Commission. How to live with the minimum wage depends on a few combinations of factors such as whether you are a single person, a family bread winner, with or without social benefits eligibility, whether you own a house. Pages 735-752. Legislation to enact a minimum wage was passed in July and is part of the . Minimum Salary in Hong Kong. The last raise came into effect in 2015. It's important to be updated on the change of the policy. Here's the top 5 questions regarding the basic principles to calculating minimum wage in Hong Kong. With the current Federal Minimum Wage at $7.25 per hour, a minimum wage of $15.00 per hour would be substantially more and there is little known as to the economic side effects that this strategy may cause. Abstract: This dissertation critically analyses the disadvantages of introducing minimum wage in Hong Kong.Hong Kong is free market economy driven by the mechanisms of demand and supply. As a University graduate, or as a person who born in the 80s, I saw Hong Kong has gradually transformed to a knowledge . The Acting Labour Secretary Danilo Cruz announced that the minimum wage was being hiked by HK$90 to HK$4010, an increase of 2.3%. Inflation 7 6. The average working week in Hong Kong is 44 hours, which the minimum monthly wage is approximately HKD 7,425. Hong Kong recently updated it's labour laws, increasing the minimum wage to $37.5 per hour with effect from 1 May 2019. This has been so since the days of Sir Phillip Haddon Cave (Secretary of Finance 1971-1981) who advanced the theory of positive non intervention. In accordance with the Minimum Wage Ordinance (Cap.608 of the Laws of Hong Kong) This link will open in a new window, the Minimum Wage Commission is tasked with the important function of, when required by the Chief Executive (CE) to do so, reporting to CE in Council its recommendation about the Statutory Minimum Wage (SMW) rate.. SMW impacts on various aspects including the society, economy . In Hong Kong, minimum wage refers to the lowest hourly gross wage and do not include meal breaks or rest days. 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