New Hong Kong minimum wage formula to take effect in 2025 as mechanism that blocks rate cuts gets nod
- Mechanism recommended by Minimum Wage Commission will safeguard pay levels while maintaining Hong Kong’s competitiveness, labour chief says
- Executive Council also accepted a proposal to review the minimum wage annually, rather than once every two years
A new formula for adjusting the minimum wage which bars any cut to the rate will take effect next year after Hong Kong’s key decision-making body approved a mechanism hailed by officials as striking a balance between the interests of bosses and workers.
Secretary for Labour and Welfare Chris Sun Yuk-han said on Tuesday that the new mechanism recommended by the Minimum Wage Commission would safeguard pay levels while maintaining Hong Kong’s competitiveness.
“The recommendations of the commission have struck an appropriate balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining Hong Kong’s economic growth and competitiveness,” he said.
“The government agrees that the adoption of a formula for adjusting the minimum wage rate will enhance predictability and transparency, thereby reducing contention in the community. The government also believes the new review mechanism is in line with the overall interests of Hong Kong.”
