Hong Kong minimum wage to increase by 4.5% to HK$41.8 per hour this year

Hong Kong will raise the minimum wage by 4.5 per cent to HK$41.8 (US$5.3) per hour this year and introduce a formula for future adjustment that will not allow pay cuts, the Post has learned.

The minimum wage will also be reviewed annually, rather than every two years at present.

According to a source close to the city’s Minimum Wage Commission, the existing HK$40 hourly rate is set to increase by HK$1.8.

The commission was also expected to formalise the review process through introducing a formula which would consider factors such as the Consumer Price Index A, current GDP growth and average GDP growth in the past 10 years, the insider said.

The Consumer Price Index reflects changes in the cost of consumer goods and services generally bought by households. Index A relates to about 50 per cent of households in the city, which are in the relatively low expenditure range.

Hong Kong to raise minimum wage for domestic helpers by 3% to HK$4,870 a month

The formula would ensure the future minimum wage was not lowered from the current rate, the source added.

Last year, the rate was raised to HK$40 an hour, about 6.7 per cent up from the previous HK$37.50 from May 1.