Hong Kong Raises its Minimum Statutory Wage Rate by $2 with effect from May 2017

May 8, 20178:45 am639 views

Labour Department Hong Kong announced increase in Statutory Minimum Wage (SMW) rate from $32.50 per hour to $34.50 per hour, thus an increase by $2 with effect from May 1, 2017.

According to the Minimum Wage Ordinance (MWO), employees are protected by the SMW whether they are monthly-rated, daily-rated, hourly-rated, piece-rated, permanent, casual, full-time or part-time, and regardless of whether or not they are employed under a continuous contract as defined in the Employment Ordinance (EO).

The SMW is not applicable to live-in domestic workers (irrespective of their sex, race and nationality), student interns and work-experience students as specified in the MWO, and persons to whom the EO does not apply.

See: What Drives Happiness in Hong Kong’s Workplaces?

The SMW also protects employees with disabilities. A special arrangement is provided under the MWO so that employees with disabilities have the right to undergo productivity assessment to determine whether they should be remunerated at no less than the SMW rate or at a rate commensurate with their productivity.

Those employees with disabilities who have chosen this special arrangement are entitled to wages of not less than the amount calculated according to the new SMW rate of $34.50 per hour.

In addition, the monthly monetary cap on the requirement for employers to record the total number of hours worked by employees under the EO, has been raised from $13,300 to $14,100 with effect from May 1.

When wages payable in respect of a wage period are less than $14,100 per month, the employer is required to keep a record of the total number of hours, worked by the employee in that wage period.

Also read: Top 10 Finance and Financial Services Roles in Hong Kong Set for the Biggest Salary Gain in 2017

Image credit: freedigitalphotos.net

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