Minimum wage in Hong Kong 2023? The current minimum wage is $16,300 per month
With the development of Hong Kong’s economy, the term “minimum wage” has become a hot topic in the lives of Hong Kong people. In this article, we will provide you with detailed information about the minimum wage in Hong Kong in 2023, including the monthly minimum wage, the current minimum wage, and an introduction to the minimum wage calculator. We hope this article will provide you with the latest and comprehensive information about the minimum wage in Hong Kong.
Latest minimum wage in Hong Kong: $40 per hour
According to information from the Labour Department of the Hong Kong SAR Government, the SMW is set as a wage floor to protect grassroots employees from being exploited by excessively low wages. Since May 1, 2011, Hong Kong has implemented a statutory minimum wage system. Starting from May 1, 2023, the SMW rate is adjusted to reach the standard of HK$40 per hour. This figure was considered by the Minimum Wage Commission and then approved by the Legislative Council.
According to the newly amended Minimum Wage Ordinance (Cap. 608), the Ordinance aims to establish a statutory minimum wage system that seeks to strike an appropriate balance between the important considerations of preventing excessively low wages, reducing the loss of low-paid jobs, and maintaining Hong Kong’s economic development and competitiveness.
Unless otherwise specified, the Minimum Wage Ordinance applies to each employee, his employer and the contract of employment under which the employee is employed.
Latest minimum wage monthly salary in Hong Kong: $16,300
The monthly minimum wage is the lowest income a full-time employee can receive in a month. This figure is based on the minimum wage system, which aims to protect the basic living standard of low-income employees while ensuring the survival of businesses in the face of competition.
In addition, the Minimum Wage Ordinance requires employers to record the monthly monetary cap on the total number of hours worked by employees, which has now been raised to HK$16,300.
For those employees whose wage period straddles May 1, 2023, special attention should be paid to changes in the SMW rate when calculating minimum wage for that wage period. Therefore, in making the calculation, employers should separately determine the minimum wage for employees throughout the wage period based on the minimum wage rates applicable on different dates.
Minimum wage is reviewed every two years
Under this system, the SMW is paid on an hourly basis. According to this principle, the wages of an employee in any wage period shall be calculated on an average basis according to the total number of hours worked, and the wage level shall not be lower than the prescribed SMW rate.
A comprehensive review of the minimum wage system is conducted every two years to ensure its reasonableness and timeliness. In fact, since the implementation of the minimum wage system in Hong Kong in 2010, the minimum wage rate has been adjusted several times.
Minimum wage calculator
The purpose of the Minimum Wage Reference Calculator is to provide employers and employees with a convenient tool that allows them to quickly and initially estimate the minimum wage amount based on some common work patterns as a reference.
By simply entering all basic information (including hours worked and wage level) and clicking on the “Make a Statement” button, the program will automatically calculate the minimum wage amount and the wages to be paid to the employee.
The above information is for reference only. If you have any tax return (personal tax return, corporate tax return, accountant tax return) queries or information enquiries, you are welcome to contact our professional consultants and we will provide you with free quotation and consultation services later.
