effects on an increase of minimum wage

Group membersCheung Kin On Ken 08407894

Chu Chung Yin Joanne 08408866

POLS 7050 Public Administration

Minimum Wage Law in Hong Kong

International Labour Law (ILL)

All human beings have equal rights to earn a living and support their families

Support – to set up the Minimum Wage Law in Hong Kong

Different arguments debating about

should Minimum Wage Law execute in Hong Kong?

Effects on the Increase of Minimum Wage

Arguments support Minimum Wage Law

• Increase standard of living of the poorest• Stimulate consumption by putting more

money in the hands of low-income people.

• Decrease the cost of government social welfare programms by increasing incomes for the lowest-paid and so does not put any extra pressure on welfare systems

Arguments against Minimum Wage Law

• Reduces profit margins of business owners, employing minimum wage workers, thus encouraging a move to businesses that do not employ low-skills workers.

• Reduce quantity demand of workers, wither through a reduction in the number of hours worked individuals, or through a reduction in the member of jobs

• Businesses try to compensate by raising the prices of the goods being sold thus causing inflation and increasing the costs of goods and services produced.

Effects on the Increase of Minimum Wage

Today Discussion Topic

Support vs Against (50% vs 50 %)

HOW to execute the Minimum Wage Policy in an effective way to ensure the condition of labour market in Hong Kong should be better?

Minimum Wage Law in Hong Kong

Minimum Wage Law should be execute to all job industries

Minimize the intervention from HK government Different job industries have their own characteristics - Minimum Wage should be set in different rate

How to set the Minimum Wage Law?

Minimum Wage Rate (MWR)– set up according to 3

ways:

1) Regional

Difficult to standardize the MWR – various kinds of

job industries and occupations among a region.

How to set the Minimum Wage Law?

2) Occupation- Occupation in different industries should have

different level of salaries - E.g. Manager working in a multi-international

company vs Manager working in a cleaning

company or security company.

How to set the Minimum Wage Law?

The Legislation Process of Law

Wage Council

Council of Inspector

~The End~