MINIMUM WAGE IN HONG KONG

NG Yuen Kiu, Yuki(08418047)

TAM Ngo Yin, Vincent (08418039)

INTRODUCTION

Wage Protection Movement (WPM) announced to be promopted

On 11 October 2006

the Chief Executive of the Hong Kong Special Administrative Region, Mr Donald TSANG Yam-kuen,

This is to protect the wage level of

i) cleaning workers ;and

ii) security guards

Through voluntary and non-legislative means.

The legislative council will review the effectiveness of WPM

&

decide whether to implement the minimum wage law in the 2008-2009 legislative session.

The result is not good

Only minor companies join the scheme voluntarily

The employers change the job title to avoid joining the scheme

i.e. cleaning workers office assistant

security guards accommodation

assistant

Existing measurements for minimum wage

The only exception is an extremely low minimum wage is set for foreign domestic helpers employed in Hong Kong.

A law for minimum wage started to be discussed at the year 2009

Most likely will be passed by the legislative council

THE ADVANTAGES OF THE MINIMUM WAGE

Protect workers’ salary

protect the low wages worker fulfil and maintain basic life standard in Hong Kong.

Maintain workers’ dignity

to avoid working under long working hours but low salary

Maintain the social stability

The consuming power will be increased

protect the workers’ life standard avoid the social problem such as robbery, commit suicide,

family violence, etc.

Correction of mind set

an excuse that the low wages cannot maintain their life

in Hong Kong, make use to gain the government welfare they can work by themselves need not the government assistance, reduces the welfare burden of the

government.

Reduce the extreme disparity between the rich and the poor

narrow the extreme disparity between the rich and the poor

Type of Minimum Wage

Country-wide (e.g. USA, Japan, France)

Industry-wide (e.g. Germany, Italy, South Korea)

Region-wide (e.g. Australia)

Job Nature-wide (e.g. Britain, New Zealand)

RECOMMENDATION

establish an advisory Minimum Wage Commission (MWC). 

MWC members will be drawn from the labour sector, business community, academia and government departments. 

The Commission will study the level of minimum wage as well as the review mechanism,

i) ensure a sensible balance between safeguarding the

interests of grassroots workers ii) forestalling the loss of low-paid

jobs, iii) sustaining our economic growth

and competitiveness. 

introduction of an across-the-board minimum wage

protect workers against exploitation

while at the same time prevent the loss of low-paid jobs. 

wages are returns for employees' labour. 

the minimum wage may not be sufficient to cover family expenses of all employees.

Employees in need can obtain assistance under the current social security system. 

i.e. government subsides the 1/5 amount of the minimum wage