01 point of view
Written by: Review Editor
2020-06-16 10:00
Last update date: 2020-06-16 10:00The Minimum Wage Committee will recommend to the Chief Executive by the end of October that the minimum wage level for next year will be reviewed, and the public consultation for this review will end on Tuesday (16th). Affected by the epidemic this year, Hong Kong's economy has been hit hard, and many employers have shouted to freeze the minimum wage. However, the current minimum wage level has fallen behind the living needs of the citizens. In addition to its two-year inspection arrangement, the freeze review will only hurt the grassroots wage earners. The government should "harden" the labor.
After adjustment in May last year, the current minimum wage level in Hong Kong is $37.5 per hour. But is the hourly salary of 37.5 yuan enough? Based on 26 days of work per month and 8 hours per day, the monthly salary of wage earners paid at the minimum wage level is only RMB 7,880. The chairman of the Federation of Labor Unions Lin Zhensheng directly approves that the level of CSSA is not comparable. For example, under the current arrangement, a 2-person family can receive a total of RMB 8,588 based on the amount of CSSA, rent allowance, water charges and sewage charges, which is lower than the minimum wage The monthly income of wage earners is 708 yuan higher. Let’s not talk about whether the CSSA amount is sufficient, but if the government considers the CSSA amount as an indicator of basic living expenses, the grassroots family receiving the minimum wage may not be able to maintain basic living.
The minimum wage in Hong Kong has long been below the level of basic living expenses, which is insufficient to meet basic needs. (Profile picture / Photo by Zhang Haowei)
The level is too low to break away from reality
Some wage earners at the grassroots level bluntly said that it might be better to simply receive CSSA work. This remark is naturally sad. After all, "people with hands and feet" who are willing to work have not received enough wages for hard work from the government. In the final analysis, grass-roots wage earners are the most vulnerable group in the job market. If non-government policies intervene, the pay of grassroots workers is easily exploited, not to mention a reasonable salary increase with economic development.
More importantly, the monthly income of Hong Kong workers has been rising in recent years. According to the results of the government’s recently released income and working hours survey, the median hourly wage of all employees in Hong Kong from May to June last year was $73, year-on-year. An increase of 3.6%. If the minimum wage at the grassroots level is frozen or even reduced, the income gap between the grassroots workers and the general public will only increase and the gap between the rich and the poor will worsen.
It must be pointed out that the adjustment of the minimum wage is currently checked every two years. Although the past adjustments can only catch up with inflation, wage earners always have to "hard food" prices increase while waiting for the adjustment. Undoubtedly, with the impact of the epidemic, Hong Kong's economy has suffered a severe setback, and the unemployment rate has risen to a new high in the past decade. However, it cannot be ignored that although the minimum wage has just been adjusted last year, the CPI in 2019 has increased by 3.3% compared with 2018. And even if the economy deteriorates this year, it is doubtful whether the price level (especially daily necessities) will immediately change accordingly. The Minimum Wage Committee must understand the living needs of grass-roots wage earners and cannot easily freeze adjustments due to management pressure.
In addition, the government can no longer avoid the problem of lagging the current state of the economy by checking the minimum wage every two years. We have pointed out many times that annual inspection is the best method to adjust to the overall economic environment and changes in the labor market. The Secretary for Labour and Welfare, Luo Zhiguang, has repeatedly repeated the past arguments recently, insisting that the two-year inspection can more fully refer to the current social and market conditions, but only once again shows the government's attitude of succumbing to pressure from the management.
[New Coronary Pneumonia] The minimum wage should be checked once a year
[Labor Day] The minimum wage is 37.5 yuan. I do not know that Luo Zhiguang betrayed his labor and his ideals.
Luo Zhiguang should be considerate of the hardships of grassroots laborers and try his best to promote the increase of the minimum wage
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