Minimum Wage | Hong Kong's deep economic recession, "frozen wages" in the epidemic market maintains $37.5, review next year

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Written by: Huang Yongyu and Yuan Shu

2021-02-02 14:09

Last update date: 2021-02-02 16:03

The minimum wage has been implemented since 2011 and is reviewed every two years.

It is understood that the labor and management of the Minimum Wage Committee cannot reach a consensus that this year's minimum wage may be "frozen."

The Secretary for Labour and Welfare, Law Chi-kwong, said today (2nd) that the Chief Executive in conjunction with the Executive Council approved the recommendation of the Minimum Wage Committee that the minimum wage will be frozen at $37.5 from May 1. salary".

The Secretary for Labour and Welfare, Luo Zhiguang, met with the media at 3 pm to talk about the "Minimum Wage Committee 2020 Report". The Chairman of the Minimum Wage Committee, Mr. Wang Peishi, and the government economic adviser Ou Xixiong were also present.

Luo Zhiguang said that the Minimum Wage Committee had already made recommendations earlier. The majority of the committee members took into account the deep recession of the Hong Kong economy and the high unemployment rate, and suggested that the hourly wage be maintained at 37.5 yuan.

The Chief Executive and the Executive Council passed relevant recommendations this morning.

He emphasized that a small number of committee members did not agree with the relevant adjustments. The labor and management committee members had very big differences. After considering the economic environment, the government believed that the consensus of the majority of committee members was acceptable.

Luo Zhiguang continued to point out that the minimum wage legislation is to strike a balance between preventing excessive wages and avoiding the loss of low-wage jobs.

The minimum wage should not be regarded as the only way to solve low-income people or families, working poverty.

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Luo Zhiguang said that the proposal to freeze the minimum wage has received a majority consensus.

(Photo by Yu Junliang)

A reporter from "Hong Kong 01" asked about the US economy and employment situation, which is equally poor, but the country proposed to raise the minimum wage, why Hong Kong could not increase it.

Another reporter also asked why Taiwan, South Korea, and Canada have also raised their minimum wages, why Hong Kong failed to adopt the same approach.

Luo explained that there are "political considerations" for the reasons for local minimum wage adjustments. Hong Kong has a complete mechanism for minimum wage adjustment. It is necessary to balance the interests of labor and management, cherish the mechanism, and achieve the greatest consensus in society.

Regarding whether the freezing of wages will exacerbate the disparity between the rich and the poor, Luo Zhiguang admitted that the disparity between the rich and the poor is more serious in the economic downturn. He emphasized that the government has different measures to help the grassroots. There is also research and details will be announced in due course.

As for if the economic situation improves next year, will the authorities consider an early review or change the adjustment mechanism to an annual review.

Luo Zhiguang pointed out that when the minimum wage freeze was accepted this time, there were indeed voices calling for an annual inspection.

However, each review needs to collect a lot of data and do a lot of consulting work. If it is changed to an annual review, it can only be changed into a mechanical type and adjusted by equation.

He continued that if mechanical adjustments are adopted this year, the results may be contrary to the expectations of the labor sector for "pay increases."

The next review will be completed before October 31, 2022.

The current legal minimum wage is 37.5 yuan, and the government reviews it every two years.

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The labor committee's "enterprise hard" request for improvement is not accepted

The Minimum Wage Committee, which is responsible for reviewing the minimum wage level, completed the biennial minimum wage level review in September of last year. The labor committee "firmly" requested an increase in the minimum wage level during two rounds of meetings, but no other members were awarded Accepted, most of the members tended to freeze the current level. In the end, they could not reach a consensus. This was the first time in history.

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