The government is studying the review mechanism for optimizing the minimum wage level. During a tea meeting with the media, Ngan Man-yu, member of the DAB Legislative Council, said that the minimum wage level is currently being discussed by the Minimum Wage Committee. Calculated, and changed from the current "two-year inspection" to "annual inspection".
Yan Wenyu pointed out that he is disappointed with the government's review work, because the government has no position on the review mechanism and has not been able to hand over the timetable. He hopes that the new mechanism will be adopted by the end of 2024 and the minimum wage will be implemented from May 2025.
Increased predictability, small adjustments each time, no need to repeat the old mechanism
Yan Wenyu pointed out that in the past, it was difficult for both employers and employees to reach a consensus in the minimum wage committee. For example, in 2021, the three labor committees did not agree to freeze the minimum wage level.
He advocated that the price index, labor market conditions and the tenth percentile of employees in low-paying industries should be used to form an equation instead of the way discussed by the committee, and the minimum wage level should be calculated more objectively, transparently, efficiently and predictably.
He suggested that in addition to both capital and labor, more people from the community should be added to review the formula, at least once every three years.
He believes that the simpler the formula, the better, making it easier for the outside world to predict the minimum wage level.
He pointed out that for the business community, the minimum wage adjustment has an uncertain impact, which is greater than the predictable increase; and from the perspective of labor, changing to "annual inspection" will bring the minimum wage level closer to inflation. Both labor and capital benefit.
When asked if changing to an equation would lead to a sharp increase in the minimum wage level, Yan Wenyu pointed out that he believes that the relevant index will not change too much within a year, and "inspecting once a year" means that each adjustment will be smaller , the business world is in less pain.
Grab talents｜Yan Wenyu advocates housing allowances to reduce living costs Huang Jinhui: Blue collars also have high-demand youth development blueprints｜Yan Wenyu: There is no ladder for home ownership and advocates that youth dormitories be managed by the Housing Bureau. The minimum wage underperforms inflation and only 20,000 people benefit Chen Zuheng retorted: Employers are willing to pay higher minimum wage｜Sun Yuhan did not respond to the annual inspection and Guo Weiqiang approved 0: Zhong is administratively dominated?