ARTICLE
27 October 2015

Statutory Minimum Wage Increase

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Jones Day

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The statutory minimum wage rate has been raised from HK$30 per hour to HK$32.50 per hour with effect from May 1, 2015.
Hong Kong Employment and HR

The statutory minimum wage rate has been raised from HK$30 per hour to HK$32.50 per hour with effect from May 1, 2015. Pursuant to section 8 of the Minimum Wage Ordinance, an employee is entitled to be paid wages of not less than the minimum wage, whether the wage is monthly-rated, daily-rated, hourly-rated, or piece-rated. According to section 63C of the Employment Ordinance, an employer who willfully and without reasonable excuse fails to pay wages to an employee when it becomes due is liable to a fine of HK$350,000 and to imprisonment for three years.

It should be noted that the statutory minimum wage does not apply to domestic workers in a household, a student intern, or a work experience student. In particular, requirements regarding the nature and duration of the internship, the student's age, and statutory declaration have to be met before one can be considered a work experience student. The requirements for a student intern are less stringent, but a confirmation is usually required to show that the internship has been arranged by a specific educational institution in connection with a program.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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