Statutory Minimum Wage
Introduction
In 1998, Legislative Council Secretariat-the Research Office and Library Services conducted a research, to discuss other country’s experience of using the minimum wage system, enable they deliberated on this issue in Hong Kong. And early 2000s in Hong Kong, most of the lower class and low-skilled industries are in low level of wage, therefore some people in society had some opinion to The Legislative Council relating to statutory minimum wage, as a way to protect blue collar of life.
In 2006-2007 Policy Address, protecting labour rights is one of the highlights, the Government launch a Wage Protection Movement for employees in the cleansing and guarding services sectors to ensure the employees of these two sectors will receive wages not lower than the average market rates of the relevant industries and occupations as published in the Quarterly Report of Wage and Payroll Statistics of the Census and Statistics Department to replace statutory minimum wage. After two years of 2008-2009 Policy Address, Government review the fail of Wage Protection Movement, and decided to proceed with the legislative work.
In July 2011, The Minimum Wage Ordinance was passed by Legislative Council and the statutory minimum wage (SMW) comes into force on 1 May 2011 and the initial SMW rate is $28 per hour. The Minimum Wage Ordinance has taken effect from 1 May 2011. The Statutory Minimum Wage has been increased from $28 to $30 an hour since 1 May 2013.
Accordingly, this report covers the following issues: i) the situation analysis, ii) Economic model, iii) social and commercial perspective, to discuss the pros and cons to implement minimum wage in Hong
In 1998, Legislative Council Secretariat-the Research Office and Library Services conducted a research, to discuss other country’s experience of using the minimum wage system, enable they deliberated on this issue in Hong Kong. And early 2000s in Hong Kong, most of the lower class and low-skilled industries are in low level of wage, therefore some people in society had some opinion to The Legislative Council relating to statutory minimum wage, as a way to protect blue collar of life.
In 2006-2007 Policy Address, protecting labour rights is one of the highlights, the Government launch a Wage Protection Movement for employees in the cleansing and guarding services sectors to ensure the employees of these two sectors will receive wages not lower than the average market rates of the relevant industries and occupations as published in the Quarterly Report of Wage and Payroll Statistics of the Census and Statistics Department to replace statutory minimum wage. After two years of 2008-2009 Policy Address, Government review the fail of Wage Protection Movement, and decided to proceed with the legislative work.
In July 2011, The Minimum Wage Ordinance was passed by Legislative Council and the statutory minimum wage (SMW) comes into force on 1 May 2011 and the initial SMW rate is $28 per hour. The Minimum Wage Ordinance has taken effect from 1 May 2011. The Statutory Minimum Wage has been increased from $28 to $30 an hour since 1 May 2013.
Accordingly, this report covers the following issues: i) the situation analysis, ii) Economic model, iii) social and commercial perspective, to discuss the pros and cons to implement minimum wage in Hong