Use the case of the recent legislation of the minimum wage to discuss the positive function and negative function of the social policy in Hong Kong society. 
Introduction
Recently, starting from May 1, 2013, Hong Kong had issued an increase of the Statutory Minimum Wage (SMW) from $28 to $30. Setting SMW at an appropriate level is vital to striking the balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while sustaining Hong Kong’s economic growth and competitiveness ("2012 report of the minimum wage commission," 2012). To fulfil this aim, the government have decided to increase the minimum wage rate in order for the people receiving the low-paid jobs to have a more fair salary.
This paper will first discuss about the stakeholders that will be affected by the increase of the wage rates namely the workers earning the SMW rates, the employees earning above the minimum wage, the firms, the government and the society as a whole. All of the effects of this social policy, both positive and negative that will be implied to these stakeholders will be discussed. Then, the effects of this social policy will be compared with R. Titmuss’ teachings in the objectives of a social policy. Finally, an evaluative comment of what the government should have done to maximise the benefits of this policy and minimising its drawbacks will be given as a conclusion.
Effects on Stakeholders
Workers The first stakeholder that will be most affected by this social policy is the workers living by the SMW rate. These workers are usually blue-collared workers whose jobs require minimum requirements and manual labor. The minimum wage is used to provide a wage floor for them not to be exploited by the firms, but these workers are usually still the lowest paid amongst the society. They are referred to as the working poor in which the workers are still living below the poverty line of Hong Kong even when they already have a job. As shown by Lam (2013) At the article which has been released by the Commission of Poverty, Hong Kong had just implemented the poverty line in which a
Recently, starting from May 1, 2013, Hong Kong had issued an increase of the Statutory Minimum Wage (SMW) from $28 to $30. Setting SMW at an appropriate level is vital to striking the balance between the objectives of forestalling excessively low wages and minimising the loss of low-paid jobs, while sustaining Hong Kong’s economic growth and competitiveness ("2012 report of the minimum wage commission," 2012). To fulfil this aim, the government have decided to increase the minimum wage rate in order for the people receiving the low-paid jobs to have a more fair salary.
This paper will first discuss about the stakeholders that will be affected by the increase of the wage rates namely the workers earning the SMW rates, the employees earning above the minimum wage, the firms, the government and the society as a whole. All of the effects of this social policy, both positive and negative that will be implied to these stakeholders will be discussed. Then, the effects of this social policy will be compared with R. Titmuss’ teachings in the objectives of a social policy. Finally, an evaluative comment of what the government should have done to maximise the benefits of this policy and minimising its drawbacks will be given as a conclusion.
Effects on Stakeholders
Workers The first stakeholder that will be most affected by this social policy is the workers living by the SMW rate. These workers are usually blue-collared workers whose jobs require minimum requirements and manual labor. The minimum wage is used to provide a wage floor for them not to be exploited by the firms, but these workers are usually still the lowest paid amongst the society. They are referred to as the working poor in which the workers are still living below the poverty line of Hong Kong even when they already have a job. As shown by Lam (2013) At the article which has been released by the Commission of Poverty, Hong Kong had just implemented the poverty line in which a
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