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Minimum wage in HK

By moonchan814 Nov 05, 2014 632 Words

Good afternoon every one, the business area of our project is minimum wages, the specific project topic is The Positive Aspects of Minimum Wage Law. Nowadays, rent, transport fees and electricity bills are all on the rise and grassroots are difficult to maintain a decent living and have heavy financial burden on family. Also, many people criticize that some employers had more tricks to exploit workers, which drives the salaries of low-skill workers are below $20 per hour. This is an unfair remuneration and welfare of employees. In light of these, Hong Kong government enforced a law legislation to protect their income and welfare, which is minimum wage law. The Statutory Minimum Wage comes into force on 1 May 2011 and the initial Statutory Minimum Wage rate is $28 per hour. Although there is a general perception that the establishment of a minimum wages can only do harm to society, it can be a great benefit to society, employees and employers. The implementation of minimum wage law can bring many positive aspects to Society, employees and businessmen. Society

Reduce number of citizens who are living under poverty line
Narrow Hong Kong’s wealth gap
Enhance social stability
Employees
Enforcement of the law is an effective way to protect their income Provide steady income for employees,
Improve living quality,
Eliminate labor exploitation
Businessmen
Employees establish a strong sense of belonging to their companies For long term benefit, their Working efficiency can be Enhanced and productivity can be Increased. Many citizens want to raise the initial statutory minimum wage rate from $28 to $33. $28 is a moderate minimum wage rate

If the initial statutory minimum wage increased to a higher level, which may bring some negative impacts The increase in labour costs will ultimately be passed on to consumers resulting in unnecessary inflation. Increase unemployment rate of low-skill workers

Undermine the competitiveness of companies operating in Honk Kong because of the increase in labour costs. Due to minimum wage law, the situation of Hong Kong society has been improved after the implementation of law, such as decreasing number of Comprehensive Social Security Assistance (CSSA) beneficiaries, narrowing the wealth gap and enhancing social stability. The overall CSSA caseload of Social Welfare Department indicated that there are nearly 275,000 cases in February 2012, which showed a drop of 6500 cases compared to April 2011 (before the implementation of minimum wage law) and number of unemployed CSSA recipients reduced 650 cases during this period. In light of this, the minimum wage can help decrease the number of CSSA beneficiaries significantly owing to a better remuneration of job, and which is possible to lessen the financial burden on Hong Kong society and government. According to persons in low income households survey (2001 – 2011) announced by The Hong Kong council of Social Service, the number of citizens who are living under poverty line reduced from 1,205,500 in 2010 to 1,150,700 in 2011 and the poverty line increased from HK$3,250 in 2010 to HK$3,500 in 2011. The implementation of a minimum wage is perceived as an effective mechanism for narrowing Hong Kong’s wealth gap between middle-class and low-class families. Besides these, Hong Kong Happiness Index Survey (2011) designed by the Centre for Public Policy Studies of Lingnan University reveals Hong Kong people are second happiest in seven years, with the happiness index reaching 71.3 in 2011 and higher than the 2010 level of 70.1. Many respondents reported an improvement in financial conditions in the household under minimum wage law had higher happiness indices and nearly 70% of the respondents said they would be happy because of the implementation of minimum wage law. The survey indicated that social stability can be enhanced and grievance of citizens can be reduced because of mitigation of economic pressure.

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