Minimum wage talks deadlock raises fears

The minimum wage could freeze at HK$37.5 per hour next year as Covid-19 deals a heavy blow to Hong Kong’s economy, according to sources.

If so, it would be the first time since the minimum wage was introduced in 2011. Around 21,000 employees would be affected.

Minimum Wage Commission is discussing the adjustment of the wage level. But business and labor representatives fail to reach a consensus so far.

Representatives from the business and academic sector reflected that catering and retail industries were battered by last year’s social unrest and the ongoing pandemic, thus the minimum wage level should be maintained. 

However, labor representatives were against the wage freeze, saying that employees were struggling due to inflation. They turned down the employers’ offer of raising the minimum wage by HK$0.5 per hour.

The commission is now drafting the proposal, noting that the majority of committee members agree to freeze the current minimum wage level.

The report will be submitted to the Chief Executive and decided by the Executive Council next month. It would be up to the government to make the final decision on whether to freeze the wage level.