Annual minimum wage review proposal and new formula to take effect in 2026

The Executive Council has accepted the proposal to review the minimum wage annually and introduce a calculation formula that will not decrease the minimum wage. 

The new formula will be correlated to the city's economic growth and inflation, while the first Statutory Minimum Wage rate derived under the revamped review mechanism will take effect on May 1, 2026, the government said.

Secretary for Labour and Welfare Chris Sun Yuk-han is pleased with the Minimum Wage Commission's accomplishment in the "historic and challenging mission" of studying enhancements to the review mechanism of the minimum wage.

"The recommendations of the MWC have struck an appropriate balance between the objectives of forestalling excessively low wages and minimizing the loss of low-paid jobs," Sun said. 

He noted that the government believed the new review mechanism was in line with the overall interests of Hong Kong.

The MWC also expressed its delight at the government's acceptance of the recommendations to enhance the review mechanism.

Speaking before the official announcement, Chief Executive John Lee Ka-chiu said the mechanism could ensure that workers are paid fairly and low-paying jobs won't suffer a labor shortage. 

The city leader also wished Hongkongers a happy Labour Day holiday ahead of tomorrow (May 1) and pointed out that the government will provide subsidies to senior citizens to further release the labor force starting July 15. 

The Employees Retraining Board has also raised the ceiling of the subsidy to HK$8,000 a month since February. 

As for the "418" continuous contract requirement, Lee said the Labour Advisory Board has reached an agreement to relax the requirement to no less than 68 hours on aggregate in four weeks. 

The government has also initiated relevant legislation to better protect workers with shorter working hours, Lee said. 

He continued that the culture of establishing and maintaining occupational safety should be implemented in each and every citizen so that all employees can "go to work happily and return home safely." 

(Updated at 4.18 pm)