Work and Wages
Minimum Wage
How is the minimum wage set? (through legislation, collective bargaining, etc.) The Statutory Minimum Wage (SMW) is determined by legislation, following a structured and consultative process that involves an advisory body (Minimum Wage Commission). The commission recommends the prescribed minimum hourly wage rate to the chief executive.
Who determines the minimum wage in the country? (relevant actors) The SMW is determined by the Minimum Wage Commission (MWC), consisting of: 1. A chairperson (not a public officer). 2. Up to 9 non-public officer members: ● Up to 3 with expertise in the labour sector. ● Up to 3 with expertise in the business sector. ● Up to 3 with academic expertise. 3. Up to 3 public officer members
The Chief Executive in Council, upon receiving a report containing recommendations from the Minimum Wage Commission and consultations with representatives of employers, employees, or other relevant organisations, must ensure that a copy of it is published as soon as possible.
Is there a separate minimum wage legislation? (Provision in Constitution, Labour Code or other specific legislation)?
The minimum wage in Hong Kong is set through a separate minimum wage legislation called the Minimum Wage Ordinance (Cap 608).
Do one or more minimum wages exist? (national, sectoral, occupational, regional, etc.) The minimum wage ordinance (Cap 608) establishes a universal statutory Minimum wage (SMW) regime across the region. The statutory minimum wage (SMW) is calculated by multiplying total work hours by the minimum hourly wage rate.
The SMW applies to all employees (employed within any wage payment period/ employment contract), including employees with disability, but excludes employees under contract of apprenticeship, domestic workers, student interns, and work experience students.
What are the criteria for determining or updating the minimum wage? In determining the minimum wage, the commission must maintain an appropriate balance between preventing excessively low wages and minimising the loss of low-paid jobs, while also sustaining Hong Kong’s economic growth and competitiveness. Upon receiving the commission's report, the Chief Executive in Council must ensure its prompt publication.
Is the updating of the minimum wage regulated by Law? When is the minimum wage updated? The updating of the minimum wage is regulated under the Minimum Wage Ordinance (Cap. 608). The SMW is set at least once every 2 years. Under the new mechanism, the statutory minimum wage is subject to annual review, with the revised rate determined in accordance with the prescribed formula and adopted following the competent authority’s approval.
Does the Law provide that the minimum wage must cover the living expenses of the employee? The law does not expressly require that the minimum wage guarantee the full coverage of living expenses. The statutory objective is only to prevent excessively low wages, while sustaining Hong Kong’s economic growth and competitiveness. Is there a government institution for minimum wage complaints? The employee can file a complaint with the Labour Inspection Division if not provided with the Statutory Minimum Wage.
Does the Labour Inspectorate investigate minimum wage compliance? The Labour Department, under the Commissioner for Labour, is tasked with enforcing both the Employment Ordinance (Cap. 57) and any other legal Ordinance. Are there legal sanctions if compliance is lacking? If an employer is found guilty of not paying the sum payable under the legal order to his/her employees, he/she could face a fine of up to HK$350,000 and imprisonment for up to three years.
Source: §43P & 63C of the Employment Ordinance (Cap. 57) 1968, last amended 2024;7, 8, and 10-14 of Minimum Wage Ordinance (608) 2010, amended 2023; https://www.labour.gov.hk/eng/news/mwo.htm
Regular Pay
What does the term "wages" mean? How is it defined in the Labour Code or other relevant law on payment of wages? According to the Employment Ordinance (Cap 608), ‘wages’ are defined as all remuneration, earnings, and allowances—including overtime pay, commissions, attendance bonuses, tips, and service charges—payable to an employee in respect of work done or to be done under the employment contract, and capable of being expressed in monetary terms. It excludes: ● The value of employer-provided benefits (e.g. accommodation, food, education, medical care); ● Employer’s contributions to retirement schemes; ● Discretionary or gratuitous payments (e.g. non-contractual bonuses, commissions, or allowances); ● Non-recurrent or expense-defraying travel allowances; ● End-of-year payments; ● Gratuities on completion or termination of contract.
What does the law say about regular and timely payment of wages? The Minimum Wage Ordinance mandates that wages are paid at least once a month (for a monthly wage period). Payment of remuneration is made directly to the employees, in cash, cheque, bank transfer, to a duly appointed agent, money order or postal order with his/her consent. However, wages must not be paid in places of amusement, betting venues, bars, drug-selling locations, or retail shops—unless the employee works at that location. The employer may advance a portion of the wages for work completed and later offset this amount against the total wages due at the end of the wage period.
Within how many days of the end of the wage payment period, should wages be paid? The employer must pay the salary as soon as possible, no later than the 7th day of the following calendar month. If a regular payday falls on a weekend or public holiday, wages must be paid on the day preceding the weekend or holiday. If the wages are not paid within 7 days, the employer will pay interest at the rate specified by the Chief Justice.
What does the law say about deduction from wages? Employers must notify each employee in writing about the components of wages due, the amount and the grounds for any deductions made, and the net amount to be received. Deduction from the wages is permissible with written consent from the employee and approval of the commissioner under conditions, including. Absence from work (proportional deduction) Damage or loss caused by an employee (with conditions) (limited to HK$300 per incident. Loan repayment (with employee’s written consent) Contributions to a recognised provident fund Statutory deductions (e.g., taxes, court-ordered payments) The total amount of all deductions for each wage payment may not exceed one-quarter of the wages due to the employee, and in certain cases, as provided by law, up to one-half.
What are the provisions on 13th- 14th month pay or other compulsory bonuses? In Hong Kong, end-of-year payments—commonly referred to as the 13th or 14th month pay, double pay, or year-end bonus are not mandatory under the law unless specifically included in the employment contract. According to the Employment Ordinance, such payments are only enforceable if they are of a contractual nature. If the contract does not clearly state that the bonus is discretionary or gratuitous, it is presumed to be payable. To be eligible, an employee must have been employed by the same employer for at least three months within the relevant payment period, excluding any probation period (up to three months). If the amount of the end-of-year payment is not specified in the contract, it is assumed to be equivalent to one month’s wages. The payment is due either on the date specified in the contract or, if unspecified, on the last day of the payment period—typically a lunar year—and must be paid within seven days of the due date. Employees who have not worked the full year but have completed at least three months are entitled to a proportional (pro-rata) payment unless they resigned voluntarily without just cause. If the employment contract ends after the bonus period but before the payment date, the end-of-year payment becomes due upon termination.
Source: §2, Section 11(§11A- 11F), 22-27, Part VI §32 & 46(2) of the Employment Ordinance (Cap. 57) 1968, amended 2024
