Introduction
From Labour Department, The Statutory Minimum Wage rate in Hong Kong raised from $37.5 to $40 per hour since 1st May 2023. If 1st May 2023 falls within a wage period of an employee, the SMW rate of $40 only applies to any hour worked on or after 1st May 2023. Moreover, the monthly monetary cap for exempting employers to record the total number of working hours has rose to $16,300.
Eligibility
It is applicable to all types of employees, regardless of their job position or contract type, including those who are:
- Monthly-rated
- Daily-rated
- Hourly-rated
- Permanent
- Casual
- Full-time
- Part-time, or other.
It is noteworthy that employment under the continuous contract in the Employment Ordinance does not affect the SMW’s applicability. However, there are a few exceptions to this rule:
- Persons to whom the Employment Ordinance does not apply
- Live-in domestic workers , irrespective of their sex, race or nationality
- Specified student interns as well as work experience students during a period of exempt student employment
Penalty
The increase in the minimum wage is for improving the livelihoods of low-income workers in Hong Kong, which promotes equality and justice. Employers need to comply with the new minimum wage rate and ensure that their employees are receiving the appropriate wages. Failure to pay minimum wage amounts to a breach of wage provisions under the Employment Ordinance shall be liable upon conviction to a fine of $350,000 and to imprisonment for three years.
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