Minimum wage rises must not leave behind Hong Kong’s most vulnerable
As the economic pie grows, money-making companies can afford to do more so employees who are struggling get their fair share of return
Living on the minimum wage can be challenging in a city known for its notoriously high cost of living. Even though the statutory wage floor is meant to be a safety net for the lowest paid workers, many of them still face financial hardship, so much so that they may have to scale back on food and other expenses or work multiple jobs to survive. Their plight is often not appreciated by people who are well above the breadline.
This is the second adjustment under an enhanced formula that links wages for the working poor with inflation and economic growth. The figure has taken into account last year’s 1.9 per cent rise in the consumer price index and the 3.5 per cent real growth in gross domestic product, as well as the 1.2 per cent trend economic growth in the past decade. The Minimum Wage Commission believes that the new rate can maintain an appropriate balance between forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining economic growth and competitiveness.