Introduction

On 10 January 2023, the Government gazetted the Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2023.  The Notice will come into operation on 1 May 2023, where the statutory minimum wage in Hong Kong will be increased from HK$37.50 to HK$40 per hour.

Derivative amendment of Employment Ordinance

In view of the increase in the minimum wage, the Government also gazetted the Employment Ordinance (Amendment of Ninth Schedule) Notice 2023 on the same day that increases the monetary cap on keeping records of hours worked from HK$15,300 to HK$16,300 per month. Under section 49A (Requirement to keep wage and employment records) of the Employment Ordinance (Cap. 57), an employer is required to record the total number of hours worked by an employee in a wage period if the employee is one within the meaning of the Minimum Wage Ordinance (Cap. 608).

Minimum wage 4-year freeze

The statutory minimum wage has come into force in Hong Kong since 1 May 2011 and has increased steadily every two years until April 2021, the Government decided to freeze the statutory minimum wage at its 2019 level (i.e. HK$37.50) due to the significant effect brought by the COVID-19 pandemic.

Implications

Employers are reminded to adopt the new minimum wage and ensure that they remain in compliance with the new requirements starting from 1 May 2023.