Update on the SMW

Hong Kong is known for being a rich city. Less well-known is that nearly 24% of the population lives below the poverty line.

I am humbled hearing about how hard some people have it in Hong Kong, and happy that the commission that recommends adjustments to the minimum wage has suggested an increase of 6.7%. The last increase was made in 2019 after which the government decided to freeze the Statutory Minimum Wage (“SMW”) until 2023 following the social unrest and pandemic. If the government accepts the recommended increase, the current SMW of HKD37.5/hour level will move to HKD40.0/hour.

You can read my other blog post about how I co-authored an article arguing for a significant increase in the SMW to account for Hong Kong’s high cost of living. Though the recommended increase is not enough to bring workers earning the SMW above the poverty line, it could help thousands of people.

Let’s hope the government accepts the commission’s recommendation and increases the SMW to at least HKD40.0/hour.