Hong Kong introduces minimum wage

Hong Kong introduces minimum wage

2011-05-01 23:46:53 GMT+7 (ICT)

HONG KONG (BNO NEWS) -- Hong Kong on Sunday introduced a minimum wage for the first time, Xinhua news agency reported.

The government has previously said more than 310,000 workers should benefit from the new legislation, which stipulates a statutory minimum wage rate of 28 HK dollars ($3.60) an hour. Employees are covered by the minimum wage, regardless of whether they are monthly-rated, daily-rated, casual or part-time.

The minimum wage applies to the disabled, but is not applicable to live-in domestic workers, student interns and work-experience students.

The Labor Department stressed that employers and employees should negotiate on the issue, while critics said that is not really reasonable because the employers have all of the power.

Radio Television Hong Kong reported that workers have accused some employers of changing contracts to cut benefits ahead of the new law. Business groups have also warned that the law will lead to widespread job losses among poor workers.

Meanwhile, thousands of workers took part in Labour Day protests across Hong Kong on Sunday. Union critics said the new law is a step forward, but it's not high enough for many low-income families.

Unions had called for a minimum wage of HK$33 ($4.24) an hour, but business leaders warned that was too high and it could force smaller companies to lay off staff.

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