The Minimum Wage Ordinance requires employers to record employees' total hours worked in the wage period, so how is the minimum wage calculated? This article tells you about the statutory minimum wage requirements and common questions.<\/p>\n\n\n\n
\nThe minimum wage for 2025 is HK$42.1 per hour, and the monthly wage ceiling above which employers need not record employees' total hours worked has been raised to HK$17,200.<\/p>\n<\/blockquote>\n\n\n\n
Minimum Wage Ordinance<\/h3>\n\n\n\n
Hong Kong enacted the Minimum Wage Ordinance in July 2010, and the law came into effect on 1 May 2011. The minimum wage is set as an hourly rate, and provides that the average wage over an employee's total hours worked during employment must not be lower than the statutory minimum wage.<\/p>\n\n\n\n
Overview of changes in the minimum hourly wage over the years<\/h3>\n\n\n\n
Effective date<\/span><\/th> Minimum hourly wage<\/th><\/tr><\/thead> May 2011<\/td> HK$28<\/td><\/tr> May 2013<\/td> HK$30<\/td><\/tr> May 2015<\/td> HK$32.5<\/td><\/tr> May 2023<\/td> HK$40<\/td><\/tr> May 2025<\/td> HK$42.1<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n The initial statutory minimum wage was HK$28 per hour, and it has since been adjusted 4 times. In 2025 the minimum wage rose to HK$42.1, an increase of 5.25% over the previous year.<\/p>\n\n\n\n
What the minimum wage is for<\/h2>\n\n\n\n
Minimum Wage Commission<\/h3>\n\n\n\n
The Minimum Wage Commission is responsible for studying how to determine the level of Hong Kong's minimum wage and for setting up a review mechanism, and makes recommendations to the Chief Executive in Council.<\/p>\n\n\n\n
The Commission is made up of representatives of the government, employers and employees. It takes into account economic development, labour market data and inflation to ensure that the wage level strikes an appropriate balance with actual social conditions.<\/p>\n\n\n\n
Protecting grassroots employees<\/h3>\n\n\n\n
The main aim of the minimum wage is to prevent wages from being too low and to reduce the loss of low-paid jobs. A wage floor is therefore set to protect grassroots employees and keep them from falling into poverty because of very low income.<\/p>\n\n\n\n
\nIt also upholds and raises the dignity of labour, so that employees receive basic protection for their work and the problem of the \u201cworking poor\u201d is reduced.<\/p>\n<\/blockquote>\n\n\n\n
Who does the minimum wage apply to?<\/h2>\n\n\n\n
Who the minimum wage applies to<\/h3>\n\n\n\n
Whether full-time, part-time or casual, anyone employed by a company or an individual employer and paid wages is entitled to the protection of the Minimum Wage Ordinance.<\/p>\n\n\n\n
Common examples include grassroots jobs such as catering waiters, retail sales staff, security guards, cleaners and warehouse workers. These jobs often involve long hours and low pay, so the minimum wage regime is especially important to them.<\/p>\n\n\n\n
Who the minimum wage does not apply to<\/h3>\n\n\n\n
The statutory minimum wage does not apply to the following persons:<\/p>\n\n\n\n
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- Persons to whom the Employment Ordinance does not apply<\/li>\n\n\n\n
- Domestic workers<\/li>\n\n\n\n
- Student interns and work experience students as specified in the Minimum Wage Ordinance<\/li>\n\n\n\n
- Sub-contractors or self-employed persons (freelancers)<\/li>\n<\/ul>\n\n\n\n
How to calculate the minimum wage<\/h2>\n\n\n\n
Monthly wage calculation example<\/h3>\n\n\n\n
The monthly minimum wage is calculated as follows:<\/p>\n\n\n\n
\nTotal hours worked x statutory minimum wage = minimum wage for that month<\/p>\n<\/blockquote>\n\n\n\n
Here is a practical example. Suppose employee A worked 172 hours in total this month. The minimum wage for this month is then:<\/p>\n\n\n\n
172 (total hours worked) x 42.1 (statutory minimum wage) = HK$7241.2<\/strong><\/p>\n\n\n\n
Minimum wage calculator<\/h3>\n\n\n\n
If you find calculating the minimum wage case by case too much trouble, Hong Kong's Labour Department also provides a \u201cMinimum Wage Reference Calculator<\/a>\u201d. Besides listing the current statutory minimum wage, the website also provides detailed calculations, such as pay for meal breaks, paid sick leave<\/a>, and pay for rest days \/ non-working days, so that employers can calculate pay for different situations.<\/p>\n\n\n\n
FAQ<\/h2>\n\n\n
\n\n\nWhat penalties do employers face if they fall short?<\/h3>\n
\n\nUnder the Minimum Wage Ordinance, an employer who fails to comply must not only pay back the wages owed but may also face a maximum penalty of HK$350,000 and three years' imprisonment. Employers must therefore be careful and make sure pay is calculated in line with the requirements.<\/p>\n\n<\/div>\n<\/div>\n
\nHow are employees with disabilities, student interns and domestic workers affected?<\/h3>\n
\n\nAs mentioned above, domestic workers are outside the scope of the minimum wage, because they come under the minimum allowable wage for foreign domestic helpers<\/a>, which also covers meals and accommodation arrangements. The rules for the other two groups are:<\/p>\n
Employees with disabilities: if an employee's disability affects their work capacity, they may apply for a \u201cwage assessment\u201d. The result may be lower than the minimum wage, but it must be agreed by both parties and approved through the assessment.<\/p>\n
Student interns: for some recognised internship or apprenticeship schemes, pay may be agreed between the two parties.<\/p>\n