Hong Kong gazettes minimum wage ordinance

13:34, July 23, 2010      

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Hong Kong Friday gazetted the Minimum Wage Ordinance, which was passed by the city's Legislative Council on July 17.

The Ordinance aims to establish an optimal statutory minimum wage (SMW) regime which provides an hourly wage floor to forestall excessively low wages without unduly affecting labor market flexibility, economic growth and competitiveness or causing significant loss in low-paid jobs.

The Provisional Minimum Wage Commission of Hong Kong is tasked to advise the government on the appropriate level of the initial SMW rate.

In accordance with its terms of reference, the commission adopts an evidence-based approach through objective and comprehensive data analyses as well as extensive consultations with stakeholders, with a view to ensuring a sensible balance between forestalling excessively low wages and minimizing the loss of low-paid jobs, while sustaining Hong Kong's economic growth and competitiveness.

The Ordinance will come into operation on a day to be appointed by the Hong Kong Secretary for Labor and Welfare by notice published in the Gazette.

If everything proceeds well and allowing time for the community to gear up for the implementation of SMW, it is hoped that the initial SMW rate would come on stream in the first half of 2011.



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