Hong Kong's Proposed Statutory Minimum Wage Bill

November 2009POEA MARKET UPDATE NO. 17-09HONG KONG'S PROPOSED STATUTORY MINIMUM WAGE BILLThe Legislative Council of the Hong Kong Special Administrative Region is currently reviewing the proposed Statutory Minimum Wage (SMW) Bill for low paying sectors. According to Labour and Welfare Secretary Mathew Cheung Kin-Chung, they consider it necessary to exempt live-in domestic workers (both local and foreign) from the SMW. The multifarious nature of their job makes it different to apply the SMW, which is calculated on an hourly basis. In addition, the provision of free accommodation by employers means that live-in domestic workers are spared the most costly living expense items, as well as home to workplace travel and food in most circumstances. Apart from free lodging, they also enjoy free medical benefits and free passage to and from their place of origin. Domestic workers in Hong Kong are currently protected by the Minimum Allowable Wage (MAW), which is administratively set, and mandatory. Underpayment of domestic helper's salary is considered an offense under Hong Kong's Employment Ordinance. The Central Policy Unit of Hong Kong,...