The Information Services Department minimum wage was raised from HK $40 to HK $42.1 per hour Monday, according to the HKSAR Government.
Under the minimum wage ordinance, whether an employee is paid monthly, daily, hourly, piece, permanent, temporary, full-time or part-time, whether or not he is employed under a continuous contract under the employment ordinance, he is also protected by SMW. The SMW does not apply to live-in domestic helpers (irrespective of their sex, race and nationality) , trainees and work experience trainees as stipulated in the minimum wage ordinance, and persons to whom the employment ordinance does not apply.
The Employment Ordinance requires employers to keep records of the maximum monthly amount of the total number of hours worked by their employees during the wage period. In addition, the monthly wage rate will be increased from HK $16,300 to HK $17,200 with effect from 1 March 2010 to tie in with the new SMW rate.
In addition, the abolition of MPF“Hedging” was implemented on the same day. With effect from May 1, employers are no longer allowed to use mandatory contributions to MPF funds to hedge severance payment or long service payment during the period of employment.
Sun Yuhan, the Government Secretary for Labour and Welfare, said the move would help employees in the medium and long term by reassuring them that they had more money to prepare for retirement.