On Labour Day, May 1st, the statutory minimum wage in Hong Kong increased to HK$42.1 per hour, up from the previous HK$40 rate, the government announced.
New rules start May 1st, 2025
Under the new rate, employees are entitled to the minimum hourly wage whether they are employed full-time, part-time, casually, monthly, daily, hourly or by piece. The increase applies regardless of whether the employment is permanent or temporary.
However, the minimum wage does not apply to live-in domestic workers, student interns, work experience students, and persons not covered under Hong Kong’s employment laws.
Employees with disabilities are also covered. They may opt for a productivity assessment to determine whether their wages should be based on the statutory minimum wage or on a rate that matches their productivity.
Also, Employers are now required to record the total number of hours worked by employees earning less than HK$17,200 per month, an increase from the previous HK$16,300 threshold.
Hong Kong remains one of the World’s most expensive cities
Hong Kong continues to rank among the world’s most expensive cities, as confirmed by multiple studies in recent years. In 2023, it was named the second most expensive city globally, just behind New York, reflecting the high costs faced by residents and visitors. The city has also retained its reputation as the priciest destination for expats, holding the top spot in Mercer’s 2024 global rankings.
Recent, research further shows Hong Kong remains one of the most expensive places to live, adding to the financial pressures already well-known to those living and working in the city. In a global inflationary context, the Consumer Council also highlighted cases of shrinkflation last year, revealing that shrinkflation in Hong Kong is real, with 90% of supermarket products shrinking in volume or weight by up to 30%.
Header Image Credit: Leung Cho Pan via Canva
