The Chief Executive (CE) in Council has adopted the Minimum Wage Commission’s recommendation on raising the Statutory Minimum Wage (SMW) rate from its prevailing level of $42.1 per hour to $43.1, an increase of 2.38%.

An amendment notice will be published in the Government Gazette on February 20 and the Government will table it in the Legislative Council on February 25. Subject to council’s approval, the revised SMW rate will come into force on May 1.

In conducting this review under the new annual review mechanism, the commission adopted the formula approved by the CE in Council to recommend the new SMW rate.

Secretary for Labour & Welfare Chris Sun said the commission thoroughly drew up the implementation arrangements for adopting the formula, examining the data of each indicator in the formula while assessing the relevant impacts.

Mr Sun noted that the formula’s objective and easy-to-understand indicators enhance the SMW’s transparency and predictability, which minimises controversy and fosters harmonious labour relations.

An annual review also allows the SMW to be more closely aligned with socioeconomic changes, he added.