The minimum wage in Hong Kong will be raised by 7.1 percent to help residents battle inflation and increasing home prices.
Labor Secretary Matthew Cheung announced that hourly salaries will gain to HK$30 ($3.9), effective May 1. This will be the first revision to Hong Kong’s minimum wage since it was implemented in May 2011. Inflation jumped to 5.3 percent last year, and may be 3.9 percent this year.
The proposal will bolster the wages of about 327,200 employees, or 10 percent of the city’s workers, according to a earlier report by a government commission.
The “income of employees at grass-root level has shown a significant improvement since the minimum-wage policy was carried out last year,” Cheung said. “The proposed increase is reasonable and balanced.”
Hong Kong has shot up 26 places in the list of most expensive cities to become the 32nd most costly location for international assignees, according to a survey released today by ECA International, based on the cost of day-to-day goods and services which included items such as groceries and clothing while excluding rent and cars.
The survey reveals that Hong Kong is now more expensive than Manhattan (36th) and Paris (42nd), although it remains cheaper than other regional hubs such as Beijing (22nd), Shanghai (26th), which have also jumped up the ranking, and Singapore (31st).