Hong Kong plans to raise minimum wage

Hong Kong plans to raise minimum wage
Posted: 12 December 2012 2211 hrs
     
HONG KONG: Hong Kong plans to raise the city's minimum wage to HK$30 (US$3.87) an hour, a minister said Wednesday, in a hike slammed by labour groups as inadequate for the Asian financial hub.

Labour minister Matthew Cheung said the raise represents a 7.1 percent increase from the HK$28 pay per hour at present, which was introduced in May last year partly to tackle a widening income gap between the rich and poor.

"(The new rate) will be effective from May 1 next year if it is approved by the legislative council," Cheung told reporters, adding that around 320,000 workers are expected to benefit from the adjustment.

Critics however said the raise was too small to cover inflation and the high cost of living in Hong Kong, which is one of the world's most expensive city to live in with its sky-high property prices.

"We are not satisfied with the government proposal and think the hike is unreasonable," Labour Party chairman Lee Cheuk-yan said.

The city introduced the controversial pay floor for the first time last year after fierce opposition from employers.

Known for its stunningly wealthy tycoons, the southern Chinese city is also home to hundreds of thousands of workers who live on hourly wages sometimes as low as US$2 an hour prior to the introduction of the minimum wage.

Hong Kong's inflation rose 5.3 percent year-on-year in 2011, and may gain 3.9 percent this year according to a government forecast.

- AFP/lp

- wong chee tat :)