Hong Kong Statutory Minimum Wage Update: What Employers Need to Know (Effective 1 May 2025)

Hong Kong’s Legislative Council has approved updates to the Statutory Minimum Wage (SMW) regime, aimed at reinforcing fair labor standards while preserving economic vitality. Effective 1 May 2025, important changes will take place that employers must prepare for.

What’s Changing?

Starting 1 May 2025:

• The Statutory Minimum Wage (SMW) will increase from HKD $40 per hour to HKD $42.10 per hour.

  
  

• In parallel, the monthly monetary cap—which determines whether employers must record the total number of hours worked by employees—will be revised from HKD $16,300 to HKD $17,200.

These adjustments are intended to ensure that wages remain aligned with the cost of living and economic conditions in Hong Kong.

Who Is Covered?

The SMW applies broadly across the workforce, regardless of:

• Pay frequency (hourly, weekly, monthly, etc.)

• Employee type (full-time, part-time, casual)

• Employment type (permanent, contract, temporary)

However, the following categories are exempt:

• Individuals not covered under the Employment Ordinance (EO)

• Live-in domestic workers

• Specified student interns and work experience students during periods of exempt student employment

Employers should review their employee rosters to ensure proper application of the new SMW rules.

Why This Matters

The objective of the SMW regime is clear:

• Prevent excessively low wages that could erode living standards.

• Minimize the loss of low-paid jobs, safeguarding employment opportunities.

• Support Hong Kong’s competitiveness and sustained economic growth.

For employers, this change emphasizes the importance of timely payroll adjustments and accurate compliance reporting. Ensuring your systems are updated to reflect these new rates is critical to avoid penalties and maintain trust with your workforce.

Next Steps for Employers

• Review current wage structures and identify impacted employees.

• Update payroll systems to reflect the new HKD $42.10 per hour minimum.

• Adjust HR documentation such as employment contracts and internal policies if necessary.

• Educate managers and HR teams about the new requirements to ensure smooth implementation.

  
  

Proactive preparation now will help businesses stay compliant and foster a positive employment environment.

For detailed guidelines and further updates, refer to the following official resources:

• Reference Guidelines for Statutory Minimum Wage 2025 (PDF)

• Minimum Wage Ordinance Updates