The Hong Kong government seeks to tighten the income gap among the people and improve the lives of the grassroots workers. To tackle the problem, Hong Kong parliament passed the city’s first minimum wage law setting an estimated of $28.0 HK dollars or $3.61 US dollars per hour. The law will be officially effective on May 1, 2011.
A recent survey showed that more than half a million workers in Hong Kong earn less than $4.00 US dollar per hour. The new wage plan is to protect these low-income workers. In prediction of the new law, Matthew Cheung, the city’s labor secretary, said, “About 314,600 workers would see wage gains after the new rule comes into effect.”
However, there has been a dispute of this controversial issue. Small-to-medium businesses oppose the new law and express that the government show not interfere in the free market. They are concerned that they will not be able to sustain their business with the new wage law.
– Jessie Chung