What's New

Review of Statutory Minimum Wage rate

The Minimum Wage Commission (MWC) will submit to the Chief Executive (CE) in Council its recommendation report on the Statutory Minimum Wage (SMW) rate by the end of February 2026 at the latest.

The Secretary for Labour and Welfare, in exercise of the authority delegated by the CE, has required the MWC to submit its recommendation report on the SMW rate on or before February 28, 2026, in accordance with the Minimum Wage Ordinance (Cap. 608).

The CE in Council has approved the implementation of the new annual review mechanism of the SMW including the following formula for deriving the SMW rate:

The annual rate of adjustment in the SMW (%) = Headline Consumer Price Index (A) (CPI(A)) inflation# (subject to a lower bound of zero) + [(the growth rate of the real Gross Domestic Product (GDP) in the latest year – the trend growth rate of the real GDP in the latest decade) × 20%] (economic growth factor*)
# It refers to the year-on-year rate of change in the headline CPI(A).
* The economic growth factor is subject to an upper bound of one percentage point and a lower bound of zero.

The Government expects that the first SMW rate derived under the new mechanism will take effect on May 1, 2026. The MWC will assist the Government in implementing the new mechanism.