The Chief Executive (CE) in Council has adopted the Minimum Wage Commission’s recommendation on raising the Statutory Minimum Wage (SMW) rate from its prevailing level of $40 per hour to $42.1, an increase of 5.25%.

An amendment notice will be published in the Government Gazette this Friday and the Government will table it in the Legislative Council (LegCo) next Wednesday. Subject to LegCo’s approval, the revised SMW rate will come into force on May 1.

In conducting this review of the SMW rate, the commission adopted the formula approved by the CE in Council on April 30, 2024, to derive the recommended SMW rate.

Secretary for Labour & Welfare Chris Sun said the commission reviewed the SMW rate through elaborate discussions to draw up the implementation arrangements for adopting the formula, examining the latest data on the indicators in the formula, and assessing the relevant impacts.

He added that the commission’s recommendation is in line with the policy objectives of the SMW to maintain an appropriate balance between forestalling excessively low wages and minimising the loss of low-paid jobs, while giving due regard to sustaining Hong Kong's economic growth and competitiveness.

As announced in the 2024 Policy Address, the Government will implement a new annual review mechanism of the SMW. The first SMW rate derived under the new mechanism is expected to take effect on May 1, 2026.