A Complete Guide to Hong Kong’s Minimum Wage in 2025
- Published: 8 October 2025
- 8 min read
- Running a Business
Ruth Dsouza
Author
Ruth Dsouza Prabhu is a content developer passionate about shaping ideas into compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she brings clarity to complex business topics for entrepreneurs. Her work spans strategy, storytelling, and thought leadership, offering readers content that is both credible and impactful.
As of May 1, 2025, minimum wage in Hong Kong has increased to HK$ 42.1 per hour. This article explains the recent changes, their impact on employees and employers, and key related regulations.
Key Takeaways
- The statutory minimum wage (SMW) hourly rate in Hong Kong is now HK$ 42.1 per hour, reflecting adjustments for living costs and aiming to enhance financial security for workers.
- Certain groups, including student interns under exempt student employment provisions, remain exempt from the statutory minimum wage (SMW), highlighting variations in compensation based on employment type.
- Employers must maintain accurate payroll records and comply with regulations to avoid serious penalties for non-compliance, including fines and potential imprisonment. These changes were introduced by the Hong Kong government to address rising living costs.
Current Minimum Wage in Hong Kong
As of May 1, 2025, the statutory minimum hourly rate in Hong Kong is HK$ 42.1 per hour, up from HK$ 40 per hour. This adjustment by the Hong Kong government reflects changes in the cost of living and inflation, aiming to improve financial security for low-income workers.
The previous SMW rate of HK$ 40 per hour remained in effect for a period of stability, and the Hong Kong government regularly reviews each new SMW rate to ensure it meets the economic needs of the workforce. The Minimum Wage Commission plays a key role in these reviews, balancing the interests of employees with the realities faced by businesses.
The new SMW rate highlights ongoing efforts to enhance wage standards and support workers’ livelihoods across different sectors. This new SMW rate of HK$ 42.1 per hour is meant to be rate commensurate with inflation and cost‑of‑living increases. The minimum wage adjustment was reviewed and debated in the Legislative Council before coming into effect. Staying informed about these changes helps both employees and employers understand their rights and responsibilities under Hong Kong’s wage regulations as set by the Chief Executive and Legislative Council.
Coverage of Statutory Minimum Wage
Hong Kong’s statutory minimum wage covers a wide range of employees, ensuring fair compensation for both part-time and full-time workers. This same protection ensures that almost all employees are entitled to the statutory minimum wage, except for specific exemptions.
Employees with disabilities enjoy the same protections as those of with other employment contracts, including rights related to the minimum wage. They also have the option to undergo a productivity assessment, which can potentially adjust their contract pay based on performance.
The statutory minimum wage helps prevent exploitation and promotes economic fairness by ensuring adequate compensation for low-income workers. The minimum wage laws also cover various employment scenarios, providing a safety net for workers across Hong Kong.
Exemptions from Statutory Minimum Wage
While the statutory minimum wage aims to cover a wide range of employees, certain categories are exempt. These exemptions are specified under the Minimum Wage Ordinance, ensuring clarity on who is and isn’t covered by the statutory minimum wage rate.
Two significant groups fall under these exemptions: foreign domestic helpers and certain student interns. These groups have specific conditions that set them apart from the general workforce under the Minimum Wage Ordinance.
Foreign domestic helpers
Foreign domestic helpers in Hong Kong are entitled to a Minimum Allowable Wage rather than the broader statutory minimum wage protections. As of now, the Minimum Allowable Wage for live-in helpers is HK$ 4,990 per month. This wage structure takes into account the unique living and working conditions of these employees, who typically live with their employers.
In addition to their wages, employers are responsible for providing medical care and welfare benefits to their live-in domestic helpers. This comprehensive support system is designed to ensure that these helpers receive adequate care and compensation for their work, despite being exempt from the broader statutory minimum wage.
Student interns and work experience students
Student interns are a specific group exempt from the statutory minimum wage. This exemption encourages educational and work experience student opportunities without the minimum wage burden on employers. Similarly, work experience students also qualify for exempt student employment under specific conditions and age criteria.
For work experience students, this exemption applies for up to 59 days, ensuring students gain valuable experience without employers needing to pay the statutory minimum wage during the period of exempt student. The period of exempt student status generally applies to internship placements not exceeding a certain number of days set by regulation.
Expert accountants on your side
Our local team of experts helps founders get their set-up, taxes and paperwork right from the start
Defining Wages and Hours Worked
Accurately defining wages and recording the total number of hours worked by employees is key to precise calculations. According to the Minimum Wage Ordinance, hours worked include any time employees are present at their workplace or engaged in work-related travel, excluding commutes to and from their residence during the wage period. These definitions within the Minimum Wage Ordinance affect calculations over the wage period, which may be daily, weekly, or monthly depending on contract. This ensures fair compensation for the time employees spend working.
Overtime hours, when performed with the employer’s consent, also count towards the total hours worked by employees. Employers are not required under SMW to pay for meal breaks unless the meal break is part of the working period. This guarantees compensation for all the time employees dedicate to their job, including overtime.
Travel required for work assignments, if part of the employee’s duties, counts as hours worked. This broad definition ensures all relevant time is included in minimum wage calculations.
Voluntary training or study that isn’t arranged or required by the employer does not count as hours worked under Hong Kong’s Minimum Wage Ordinance. Only employer-mandated or job-related training time should be included in minimum wage calculations.
Calculating Minimum Wage
In Hong Kong, the minimum wage is calculated by multiplying the total hours worked by the statutory minimum wage (SMW) rate of HK$ 42.1 per hour.
Minimum Wage = Total Hours Worked × Statutory RateThis formula guarantees accurate payment based on the hours worked at the SMW rate.
To assist in these calculations, the Labour Department provides a Minimum Wage Reference Calculator, which is a recommended tool for employers.
For instance, an employee working 160 hours in a month would earn 160 × HK$ 42.1= HK$ 6,736, starting May 1, 2025. This represents the sum payable for that month under the statutory formula. This method promotes transparency and fairness in minimum hourly wage calculations, ensuring compliance with Hong Kong’s legal requirements, including the hourly SMW rate.
Penalties for Non-Compliance
Ensuring compliance with minimum wages laws is crucial for fair labour practices. Employers who intentionally underpay those in their employment may face fines up to HK$ 150,000. If an employer fails to pay the SMW, they may also be liable for additional penalties.
In severe cases, this can lead to fines up to HK$ 350,000 and imprisonment for up to three years. These stringent penalties highlight the seriousness with which the Hong Kong government treats wage violations, ensuring that employers are held accountable for fair compensation practices.
Employer Responsibilities
Hong Kong employers must maintain detailed payroll records to comply with minimum wage regulations, including:
- Employee personal information
- Job roles
- Remuneration
- Non-cash benefits
Rest days mandated under the Employment Ordinance should qualify for pay according to the SMW, unless those same days exempt by a continuous contract. Employers must also clarify whether service charges form part of wages payable under the statutory scheme. Any wages paid must meet or exceed the SMW rate, with overtime or premium rates counted separately. Bonuses or end of year payments should not be used to offset shortfalls in monthly wage obligations under the SMW.
Employers must also document and record the total number of hours worked by employees up to a monthly monetary cap of HK$ 17,200. This documentation helps in accurate wage calculations in relation to actual expenses incurred and compliance with statutory requirements, including the employment ordinance and employment contract. If employment ends, any gratuity payable must also reflect compliance with the minimum wage provisions, up to the monthly monetary cap. They need to report any changes in employee details or employment terms to the Inland Revenue Department (IRD).
Effortless company secretary services in Hong Kong
Simplify compliance with our expert company secretary services tailored for HK businesses. Contact us for reliable assistance.
Annual Review Mechanism
The Minimum Wage Commission reviews Hong Kong’s statutory minimum wage annually, evaluating various economic indicators and impacts.
The Chief Executive in Council must approve the Minimum Wage Commission’s recommendations for wage changes. As mandated by the Chief Executive in Council, the Minimum Wage Commission submits its recommendations annually. This approval process through the Chief Executive in Council and related legislative councils ensures that the wage adjustments and end of year payments are balanced and well-considered, taking into account both worker needs and economic stability.
Summary
In summary, understanding these regulations is crucial for both employers and employees. As of May 1, 2025, the new SMW rate is HK$ 42.1 per hour. Ongoing compliance with these regulations is essential to uphold fair labour practices and avoid serious penalties.
Staying informed and proactive about paid wage regulations can help create a fair and equitable working environment. Whether you are an employer or an employee, understanding these laws will enable you to navigate the labour market more effectively and ethically.