Hong Kong's statutory minimum wage has been increased to HK$43.1 per hour starting May 1. The adjustment, based on a recommendation by the Minimum Wage Commission, represents a rise of HK$1 or 2.38% from the previous level of HK$42.1.
The revised rate took effect on May 1, with the commission estimating that up to 40,000 workers across the city will benefit.
Under the "annual review" mechanism for the statutory minimum wage, the commission adopts a formula endorsed by the Executive Council to assess and recommend adjustments.
According to the 2026 Report on Reviewing the Statutory Minimum Wage Rate, the formula first calculates an economic growth factor by subtracting the 10-year trend growth rate of real GDP from the latest annual real GDP growth rate, and then multiplying the result by 20%.
This factor is then added to the overall inflation rate, measured by the Composite Consumer Price Index, to determine the annual adjustment rate.
Based on 2025 data, the economic growth factor and overall inflation rate were 0.46% and 1.9% respectively, resulting in a combined adjustment rate of 2.36%. The calculation led to the recommended increase to HK$43.1 per hour.
The report noted that the adjustment would benefit a certain number of low-income employees, while having a relatively modest overall impact on business costs, unemployment, and inflation.
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