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The Chief Executive in Council has accepted the recommendation of the Minimum Wage Commission to raise the Statutory Minimum Wage (SMW) rate from the current HK$42.1 to HK$43.1 per hour, representing an increase of HK$1.0 (approximately 2.38%). Alongside this adjustment, the monthly monetary cap, under which employers are required to keep records of the total number of hours worked by employees, will also be raised from HK$17,200 to HK$17,600.
The Government published the Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2026 in the Gazette on Friday, 20 February, and submitted it to the Legislative Council on 25 February. Subject to Legislative Council approval, the revised SMW rate will take effect on 1 May 2026.
This review marks the second annual adjustment since the optimization of the review mechanism. The Minimum Wage Commission has continued to adopt the formula approved by the Chief Executive in Council in 2024 to calculate the recommended SMW level. This formula accounts for both inflation and economic growth, ensuring that wage adjustments follow a normalized, data-driven, and predictable review cycle.
Secretary for Labour and Welfare Chris Sun Yuk-han stated that the Government believes the Commission has duly discharged its statutory function in reviewing the SMW level. The Commission’s recommendation aligns with the policy objectives of the statutory minimum wage: to strike an appropriate balance between preventing excessively low wages and minimizing job losses in low-paid sectors, while supporting Hong Kong’s economic development and competitiveness.
On 20 February, the Government also gazetted the Employment Ordinance (Amendment of Schedule 9) Notice 2026, which was submitted to the Legislative Council on 25 February. This amendment revises the monthly monetary threshold concerning the requirement for employers to record employees’ total working hours. Employers will be exempt from this record-keeping requirement if the wages payable to an employee for that period are not less than HK$17,600 (up from HK$17,200). This updated threshold will come into effect on 1 May 2026.
The Statutory Minimum Wage applies to all employees, regardless of whether they are paid monthly, weekly, daily, hourly, or by piece rate, or whether they are engaged on a full-time, part-time, permanent, or casual basis, and irrespective of whether they are employed under a “continuous contract” as defined by the Employment Ordinance. However, it does not apply to:
• Individuals not covered by the Employment Ordinance
• Live-in domestic workers
• Designated interns and work-experience students under exempted arrangements
• Self-employed persons
FlexSystem Recommendation:
To maintain sound and compliant operations, we strongly advise updating your payroll management system as soon as possible. In particular, review and adjust configurations for employees earning between HK$17,200 and HK$17,600 to align with the new record keeping threshold.
If you have any questions regarding automated system updates or configuration, please feel free to contact us for assistance.
🌐 Website: www.flex.hk
📧 Email: infodl@flexsystem.com
📞 Phone: (852) 3529 4123
