Legal update: Increase of Statutory Minimum Wage expected to take effect on 1 May 2026

Subject to the approval of the Legislative Council, and with effect on 1 May 2026:

1.     the Statutory Minimum Wage will likely increase from HK$42.10 to HK$43.10 per hour, and

2.     the monetary cap on the requirement of employers recording the total number of hours worked by employees will be revised from HK$17,200 to HK$17,600 per month.

In light of the expected increase in Statutory Minimum Wage, employers are reminded of the following:

• Subject to certain exceptions, the Statutory Minimum Wage generally applies to all employees regardless of the wage period, length of contract or working hours, and regardless of whether they are employed full time or part time.
• For the purpose of computing minimum wage, hours worked include any time when the employee is (i) at the place of employment as required by contract, agreement or instructions, regardless of whether actual work or training is provided; or (ii) travelling for work purposes (excluding regular commuting between home and the usual workplace).  A place of employment refers to any location where the employee is required to be, based on their contract, agreement or instructions, in order to perform work or undergo training.
• It is an offence if an employer wilfully and without reasonable excuse fails to pay wages when due, which includes payment of minimum wage. This is a breach of the Employment Ordinance, and the employer can be liable to a fine of HK$350,000 and imprisonment for 3 years.
• Minimum wage is a statutory right so any contract or agreement purporting to extinguish or reduce it shall be void.
• Employers must keep a record of the total number of hours worked by an employee in a wage period if the wages payable are less than the monetary cap which, until the revision takes effect, is currently HK$17,200.

For more information, please refer to the guidelines issued by the Labour Department on Statutory Minimum Wage at this link, which will be updated as appropriate.

The changes in the Statutory Minimum Wage and its review mechanism were part of the 2025 Policy Address.  For other employment issues the Chief Executive intends to act on, please refer to our article, Key Employment Issues from the 2025 Policy Address.

Russell Bennett

For more information on employment matters, please contact:

Russell Bennett
Partner | Email

Disclaimer: This publication is general in nature and is not intended to constitute legal advice. You should seek professional advice before taking any action in relation to the matters dealt with in this publication.