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The following is issued on behalf of the Provisional Minimum Wage Commission:
The Provisional Minimum Wage Commission (PMWC) held its second meeting today (June 5). The PMWC was briefed by government officials from the Social Welfare Department on the social welfare and social security system of Hong Kong, by economists from the Research Unit of the PMWC Secretariat and by an official from the Census and Statistics Department on the policy environment and socio-economic considerations in setting the statutory minimum wage (SMW) rate in Hong Kong.
Members noted that Comprehensive Social Security Assistance was an income subsidy provided on a household basis whereas wages were a return for an individual employee's labour. Members also enhanced their understanding of the uniqueness of local economic and social circumstances as well as the possible impact of the SMW on the labour market and the macro-economic and social aspects of Hong Kong. The briefings provided the PMWC with valuable reference information and a solid foundation for the analysis and discussion of the initial SMW rate in future.
The PMWC Chairperson, Ms Teresa Cheng, reiterated after the meeting, "The PMWC is mainly tasked to adopt an evidence-based approach in advising the Government on the initial SMW rate with a view to ensuring a sensible balance between forestalling excessively low wages and minimising the loss of low-paid jobs, while sustaining Hong Kong's economic growth and competitiveness."
The first set of statistical data to support the setting of the initial SMW rate will be available in early 2010. Before the availability of such statistical data, the PMWC will continue to gear itself up by studying SMW-related issues and the experiences of other places in implementing SMW, as well as understanding the concerns of stakeholders so as to lay a foundation for its future deliberation on the optimal initial SMW rate.
Ends/Friday, June 5, 2009
Issued at HKT 14:30
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