Understanding Minimum Wage in Hong Kong [2026]: Key Updates

If you are planning to expand or start a company in Hong Kong and hire employees, understanding the city’s Statutory Minimum Wage (SMW) is essential. Compliance with the SMW is a key responsibility for employers across all sectors.

Hong Kong’s SMW, set by the Minimum Wage Commission of the Labour Department, is designed to protect workers while ensuring the city remains competitive globally.

This article will cover everything you need to know about Hong Kong’s statutory minimum wage, including its current requirements, who it applies to, what counts as wage and work hours, and how to calculate it to comply with regulations.

The current statutory minimum wage (SMW) in Hong Kong is HKD 42.1  per hour, effective from 1 May 2025. 

The rate is consistent across all districts and areas of Hong Kong, as well as across all age groups. When dividing the total wage by the number of working hours, the resulting average payment must stay within the minimum wage rate. 

Employers are also required to keep records of employees’ total working hours when the monthly wage threshold is less than HKD 17,200.

Unless specified otherwise, the statutory minimum wage applies to all employees, which includes:

• Employees under any type of wage payment period (monthly, weekly, daily, hourly, or per piece basis)
• Employees under all types of employment contracts (permanent, full-time, part-time, day rates, piece-rated, continuous contract and contracted staff).

Employees with disabilities are entitled to the same protection and statutory minimum wage as other workers. They may request a productivity assessment to determine if wages should be paid at or above the minimum wage or at a rate proportional to their productivity. 

This assessment is entirely voluntary and can only be requested by the employee. If an employee chooses not to undergo the assessment, they are still entitled to the minimum hourly rate.  

While the statutory minimum wage generally applies to all employees, certain types of employment are exempt, including the following.

In Hong Kong, the definition of wages covers a broad range of payments tied to an employee’s work, while excluding certain benefits and discretionary items. The sections below outline what is generally included as wages and what is excluded

These can be considered wages 

The following may not be counted as wages:

• Value of accommodation, education, food, fuel, water, light, or medical care provided by the employer
• Payments to cover special work-related expenses
• Employer's contribution to the retirement scheme
• Non-recurrent travelling allowance or reimbursements for actual travel expenses
• The commission, allowance, bonus, or similar payment that is given on a voluntary basis or paid solely at the employer’s discretion.
• Gratuity payable on completion or termination of a contract of employment

For more information, please refer to this Hong Kong labour department’s concise guide on wages.

The hours worked by an employee during a wage period include any time they spend:

• Being present at the workplace, whether actively working or receiving training
• Travelling as part of work duties (excluding normal commuting between their home and regular workplaces within Hong Kong)
• Commuting to a workplace outside Hong Kong that is not their usual workplace
• On standby or on-call at a location required by the employer
• During meal breaks, if the employee must remain on duty or at the workplace

The compensation provided to an employee for any given wage period, when averaged across the total number of hours worked during that period, must not fall below the minimum wage rate.

You can use this formula to calculate the minimum wage amount:

Example
If the statutory rate is HKD 42.1 per hour. An employee who works 100 hours in a wage period must be paid at least HKD 4,210 (100 × HKD 42.1).

For monthly‑paid staff or employees with irregular hours, divide total wages by total hours (including overtime) to check compliance. Example: HKD 8,000 over 100 hours equals HKD 80/hour, which meets the requirement. At 200 hours, the average falls to HKD 40 per hour, which is below the minimum wage, and the employer must top up the pay. This highlights the importance of tracking hours.

We recommend using the Labour Department’s Minimum Wage Reference Calculator to estimate the minimum wage owed. The tool considers information such as hours worked and rest days (excluding statutory holidays, annual leave, sick leave, maternity leave, and paternity leave).

Failing to pay the statutory minimum wage is a violation of employment law. Wages must be paid when due and no later than seven days after the end of the wage period. 

Intentional non-payment without a reasonable excuse can lead to fines of up to HKD 350,000 and imprisonment for up to three years. Employers must also pay interest on late wage payments. If an employee’s wages fall below the minimum wage, the employee is entitled to receive the difference.

Directors, managers, company secretaries, or similar officers may be personally liable if the offence was committed with their consent, knowledge, or neglect.

For employers, ensuring legal compliance with minimum wage laws is just the beginning. Building wage structures and practices that create a fair and equitable work environment can significantly enhance employee satisfaction and retention.
If you’re planning to run a Hong Kong business, understanding the Work Visa Schemes and setting up your company’s payroll are the next essential steps to ensure a smooth operation.