Legislation to implement a minimum wage was passed last July in Hong Kong, as part of of a government’s plan to reduce the wealth gap. However, there is no unison opinion about whether or not enforcing a minimum wage will actually help or hurt workers and the overall economy. The minimum wage in question is likely be around 28 Hong Kong dollars, the equivalent of approx US$3.61.
According to an article on China Real Time Report “Having a minimum wage simply means there is a transfer of income from people at the bottom of the wage scale to people who are slightly above them. Unless Hong Kong can manage the huge flows of low-cost and low-skilled workers coming across the border each day, there will continuously be a segment of the population which lives in poverty.” — Professor Francis Lui, Hong Kong University of Science & Technology.
The implementation of the minimum wage it seemingly not going to be received well. When a minimum wage is set it usually is for the workers’ good, but we’ll have a closer look as the situation develops, as in this case, it looks like the gap is just going to get bigger and bigger.