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It is getting more expensive to even exist in Hong Kong nowadays, and Oxfam is putting a very specific price tag on what it takes to get by. Effective from October, the charity’s recommended living wage will rise to $64 per hour as the cost of basic necessities continues to climb in the city.
While the legal minimum wage is the absolute lowest an employer can legally pay you, the living wage is a bit different. It is calculated to see what an individual needs to earn in order for them and their family members to live a decent life. Using the globally recognised Anker Living Wage Method, Oxfam factors in elements like the costs of food, housing, education, healthcare, transport, clothing, and other essential needs. The figure is then reviewed annually against the consumer price index to keep pace with inflation.
The trouble is, the gap between this voluntary standard and the law remains significant. Starting May 1, Hong Kong’s legal minimum hourly wage is set to rise from $42.1 to $43.1 per hour, and while the government has recently introduced a new annual formula to review the legal minimum wage more frequently, there is still a massive gap of more than $20 compared to the proposed living wage.
Oxfam is now pushing the government to step up and lead by example. The charity is urging officials to adopt the living wage for all government staff and the thousands of cleaners and security guards hired through outside contractors. By setting a living wage as a baseline for public spending, Oxfam argues the government could provide a much-needed lift to the city’s lowest-paid workers and encourage the private sector to follow suit.
So far, the government has stayed rather quiet. There has been no official response to the proposed hike, and with the official minimum wage moving up by just a single dollar, it doesn’t look like the authorities are in any rush to bridge that gap. For now, hitting that higher pay grade remains entirely up to the conscience (and the wallets) of individual employers.
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