The Impact of Hong Kong's Minimum Wage Increase on Migrant Workers
Editorial written by Zaira Syarifah
On September 27th, 2024, the Hong Kong SAR Government announced a 2.5% increase in the Minimum Allowable Wage (MAW) for foreign domestic helpers, resulting in a remuneration rise from HK$4870 per month to HK$4990, or an approximately PHP 900 increase.
Minimum wage for foreign migrant domestic workers has remained a highly controversial topic amongst Hong Kong residents due to the disparity between rising wages and increasing costs of basic needs. This adjustment came after a thorough consideration of the general labor and economic conditions of the market and demonstrated as a way to combat inflation rates.
According to a government spokesperson, “We have carefully considered Hong Kong’s general economic and labor market conditions over the past year, as well as Hong Kong’s near-term economic outlook. Taking into account the aforementioned factors, the affordability of employers, and the livelihood of FDHs, the government has decided to adjust MAW.”
However, critics suggest that this new implementation falls short of what is required to adequately support the basic humanitarian needs of these workers – especially considering the majority of them are primary income providers for their families back home. Because of this, most migrant domestic workers are left with no choice but to seek more profitable employment and, consequently, further education.
Migrant domestic workers play a pivotal role in the success of Hong Kong’s social and economic sectors. In 2018, a study estimated that 3.6% of the economy’s GDP is owed to migrant domestic workers – a significant portion considering their current wages. They support working families and enable many of them to maintain their dual incomes despite household responsibilities. Furthermore, migrant domestic workers aid the growing number of elderly residents residing in the country. They provide affordable alternatives to childcare and nurseries.
On another note, despite free public tuition in the Philippines, the Philippine government falls short of monetarily aiding Filipino citizens looking to obtain university degrees. Given the current income of many Filipino families, obtaining an education has proven to be difficult in the Philippines.
As a result, Filipinos explore job opportunities abroad since higher education does not also guarantee a fruitful employment in their home countries. An analysis of Filipino domestic workers provided by The International Labour Organization states that only 7.4% of domestic workers complete some years of college education. Oftentimes, Filipinos have no other choice but to leave the country to work as domestic workers in Hong Kong.
While domestic worker wages in Hong Kong represent a substantial increase to their earnings in the Philippines, domestic workers often find themselves struggling to provide for their family’s needs back home. As a result, Full Phils has been leveraging education to give Filipino domestic helpers the opportunity to become something more. For many OFWs, education is their bridge to a brighter future.
Article sources:
- Increase in Minimum Allowable Wage and no change in food allowance for foreign domestic helpers. GovHK. https://www.info.gov.hk/gia/general/202409/27/P2024092700236.htm
- Hong Kong’s minimum wage goes up to HK$40 an hour but life’s still a struggle for poor residents. Can the city do better? South China Morning Post. (6 May 2023) https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3219569/hong-kongs-minimum-wage-goes-hk40-hour-lifes-still-struggle-poor-residents-can-city-do-better
- Hong Kong to raise minimum wage by 4.5% to HK$41.8 per hour – local media. Hong Kong Free Press. (29 April 2024) https://hongkongfp.com/2024/04/29/hong-kong-to-raise-minimum-wage-by-4-5-to-hk41-8-per-hour-local-media/
- Hong Kong’s new minimum wage still fails the working poor as wealth gap widens. Oxfam Hong Kong. (1 Feb 2023) https://www.oxfam.org.hk/en/blog/Responding-to-myths-about-the-minimum-wage
- Domestic workers contribute HK$98.9 billion to Hong Kong’s economy, 3.6% of GDP – study. Hong Kong Free Press. (6 March 2019) https://hongkongfp.com/2019/03/06/domestic-workers-contribute-hk98-9-billion-hong-kongs-economy-3-6-gdp-study/
- An Analysis of the Situation of Filipino Domestic Workers. ILO Special Action Programme to Combat Forced Labour: Mobilizing Action for the Protection of Domestic Workers from Forced Labour and Trafficking in Southeast Asia. https://www.ilo.org/media/324291/download
