Statutory minimum wage in Hong Kong: a family impact analysis

Abstract

ABSTRACTThis paper presents a study on family impact analysis of the Statutory Minimum Wage (SMW) in Hong Kong. Qualitative data were collected from seven focus groups and 13 individual interviews conducted with low-wage employees, parents of teenage workers, and parents of employees with disabilities. The 3D7L model of influence was adopted as the conceptual framework. The study found that SMW provided the participating employees with a wage floor and obviously raised their income. It facilitates family budgeting and motivates the participating employees to provide better care to their families. However, the rapid inflation eroded their increased income. They continue to work long hours to earn a living. In interaction with the gender norm, SMW boosted part-time work opportunities for women but the persistent gender norm limited their choices of work location and salary level. The implementation of SMW also escalated the social expectation on productivity that in turn intensified the marginalization of most vulnerable employees. For employees receiving public welfare allowances, the inflexible welfare policy has ‘rub off effect’ on their financial gain from SMW. In sum, SMW is not able to provide the adequate support and opportunities for the employees to actualize their motivations in giving better care to their families. Thus, the policy of SMW needs to be supported by other relevant social policies and services designed to address inflation pressures, minimize family-work conflicts, and mitigate the negative employment effects on the most vulnerable groups of employees.