Social Policy - Paper

The Statutory Minimum Wage comes into force on 1 May 2011 and the initial Statutory Minimum Wage rate is $28 per hour. The Minimum Wage Ordinance establishes an SMW regime aimed at striking an appropriate balance between forestalling excessively low wages and minimizing the loss of low-paid jobs while sustaining Hong Kong’s economic growth and competitiveness. Neither the Minimum Wage Ordinance nor the Employment Ordinance prescribes that meal break and rest days should be paid. Whether meal break and rest days are with pay or otherwise are matters to be agreed between employers and employees.
SMW applies to all employees, whether they are full-time, part-time or casual employees, and regardless of whether or not they are employed under a continuous contract 1 as defined in the Employment Ordinance, with the following exceptions :
◎ persons to whom the Employment Ordinance does not apply 2
◎ live-in domestic workers
◎ student interns as well as work experience students during a period of exempt student employment





Up till now, we can see there is an obvious effect of after implementing statutory minimum wage for a year, i.e. decrease in unemployment rate and increase in overall salary. Undoubtedly, after implementing statutory minimum wage, the overall salary level would increase. The median hourly wage was rise from $59.6 on April-June 2010 to $65.9 on May-June 2011. The median monthly wage was also rise 8.5% to $12,800.

Then, I would use the view of different position to analyze the effect of minimum wage in depth.
To government officials, what they concern is a smooth implementation and operation which balance both employer and employee. They seek for the statistical improvement like the rise in salary and drop in unemployment rate. They help the grass-roots family to improve their life significantly.

However, to most of the employer, they claim minimum wage as policy. Increasing operating cost together with the pressure from inflation...