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Following is an oral reply by the Secretary for Labour and Welfare, Mr Matthew Cheung Kin-chung, to a question by the Hon Jeffrey Lam on statutory minimum wage in the Legislative Council today (December 12):
Question:
Will the Government inform this Council whether it knows, among the countries which have implemented a statutory minimum wage system, the names and number of those which have set the average market wages as the statutory minimum wages, and how the statutory minimum wages set by the other countries compare with the local average market wages?
Reply:
Madam President,
The Labour Department is collecting information on statutory minimum wage regimes in other countries. According to the information collected so far, many countries with minimum wage legislation have put in place mechanisms to facilitate the determination of the levels of statutory minimum wage. The mechanisms differ from place to place as each would design a system that best suits its own needs and characteristics. Nevertheless, the nature of the social and economic indicators from which such countries draw reference is broadly similar. These indicators include, among others, the needs and attributes of the workers constituting the intended beneficiary group, the ability of the unemployed and low-paid to secure and remain in sustained employment, the cost of living, levels of social security benefits, labour market situation, wage level and rate of inflation as well as macroeconomic considerations such as the competitiveness of the local economy in a globalised world market, the cost of doing business and affordability for employers, etc. We are not aware of any country which has adopted the average market wage as the statutory minimum wage.
As regards the comparison of statutory minimum wages with local average market wages, research findings published in 2007 by the Organization for Economic Co-operation and Development (OECD) made reference to the minimum wages in its 21 member countries as a percentage of their respective gross average wages. Expressed as an across-country overall average, the gross earnings of full-time minimum wage earners in 2006 amounted to nearly 38% of the gross average wages. Amongst the countries, Ireland ranked the highest at 52% while Mexico ranked the lowest at 24%. In countries like France, the United Kingdom and the United States, the respective figures were 47%, 35% and 33%.
Ends/Wednesday, December 12, 2007
Issued at HKT 12:15
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