Hong Kong’s latest minimum wage adjustment has sparked renewed debate over its standing as an “international city”, with figures revealing that the territory is falling behind not only its Asian neighbours but also developing countries like Mexico and Romania.
The Hong Kong government recently announced that the statutory minimum wage will increase from HK$40 to HK$42.10 per hour, effective from 1 May 2025. This represents a cumulative rise of just 5.25% over two years — or 2.625% per year on average — a figure that pales in comparison to minimum wage hikes seen elsewhere around the world.
According to a Euronews report, many countries have already announced significant minimum wage increases for 2025. In Turkey, for example, the wage floor is set to rise by 30% — a figure driven partly by high inflation, yet still reflective of a broader international trend of boosting workers’ earnings.
More notably, several European countries have announced wage hikes that far exceed inflation: Montenegro (+25.9%), Romania (+22.7%), Bulgaria (+15.4%), and Poland (+10%) all feature among the top movers. Within the European Union, 22 out of 27 countries have statutory minimum wages, and 16 of them are increasing wages by more than 6%.
Even Mexico, often classified as a developing economy, will see its minimum wage increase by 12% in 2025 — more than double Hong Kong’s rate.
In Asia, Taiwan’s minimum wage is set to rise by around 4% in 2025. Combined with its 2024 adjustment, that brings the total two-year increase to approximately 8%, well ahead of Hong Kong’s 5.25%. Japan raised its minimum wage by 5% in 2024, and its two-year cumulative increase is nearing 10%, though its 2025 rate has yet to be confirmed.
By contrast, Hong Kong’s minimum wage rose 2.72% in 2023 and was supposed to rise another 2.38% in 2024 based on a new formula. However, due to the territory’s “once every two years” review mechanism, there was no adjustment last year. The latest increase in 2025 is thus a belated two-year hike, averaging just HK$1.05 per year — a figure seen by many as insufficient to counter inflation and rising living costs.
Since the introduction of the statutory minimum wage in 2011, Hong Kong’s hourly rate has gone from HK$28 to HK$42.10. But for over a decade, wage increases have consistently lagged behind inflation, making it increasingly difficult for low-income earners to meet basic living needs.
Although the government introduced a new “formula” to guide minimum wage increases, promising a more calculated approach, the results have disappointed many. For frontline workers, the wage increase offers limited relief in the face of rising housing, food, and utility costs.
As Hong Kong continues to brand itself as “Asia’s World City”, the stagnation in its minimum wage policy tells a different story — one where even emerging economies are overtaking the city’s efforts to ensure fair pay for its workforce.