Hong Kong’s statutory minimum wage went up to HKD 40 (USD 5.10) effective 1 May, the Hong Kong Labour Department announced.

The Hong Kong Special Administrative Region said in a statement that the minimum wage applies to all employees whether they are monthly-rated, daily-rated, hourly-rated, permanent, casual, full-time, part-time or other employees.

Hong Kong’s minimum wage also applies to employees whether they are employed under a continuous contract, however, it is not applicable to live-in domestic workers, student interns and work experience students under the Minimum Wage Ordinance.

The government also announced that employees with disabilities are entitled to the same protection as able-bodied employees.

The statutory minimum wage was adopted in January after the Minimum Wage Commission made the recommendation to raise the rate following a four-year freeze. It is estimated that nearly 90,000 of Hong Kong’s lowest-paid workers will get HKD 2.50 (USD 0.32) an hour or more in wages.

Hong Kong first introduced the statutory minimum wage in 2011 to provide protection to low-paid employees and set the amount at HKD 28 (USD 3.59) per hour. The rate was increased every two years until 2019 when it sat at HKD 37.50 (USD 4.80) and stayed at that rate until now.

Business Insider reports that the wage hike was widely panned by activists and labour groups who say the increment is not enough in the costly financial hub. In 2022, Hong Kong was the most expensive city to live in, according to consulting firm Mercer's cost of living list of over 200 cities.