Hong Kong Plans Standard Work Week and Overtime Pay
Hong Kong, along the lines of developed economies like Singapore and UK plans to implement a standard work week of 40-48 hours and an overtime pay of 50% of pay over and above normal pay. The proposed legislation has drawn flak as it is estimated to cost employers from US$1 billion to US$7 billion and affect a total of 2.8 million workers approximately.
- (1888PressRelease) December 27, 2012 - The Hong Kong Labor Department stated in favor of the legislation that workers' work hours are averaging 47 hours per week and 23 % of the workforce is working overtime. Only marginally more than 50% of the workers received overtime compensation.
However, industry leaders have advised against the move suggesting Hong Kong should not be following other nations with such standard work hour legislation, arguing different economies work on different models.
Critics have also warned that Hong Kong may suffer if the services are transferred overseas due to the rise in operational costs, as happened in South Korea when it introduced standard working hours.
The latest move may increase the operational cost for corporations working in Hong Kong, especially for the finance and services industry. For more information about Hong Kong's employment laws or doing business in Hong Kong please call or email us.
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