48
Wages and Conditions of Work
EMPLOYMENT
There is no legal minimum wage in Hong Kong. The wage level prevailing is essentially the result of an interplay of the economic forces of supply and demand.
Wages are usually calculated on a time basis such as hourly, daily or monthly, or alterna- tively on an incentive basis depending on the volume of work performed. Wages custom- arily are paid once every 10 or 15 days. Most semi-skilled and unskilled workers in the manufacturing industries are piece-rated, although daily rates of pay are also common. Monthly-rated industrial workers usually are employed in the skilled trades or in technical and supervisory capacities. Men and women receive the same rate for piece-work, but women generally are paid less when working on a time basis.
Wages of manufacturing workers continued to increase during 1979. By September, average daily wages (excluding fringe benefits) had increased by 81 per cent on the base period of July, 1973, to June, 1974. During the same time, the cost-of-living index went up by 40 per cent, making an increase of 29 per cent for the index of real average daily wages. In September, 1979, 75 per cent of the workers engaged in manufacturing industries received daily wages of $29.95 or more (male: $32.81 and female: $29.15) and 25 per cent $45.26 or more (male: $55.40 and female: $41.50). The overall average daily wage was $40.39 (male: $46.99 and female: $35.73).
In addition to granting rest days, statutory holidays, paid annual leave and other entitle- ments under the Employment Ordinance, many employers provide workers with subsidised meals or food allowances, good attendance bonuses, free medical treatment, and a Lunar New Year bonus of one month's pay. Free or subsidised accommodation and transport also are provided by some of the larger establishments.
A consumer price index (A), based on a household expenditure survey conducted from July, 1973, to June, 1974, is compiled as an indication of the effect of price changes on households spending $400 to $1,499 a month. In December, 1979, this index stood at 147 (see Appendix 16). A consumer price index (B) shows the effect of price changes on house- holds spending $1,500 to $2,999 a month.
Employment of children under the age of 14 has always been prohibited in industry. The Employment of Children Regulations 1979, which were made under the Employment Ordinance and came into operation on September 1, 1979, extended the prohibition of employment of children to the non-industrial sector, except in certain circumstances and subject to certain conditions. Children aged 13 may be employed in certain occupations in non-industrial establishments, except in occupations prohibited in the regulations. Types of employment and conditions, among other things, depend on whether the child has completed Form III of secondary education.
With effect from September 1, 1980, the minimum age of employment will be raised to 15. The labour inspectorate will gradually be expanded to cope with the additional enforce- ment duty.
In 1979, the labour inspectorate made 152,963 day and night inspections of places of employment, most of which were industrial establishments. In addition, three special campaigns against child employment were mounted in 25,066 factories. During the year, 250 cases involving 250 children were brought before the courts.
Under the Factories and Industrial Undertakings Ordinance and regulations, women and young people aged 14 to 17 are permitted to work a maximum of eight hours a day, six days a week. After five hours of continuous work, women and young people aged 16 and 17 must be given a meal or rest break of at least 30 minutes; in the case of young people aged 14 and 15, the break must not be less than one hour. In addition, the regulations limit overtime employment for women to 200 hours a year.