Hong Kong urged to review public housing income threshold due to new minimum wage
If Housing Authority proposal on income levels is adopted, two-person household working 10 hours a day for 26 days per month at minimum wage will fail to qualify
Hong Kong authorities should review the mechanism for setting the public rental housing income threshold and boost flat supply, lawmakers have said, as they fear some residents who earn the minimum wage may quit their jobs to remain eligible.
Labour sector lawmaker Dennis Leung Tsz-wing made the remarks on Monday after the Housing Authority suggested increasing the income and asset limits for 2025-26 by an average of 1.7 per cent.
Under the proposal, a two-person household will no longer meet the monthly income threshold of HK$20,230 (US$2,603) if both members work 10 hours a day for 26 days at the new minimum wage of HK$42.10, which is expected to be implemented on May 1. The wage is currently HK$40.
Their monthly family income – HK$21,892 – even after deducting a 5 per cent mandatory contribution for pensions, would still be above the threshold by around HK$570.
A three-person household will still meet the requirement even if two family members work full-time at the new minimum wage.
“Many full-time workers will quit their jobs and take odd jobs to ensure their income will not exceed the application threshold. Hence, employers face difficulties in finding hires, while the city cannot unleash its labour force. It will have a huge impact on the economy,” Leung told a radio show.
“Is it in line with the government’s advocacy of encouraging employment and increasing the working population? It requires the government to consider the overall situation to make changes.”