Hong Kong's Labor Department released the statutory minimum wage reference guidelines on Monday to assist employers and employees in understanding the Minimum Wage Ordinance's practical application.

According to the department, the statutory minimum wage will come into force on May 1 and the initial rate is 28 HK dollars per hour.

The reference guidelines, with more than 30 illustrative examples, explain the ordinance's provisions and its application. The department consulted the city's Legislative Council's Manpower Panel, the Labor Advisory Board and 300 organizations before compiling the guidelines.

Given the great variety of modes of employment, the guidelines do not cover all situations exhaustively. Instead, relatively common examples are included to cover different situations and the low-paying sectors to help employers and employees understand the ordinance and its application.

In addition, the department is collaborating with industry-based committees and liaising with stakeholders to formulate industry-specific guidelines to address the particular mode of operation and pay structure of a few individual sectors. On completion of the drafts, the department will consult stakeholders to finalize the guidelines as soon as possible.

The Minimum Wage Ordinance was passed by the city's Legislative Council on July 17, 2010. The Ordinance aims to establish a statutory minimum wage regime which strikes an appropriate balance between forestalling excessively low wages and minimizing the loss of low-paid jobs while sustaining Hong Kong's economic growth and competitiveness.