Hong Kong

Hong Kong is experiencing an increase in recruiting and retention problems due to current human capital trends.

The Hong Kong government is planning to increase contributions to Hong Kong's universal retirement protection system, the Mandatory Provident Fund (MPF).

Hong Kongs minimum wage of HKD $28 (USD $3.60) per hour was implemented on May 1, 2011.

Since July 2009, the average salary increases in Hong Kong have not been high enough to counter inflation. For 2011, this trend is expected to continue.

For the first time ever, Hong Kong will implement a minimum wage. At HKD $28 (USD $3.61), the wage falls in between the HKD $24 supported by the business community and the HKD $33 demanded by local labor unions.

A May 2010 survey conducted by the Hong Kong Institute of Human Resource Management (HKIHRM) reveals that salaries are once more on the rise in Hong Kong.

A recent study states that reports of employee fraud are on the rise in both Hong Kong and mainland China.

In July 2009, Pacific Bridge reported that a new minimum wage bill had been introduced in Hong Kong.

Hong Kongs Minimum Wage Bill was announced on June 26. The territorys Secretary for Labour and Welfare, predicted that the new minimum wage will take effect in late 2010 or early 2011.

The Hong Kong government has introduced a plan to revamp its enforcement against employers failing to contribute to the Mandatory Provident Fund (MPF), the citys pension program.

Although Hong Kong remains an important international city, its reputation as an expatriate destination has declined significantly in recent years.

According to a recent survey by the Hong Kong Institute of Human Resource Management, no pay cuts have been recorded in Hong Kong for four consecutive years. In fact, pay has increased by over 3% in most sectors.

On January 1, 2007, a new smoking ban became effective in Hong Kong.

The Hong Kong government is urging HR managers to develop contingency plans to keep their employees healthy and productive in the event of an influenza outbreak in the city.

More Hong Kong residents are looking to China for better job opportunities. Chinas economy is growing at a rapid pace and the country has a shortage of local talent with international business experience.

Hong Kong has historically been a favored location for Western companies headquarters and expatriate positions. The mix of Chinese and Western culture has made it a good place for families and overall quality of life.

On March 8, 2006, the Deputy Secretary of Security of Hong Kong, Michael Wong, announced that the law barring expatriate spouses from obtaining a job in Hong Kong would be abolished.

The Hong Kong government is working on a new anti-racism bill that will go into effect in mid-March 2006. This new law will make it illegal for private companies to discriminate against employees on the basis of race or ethnicity.

At the beginning of 2006, the Hong Kong government will implement a new plan to allow highly qualified Chinese mainlanders to move to Hong Kong. Chief Executive Donald Tsang announced the new policy on December 1, 2005.

Over the course of 2005, there has been a trend amongst Hong Kong employers to begin offering more flexible benefits packages to their employees. About 25% of employers now offer flexible benefits packages, a 60% increase from 2002.

A new social security tax for residents of Taiwan, Hong Kong, and Macau working in mainland China took effect on October 1, 2005. This new tax policy was first issued by the Chinese Ministry of Labor and Social Security (MLSS) in June 2005.

In a recent study by the World Banks International Finance Corporation, Korea ranked 105th out of 155 countries in labor flexibility. In contrast, Hong Kong was ranked 3rd, Singapore 7th, Japan 20th, and Thailand was ranked 23rd for labor flexibility.

As many in the past have discovered, there are a number challenges to deal with when doing business in China. The Hong Kong University of Science and Technology's School of Business and Management can help make the adjustment.

Salaries of Indian workers increased by nearly 15% in the last year, the highest in Asia. Behind India were China and the Philippines, which both saw salary increases of about 8%. Other high growth countries were Korea (7%) and Thailand (6.5%).

Success Through Partnership is the theme of a new campaign launched by the Labor Department to foster cooperation between employers and employees.

The Hong Kong Exchanges and Clearing Ltd. (HKEx) has decided to more strictly enforce existing regulations and effectively end the practice of allowing companies to issue share options to employees at discounted prices.

The Hong Kong Labour Department implemented the Occupational Safety and Health (Display Screen Equipment) Regulation on July 4, 2003.

A recent 2003 survey on expatriate packages in the Asia region found that expatriates in Hong Kong working for multinational firms received the highest perks among their counterparts in the region.

A survey conducted among 600 women workers by Hong Kongs Confederation of Trade Unions found that 48.8% of the women employees were sexually harassed within the past two years.

On February 26, 2003, the Hong Kong government announced it plans to introduce a new immigration policy that will allow Mainland Chinese employees to immigrate to Hong Kong.

As part of China's efforts to fully implement the countrys Green Card (permanent residence permit) system and to attract foreign talent, officials announced that residency benefits would be offered to top executives from Hong Kong, Macao, and Taiwan.

The economic future of Hong Kong hangs in the balance as the territory slips into a deep malaise. The mood in Hong Kong is no longer that of can-do-ism and optimistic capitalism.

Hong Kong implemented the Mandatory Provident Fund (MPF) Schemes on December 1, 2000 to address concerns over the aging population. The scheme is the first privately managed mandatory retirement plan there.

In Hong Kong, where employers often use discretionary bonuses to reward employees. However, employers must be careful in describing bonuses in employment contracts and other communications in order to avoid litigation.

Though unemployment is rising, vacancies remain in certain key sectors, and foreign companies operating in Hong Kong may still have difficulty filling some positions. Hong Kong has a labor force of approximately 3.4 million workers.

Although employment in Hong Kong is less regulated than in the United States or Europe, each employer must understand and consider the Employment Ordinance.

In December 2000, Hong Kong launched its new Mandatory Provident Fund (MPF), a compulsory retirement savings scheme covering over 2 million people.

Hong Kong is considering relaxing restrictions slightly on the importation of skilled labor from Mainland China and overseas.