The Minimum Wage Ordinance, Cap. 608

Additional remuneration

Q1 :

Can employers deduct the amount of additional remuneration paid from employees’ wages of subsequent wage periods?

A1 :

If wages payable to the employee in respect of the wage period are less than the minimum wage, he is entitled to be paid the difference (i.e. “additional remuneration”). The contract of employment of the employee must be taken to provide that the employee is entitled to additional remuneration in respect of that wage period. The additional remuneration also applies in calculating entitlements under other relevant legislation. Therefore, employers cannot deduct the amount of additional remuneration paid from employees’ wages of subsequent wage periods.

Q2 :

If the total wages of an employee fall below the minimum wage in a wage period during which he earns no attendance bonus, does the employer need to pay him additional remuneration?

A2 :

An employee is entitled to be paid wages in respect of any wage period of not less than the minimum wage. The minimum wage for a wage period is the amount derived by multiplying the total number of hours (including any part of an hour) worked by the employee in the wage period by the SMW rate. If wages payable to the employee in respect of the wage period are less than the minimum wage, he is entitled to be paid the difference (i.e. “additional remuneration”).

Therefore, if wages payable to an employee in respect of a wage period are less than the minimum wage because he does not earn any attendance bonus, his employer has to pay him additional remuneration in accordance with the Minimum Wage Ordinance to meet the minimum wage requirement.