Hong Kong employer groups call for helper wage freeze, warn of mass sackings

A coalition of Hong Kong employers have urged the government to freeze the wages of foreign domestic workers this year, fearing that any wage hikes could lead to widespread layoffs. The International Domestic Service Industry Development Federation and the Quadripartite Alliance for Harmonious Employment Practices led about 30 employer representatives in petitioning the government on Saturday.

They held a banner with slogans demanding a pay freeze, warning that a wage increase for helpers would strain employers in the uncertain economic climate. Roughly 97% of 6,200 interviewed employers in a July poll supported the freeze, with 84% saying they could not afford a pay increase and might be forced to fire helpers if wages rose.

Federation spokeswoman Chrystie Lam Haa-iu noted that many employers themselves were out of work or facing pay cuts. The government-mandated minimum wage for helpers has increased by 7.8% over the past three years, with total employer expenses potentially reaching up to HK$11,000 (US$1,400). Lam emphasized that employers do not want to fire helpers and called for a performance-based pay mechanism to reward high-performing helpers without resorting to a flat rate adjustment for all.

There are about 380,000 helpers in Hong Kong, primarily from the Philippines and Indonesia. The government has been reviewing the minimum wage for foreign helpers annually, with the next decision expected in September. Last month, helper unions also petitioned for a wage increase and food allowance raise, citing inflation, previous wage freezes, and living cost increases.

The Labour Department is reviewing the helpers' minimum wage, considering factors like economic performance, labour market conditions, and employers' affordability, while balancing the interests of both parties.