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FAQ > Employer Obligation > F04

Q: SMW rate is expressed as an hourly rate, do employers and employees need to change their wage payment mode from monthly / daily-rated to hourly-rated? View : 65

The employment and wage payment mode (i.e. employed and remunerated at monthly-rated, weekly-rated, daily-rated, hourly-rated or piece-rated, etc.) formulated between employers and employees in accordance with their employment contracts and the Employment Ordinance need not be changed with the implementation of SMW.

The Minimum Wage Ordinance provides a wage floor for employees. In essence, wages payable to an employee in respect of any wage period should be no less than the SMW rate on average for the total number of hours worked in the wage period. As long as the amount of wages payable is not less than minimum wage, it does not matter which wage payment mode is adopted. Therefore, it is not necessary for employers and employees to change their wage payment mode upon the implementation of SMW.

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