Hong Kong Employer Coalition Urges Wage Freeze for Domestic Workers to Avert Job Cuts

POLICY WIRE — Hong Kong — A coalition of Hong Kong employers has urged the government to implement a wage freeze for foreign domestic workers this year, cautioning that any wage increases could lead to mass sackings.

The coalition, comprising the International Domestic Service Industry Development Federation and the Quadripartite Alliance for Harmonious Employment Practices, has proposed a new pay-for-performance mechanism. This system would allow employers to reward high-performing domestic workers more than those with lower performance.

The call for a wage freeze comes amid concerns over rising employment costs and their potential impact on the job market for domestic workers. The coalition represents approximately 30 employers’ groups.

“Any increase in wages could force employers to make difficult decisions, including potential job cuts,” said a spokesperson for the coalition. “We believe a wage freeze, coupled with a performance-based pay system, will help sustain employment levels while ensuring fair compensation.”

The Hong Kong government has yet to respond to the coalition’s demands. The issue of wage adjustments for foreign domestic workers has been a contentious topic, with workers’ rights groups advocating for wage increases to improve living standards.

Reporting by Policy-Wire (PW)