An NGO on Thursday said the government’s decision to increase the minimum wage level to HK$40 an hour is not enough for workers to make ends meet, saying instead that their hourly wage should go up to at least HK$60.1.

From May 1, Hong Kong’s minimum wage will rise by HK$2.5 an hour, but Oxfam Hong Kong said that’s barely sufficient to cover people’s basic expenses, and fails to catch up with inflation.

The group’s director general, Kalina Tsang, said workers should be offered a living wage of at least HK$60.1 per hour so that they can also save up for emergencies and gradually move up the social ladder.

A living wage is defined as the minimum income necessary for workers to meet their basic needs and live a decent life.

Wong Shek-hung, a programme director with the NGO, said paying workers more will result in a "win-win" situation for both employers and employees.

That’s because the workers will be more inclined to stay with the firm, which will in turn alleviate a manpower shortage problem.

Wong added that the government also has a role to play.

"The government, as the largest employer in Hong Kong, should take the lead in paying its outsourced workers a living wage. And also they should encourage other public sectors and public utilities to do so," she said.

"We have talked to senior government officials years before, they recognised this concept...Within this year, we can see an obvious improvement of the salary level of those outsourced workers."