Secretary for Labour and Welfare Chris Sun said on Friday a proposed increase to the statutory minimum wage rate “beats inflation”.

This came after the Executive Council endorsed the Minimum Wage Commission’s recommendation for a rise in the current rate from HK$42.10 to HK$43.10, a 2.38 percent increase.

The revised rate is set to take effect on May 1 pending approval by the Legislative Council.

Speaking after a district visit on Friday, Sun noted 2026 marked the first year that the minimum wage was being reviewed under a new annual adjustment mechanism.

The 2.38 percent increase, he stressed, beats the city’s inflation rate of 1.9 percent.

“The HK$1 hike is definitely higher than inflation. The new formula also ensures that, in the event of Hong Kong encountering a deflationary environment or slow economic growth, the minimum wage will be maintained at the current [new] level rather than being reduced,” Sun said.

Lawmakers will discuss the matter on February 25.