Wages refer to all earnings, tips, allowances, remuneration and service charges payable to an employee for the work done or to be done by them. In Hong Kong, the statutory minimum wage is currently set at HK$37.50 per hour by the Minimum Wage Ordinance (Cap. 608). Generally, the Ordinance applies to every employee, their employer and the contract of employment under which they are engaged.
Exemptions from paying the minimum wage
Certain student employees are exempted from receiving the statutory minimum wage. They include:
- Student interns; and
- Work experience students.
You are exempted from paying interns and/or students the minimum wage as they do not have any employment relationship with your organisation or company. However, the specified student employees must be attending the types of education programmes specified under the Minimum Wage Ordinance (Cap. 608).
There are also some significant differences between the nature and the requirements of an internship and a work experience:
| Internship | Work Experience | |
| Types of Education Programmes Enrolled in | Students attending full-time accredited programmes provided by local education institutions (see Schedule 1 of the Minimum Wage Ordinance (Cap. 608)); or Hong Kong resident students enrolled in full-time programmes at degree or higher level for non-local academic qualification | Same as internship |
| Nature | Endorsed or arranged by the education institutions that provide the programmes; and the internship forms an elective or compulsory part of the programmes | Does not have to be endorsed or arranged by the education institutions; and does not have to be curriculum-related |
| Age and Duration | No restriction on both age and duration of the internship | Age: below 26 years old at the time of the commencement of the employmentDuration: A continuous period of up to 59 days can be treated as exempt student employment upon agreement between the student and their employer; one exempt student employment at most may commence within the same calendar year; and the student must statutorily declare to verify this fact and provide their declaration (or a copy of the declaration) to their employer |
If the period of exempt student employment is less than 59 days under one employment contract, the remaining days cannot be carried forward to another employment contract within the same calendar year for the purpose of exemption. This would apply whether or not the employer is with the same employer.
As an employer, you should also keep records when you take on student employees. This is required under the Employment Ordinance (Cap. 57). Specimens of these documents have been prepared by the Labour Department for reference. Education institutions may also issue the required document based on individual needs and circumstances. For more details on keeping records, you may have a look at the Concise Guide to the Employment Ordinance.
For guidelines on the statutory minimum wage, you may visit https://www.labour.gov.hk/eng/public/content2_smw.htm. You may also visit https://www.labour.gov.hk/eng/erb/pdf/smw_esi_wes/Booklet_of_Student_Interns_eng.pdf for the notes on statutory minimum wage for student employees and employers.
Bibliography:
- Labour Department, ‘Statutory Minimum Wage’: https://www.labour.gov.hk/eng/news/mwo.htm
- Labour Department, ‘Statutory Minimum Wage Exemption for Student Interns and Work Experience Students’: https://www.labour.gov.hk/eng/erb/smw_esi_wes.htm