Hong Kong is consistently ranked one of the world’s most expensive cities, with some of the least affordable housing and, so too, the most luxurious lifestyles. However, according to the Hong Kong Poverty Situation Report for 2020, 23.6% of Hong Kong’s population – around 1.65 million people – live in poverty and are unable to afford necessities.

The charity Oxfam has been active in Hong Kong since the ’70s and set up a domestic program team in 1996. In 2018, Oxfam Hong Kong commissioned the Chinese University of Hong Kong to conduct research on the national living wage. This was the first of its kind in Hong Kong, but it was just the beginning of the organization’s work to tackle poverty in the city.

Those Below Hong Kong’s Poverty Line

Although the overall median household income was HK$29,000 (about $3,480) in 2023 (a 1.7% increase since before the COVID-19 pandemic), Oxfam argues that the growing disparity between the poorest and the wealthiest in Hong Kong society, largely due to the slow financial recovery of the poorest households after the pandemic, should act as “alarm bells for the whole of society.”‘

Hong Kong’s poorest residents made almost 60 times less than its wealthiest in the first quarter of 2023. Oxfam, citing the Census and Statistics Department, states that in the first few months of 2023, the median monthly income of the poorest 10% of households stood at HK$2,300 ($276), 57.7 times less than the wealthiest 10% of households, which earned HK$132,600 (approximately $16,000) in the same period.

Hong Kong’s “poverty line” operates on the principle of relative poverty. This means any household earning less than 50% of the median monthly household income before tax and welfare transfers is considered to be living in poverty. However, the 2024 Legislative Council Panel on Welfare Services Latest Work Progress on the Commission of Poverty states that the official ” poverty line” only takes household income as the sole indicator of their economic situation.

Wong Shek-hung, the Director of the Hong Kong, Macau and Taiwan Oxfam program, argued that a Hong Kong minimum wage that only considers household income is not enough. Shek-hung states that food costs increased by more than 7% from December 2019 to December 2022. She also pointed out that energy costs increased by more than 11% within the same period, which reflected similar cost increases around the world.

Oxfam’s Work

Oxfam believes that the growing disparity between the wealthiest and poorest in Hong Kong society clearly displays how “inequality breeds poverty.” Therefore, Oxfam supports various initiatives to help make a difference for those who need it most. Oxfam lobbies the Hong Kong government to consider the cost of living, such as the cost, as mentioned earlier, of necessities like food and energy when determining the poverty threshold.

Oxfam is aware that society’s poorest bear the brunt of adverse climatic conditions’ negative effects. So, the organization urges the Hong Kong government to develop official policies to support those living in poor conditions in adapting to different climatic conditions and increasingly frequent dramatic weather events. This includes a heat index that would stop outdoor work in high temperatures to reduce the risk of heat stroke. Oxfam also encourages the government to review the Hong Kong minimum wage in a post-COVID-19 society, as the path to financial recovery is much more difficult for lower-income households.

Results and Final Comments

The Hong Kong minimum wage was frozen at HK$37.50 ($4.78) from 2019 up until 2023 when, thanks to lobbying from organizations like Oxfam, the government raised it by HK$2.50 ($0.3) to HK$40 per hour ($5.1). This was a huge step for labor organizations in Hong Kong, but Oxfam argues that it is still not enough.

Oxfam found that nearly 210,000 people in Hong Kong were living in poverty in 2023 despite being employed. It stated that a minimum wage of $5.1 per hour was still lower than what a family of two would receive through social security programs. Oxfam Hong Kong continued to urge the government to raise the minimum wage to “at least 45.5 Hong Kong dollars.”

The government announced in May of 2024 that it planned to raise the Hong Kong minimum wage by 4.5% to HK$41.85 ($5.36). These small changes are thanks to the work of those at Oxfam Hong Kong, who are defending the lowest earners in society. Their advocacy is a testament to the change that can be made by lobbying governments about the most vulnerable in society.

– Kristina Grant

Kristina is based in Scotland and focuses on Business and Technology for The Borgen Project.

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