Work Incentive Transport Subsidy: 32,000 workers lose eligibility after pay rises

Hong Kong’s minimum wage brought higher pay — and an unintended casualty: 32,000 workers lost eligibility for the Work Incentive Transport Subsidy. In September 2011, the Secretary for Labour and Welfare conceded the scheme lagged wage reality, but said it had to launch first.

Who qualifies for the Work Incentive Transport Subsidy?

Applicants must meet income and working-hour tests: over 72 hours a month qualifies for the full HK$600; 36–72 hours qualifies for half, HK$300. The monthly income cap is HK$6,500 for one-person households (net of MPF contributions) and HK$12,000 for two-person families, with subsidies backdated to 1 April 2011.

Amounts and income caps

Minimum wage pushes 32,000 out of the net

The government secured HK$4.8 billion early in the year to run the scheme for three years, originally expecting 436,000 beneficiaries. But after the May minimum-wage rollout, second-quarter Census data showed the one-person median income rising from HK$6,500 to HK$7,000 — above the cap — leaving 404,000 eligible workers, 32,000 fewer than projected.

How to apply

Forms are available from 22 September at 72 locations or online; applications open 3 October; payouts go by autopay, with the first payment — up to HK$3,600 covering April to September — due by year-end.

Review timetable and reactions

The labour chief promised a mid-term review after one year and a full review after three, not ruling out an earlier one; he called the HK$6,500 cap, already net of MPF contributions, generous, and had no plan to relax it. The DAB chairman and an FTU lawmaker urged the cap raised before any mid-term review, with the FTU also criticising inadequate publicity.