Transcript of remarks by SLW on preliminary thinking of abolition of MPF "offsetting" arrangement
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Reporter: What are some of the aspects that cannot be compromised in this proposal? Some asked for extra sum of money, extra fund for micro-enterprises. Is that possible?
Secretary for Labour and Welfare: There are a few principles when we are considering the cancellation of this "offsetting" mechanism (under the MPF System). Firstly, it must be removed and we need to do it as soon as we can. Secondly, we have to say that this issue of severance payment and long service payment is the fundamental responsibility of the employers.
Because we have to change the policy and we are going to do that, to cancel the "offsetting" mechanism, and because of that change in policy, there is a moral obligation for the government to help the employers to adjust gradually so that they can absorb the additional cost that they may have to pay. So, that is only a transition. Whatever the government is going to do to help the employers to transit this change in policy, it would be time-limited.
Ends/Saturday, March 31, 2018
Issued at HKT 12:41
Issued at HKT 12:41
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