The Government has urged the business and labour sectors to reach a consensus on the proposal to scrap the offsetting of severance payments or long-service payments with Mandatory Provident Fund contributions.
Acting Chief Executive Matthew Cheung made the call before the Executive Council meeting today, noting Chief Executive CY Leung outlined a concrete plan to tackle the issue in his Policy Address.
Mr Cheung said the proposal balances employees’ retirement protection and employers’ operating costs.
The Government has earmarked $7.9 billion to subsidise employers for 10 years after the abolition is implemented.
The administration has taken an unprecedented step to intervene in this labour rights issue, with the proposal demonstrating political courage and resolve to tackle the situation, he added.
