The Government’s proposal to scrap the offsetting of severance payments or long-service payments with Mandatory Provident Fund contributions is the most feasible and desirable option.
Chief Secretary Matthew Cheung made the statement to the media today, saying the current plan is the most practical after studying various proposals.
Mr Cheung said the proposal provides a good foundation for the next-term Government to carry the matter forward.
He also said the Government has to balance employee benefits and employer affordability when cancelling the offsetting arrangement.
He added the plan to earmark $7.9 billion to subsidise employers for 10 years after the abolition is implemented is an unprecedented act that demonstrates the Government's determination and sincerity in tackling the issue.
