Chief Executive CY Leung says the offsetting of severance payments or long-service payments with Mandatory Provident Fund contributions is a long-standing problem that must be solved with determination.
Speaking to reporters at the airport before departing for Beijing today, Mr Leung said the problem has been affecting nearly all of Hong Kong's over three-million employees for almost 20 years.
He said no plan has been as concrete and comprehensive as the current proposal which earmarks $7.9 billion to subsidise employers for 10 years after the offsetting arrangement is scrapped.
Mr Leung urged employees and employers to reach a consensus on the proposal as the issue has strained relations between workers and their bosses for nearly two decades.
He said he will be happy to see the next-term Government put forward a new plan based on the discussions on the current proposal to attain the goal of scrapping the offsetting arrangement.
