Gov't open on MPF plan

(July 04, 2017)

The Government will keep an open mind on the proposal to scrap the offsetting of severance payments or long-service payments with Mandatory Provident Fund contributions and consider increasing subsidies to help employers cope with the abolition.
 
Chief Secretary Matthew Cheung made the statement to the media today, saying the Government will also consider extending the subsidy period to lessen the financial burden on employers.
 
The previous administration proposed earmarking $7.9 billion to subsidise employers for 10 years after the abolition is implemented.
 
Mr Cheung said the new-term Government will work on the foundation laid down by the previous administration and seek a consensus between employers and employees.
 
On the relationship between the executive and legislature, Mr Cheung said the Government will strive to enhance communication with legislators, and help them understand government policy stances to facilitate their vetting of policy proposals.