The Protection of Wages on Insolvency Fund’s accumulated surplus stood at $3.967 billion last month.
Speaking at the Legislative Council today, Secretary for Labour & Welfare Matthew Cheung said the fund's board is reviewing its protection scope and the business registration certificate levy rate.
He said the fund is financed by an annual levy on each business registration certificate, currently at the rate of $250 a year.
In April to December last year the fund received $266.6 million from the levy.
The levy income in 2015-16 is projected to be $337.5 million.
The April to December period saw 1,741 applications from employees involving 345 employers and claiming ex-gratia payments of $149.4 million.
Noting the cyclical ups and downs of the local economy have a significant impact on the number of applications received by the fund and its payout, Mr Cheung said it is crucially important to ensure the fund's sustainability and a sufficient level of cash flow to cope with any economic downturn and sudden outbreak of major insolvency cases.
The fund's board is now reviewing the scope of the fund's protection and the levy rate, taking into consideration Hong Kong's socio-economic changes and needs as well as the fund's financial position.
The authority will consult the Labour Advisory Board and the Legislative Council Panel on Manpower once the review result is available, Mr Cheung added.
