The Government has no plan to change the statutory monthly wage cap and level of maximum payment amount applicable to severance and long service payments.
In response to a lawmaker’s query, Secretary for Labour & Welfare Matthew Cheung said the $22,500 monthly wage cap for calculating severance payment and long services payment set down in the Employment Ordinance is still far above most employees’ monthly wages.
The maximum amount of $390,000 for the above two payments should also be able to provide a reasonable level of economic support to employees who lose their jobs, he added.
Mr Cheung noted more than 98% of Hong Kong enterprises are small and medium-sized, and to raise the monthly wage cap and maximum amount payable would create an additional financial burden.
The Government regularly reviews labour laws to improve employees' rights and benefits progressively, he said, while taking into account Hong Kong's social changes and pace of economic development, and the need to strike a reasonable balance between the interests of employees and employers.
