The Government has made an interim achievement on scrapping the offsetting of severance payments or long-service payments with Mandatory Provident Fund contributions.
Making the statement to the media today, Secretary for Labour & Welfare Stephen Sui said the Government’s proposal to scrap offsetting will help the next-term administration move forward with the issue.
He noted employers and employees have their own stances on abolishing the offsetting arrangement. However, what the Government has put forward is a finely balanced tripartite solution under which all three parties must make concessions, he said.
"I think all these developments, or I would say it is an interim achievement, would help the next term government to take forward the issue more quickly and easily."