Secretary for Labour & Welfare Dr Law Chi-kwong reaffirmed today the Government’s commitment to boost funds to scrap the offsetting of severance payments or long-service payments with Mandatory Provident Fund contributions.
“The Chief Executive and the Chief Secretary had already made it very clear that the present administration is ready to spend a bit more than the previous administration has planned to do, which is $7.9 billion.”
The previous administration proposed earmarking that amount to subsidise employers for 10 years after the abolition is implemented.
Dr Law said the new amount has not been confirmed yet.
He added he hopes a concrete proposal to end the MPF offsetting mechanism will be announced by the end of this year.
