CE calls for MPF plan support

(June 15, 2017)

The Government will strive to gain the community’s support for its upcoming proposal to progressively abolish the “offsetting” of severance payments or long service payments with Mandatory Provident Fund contributions.
 
Chief Executive CY Leung made the statement tonight, saying the Government is aiming to finalise the proposal by the end of this month.
 
He said it will protect employees’ rights and further improve their relations with employers.
 
Mr Leung said the Government plans to allocate $7.9 billion to help employers in the 10 years after the abolition is implemented, adding the Government will continue to seek the support of employers and workers.
 
He warned if they refuse to accept the proposal despite the Government’s subsidy pledge, the offsetting arrangement will continue to damage employees’ interests.
 
He said the Government will announce the final proposal in due course and explain the rationale behind it.