Five business groups in Hong Kong continue to protest the proposed changes to the city’s MPF offsetting mechanism. In an attempt to prevent the scrapping of the arrangement, they have proposed an increase in their contributions to employees’ retirement funds.
The proposal by The Federation of Hong Kong Industries, Chinese Manufacturers’ Association of Hong Kong, Hong Kong General Chamber of Commerce, Chinese General Chamber of Commerce, and Employers’ Association of Hong Kong was discussed during a Labour Advisory Board meeting on Friday, the South China Morning Post reports.
Under the new proposal, the mandatory MPF contributions of employers would be increased from the current 5% to 6%. In return, the offset mechanism would remain intact.
The mechanism currently allows employers to use the money they put into employees’ retirement funds to offset severance and long-service payments. Earlier this year, Hong Kong’s chief executive Leung Chung Ying announced plans to scrap the mechanism, leading to protests from the business community.