CENTRAL: All firms in Hong Kong face changing business costs, so they should be able to cope with officials’ advance warning to dig deeper into their own pockets to pay employees’ severance and long-service payments, the city’s labour minister said on Sunday.
The labour minister was responding to several calls for officials to do more for the city’s small and medium-sized enterprises. Most oppose the plan, arguing it would impose a heavy financial burden, though the government said it would, through the fund, offer greater subsidies for smaller companies.
Small and Medium Enterprises Association president Stephen Kwok Chun-pong reiterated on Sunday that even after putting money into the savings fund, 44 per cent of SMEs hiring fewer than 10 people would still need to dig into their own pockets for severance and long-service payments after 20 years.
Kwok suggested that the government consider offering more help to firms earning up to HK$2 million a year, such as by matching the 1 per cent that employers would need to contribute to their savings account, as well as extending the 12-year grace period.
