or
8.3
Social security in Hong Kong has already developed considerably in this decade. But there are still significant social risks which are uncovered. When a person is sick, unemployed or retired from work, he can expect an income only if he receives it as a result of his previous employ- ment - either directly (as an occupational benefit) or indirectly (from savings or private provision, for example through an insurance policy) if he is entitled to public assistance, welfare allowance or accident compensation. This may not worry those with private means or a good employer: but it leaves unprotected for some contingencies many workers who would be hard hit by prolonged absence from work through sickness or unemployment, although the proposed improvements in the public assistance scheme and the proposed chronic sickness allowance will offer some relief. Moreover, even those who have managed to build up some savings may be reluctant to see them used up, because of loss of earnings through sickness, injury or death.
Sickness, injury and death benefit scheme
8.4
To help to meet the needs of families hit by prolonged absence from work, the Government is anxious to obtain public reaction to the possibility of a centrally administered semi-voluntary contributory sickness, injury and death benefit scheme, which would (with suitable exceptions) cover all employees who wish to join, though not (at any rate initially) the self employed.
8.5
Further consideration of the scheme will depend on the response to this Green Paper. Only if there is a substantial favourable response will the Government investigate further the details of a possible scheme. It would be pointless to introduce a semi-voluntary scheme if it appeared that it would attract only limited support.
8.6
Before such a scheme could be introduced, there would have to be an actuarial assessment of the rates of benefits and contributions necessary. It is hoped that it would be possible to keep contributions low (about 2% of earnings each from employees and employers, making 4% in all) with benefits corresponding with the low rate of contribution. It should be possible to provide worthwhile benefits at low rates of contribution, since the scheme would give protection during working life, rather than a benefit on retirement.
Possible main features of scheme
a) Membership of scheme
8.7
Any employed person could join the scheme, if he wished to do so, unless he were working for an employer who had contracted him out (see paras. 8.9-8.11 below). There would not be any medical examination as a condition of joining. In the initial stages of the scheme, the self- employed would not be able to join: but the position would be reviewed after the scheme had been in operation for some time. The scheme would not cover those doing part-time work in a particular job; the test might be that an employed person could join the scheme if he was earning over (say) $200 a month from each employment in respect of which he was joining,
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