CHAPTER 8
SICKNESS, INJURY AND DEATH BENEFIT
Appendix I
Limitations of existing social security schemes
8.1
At present, social security in the form of cash payments is provided on three different bases means-tested (the public assistance scheme), non means-tested but needs-related (the welfare allowance scheme and accident compensation schemes) and employment-related (occupational benefit schemes).
8.2
Each of these methods has its value and some limitations.
(a) The public assistance scheme is an effective means of
helping families with low incomes. But, because it is based on a family means test, it only helps families with low overall resources. Where there is more than one wage earner (and 50% of families, according to the 1976 By-Census, have more than one working member), the public assistance scheme is of limited value, even though the families suffer if a wage earner is out of work, due to sickness or unemployment. To cover such a situation, the public assistance scheme would have to be radically altered, to follow the European system under which dependants of working age are not treated as family members. That would be an expensive solution and would not be in keeping with the family tradition in Hong Kong.
(b) The welfare allowance scheme could be extended. But it
consists of non means-tested benefits and must remain needs related.
(c)
Accident compensation arises only where outside circum- stances (rather than family circumstances) qualify the family for help. As with the welfare allowance scheme, however, it is necessary to be satisfied that the circumstances justify the aid. Moreover accident compensation, as a branch of social security is (in international terms) relatively undeveloped. It seems better not to extend it here, until it has been tried out more fully elsewhere.
(d) Occupational benefits have spread steadily in recent
years, partly under statutory stimulus. It would not, however, be realistic to place further statutory obligations on employers to provide benefits funded by them alone; or to rely on the majority of employers to do so voluntarily, particularly for blue collar workers. Nor is there any overseas precedent for employers being required to provide a full range of benefits, without a state run alternative.
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