+
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13.
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In June 1990, this Council agreed to remove the wage ceiling so that all manual and non-manual employees, irrespective of their wages, could be covered under the ordinance. To limit the employers' liabilities, a wage limit of $15,000 a month was specified for the purpose of calculating the severance payment and long service payment. This wage limit was set at $15,000 at that time, having regard to the fact that employees with a monthly wage in excess of $15,000 were usually and adequately protected by contracts of employment which provided for retirement benefits, as well as the wage movements since the limit was first revised in 1987.
After more than four years, the wage limit of $15,000 is now due for revision. Having regard to the wage movement over the past few years, we propose that the wage limit for the purpose of calculating severance payment and long service payment under the Employment Ordinance be increased to $22,500 per month. The Labour Advisory Board has been consulted and has given unanimous support to this proposal. The Board has also agreed that the wage limit should be reviewed once every two years in future.
Mr President, I beg to move.
End/Wednesday, June 21, 1995
Employees' Compensation (A) Bill: Committee Stage
Following is the speech by the acting Secretary for Financial Services, Mrs Lessie Wei, at the Committee Stage Amendments to the Employees' Compensation (Amendment) Bill 1995 in the Legislative Council today (Wednesday):
Mr President,
I move that the clauses specified be amended as set out in the paper circulated to Members. The main purpose of the amendments is to specify the minimum amount of insurance cover for different employment situations to be purchased by employers in respect of their liabilities under the Employees' Compensation Ordinance. There are also other minor technical and drafting amendments.
To avoid any misinterpretation of the term "construction work", a definition of this term is added to section 38, through clause 3. The meaning of "structure" and "works" referred to in the definition of construction work is specified in the proposed Fifth Schedule, through clause 9.