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The definition of relevant income has also given rise to much discussion. Under existing ORSO schemes, contributions are usually a percentage of basic salary, and there have been proposals for the same usage to be applied to MPF schemes. However, we believe that to make such a change would not be in the best interests of the workforce. It would mean that persons whose income consisted of a low basic salary, and the rest in commissions, would lose out in terms of contributions, and eventual retirement benefits. There would also be the risk that some less scrupulous employers might redefine the employment terms of their employees so as to reduce their liability for MPF scheme contributions. This is not an area where we intend to make any changes.
Another area of exemption deals with those persons who are assigned to work in Hong Kong intermittently, but who are never really part of the Hong Kong workforce. There is no good reason for bringing such persons under the scope of the MPF. Accordingly, the Bill provides that persons from outside Hong Kong who come here to work shall be exempt from the provisions of the MPF if they leave Hong Kong permanently before the expiry of a period of 180 days. Also excluded, in a separate provision, are those persons who come here from overseas to work and who are already covered by a retirement scheme outside Hong Kong. This is because it might cause a person financial difficulties if he had to contribute to two schemes, one in his own country and one in Hong Kong.
We have been told, however, by some Members of this Council, that these provisions do not make it sufficiently clear as to who is exempt and on which occasions. Accordingly, to place the matter beyond doubt, we are replacing the sub- clauses which deal with this, as well as the item in Schedule 1, with a more general provision, which would exempt persons coming to Hong Kong from overseas for the purpose of limited duration employment or self-employment, or those who come here from abroad and who are already members of a retirement scheme outside Hong Kong, from the MPF, subject to rules to be made by the Authority. The rules would deal with such issues as the definition of "limited duration", and whether there should be a limit on the number of days or times each year when such an exemption could be applied.