XN000022-1995-09-01 — Page 7

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Safety net already in place for the needy and unemployed

Hong Kong has already had a well-established safety net in place to help those who are in need of financial assistance, including the unemployed.

The existing employment legislation also provides a number of benefits and protection to workers who lost their jobs, said Mr Joseph W P Wong, who has today (Friday) assumed the post of Secretary for Education and Manpower. Speaking at a media session, Mr Wong said he noted that some trade unions had called for the setting up of an unemployment relief assistance scheme.

In response, he explained that workers had already been provided with benefits and protection under the Employment Ordinance, including wages in lieu of notice, contractual end-of-year payment, and severance/long service payments.

Stressing the Government's serious concerns on the unemployment situation, Mr Wong said the Labour Department and the Social Welfare Department were working closely to offer employment service to the unemployed workers and advise them of their entitlements under the Employment Ordinance.

Under normal circumstances, one month's salary is paid in lieu of notice. Workers who have two years' service and are made redundant are qualified for severance payment. Those who have five years' service and are dismissed for reasons other than redundancy are entitled to long service payments. The rate of severance payment or long service payments is two-thirds of the monthly wages for each year of service.

In case the employer is insolvent, workers can get such payments from the Protection of Wages on Insolvency Fund.

For those unemployed persons who might need financial assistance, officers from the two departments will assist them to apply for the Comprehensive Social Security Assistance (CSSA) which comprises not only standard rates to meet basic needs such as food and clothing but also a wide range of special grants to meet specific needs of individuals.

The average monthly CSSA payment now ranges from $2,650 for a one-person household to $8,210 for a four-person household.