See Annexe
A to Report at Flag B
Social Security
7. There is no system of contributory social security in Hong Kong. Since 1972 the Government has provided disability allowances, and infirmity allowances (without means test) for
persons over 75 years of age. In addition, since 1971, public assistance by way of cash payments has been given to those in need. (The number of family units in receipt of public assistance is currently around 30,000 - a surprisingly small figure). is comprehensive workmen's compensation legislation, provision for limited payments by employers for sick leave, and severance pay legislation was recently introduced. Medical services are available to all at a nominal charge.
8.
There
The whole of the cost of social welfare and public assistance benefits is met on the Government's recurrent Budget. Given the pressures on that Budget of the Government's long-term housing and education programmes, the possibility of any substantial improvement for example, reducing the age at which allowances are paid to the aged from the current age of 75 - is very limited. This adds urgency to the need for a renewed appraisal of the practicability of introducing some form of contributory social
security in Hong Kong, to be paid for by employers and workers
without a Government contribution.
9. The Overseas Labour Adviser recommended in 1965 that thought
be given to introducing a 'National Provident Fund' type of scheme. This was later endorsed by a Working Party that reported in 1967. The problem needs a fresh and urgent look. It is argued locally that Chinese workers would not like to contribute to a Provident Fund type scheme but in fact large numbers do so in
respect of Provident Funds set up by individual large employers and are apparently very happy with that arrangement. Singapore has a very successful and long established National Provident Fund. (Other countries with such schemes include Malaysia, Fiji, Kenya, Tanzania, Nigeria and Zambia).)
10. A National Provident Fund on the usual basis of 5% of wages
from the worker and a similar amount from the employer would impose
CONFIDENTIAT,
/no financial
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