TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 26

BACKGROUND NOTE

HONG KONG: IMPROVEMENTS IN SOCIAL SECURITY

The existing social security provisions in Hong Kong include a public assistance scheme, similar in function to supplementary benefits in this country, disability and infirmity allowances.

As

Proposals for further improvements were set out in a Green Paper published on 14 November. They include a non-means-tested

contributory sickness, injury and death benefit scheme. proposed, this is voluntary for employees who will contribute 2% of their income. Employers will contribute the same amount and will not be able to opt out of the scheme without the agree-

ment of their employees unless they provide an alternative scheme that is at least as generous. The Green Paper also contemplates the possibility of providing some form of retirement benefit.

The Green Paper was largely drafted by an expert from the Department of Health and Social Security on loan to the Hong Kong Government in whose opinion the process of consultation and implementation of the new scheme can be expected to take 34 years.