TNAG-0789-FCO40-993-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 58

CONFIDENTIAL

EXECUTIVE COUNCIL MEMORANDUM

Social Security Development

;

Proposed Contributory Sickness, Injury and

Death Benefit Scheme

Introduction

On 30 August 1977, Honourable Members considered

memorandum XCC (77) 65 at Annex A and advised that a Green

Paper on Social Security Development should be published

covering, inter alia, the proposals for a semi-voluntary

contributory sickness, injury and death benefit scheme.

The Green Paper was published in November 1977 for public

comment.

2.

Briefly, the proposal was that contributions should

be voluntary on the part of employees but, if an employee

decided to contribute, then his employer must also contribute.

In return for modest contributions (about 2% of earnings

each from employers and employees), an employee would be

eligible for sickness and injury benefit (half earnings

for three months, after one month's qualifying period);

death benefit (a lump sum of six months' earnings) if

dying before 60; and possibly a small retirement benefit

at 60.

3.

An

The scheme was to be self financing, but the

administration would be paid for by the Government.

employer providing comparable benefits would be eligible

to "contract-out" of the scheme so that his employees

could not join it.

CONFIDENTIAL

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