The abolition of a controversial mechanism that previously allowed bosses to dip into staff pensions finally took effect on Labour Day, with Hong Kong’s leader calling it “good news” for the city’s three million workers.
Advertisement
In a visit to frontline workers at the Hong Kong International Airport, Chief Executive John Lee Ka-chiu said employees were better protected under the new pension arrangement.
From Thursday, employers can no longer use the Mandatory Provident Fund (MPF) contributions of their staff to cover severance and long-service payments. The Legislative Council in 2022 passed a bill to ditch the mechanism, signalling an end to a lengthy tussle between employers and unions over the issue.
Lee visited the airport workers at a time when the United States imposed tariffs on its trade partners, including Hong Kong and mainland China, which disrupted supply chains worldwide.
“There are opportunities and challenges, which Hong Kong will strengthen seven-pronged strategies to cope with the tariffs,” he said, pointing to approaches such as riding on China’s development, fostering international collaboration and speeding up industrial upgrade.
Some Hong Kong industries are prepared for the new pension regime.