HKCSS Urges HK$30 Billion Reserve for Universal Retirement Protection

With the treasury overflowing and next Wednesday’s Budget keenly awaited, the Hong Kong Council of Social Service wants the government to set aside HK$30 billion to prepare for universal retirement protection — and to guard the May minimum-wage rollout with a three-month unemployment allowance for low-paid workers who lose jobs. Relying on what is MPF’s second pillar alone, the council argues, will never be enough.

Why reserve HK$30 billion?

Ageing is accelerating, MPF is inadequate, and consultation cannot wait. The HKCSS submitted 21 proposals in four categories to the Financial Secretary last month, costing HK$48.5 billion — a record. Business director Chua Hoi-wai says Hong Kong’s ageing and insufficient post-retirement MPF coverage have been debated for years; with a bumper surplus, the government should provision now so a future universal scheme has enough “ammunition”. This year’s surplus is estimated at HK$80–100 billion — the right moment to prepare for rainy days.

How to help minimum-wage job losers?

A three-month unemployment allowance to tide over the lowest-paid. With minimum wage less than three months away, the government itself expects over 40,000 job losses. The HKCSS proposes a three-month allowance benchmarked to the HK$1,830 monthly single-person CSSA rate — HK$5,490 in total — costing about HK$220 million, as an incentive to re-enter work rather than linger on welfare. For disabled workers, it proposes a HK$200 million fund for workplace accessibility plus double tax deductions for caring employers.

What else does the council want?

Raise CSSA against inflation — and stop shifting responsibility to the Community Care Fund. The HKCSS wants CSSA and public welfare payments raised 2% this August, plus rent subsidies for CSSA households waiting over three years for public housing. Chief executive Christine Fang criticised recent relief as 80% captured by the middle class, with only 20% reaching the grassroots — and accused the Chief Executive of breaking his 2007 pledge to plan long-term welfare for ageing: “The Community Care Fund is not another Budget!”

To compare charges and returns across MPF funds, visit MPF fund comparison.