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Call to scrap levy on foreign helpers

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The government is being urged to scrap a HK$400-a-month levy on employers of foreign domestic helpers, amid an ongoing review of how it will spend the HK$3.26 billion that has accumulated in the fund.

Since October 2003, employers have had to pay a levy of HK$9,600 on every two-year contract for a foreign domestic helper. It was imposed at the same time that helpers' wages were cut by HK$400 a month.

The government had been unable to use the funds because domestic helpers sought a judicial review against the levy, but the Court of Appeal dismissed their case in July last year. The time limit for lodging appeals has since expired.

Bank interest accumulated by the fund has reached HK$175 million, bringing its total to HK$3.4 billion, legislators were told last month.

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The Employees Retraining Board is conducting a strategic review of its scope and services, which will cover the use of the fund.

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