No connection between levy and wage rate
I refer to the letter by Leela Panikar ('Levy suspension rule will cause grief to foreign domestic helpers', August 7). I would like to clear the air and explain the Hong Kong government's policy on the employment of foreign domestic helpers.
Since the enactment of the Employees Retraining Ordinance (Cap. 423) in 1992, employers of imported workers have been required to pay an employees retraining levy of HK$400 per month to contribute towards the training and retraining of the local workforce in the long-term interest of Hong Kong's economy.
Pursuant to the recommendation of the report of the Task Force on Population Policy and approved by the Executive Council in February 2003, the levy requirement was extended to employers of foreign domestic helpers on October 1, 2003.
The imposition of the levy and the reduction in the minimum allowable wage for foreign domestics were two completely separate matters. There is absolutely no linkage between them.
The levy has been collected from employers of migrant workers under various labour importation schemes since 1992 and extended to cover employers of foreign domestics since 2003.
