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Homes for the elderly seek rise in subsidies

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Private homes for the elderly are calling on the government to increase its subsidy for their residents, to combat rising rents and the extra costs of the recently imposed minimum wage.

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Operators say the increases have put many of their homes at risk of closure as without an increase in subsidy they cannot cover their costs.

'Staff wages have increased 15 per cent due to the minimum wage,' Elderly Home Service Association chairman Chan Hok-man told the Legislative Council's welfare panel. 'But then many people have already left or want to leave the trade because the job is unpleasant. With the wage floor, people can find other jobs with similar salaries in a more comfortable environment.'

Almost 29,000 of the old people living in private homes - 75 per cent of the total - are on welfare.

Anna Mak Chow Suk-har, a deputy director in the Social Welfare Department, said a working group was reviewing the situation.

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'We understand that many elderly homes are facing pressure due to the [minimum] wage, rents and inflation,' she said, adding that the government would consider giving out a nursing subsidy to people living in private care homes.

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