Gov't Determined To Scrap MPF

The Government is determined to scrap the Mandatory Provident Fund offsetting mechanism and will do it as soon as possible.

Secretary for Labour & Welfare Dr Law Chi-kwong made the statement after attending a radio programme today.

He said the Government will help employers with the transition when the offsetting mechanism is removed.

"There are a few principles when we are considering the cancellation of this offsetting mechanism. It must be removed and we need to do it as soon as we can.

"Because we have to change the policy and we are going to do that, to cancel the offsetting mechanism, and because of that change in policy, there is a moral obligation for the government to help the employers to adjust gradually so that they can absorb the additional cost that they may have to pay."

The transition will be time-limited, he added.