Revamp decades-old wages protection fund, govt urged

Trade unionists on Sunday repeated their calls for the government to review its payments and procedures for the Protection of Wages on Insolvency Fund, saying the fund has not been tweaked in 25 years.

The Federation of Trade Unions says more than a quarter of the applications for for owed wages in the previous financial year had exceeded the payment ceiling of HK$36,000.

The union pointed out that employment trends had evolved over the years, and many people have been freelancing. It said the government should review its mechanism for financial support.

It suggested the threshold for owed wages should be adjusted in line with wage trends and raised to HK$76,000.

The pro-Beijing party added that thresholds for other payments under the fund should also be raised.

It said more than 22 percent of applications for wages in lieu of notice exceeded a ceiling of HK$22,500 and nearly 30 percent of applications for compensation for untaken leave were above the maximum payment value of $10,500.

The FTU said it was unfair that employees, who had laboured hard, were unable to receive what they were fully owed.