Furore Over Planned Tax For Foreign Domestic Workers Continues In Hong Kong

by Mary Swire, Tax-News.com, Hong Kong

14 January 2003

Around 3,000 domestic workers from the Philippines, Thailand, India and Nepal took to Hong Kong's streets at the weekend to protest the planned HK$500 monthly levy on their salaries, and possible cuts to the minimum wage level.

Speaking to the AFP news agency on Sunday, Asian Migrant Coordinating Body spokeswoman, Connie Bragas Regalado explained that:

'This is our last rally before the government discusses the minimum wage level so we want to show our anger at the proposed levy and call on them not to cut our wages.' She went on to add that: 'The levy is taxing the poor. We are already the lowest paid in Hong Kong. We won't compromise our stance which is totally against the levy and wage cuts.'

Commenting on the proposal to reduce the minimum wage for foreign domestic workers by 14% to HK$3,170, AFP revealed that such employees received a 5% wage cut in 1999, following the Asian financial crisis, and have not received any salary increases in just over five years.

Of all of the countries likely to be affected by the measures, the Philippines has been the most vociferous, as it supplies the territory with some 153,000 domestic workers, the majority of whom send money home to support family members. Speaking recently, Philippine Labour and Employment Secretary, Patricia Santo Tomas warned that her government may seek to prevent its citizens from working in the city in a domestic capacity if the new tax goes ahead, or the minimum wage cut is implemented.

Recommended