 
Senate Adopts Drilon Resolution Denouncing HK Levy on Maids
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The Senate unanimously adopted today Senate Resolution No. 558 introduced by Senate President Franklin M. Drilon, denouncing "in the strongest possible terms" the decision of the Hong Kong government to reduce the minimum wage of foreign domestic helpers by imposing a HK$400 levy on their salaries. The resolution said the levy was "discriminatory and should be brought to the attention of the International Labor Organization (ILO)." Drilon said "the tax burden is cruel and unjust as under Hong Kong's salary tax schedule, a Hong Kong resident must have a monthly income of HK$9,000 (if single) or HK$18,000 (if married) to be liable for salaries tax." "A foreign domestic helper in Hong Kong earns only about HK$3,670 a month and yet she would be required to pay the same amount of tax as a Hong Kong junior executive who earns more than seven times her salary," Drilon added. "This tax in inequitable as it will be imposed only on domestic helpers while the other service givers will not be similarly taxed." |
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In a statement, Drilon also noted that the decision of the Hong Kong government to unjustly cut the minimum wage of foreign domestic helpers will ruin its international image as a global city that adheres to free market principles. "Hong Kong's success has always been built on free market principles and its reputation for openness to foreign trade, investment, and services. It has always prided itself to be a global city and a free market economy," Drilon said. "This discriminatory and unjustified imposition on domestic helpers goes against those principles. It certainly does not look good for the Hong Kong government to make the lowliest paid workers bear the brunt of the sacrifice during bad economic times," he added. Drilon said any measure that would restrict the admission of the continued presence of foreign domestic helpers in Hong Kong would in effect be considered undue restriction on the free flow of services. |
"This imposition of the Hong Kong authorities would convey the wrong signal to the world that Hong Kong has now shifted its economic philosophy by including its lowliest paid workers as additional sources of revenues when times are hard," Drilon said. |
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"This imposition of the Hong Kong authorities would convey the wrong signal to the world that Hong Kong has now shifted its economic philosophy by including its lowliest paid workers as additional sources of revenues when times are hard," Drilon said. Last Wednesday, the Hong Kong government said it would cut the minimum wage for foreign domestic helpers by 11 percent, or HK$400 (US$ 51) to HK$3,270 beginning April 1. The cut would bring the wage rate for foreign domestic helpers to the 1992 level. The decision was announced by Donald Tsang, Chief Secretary for Administration, when he met with members of the Legislative Council. The decision will affect some 240,000 foreign domestic helpers of whom 153,000 are Filipino workers. |
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At the same time, Drilon reiterated his suggestion that Filipino domestic workers and the Philippine government should avail themselves of judicial remedies before the Hong Kong courts. Drilon said the wage cut was also discriminatory to women, who comprise 95% of Filipino domestic workers in Hong Kong. Tsang said the move, along with other revenue-generating measures, was necessary to address the government's budget deficit, as well as ease the impact of the economic slowdown on the Hong Kong middle class. Tsang announced that beginning Oct.1, a levy of HK$9,600 would be imposed on employers hiring foreign domestic helpers. The amount will be paid in four equal installments, and will apply to renewals of existing contracts and contracts signed after the effectivity of the law. Employers applying for foreign maids would have to pay the first installment, which is not refundable if they failed to get a new applicant within four months. In 1999, the Hong Kong government slashed by 5% the HK$ 3,860 minimum wage for foreign domestic helpers. |
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