PHILCONGEN-HK

Senate Resolution No. 558
Introduced by Senator Franklin M. Drilon

RESOLUTION EXPRESSING THE SENSE OF THE SENATE TO DENOUNCE THE IMPOSITION OF HK$400 LEVY ON SALARIES OF DOMESTIC HELPERS IN HONG KONG

WHEREAS, effective October 1, 2003, the Hong Kong Government will impose a levy of about HK$ 400 on the salaries of all foreign domestic helpers working in Hong Kong;

WHEREAS, once implemented, the salary of a foreign domestic helper will be cut by about 15% a month;

WHEREAS, this 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 7 times her salary;

WHEREAS, this tax is inequitable as it will be imposed only on domestic helpers while other service givers will not be similarly taxed;

WHEREAS, it has been reported that this levy is actually being imposed as a disincentive for employers hiring foreign domestic helpers and to help unemployed locals find work as domestic helpers;

WHEREAS, there are more than 150,000 Filipino domestic helpers working in Hong Kong who will be gravely affected by the imposition of this levy;

WHEREAS, over and above the unjust imposition of the levy, the Hong Kong SAR Government has also approved a measure to reduce by HK$ 400 a month the minimum allowable wage for foreign domestic helpers on or after April 1, 2003;

WHEREAS, Filipino domestic helpers have contributed substantially to Hong Kong's economy and this fact is recognized by their government;

WHEREAS, this tax levy is a discriminatory act on the part of the Hong Kong government and should be brought to the attention of the International Labor Organization (ILO) Committee on Standards; NOW, THEREFORE, BE IT

Resolved, as it is hereby resolved by the Senate, to express its sense to denounce in strongest possible terms, the imposition of the levy on salaries of domestic helpers in Hong Kong.

Adopted,

(Sgd.)

FRANKLIN M. DRILON
Senate President