Less largesse

Social Security Fund (FSS) president Ip Peng Kun estimateds that the government may only grant MOP4.8 billion (US$686 million) to the Fund this year compared to the MOP7.5 billion of 2014, due to declining gaming revenues. He also indicated that local residents have to realise that the contributions of the Fund must be shared among different parties. “Following the gaming revenues dropping for 11 consecutive months, many residents are concerned about whether the government will cut social benefits… The government will not cut social benefits; however, society should understand that social benefits contributions should be shared among the government, employers, employees and individuals to support the social security system together,” the FSS head said on the TDM Radio show Macau Forum yesterday. According to Mr. Ip, FSS granted approximately MOP2.6 billion last year for pensions and other social benefits, of which only 20 per cent was supported by contributions from society, while 80 per cent was met by the government. Mr. Ip said the government would reach a point that it could not support the Fund if it does not increase the contributions from society. In fact, the government has suggested increasing the contribution of the Fund from the current MOP45 per employee per month to MOP90 from July this year. However, a consensus has not yet been reached on the contribution ratio by employees and employers as the employers want to change the ratio from the current 2:1 to half-half. The FSS head told reporters yesterday that the Fund prefers to retain the current contribution ratio at 2:1, with employers paying MOP60 instead of MOP30 and employees paying MOP30 instead of MOP15 if the contribution is increased to MOP90. He also revealed that the Fund will submit the law draft on the non-mandatory provident fund this year, hoping residents will support their pensions more. He indicated that such a fund would become mandatory in the future. K.L.