Proposed social security hike to MOP90

The latest proposal by the Social Security Fund indicates that the contribution paid by employers and employees will be raised to MOP90 from the current MOP45 a month, said Ip Peng Kin, president of the administrative committee of the Social Security Fund (FSS). The ratio of the contribution will remain as 2:1, which means employers would pay MOP60 while employees would pay MOP30 if the proposal were passed.
The FSS president said the proposal is still under discussion by the Standing Committee for the Co-ordination of Social Affairs. He expects that representatives from both employers and employees would agree on the proposal within this month so that the plan can be implemented in the second half of this year. Following the hike in social security dues pensions may also be adjust upwards, said Ip Peng Kin when talking to reporters on Wednesday on the sidelines of a public event.
Ip Peng Kin said that the government has spent around MOP2.5 billion in giving out pensions and subsidies but only MOP400 million was contributed by employers and employees and the fee for employing non-resident workers.
Mr. Ip said with more people becoming eligible to claim a pension, without other source of income, a great threat would be posed to the Social Security Fund, which may only last another 50 years if dues are not adjusted. Currently, the major financial source of the FSS is from the government and gaming tax appropriation. Employers and employees’ dues only account for a small proportion.