Lawmaker urges larger upfront incentives for CSSA recipients to return to work
Labour-sector lawmaker Chow Siu-chung says upfront financial incentives in a new pilot scheme should be larger to encourage welfare recipients to take jobs, warning the current structure offers little gain over benefits.
Labour-sector lawmaker Chow Siu-chung has urged the government to offer stronger upfront financial incentives to encourage Comprehensive Social Security Assistance (CSSA) recipients to return to work, warning that the current pilot scheme may provide little net gain over welfare payments.
Speaking on a radio programme, Chow said the Social Welfare Department had long sought to help CSSA recipients rejoin the workforce but results had been limited because the financial incentives were insufficient. He backed efforts to help recipients become self-reliant through stable employment but noted that the income gap between welfare payments and earnings from low-paid work could discourage some from taking jobs.
As an example, Chow cited a two-person CSSA household receiving nearly HK$13,000 a month. Under the new pilot scheme, which helps CSSA households transition to the Working Family Allowance, a recipient would need to work 192 hours a month to qualify for the transitional allowance, earning about HK$8,200 at the minimum wage. Even after including the allowance, the monthly amount would remain below HK$10,000, meaning some recipients could see little financial incentive to move from CSSA into employment, he added.
Chow suggested restructuring the scheme so that larger cash incentives would be provided in the earlier years of employment — for example, HK$20,000 in the first year and HK$15,000 in the second — before gradually decreasing. He acknowledged that such an arrangement could create another challenge, as some recipients might work for a year to obtain the higher payment before leaving their jobs.
Nevertheless, Chow said the scheme, which is funded by the Community Care Fund, should be refined to provide stronger incentives and help CSSA recipients make a smoother transition into the workforce.